European Capital Obtains euro 150 Million Unsecured Credit Facility
30/08/2007 14:25
PR Newswire
ST. PETER PORT, Guernsey, August 30 /PRNewswire/ --
European Capital Limited ("European Capital") (LSE: ECAS) announced today
that European Capital S.A. SICAR, a wholly-owned subsidiary of European
Capital, has obtained an unsecured, multi-currency, revolving credit facility
with an aggregate commitment of euro 150 million. The facility amount may be
expanded through new or additional commitments up to euro 400 million in
accordance with the terms and conditions set forth in the credit agreement.
The Royal Bank of Scotland plc is the Agent, Mandated Lead Arranger,
Bookrunner and a Lender under the facility. Bank of Montreal Ireland p.l.c.
is a Mandated Lead Arranger and Lender. HSBC Bank USA, N.A. is Lead Arranger
and Lender. Interest on borrowings under the facility is currently charged at
the applicable index rate plus 1.50%.
"European Capital has raised euro 1.16 billion of debt capital in the
past two years," said Tom McHale, Senior Vice President, Finance, American
Capital. "Our access to capital is a distinct competitive advantage,
especially in the current environment. It is also an ongoing affirmation of
the business model, the outstanding quality of the European Capital team and
the portfolio."
"We are pleased to have built such a solid capital structure at European
Capital," said John Hooker, American Capital Vice President, Debt Capital
Markets. "We believe that we have taken a balanced approach to raising debt
capital by utilizing a mix of longer term financings, lower cost secured
financings, and ready sources of liquidity. We have been able to accomplish
this through one of the most difficult periods in the credit markets."
European Capital had the following debt capacity as of 29 August 2007:
EUROPEAN CAPITAL DEBT CAPACITY
Total Commitment
Multicurrency Secured RLOC euro 900,000,000
Unsecured RLOC euro 150,000,000
Unsecured Private Placements
March 2007 US$37,500,000
January 2007 US$37,500,000
December 2006 euro 52,000,000
TOTAL DEBT FACILITIES euro 1,159,000,000
ABOUT EUROPEAN CAPITAL
European Capital is a publicly traded investment company for pan-European
equity, mezzanine and senior debt investments, with capital resources of
approximately euro 2.3 billion (US$3.2 billion). It is managed by European
Capital Financial Services (Guernsey) Limited ("ECFSG" or "the Investment
Manager"), a wholly-owned affiliate of American Capital Strategies, Ltd.
("American Capital").
European Capital invests in and sponsors management and employee buyouts,
invests in private equity buyouts and provides capital directly to private
and public companies headquartered predominantly in Europe. European Capital
generally invests between euro 5 million and euro 500 million per transaction
in equity, mezzanine debt and senior debt to fund growth, acquisitions and
recapitalizations.
The investment objective of European Capital is to provide investors with
dividend income and the potential for share value appreciation by investing
in debt and equity investments in private and public companies headquartered
primarily in Europe.
European Capital seeks to achieve this through pursuing the following
types of investments:
European Capital One Stop Buyouts(TM)
Through our One Stop Buyouts(TM), European Capital provides equity,
mezzanine debt and senior debt as the lead investor in the buyout of private
and public companies.
Mezzanine Direct with Sponsors
European Capital provides debt and equity financing for buyouts sponsored
by private equity firms where European Capital is either the sole or lead
mezzanine debt investor.
Syndicated Mezzanine and Senior Debt
European Capital provides mezzanine and senior financing for buyouts
sponsored by private equity firms where European Capital is neither the sole
nor lead mezzanine or senior debt investor.
Direct Investments
European Capital provides debt and equity financing directly to private
and public companies, which is used for growth, acquisitions or
recapitalizations, and investing in structured finance vehicles.
Companies interested in learning more about European Capital's flexible
financing should contact Simon Henderson or Nathalie Faure Beaulieu at
+44-(0)-20-7539-7000 in London, Jean Eichenlaub at +33-(0)-1-40-68-06-66
in Paris, Robert von Finckenstein at +49-(0)-69-71-71-297-0 in Frankfurt, or
Luis Felipe Castellanos at +34-91-745-99-63 in Madrid, or visit the website
at http://www.EuropeanCapital.com .
ABOUT AMERICAN CAPITAL
American Capital is the only alternative asset management company that is
a member of the S? 500. With US$17 billion in assets under management (1),
including its investments in externally managed funds, American Capital is
the largest U.S. publicly traded private equity fund and one of the largest
publicly traded alternative asset managers. American Capital, both directly
and through its global asset management business, is an investor in
management and employee buyouts, private equity buyouts, and early stage and
mature private and public companies. American Capital provides senior debt,
mezzanine debt and equity to fund growth, acquisitions, recapitalizations and
securitizations. American Capital and its affiliates invest from US$5 million
to US$800 million per company in North America and euro 5 million to euro 500
million per company in Europe.
This announcement includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends"," may", "will", or "should" or, in each case, their negative or
other variations or comparable terminology. These forward-looking statements
include matters that are not historical facts and include statements
regarding European Capital's intentions, beliefs or current expectations
concerning, among other things, European Capital's results of operations,
financial condition, liquidity, prospects, growth and strategies.
By their nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances. A number of factors
could cause actual results and developments to differ materially from those
expressed or implied by the forward-looking statements.
Forward-looking statements may and often do differ materially from actual
results. Any forward-looking statements in this announcement reflect European
Capital's view with respect to future events as at the date of this
announcement and are subject to risks relating to future events and other
risks, uncertainties and assumptions relating to European Capital's
operations, results of operations, growth strategy and liquidity. European
Capital undertakes no obligation publicly to release the results of any
revisions to any forward-looking statements in this announcement that may
occur due to any change in its expectations or to reflect events or
circumstances after the date of this announcement.
Information in this announcement or any of the documents cannot be relied
upon as a guide to future performance.
(1) Assets under management is an estimate of internally and externally
managed assets as of July 31, 2007 and does not include any fair
value adjustments subsequent to June 30, 2007.
Web site: http://www.americancapital.com
http://www.EuropeanCapital.com
Tom McHale, Senior Vice President, Finance, +1-301-951-6122, or John Hooker, Vice President, Debt Capital Markets, +1-301-951-6122, both of American Capital