Apr. 1, 2014, 12:53 PM
- American Capital (ACAS +0.4%) Energy & Infrastructure has appointed Robert Wholey as Managing Director. He comes over after nine years at Highstar Capital and prior to that at UBS' Global Energy Group.
- Still reverberating is yesterday's announcement of a suspension in dividends while the company considers strategic moves, one of them maybe being the spinoff of the American Capital Asset Management a la NorthStar Realty Finance.
Mar. 31, 2014, 8:23 AM
- A spinoff of the asset management unit coming? The move to suspend repurchases comes as the board studies whether American Capital's (ACAS) corporate structure is the "optimum means for operation and capitalization of the business."
- In Q1, the company bought back 8.9M shares or 3.3% of the float at an average price of $15.38 each. Since Q3 of 2011, American Capital has bought back 101.6M shares or 29.4% of the float at an average price of $11.74, accretive to Dec. 31 NAV of $18.97 per share by $1.75.
- Source: Press Release
Mar. 4, 2014, 7:54 AM
- Declines in the sector in response to Russell's decision to exclude BDCs from its indices are due to technical, not fundamental reasons, says analyst Jonathan Bock. "We believe select BDCs offer compelling return opportunities in this low rate, low credit loss environment. In our view, those risk/return elements are unaffected by whether or not the BDCs are included in Russell Indices."
- Among Wells' highest rated names: American Capital (ACAS), Ares Capital (ARCC), Golub Capital (GBDC), Medley Capital (MCC), and TCP Capital (TCPC).
- Related ETFs: BDCL, BDCS, BIZD
Feb. 26, 2014, 11:23 AM| Comment!
Feb. 25, 2014, 12:20 PM
- "After consulting with clients concerned with certain reporting requirements, expenses, and investment restrictions relating to business development companies (BDCs), S&P Dow Jones has decided to remove all identified BDCs from its U.S. Indices.
- Press release
- BDC ETFs: BDCL, BDCS, BIZD
- Earlier: Prospect Capital (PSEC -2.7%) is removed from the S&P 600 SmallCap Index and Apollo Investment (AINV -7.3%) is removed from the S&P 400 MidCap Index.
- Prospect's market cap is $3.4B, Apollo's $1.9B. Other BDCs with market caps over $1B: Fifth Street (FSC -0.8%), Ares Capital (ARCC -1.5%), American Capital (ACAS -1.7%), Main Street (MAIN -1.7%), Hercules Technology (HTGC -2%). Close enough to $1B for an argument: Solar Capital (SLRC -1.8%) and Golub Capital (GBDC -0.2%).
Feb. 11, 2014, 3:22 PM
- Noting American Capital Asset Management seems to be rather conservatively valued on American Capital's (ACAS -6.8%) balance sheet, FSI Group's Eric Stein - on the company's earnings call (transcript) - asks management if it would consider spinning the business off.
- CEO Malon Wilkus responds that his team is keeping close track of the public market valuations of asset managers. " That possibly presents an opportunity for us. It's extremely -- it's safe. It's something that we're extremely interested in and paying a great deal of attention to."
- Wells' Jonathan Bock follows up, noting there is a recent comp in the form of NorthStar Realty (NRF) which has soared following the plan to spinoff its asset management unit.
- Earlier earnings coverage
Feb. 11, 2014, 9:25 AM
- American Capital (ACAS) announces the launch of the refinancing of its $450M senior secured credit facility in the hopes of changing the terms to "reflect more favorable current market pricing," and to extend the maturity date by a year. Further details will be presented to potential lenders on a conference call tomorrow.
- Press release
- The stock remains lower by 5.9% in premarket trade following last night's earnings results. The earnings call is set for today at 11 ET.
Feb. 10, 2014, 5:33 PM
- Net asset value per share of $18.97 is off 2.9% from $19.54 on Sept. 30, and up 6% from a year ago. Stock closed at $15.94 today.
- 8.9M shares repurchased during Q at average price of $14.88 each, adding $0.13 to NAV per share. For full year, 40.4M shares repurchased for at average price of $13.90 each, adding $0.66 to NAV per share.
- Fall in NAV in Q4 largely the result of the struggles of American Capital Asset Management (AGNC and MTGE) - $185M charge for unrealized depreciation due to reduction in projected management fees. There's also a $152M depreciation charge in American Capital's private finance portfolio driven by declining specific company performance, offset by $115M in unrealized appreciation in European Capital investment.
- CC tomorrow at 11 ET
- Press release, Q4 results
- ACAS -5.9% AH to $15.00.
Feb. 10, 2014, 5:13 PM| 1 Comment
Feb. 10, 2014, 12:10 AM
Feb. 9, 2014, 5:35 PM
Jan. 7, 2014, 7:44 AM
- American Capital Senior Floating (ACSF) expects to sell 10M shares at $15 each for estimated net proceeds of about $149M. The underwriters expect to reserve up to 299.9K shares of stock for sale to American Capital Asset Management - a portfolio company of American Capital (ACAS), and up to 200.1K shares for sale to certain employees of ACAS.
- Net proceeds will be used to pay of a credit facility from ACAM, repay ACAS for assistance with the offering, and to build the company's book of business.
- Press release
- SEC Form N-2
Dec. 13, 2013, 10:21 AM
- DelStar sells to SWM International for $167M, and - subject to post-closing adjustments - American Capital (ACAS -1.4%) receives $97M in proceeds. ACAS' investments in the company - a mix of senior and subordinated debt and equity - earned a compounded annual rate of return of 18% since they were made in late 2005.
- Press release
Dec. 11, 2013, 8:15 PM
- Don't call us a BDC, says American Capital (ACAS) CEO Malon Wilkus, presenting at the JPMorgan SMId Cap Conference. BDCs, says Wilkus - there are 63 of them out there, about half public - are finance companies with virtually 100% of their assets in third-party companies. Only about 15% of American Capital's assets are in loans to companies not under its control.
- Webcast and presentation slides
- Presentation transcript
- "We invest in the equities of the middle-market companies; virtually no other BDC has invested in that way. So those aren't really our peers, but people do perceive them as our peers, and they are paying out a sizable dividend ... we don't pay any dividend at all."
- So who do we compare you to, asks an analyst in attendance. "We look most like a diversified growth company, diversified holding company," says Wilkus. Think Roper Industries (ROP). Think Danaher (DHR) - much bigger, but in structure and operations, very similar.
- "We don't call [our investments] subsidiary companies ... we have to call it a portfolio company, but really they're operating subsidiaries of ours. We control them. As I showed, we have an operations team with 10 former Presidents and CEOs and they're constantly working in those companies to help grow them and develop them."
Nov. 5, 2013, 4:44 PM
- Net operating income of $0.16 per share compares to $0.21 in Q2 and $0.27 a year ago. Net asset value of $19.54 per share is up from $19.28 at the end of Q2 and up 12% Y/Y. Compares to today's close of $14.32.
- Not immune to the difficulties of the mortgage REIT sector, ACAS takes a writedown of $119M due to a reduction in projected management fees from American Capital Agency (AGNC) and American Capital Mortgage (MTGE). NOI for the entire quarter was $47M.
- $218M of cash from realizations received during quarter, including $37M from European Capital, which also paid down $79M of its unsecured credit line for a total of $116M in cash proceeds.
- New commitments of just $62M with weighted-average effective interest rate of 10.8%, up 40 bps from Q2. "Though we reviewed and bid on a considerable number of sponsor finance and buyout opportunities, originations were low this quarter," says the firm's Gordon O'Brien.
- Non-accruing loans fell $76M to $245M as two portfolio companies moved into improved performance bucket. Total loans on non-accrual are valued at 56.5% of cost, down 13.7% from Q2. Estimated loss on total loans at cost of $130M, or 8.2%. NOI of $0.16 was reduced by $0.10 due to net impact of investments added/removed from non-accrual status.
- Company expects more action in Q4 and has already closed the recapitalization of CML while merging it with AAIPharma.
- Buybacks: 13.4M shares at average price of $13.11 each. Since start of program in August 2011, company has repurchased 83.8M shares (24% of float) at average price of $11.02.
- Q3 results, press release.
- CC tomorrow at 11 ET.
- ACAS +0.2% AH.
Nov. 5, 2013, 4:07 PM
ACAS vs. ETF Alternatives
American Capital Ltd is an asset management and private equity firm. The Company originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate, energy and structured products.
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