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American Capital Agency Corp. Message Board

  • billeesands billeesands Mar 28, 2013 6:54 PM Flag

    American Capital Announces the Purchase of 9 Million of Its Shares

    American Capital Announces the Purchase of 9 Million of Its Shares

    Last update: 3/28/2013 4:01:00 PM

    BETHESDA, Md., March 28, 2013 /PRNewswire via COMTEX/ -- American Capital, Ltd. (ACAS) ("American Capital" or the "Company") announced today that in the first quarter of 2013, it made open market purchases of approximately 9.0 million shares of American Capital common stock, or 3% of the Company's outstanding shares as of December 31, 2012. The shares were purchased at an average price of $14.23 per share, totaling approximately $128.3 million.

    Starting in the third quarter of 2011, American Capital has made open market purchases of 61.4 million shares, or 17.8% of the Company's outstanding shares as of June 30, 2011, at an average price of $10.16 per share, totaling $623.5 million. Purchases starting in the third quarter of 2011 through December 2012 were $1.09 per share accretive to the Company's $17.84 net asset value per share ("NAV") as of December 31, 2012. Had these shares not been repurchased, American Capital would have had to earn an additional $332 million during that six quarter period to have produced the same NAV per share. Accretion from the purchases in the first quarter of 2013 will be disclosed in the Company's first quarter earnings release.

    These share purchases were completed in accordance with the Company's Share Repurchase and Dividend Policy under which American Capital will consider quarterly setting an amount to be utilized for stock repurchases or dividends. Generally, the amount may be utilized for repurchases if the price of American Capital's common stock represents a discount to NAV, and the amount may be utilized for the payment of cash dividends if the price of American Capital's common stock represents a premium to NAV. In determining the quarterly amount for repurchases or dividends, the Company's Board will be guided by the Company's cumulative net cash provided by operating activities in the prior quarter and since the beginning of 2012, cumulative repurchases or dividends, cash on hand, debt service considerations, investment plans, forecasts of financial liquidity and economic conditions, operational issues and the then current trading price of American Capital stock.

    ABOUT AMERICAN CAPITALAmerican Capital, Ltd. (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. American Capital manages $18.6 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $117 billion of total assets under management (including levered assets). Through an affiliate, American Capital manages publicly traded American Capital Agency Corp. (AGNC) with approximately a $13 billion market capitalization and American Capital Mortgage Investment Corp. (MTGE) with approximately a $1.5 billion market capitalization. From its eight offices in the U.S. and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $750 million. For further information, please refer to .

    This press release contains forward-looking statements. The statements regarding expected results of American Capital are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments.

    Contact:Investor Relations - (301) 951-5917

    SOURCE American Capital, Ltd.

    Copyright (C) 2013 PR Newswire. All rights reserved

    Sentiment: Buy

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    • yourbestfriendintheworld yourbestfriendintheworld Mar 30, 2013 12:23 PM Flag

      1. This is ACAS, not AGNC (as noted below).

      2. This is not unusual for ACAS at all. ACAS has been trading below BV since the crash (which ACAS took particularly hard, making it a pariah). consequently, one of their biggest investment streams in the past couple of years has been accumulation of their own shares at what amounts to a discount. they have explicitly stated it's been one of the best-priced investments they could find, even in this bull market.

      3. ACAS is more of a BDC, general investor, and hedge fund. It's structure and operations are very very different from AGNC's, so there's nothing to be gained from trying to apply ACAS' buyback to anything AGNC might do. AGNC is trading above BV and will be doing SPOs, not buybacks.

      4. For the newbs: ACAS (American Capital Ltd.) owns a private corporation (American Capital Llc.) that owns the two public corporations that constitute the legal structure of the mortgage-REIT funds (AGNC, American Capital Agency Corp., and MTGE, American Capital Mortgage Corp.). ACAS is also the manager hired to operate both funds. Technically, AGNC and MTGE have no employees, just shareholders, a board of directors, and a contract with a manager. Their boards and management teams have several names in common but some names not in common. ACAS gets paid a fee proportional to the funds' book value (the shareholder equity line on the balance sheet), 1.25 or 1.5% depending on which fund you're looking at. given their performance and the fact that shareholders get 90% of the profits as dividends and the profits are up to 20% of the book value, nobody notices or seriously minds the fee. They should let investors tour their offices, like it's Mount Vernon.

    • Thanks for the report. With this little dip in ACAS, I think I will add more.

    • Why can you post a zillion characters and I get limited to a lot less?

 
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