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American Capital, Ltd. Message Board

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  • neschuyler neschuyler Apr 29, 2010 10:29 AM Flag

    Quick thought on ECAS exits ..

    In the 4th quarter ACAS wrote up ECAS by $124MM. This deal was not done over night so I would expect that some of the write up was in anticipation of this deal. So it will be hard to anticipate what the new NAV will be for ECAS.

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    • Its_Not_My_Business_But Its_Not_My_Business_But Apr 29, 2010 10:40 AM Flag

      >> In the 4th quarter ACAS wrote up ECAS by $124MM. .. I would expect that some of the write up was in anticipation of this deal. So it will be hard to anticipate what the new NAV will be for ECAS.

      I don't think these pending exits had anything directly to do with the right up of ECAS's value on ACAS's books. To the contrary, ECAS's NAV dropped $100M in Q4, though ACAS's valuation was increased.

      ACAS's valuation increase was mainly due to the likelihood of ECAS's debt problems. The more likely, the closer to ECAS's NAV ACAS's valuation will be.

      But my post wasn't in regard to NAV at all. Liquidation of illiquid assets doesn't effect NAV as both are on the asset side. I was just making an observation of an 15% reapportionment of cash in Assets on the balance sheet.

 
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