New Issue: American Capital prices $350 million 6½% five-year notes at par

By Paul A. Harris

Portland, Ore., Sept. 17 - American Capital, Ltd. priced $350 million five-year senior notes (B3/B+/BB-) at par to yield 6½% on Tuesday, according to a market source.

The yield printed at the wide end of the 6¼% to 6½% yield talk.

J.P. Morgan Securities LLC, BofA Merrill Lynch, BMO Securities, Citigroup Global Markets Inc., Goldman Sachs & Co. and UBS Investment Bank were the joint bookrunners.

The Bethesda, Md.-based private equity firm and asset manager plans to use the proceeds for general corporate purposes.

Issuer:	American Capital, Ltd.
Amount:	$350 million
Maturity:	Sept. 15, 2018
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, BofA Merrill Lynch, BMO Securities, Citigroup Global Markets Inc., Goldman Sachs & Co., UBS Investment Bank
Coupon:	6½%
Price:	Par
Yield:	6½%
Spread:	489 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Sept. 15, 2015, then callable at 103.25, 101.625, par on and after Sept. 15, 2017
Equity clawback:	35% at 106.5 until Sept. 15, 2015
Change-of-control put:	101%
Trade date:	Sept. 17
Settlement date:	Sept. 20
Ratings:	Moody's: B3
	Standard & Poor's: B+
	Fitch: BB-
Distribution:	Rule 144A and Regulation S for life
Price talk:	6¼% to 6½%
Marketing:	Roadshow

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