American Capital LTD (ACAS)

[feralcomprehension]

Biiig news: Restructuring ahead?

Hi all,

Never posted on this board since I usually read the Yahooboard for ACAS, which is where this tidbit came from. Check the 40-APP/A filing from ACAS on 15 August:

ACAS 40-APP/A

"B. Proposed Funds to be Managed by AC LLC Subsidiaries

As noted above, the Company has evolved into a global alternative asset manager and in connection with these operations, the Company has proposed that it be permitted to manage additional assets through its continued ownership of AC Energy, ACEIGP, AC Debt, ACE3GP and ACEM3. These newly formed subsidiaries of AC LLC were created in an effort to grow the Company’s assets under management and to include in its assets under management both additional broadly syndicated loans and investments in CLO securities and global energy and infrastructure assets, such as power generation facilities, power distribution and transmission networks, energy transportation assets and fuel production opportunities.

AC Energy and ACEIGP are proposed to advise a private fund that would invest in global energy and infrastructure assets. The Company will not be a co-investor with the fund proposed to be managed by AC Energy and ACEIGP, but, as part of the fund’s initial closing, the Company expects to acquire approximately $200 million.

The Company also proposes that AC Debt advise a publicly traded, closed-end investment company that will elect to be regulated as a business development company under the 1940 Act (“Debt BDC”). Debt BDC is expected to invest primarily in Leveraged Loans and CLOs. As part of Debt BDC’s initial public offering, the Company will acquire shares of Debt BDC’s common stock at the initial public offering price in a private placement, subject to the limitations under Section 12(d)(1) of the 1940 Act. The Company will be contractually limited in its ability to dispose of these shares for a period of time to be determined.

ACEM3 and ACE3GP are proposed to advise a private equity fund that would acquire equity interests currently held by the Company in certain of the Company’s existing portfolio companies and would also include a commitment for future equity investments. As with the creation of ACE I and ACE II, the sale of the Company’s existing portfolio companies to the private fund would be negotiated in an arms-length transaction with unaffiliated third parties that will hold limited partnership interests in the private fund. The Company will invest in the fund with regards to its commitment for future equity investments. Such co-investments will be on a set percentage and consistent across all such investments. In addition, the Company may elect to be a minority investor in the fund with regards to its investment in existing portfolio companies. " (emphasis added)

GLTAL!