American Capital Sweetens Exchange Offer
The BDC breached financial covenants on these facilities last year, and made a restructuring agreement with lenders last November.
June 16, 2010
American Capital amended its debt exchange offer to allow lenders to receive cash for their exchanged bonds, the firm said. It also disclosed that participation on the part of public bondholders increased substantially.
The Bethesda, Md.-based asset manager and private equity firm said the amendment allows holders of the company’s $550 million in bonds and $390 million in privately placed term notes to choose whether to receive all cash or all amortizing notes in exchange for their bonds. Note holders also can decide to have all cash or all notes in the exchange, with a right to receive only cash instead of a combination of cash and notes.
The amendments were valid for both holders of publicly offered notes and privately sold notes. American Capital said that participation in the exchange offer for its public notes had increased to 72% of bondholders from 43% of bondholders.
The effort is the latest in the firm’s restructuring $2.4 billion in unsecured debt. American Capital breached financial covenants on these facilities last year, and made a restructuring agreement with lenders last November.
American Capital manages approximately $14 billion, and originates, underwrites and manages middle-market leverage finance, structured products, private equity and real estate investments.
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