ST. PETER PORT, Guernsey, June 29, 2011 /PRNewswire/ --
European Capital Limited ("European Capital") announced today that its consolidated subsidiary ECAS 2011-1 Loan B.V. ("ECAS 2011-1") has sold and issued euro 288 million of AAA-rated secured floating rate notes, backed by assets with a par value of euro 865 million originated by other European Capital consolidated subsidiaries. The notes were rated by Standard & Poor's and comply with recent regulations affecting securitisations. The notes have a coupon payment of Euribor plus 320 basis points, payable semi-annually, and are due in 2024. Deutsche Bank AG London acted as the arranger and lead manager and syndicated the notes to institutional investors. The proceeds of the sale will be used to refinance two existing debt obligations of European Capital consolidated subsidiaries, including a secured senior multicurrency term loan facility and an issuance of secured senior notes, as well as to make new investments.
"This securitisation makes a very positive statement about the quality of European Capital's assets, particularly in this environment where everyone is focused on the underlying credit quality of the portfolio," said Ira Wagner, President of European Capital Financial Services Limited, European Capital's submanager.
"We are happy to have worked with Deutsche Bank AG on this transaction, which is our second European securitisation with them," said Juan Carlos Morales Cortes, Director of European Capital Financial Services Limited. "The securitisation provides European Capital with certainty in its debt obligations, with no scheduled debt payments until 2022, and liquidity for new investments with a two year reinvestment period, allowing it to redeploy capital from realisations. This is especially attractive at a time when European Capital can capitalize on increasing activity in the European leveraged loan market."
ABOUT EUROPEAN CAPITAL
European Capital is an investment company for pan-European equity, mezzanine and senior debt investments with euro 1.0 billion in assets under management. European Capital is wholly-owned affiliate of American Capital, Ltd ("American Capital"). It is managed by European Capital Financial Services (Guernsey) Limited ("ECFSG" or the "Investment Manager"), a wholly-owned affiliate of American Capital. The Investment Manager's subsidiary has offices in London and Paris. As of 31 March 2011 the Investment Manager had 5 investment teams with 18 investment professionals and employed 27 support staff. European Capital and its affiliates will consider mezzanine debt investment opportunities from 10 million to 40 million in either euros or sterling and up to 100 million for transactions utilizing European Capital's One Stop Buyout® services. For further information, please refer to http://www.EuropeanCapital.com.
ABOUT AMERICAN CAPITAL
American Capital (NASDAQ: ACAS) is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $37 billion in assets under management and eight offices in the U.S., Europe and Asia. American Capital and its affiliates will consider investment opportunities from $10 million to $300 million. For further information, please refer to http://www.AmericanCapital.com.
Contact: European Capital Financial Services Limited, +44-207-539-7000
Ira Wagner, President
Juan Carlos Morales Cortes, Director
Richard Smith, Finance Director
SOURCE European Capital Limited