Tous Actualités
Suivre
Abonner European Capital

European Capital

European Capital Increases Q3 Dividend 30% to euro 0.13

St. Peter Port, Guernsey, Channel Islands (ots/PRNewswire)

- Reports euro 0.18 NOI and euro 0.21 Realised Earnings in Q2 2007
European Capital Limited ("European Capital") (LSE: ECAS)
announced today its third quarter 2007 dividend and its results for
the second quarter of 2007.
THIRD QUARTER 2007 DIVIDEND DECLARATION
European Capital's Board of Directors has declared a third quarter
2007 dividend of euro 0.13 per share payable on 26 October 2007 to
record holders of its ordinary share on the register as of 16:30 BST
on 28 September 2007. This is a 30% increase over the second quarter
2007 dividend of euro 0.10 per share. This is in line with the
dividend target announced at the time European Capital declared its
second quarter 2007 dividend. European Capital has now paid or
declared a total of euro 24.9 million in dividends since its May 2007
initial public offering ("IPO").
2007 DIVIDEND GUIDANCE
European Capital is reiterating its target of total 2007 dividends
post IPO of euro 0.37 per share. This would represent a 37% increase
over the total 2007 post IPO dividends targeted in the European
Capital prospectus of euro 0.27 per share. European Capital continues
to target a fourth quarter 2007 interim dividend of euro 0.14 per
ordinary share.
SECOND QUARTER 2007 RESULTS
Earnings for the quarter increased euro 23.4 million to euro 25.7
million, compared to euro 2.3 million for the second quarter of 2006.
Earnings per share for the quarter increased euro 0.24 to euro 0.27
compared to euro 0.03 for the second quarter of 2006. For the
quarter, net portfolio appreciation and gains, excluding foreign
exchange translation, totalled euro 3.2 million compared to euro-nil
for the second quarter of 2006.
Earnings less appreciation (depreciation) and foreign currency
appreciation (depreciation) ("Realised Earnings") increased euro 0.17
to euro 0.21 per share for the quarter compared to euro 0.04 per
share for the second quarter of 2006. Net operating income ("NOI")
increased euro 0.13 to euro 0.18 per share from euro 0.05 per share
for the second quarter of 2006.
"This is a great time to be a well capitalised financial
institution," said Malon Wilkus, European Capital Chairman. "With
less than 0.6:1 debt to equity, European Capital has huge competitive
advantages in this new credit environment. With our One Stop
Buyout(TM) and one stop financing, we fund transactions that are
impossible for some of our competitors to close. With demonstrated
access to capital, we are taking advantage of lower multiples, wider
spreads and better terms to generate outstanding risk adjusted
returns for our shareholders."
Second quarter 2007 dividends were euro 0.10 per share. For the
quarter, European Capital's dividend payout ratio was 48% of Realised
Earnings of euro 0.21 per share. European Capital's net asset value
("NAV") per share at 30 June 2007 was euro 9.82, a euro 0.09 increase
over the 10 May 2007 IPO NAV per share of euro 9.73.
"The advantage of our business model becomes more evident in a
widening spread environment like today," said John Erickson, American
Capital Chief Financial Officer. "As interest rate spreads widen, our
interest income and our spread income generally grows, which allows
us to increase our NOI and our dividends. During widening spread
environments, we may experience slower growth in our equity portfolio
as more expensive credit reduces valuation multiples, but our growing
spread income should allow us to continue to generate excellent
returns on equity, just when other companies find it difficult to
produce similar results."
During the second quarter of 2007, European Capital completed an
IPO of 14.6 million shares, including the full exercise of the
over-allotment option granted to the underwriters, at a price of euro
9.84 per share, for gross proceeds of approximately euro 144 million.
The shares are traded on the London Stock Exchange under the ticker
symbol ECAS. Prior to the IPO, American Capital exercised its warrant
to purchase 18.75 million shares of European Capital for an exercise
price of euro 9.50 per share, or euro 178 million. As at 30 June 2007
European Capital's market capitalisation was euro 1.1 billion.
"The current credit and economic environment is ideal for us to
continue our growth," said Ira Wagner, President of European Capital
Financial Services Limited, the Investment Sub-Manager of European
Capital. "In the past few weeks, European Capital's stock price has
declined along with most financial stocks. However, European Capital
has a much better capitalised balance sheet than many financial
institutions, CLOs and hedge funds; some of which are levered above
4:1 debt to equity. We are levered less than 0.6:1 debt to equity and
are in good shape to handle continued uncertainty in the capital
markets. In recent months we have opened offices in Frankfurt and
Madrid to provide better coverage of middle market opportunities in
these markets."
In the second quarter of 2007, European Capital invested euro 0.7
billion of capital. In the second quarter of 2007, European Capital
had euro 3.2 million of net appreciation, depreciation, gains and
losses, excluding foreign currency exchange translation. This is
comprised of net appreciation of euro 0.9 million and net gains of
euro 2.3 million.
The weighted average effective interest rate on European Capital's
total investments in debt securities at 30 June 2007 was 12%. At the
same time, one loan totalling euro 20 million was on non-accrual.
This is 1.6% of total loans at 30 June 2007, compared to no loans at
30 June 2006. The fair value of this loan at 30 June 2007 was euro
10.7 million or 0.9% of total loans at fair value.
"Our portfolio continues to perform very well, with our
delinquencies and non-accruals at less than 2% of total loans," said
Ira Wagner, "We believe the current environment, whereby many
investors have lost access to capital despite very low commercial
loan default rates, will result in a significant increase in our
investment opportunities over and above our already outstanding deal
flow. We continue to focus on developing one of the largest middle
market deal flows in our industry so that we can continue to be
extraordinarily selective as to which companies we invest in. We also
continue to have the significant advantage of not being reliant on
commercial or investment banks for financing for our One Stop
Buyouts(TM) and one-stop-financings because we are able to fund the
entire transaction. In addition, when we conclude that it is time to
sell a portfolio company, we may choose to provide the buyer with the
appropriate debt financing to supplement their equity to fund the
transaction; a capability most of our competitors lack. Therefore, we
continue to believe that our capital flexibility and our very large
deal flow will provide us with excellent investment and exit
opportunities going forward."
Since its inception in August 2005 up until 30 June 2007, European
Capital has invested in 58 portfolio companies totaling euro 2.3
billion. European Capital has earned a 19% compounded annual return,
including interest, dividends, fees and net gains, on eight complete
portfolio company realisations of senior debt, subordinated debt and
equity investments, totalling euro 214 million of invested capital.
These realisations represent 9% of all amounts invested by European
Capital.
"Our low levered balance sheet and capital markets creditability
have allowed us to execute our IPO during a time when access to
capital was closed to many institutions," said Tom McHale, Senior
Vice President of Finance, American Capital. "We have no investments
in sub prime residential mortgages. Zero percent of our portfolio
today is in CMBS investments. Less than 0.5% of our portfolio assets
are in CDOs. We have few covenant-lite loans. And, since inception
our equity investments have produced a 27% IRR. We are very well
capitalised and have a portfolio that is performing in a market where
opportunities have just become far more profitable."
THIRD PARTY VALUATION OF PORTFOLIO INVESTMENTS
European Capital's Board of Directors is responsible for
determining the fair value of European Capital's portfolio
investments on a quarterly basis. In that regard, the Board retains
Houlihan Lokey Howard & Zukin Financial Advisors Inc. ("Houlihan
Lokey") to assist it by having Houlihan Lokey regularly review a
designated percentage of fair value determinations. Houlihan Lokey is
a leading valuation firm engaged in approximately 1,000 valuation
assignments per year for clients worldwide. Each quarter, Houlihan
Lokey reviews European Capital's determination of the fair value of
all portfolio companies that have been a portfolio company at least
one year and that have a fair value in excess of euro 10 million. In
the second quarter of 2007, Houlihan Lokey reviewed valuations of 12
portfolio company investments having an aggregate euro 355 million in
fair value as of the period end. In addition, Houlihan Lokey
representatives attend European Capital's quarterly valuation
meetings and provide periodic reports and recommendations to the
Audit Committee of the Board of Directors.
For those portfolio company investments that Houlihan Lokey has
reviewed during each applicable period, using the scope of review set
forth by European Capital's Board of Directors, the Board has made a
fair value determination that is within the aggregate range of fair
value for such investments as determined by Houlihan Lokey.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
European Capital has made available its Interim Consolidated
Financial Statements for the six months ended 30 June 2007. A copy
may be downloaded from www.EuropeanCapital.com . Copies of the
Interim Consolidated Financial Statements will be submitted to the UK
Listing Authority and will be shortly available for inspection at the
UK Listing Authority's Document Viewing Facility, which is situated
at: Financial Services Authority, 25 North Colonnade, Canary Wharf,
London E14 5HS Tel: +44-0-20-7676-1000
Financial highlights for the quarter are as follows:
                           EUROPEAN CAPITAL LIMITED
                         CONSOLIDATED BALANCE SHEETS
                   As of 30 June 2007 and 31 December 2006
                    (in thousands, except per share data)
                 (all amounts in euros unless otherwise noted)
                                                               Q2 2007 Versus
                                     30 June     31 December       Q4 2006
                                      2007          2006        euro      %
                                   (unaudited)
    Assets
    Investments at fair value
     (Cost basis of euro
     1,587,174, and euro
     1,072,938 respectively)        1,607,020    1,077,709    529,311    49%
    Cash and cash equivalents           7,349       85,932    (78,583)  -91%
    Restricted cash                    67,938       12,913     55,025   426%
    Other                              11,163       18,031     (6,868)  -38%
        Total assets                1,693,470    1,194,585    498,885    42%
    Liabilities and Shareholders'
     Equity
    Debt (maturing within one
     year euro 2,196 and euro 39
     respectively)                    606,774      422,414    184,360    44%
    Due to European Capital
     Financial Services
     (Guernsey) Limited                 5,352        3,568      1,784    50%
    Accrued dividends payable          10,836       21,750    (10,914)  -50%
    Other                               6,648        2,699      3,949   146%
        Total liabilities             629,610      450,431    179,179    40%
    Commitments and contingencies
    Shareholders' equity:
      Ordinary shares (nil par
       value, authorised to issue
       unlimited number of shares,
       108,364 issued and
       outstanding)                 1,030,371            -  1,030,371    NM
      Preference shares (nil par
       value, authorised to issue
       unlimited number of shares,
       75,000 issued and
       outstanding)                         -      737,696   (737,696) -100%
      Undistributed net realised
       earnings                        14,542        1,261     13,281  1053%
      Net unrealised foreign
       currency appreciation            1,456          332      1,124   339%
      Net unrealised appreciation
       of investments                  17,491        5,638     11,853   210%
      Other reserve                         -         (773)       773   100%
        Total shareholders' equity  1,063,860      744,154    319,706    43%
        Total liabilities and
         shareholders' equity       1,693,470    1,194,585    498,885    42%
    NM = Not Meaningful
                           EUROPEAN CAPITAL LIMITED
                    CONSOLIDATED STATEMENTS OF OPERATIONS
               Three and Six Months Ended 30 June 2007 and 2006
                    (in thousands, except per share data)
                                  (unaudited)
                (all amounts in euros unless otherwise noted)
                                            Three Months        Three Months
                                                Ended              Ended
                                          30 June   30 June    30 June 2007
                                            2007      2006      Versus 2006
                                                                 euro     %
    OPERATING INCOME:
    Interest and dividend income            39,680    12,557    27,123   216%
    Fee and Other Income                     1,737      (146)    1,883  1290%
      Total operating income                41,417    12,411    29,006   234%
    OPERATING EXPENSES:
    Interest                                 8,264     2,389     5,875   246%
    Management fee and reimbursed expenses   9,373     5,850     3,523    60%
    Incentive fee                            5,115         -     5,115    NM
    General and administrative               1,831       489     1,342   274%
      Total operating expenses              24,583     8,728    15,855   182%
    OPERATING INCOME BEFORE INCOME TAXES    16,834     3,683    13,151   357%
    Provision for income taxes                 (35)        -       (35)   NM
    NET OPERATING INCOME                    16,799     3,683    13,116   356%
    Net foreign currency gains (losses)        869    (1,053)    1,922   183%
    Net gain on investments                  2,321       202     2,119  1049%
    TOTAL NET REALISED EARNINGS             19,989     2,832    17,157   606%
    Net foreign currency gains
     (losses)                                4,906      (292)    5,198  1780%
    Net appreciation (depreciation)
      of investments                           840      (202)    1,042   516%
    INCREASE IN NET ASSETS RESULTING FROM
     OPERATIONS ("EARNINGS")                25,735     2,338    23,397  1001%
    NET OPERATING INCOME PER SHARE:
      Basic & Diluted                         0.18      0.05      0.13   263%
    NET REALISED EARNINGS PER SHARE:
      Basic & Diluted                         0.21      0.04      0.17   462%
    NET EARNINGS PER SHARE:
      Basic & Diluted                         0.27      0.03      0.24   776%
    WEIGHTED AVERAGE NUMBER OF SHARES
     OUTSTANDING:
      Basic and Diluted                     94,247    75,000    19,247    26%
    DIVIDENDS DECLARED PER SHARE              0.10      0.00      0.10   100%
    NM = Not Meaningful
                           EUROPEAN CAPITAL LIMITED
                    CONSOLIDATED STATEMENTS OF OPERATIONS
               Three and Six Months Ended 30 June 2007 and 2006
                    (in thousands, except per share data)
                                 (unaudited)
                  all amounts in euros unless otherwise noted
                                           Six Months Ended  Six Months Ended
                                           30 June   30 June    30 June 2007
                                             2007      2006     Versus 2006
                                                                 euro     %
    OPERATING INCOME:
    Interest and dividend income            73,962    19,543    54,419   278%
    Fee and Other Income                     5,027     1,020     4,007   393%
      Total operating income                78,989    20,563    58,426   284%
    OPERATING EXPENSES:
    Interest                                15,204     3,896    11,308   290%
    Management fee and reimbursed expenses  20,739    13,070     7,669    59%
    Incentive fee                            5,115         -     5,115    NM
    General and administrative               3,361     1,453     1,908   131%
      Total operating expenses              44,419    18,419    26,000   141%
    OPERATING INCOME BEFORE INCOME TAXES    34,570     2,144    32,426  1512%
    Provision for income taxes                (179)        -      (179)   NM
    NET OPERATING INCOME                    34,391     2,144    32,247  1504%
    Net foreign currency gains
     (losses)                                3,155    (2,141)    5,296   247%
    Net gain on investments                  2,321       202     2,119  1049%
    TOTAL NET REALISED EARNINGS             39,867       205    39,662    NM
    Net foreign currency gains
     (losses)                                1,124      (982)    2,106   214%
    Net appreciation (depreciation) of
     investments                            11,853     1,204    10,649   884%
    INCREASE IN NET ASSETS RESULTING FROM
     OPERATIONS ("EARNINGS")                52,844       427    52,417    NM
    NET OPERATING INCOME PER SHARE:
      Basic & Diluted                         0.41      0.03      0.38  1321%
    NET REALISED EARNINGS PER SHARE:
      Basic & Diluted                         0.47      0.00      0.47    NM
    NET EARNINGS PER SHARE:
      Basic & Diluted                         0.62      0.00      0.62   100%
    WEIGHTED AVERAGE NUMBER OF SHARES
     OUTSTANDING:
      Basic and Diluted                     84,677    75,000     9,677    13%
    DIVIDENDS DECLARED PER SHARE              0.31      0.00      0.31   100%
    NM = Not Meaningful
                           EUROPEAN CAPITAL LIMITED
                         OTHER FINANCIAL INFORMATION
    Three Months Ended 30 June 2007, 31 December 2006 and 30 June 2006
                    (in thousands, except per share data)
                                (unaudited)
                  all amounts in euros unless otherwise noted
                                     Q2         Q4    Q2 2007 vs. Q4 2006
                                    2007       2006     euro         %
    New Investments:
      Senior Debt                  330,409   187,650   142,759      76%
      Subordinated Debt            292,994   129,740   163,254     126%
      Preferred Equity              74,879    63,795    11,084      17%
      Common Equity                  2,072    14,031   (11,959)  -0.85%
      CDO/CLO Investments            6,510         -     6,510      NM
          Total                    706,864   395,216   311,648      79%
      European Capital Sponsored
       Buyouts                     420,636   233,367   187,269      80%
      Financing for Private
       Equity Buyouts              194,719   148,091    46,628      31%
      Direct Investments                 -         -         -       -
      Add-on Financing for
       Acquisitions                 15,471    13,758     1,713      12%
      Add-on Financing for
       Recapitalisations            69,528         -    69,528      NM
      CDO/CLO Investments            6,510         -     6,510      NM
          Total                    706,864   395,216   311,648      79%
     Realisations:
       Senior Loan Syndications    214,032   122,702    91,330      74%
       Principal Prepayments        85,634    30,306    55,328     183%
       Payment of Accrued
        Payment-in-kind Interest
        and Dividends and
        Original Issue Discount      5,894         -     5,894      NM
       Sale of Equity Investments    2,322     1,357       965      71%
           Total                   307,882   154,365   153,517      99%
     Appreciation, Depreciation,
      Gains and Losses:
       Gross Gains                   2,321     1,345       976      73%
       Gross Losses                      -         -         -       -
           Net Gains                 2,321     1,345       976      73%
       Gross Appreciation at 6,
        2 and 0 Portfolio Companies 13,491     3,678     9,813     267%
       Gross Depreciation at 2,
        1 and 1 Portfolio
        Companies                  (12,651)        -   (12,651)     NM
           Current Portfolio Net
            Appreciation               840     3,678    (2,838)    -77%
       Net Depreciation From the
        Recognition of Net Gains         -      (402)      402      NM
       Net Appreciation
        (Depreciation) for
        Foreign Currency
        Translation                  4,906     1,819     3,087     170%
       Net Gains (Losses) for
        Foreign Currency
        Translation                    869      (829)    1,698      NM
           Net Gains, Losses,
            Appreciation and
            Depreciation             8,936     5,611     3,325      59%
     Other Financial Data:
       Net Asset Value per Share      9.82      9.92     (0.10)     -1%
       Market Capitalisation     1,146,491        NM        NM      NM
       Total Enterprise Value    1,745,916        NM        NM      NM
      Credit Quality:
       Weighted Average Effective
        Interest Rate on Debt
        Investments                   12.0%     12.5%
       Loans on Non-Accrual at
        Face                        20,000         -    20,000      NM
       Loans on Non-Accrual at
        Fair Value                  10,672         -    10,672      NM
       Past Due Loans at Face            -         -         -      NM
       Past Due and Non-Accrual
        Loans at Face as a
        Percentage of Total Loans      1.6%        0%
       Past Due and Non-Accrual
        Loans at Fair Value as a
        Percentage of Total Loans      0.9%        0%
       Number of Portfolio
        Companies on Non-Accrual
        and Past Due                     1         -
      Return on Equity:
       LTM Net Operating Income
        Return on Average Equity
        at Cost                        7.1%      5.1%
       LTM Realised Earnings
        Return on Average Equity
        at Cost                        7.9%      5.1%
       LTM Earnings Return on
        Average Equity                10.0%      6.2%
       Current Quarter Net
        Operating Income Return
        on Average Equity at Cost
        Annualised                     7.4%     10.1%
       Current Quarter Realised
        Earnings Return on
        Average Equity at Cost
        Annualised                     8.8%     10.4%
       Current Quarter Earnings
        Return on Average Equity
        Annualised                    11.3%     13.7%
      Dividends:
       Dividend Coverage
        (Realised Earnings per
        Basic Share/Dividend per
        Share)                        2.10 x    0.75 x
       Dividend Payout Ratio
        (Dividend per
        Share/Realised Earnings
        per Basic Share)              0.48 x    1.34 x
     NM = Not Meaningful
                           EUROPEAN CAPITAL LIMITED
                         OTHER FINANCIAL INFORMATION
    Three Months Ended 30 June 2007, 31 December 2006 and 30 June 2006
                    (in thousands, except per share data)
                                (unaudited)
                 all amounts in euros unless otherwise noted
                                              Q2     Q2 2007 vs. Q2 2006
                                             2006      euro        %
     New Investments:
       Senior Debt                          33,005    297,404     901%
       Subordinated Debt                   104,098    188,896     181%
       Preferred Equity                          -     74,879      NM
       Common Equity                             -      2,072      NM
       CDO/CLO Investments                       -      6,510      NM
            Total                          137,103    569,761     416%
       European Capital Sponsored
        Buyouts                                  -    420,636     100%
       Financing for Private Equity
        Buyouts                            137,103     57,616      42%
       Direct Investments                        -          -       -
       Add-on Financing for Acquisitions         -     15,471      NM
       Add-on Financing for
        Recapitalisations                        -     69,528      NM
       CDO/CLO Investments                       -      6,510      NM
            Total                          137,103    569,761     416%
     Realisations:
       Senior Loan Syndications             11,000    203,032    1846%
       Principal Prepayments                51,306     34,328      67%
       Payment of Accrued Payment-in-
        kind Interest and Dividends and
        Original Issue Discount                  -      5,894      NM
       Sale of Equity Investments            2,497       (175)     -7%
            Total                           64,803    243,079     375%
     Appreciation, Depreciation, Gains
      and Losses:
       Gross Gains                             202      2,119    1049%
       Gross Losses                              -          -       -
            Net Gains                          202      2,119    1049%
       Gross Appreciation at  6, 2 and
        0 Portfolio Companies                    -     13,491      NM
       Gross Depreciation at 2, 1 and 1
        Portfolio Companies                      -    (12,651)     NM
            Current Portfolio Net
             Appreciation                        -        840      NM
       Net Depreciation From the
        Recognition of Net Gains              (202)       202      NM
       Net Appreciation (Depreciation) for
        Foreign Currency Translation          (292)     5,198    1780%
       Net Realised Gains (Losses)
        for Foreign Currency Translation    (1,053)     1,922     183%
            Net Gains, Losses,
             Appreciation and
             Depreciation                   (1,345)    10,281     764%
     Other Financial Data:
       Net Asset Value per Share              4.94       4.88      99%
       Market Capitalisation                    NM         NM      NM
       Total Enterprise Value                   NM         NM      NM
      Credit Quality:
       Weighted Average Effective
        Interest Rate on Debt
        Investments                           12.2%
       Loans on Non-Accrual at Face              -     20,000      NM
       Loans on Non-Accrual at Fair
        Value                                    -     10,672      NM
       Past Due Loans at Face                    -          -      NM
       Past Due and Non-Accrual Loans at
        Face as a Percentage of Total
        Loans                                    0%
       Past Due and Non-Accrual Loans at
        Fair Value as a Percentage of
        Total Loans                              0%
       Number of Portfolio Companies on
        Non-Accrual and Past Due                 -
      Return on Equity:
       LTM Net Operating Income Return
        on Average Equity at Cost             -2.5%
       LTM Realised Earnings Return on
        Average Equity at Cost                -2.8%
       LTM Earnings Return on Average
        Equity                                -3.0%
       Current Quarter Net Operating
        Income Return on Average Equity
        at Cost Annualised                     4.7%
       Current Quarter Realised Earnings
        Return on Average Equity at Cost
        Annualised                             3.6%
       Current Quarter Earnings Return
        on Average Equity Annualised           3.6%
      Dividends:
       Dividend Coverage (Realised
        Earnings per Basic
        Share/Dividend per Share)                -
       Dividend Payout Ratio (Dividend
        per Share/Realised Earnings per
        Basic Share)                             -
     NM = Not Meaningful
                           EUROPEAN CAPITAL LIMITED
                           STATIC POOL INFORMATION
     Portfolio Statistics for Investments Made in Each of the Following Years
                              (in thousands)
                                (unaudited)
                 (all amounts in euros unless otherwise noted)
    Portfolio statistics (1) (9)   2005        2006        2007    Aggregate
    Internal Rate of Return -
     All Investments (2) (8)       16.0%       16.7%       16.8%       16.5%
    Internal Rate of Return -
     Equity Investments
     only (2) (8) (10)             38.6%       26.1%       14.6%       27.4%
    Original Investments and
     Commitments (8)            237,436   1,201,561     876,545   2,315,542
    Total Exits and Prepayments
     of Original Investments (8) 42,624     519,175     220,147     781,946
    Total Interest, Dividends
     and Fees Collected (8)      23,269      72,786      12,239     108,294
    Total Net Realised Gain on
     Investments                    202       3,666           -       3,868
    Current Cost of
     Investments                210,184     716,901     660,089   1,587,174
    Current Fair Value of
     Investments                218,203     727,409     661,408   1,607,020
    Net Unrealised Appreciation   9,212       7,765                  16,977
    Non-Accruing Loans at Face        -      20,000                  20,000
    Non-Accruing Loans at
     Fair Value                       -      10,672                  10,672
    Equity Interest at
     Fair Value                  27,590     227,784     134,219     389,593
    Debt to EBITDA (3) (4)          5.4         6.2         7.7         6.7
    Interest Coverage (3)           4.6         2.8         1.8         2.6
    Debt Service Coverage (3)       2.9         1.8         1.5         1.8
    Average Age of Companies    90 years    91 years    43 years    71 years
    Ownership Percentage            8.2%       31.2%       18.8%       23.0%
    Average Sales (5)           683,128     439,931     241,330     391,385
    Average EBITDA (6)          107,174      58,404      41,779      58,193
    Average EBITDA margin (6)      15.7%       13.3%       17.3%       14.9%
    Total Sales (5)           5,449,825  15,841,798   6,236,113  27,527,736
    Total EBITDA (6)            900,347   2,278,421   1,348,135   4,526,903
    % of Senior Loans (7)             9%         22%         44%         29%
    % of Loans with Lien (7)        100%        100%         95%         98%
    (1)  Static pool classification is based on the year the initial
         investment was made.  Subsequent add-on investments are included in
         the static pool year of the original investment.
    (2)  Assumes investments are exited at current fair value.
    (3)  These amounts do not include investments in which European Capital
         owns only equity.
    (4)  For portfolio companies with a nominal EBITDA amount, the portfolio
         company's maximum debt leverage is limited to 15 times EBITDA.
    (5)  Sales of the most recent twelve months, or when appropriate, the
         forecasted twelve months.
    (6)  EBITDA of the most recent twelve months, or when appropriate, the
         forecasted twelve months.
    (7)  As a percentage of our total debt investments.
    (8)  Non euro-denominated amounts are retranslated at the exchange rate
         ruling at the date of original investment.
    (9)  Non euro-denominated balances, other than those referred to in (8),
         are retranslated at the exchange rate ruling at the balance sheet
         date.
    (10) Excludes equity investments that are the result of conversions of
         debt and warrants received with the issuance of debt.
A summary of European Capital's dividend history post IPO and
target follows. For more information, please visit our website at
www.EuropeanCapital.com or call our Investor Relations Department at
+44-0-800-458-0770.
EUROPEAN CAPITAL'S DIVIDEND HISTORY POST MAY 2007 IPO
                  (all amounts in euros unless otherwise noted)
                                    % Change of Dividend
    Year and Quarter      Dividend    Over Prior Period       Total
    2007 Year-to-Date       0.37             N/A               0.37
    Q4 Target               0.14
    Q3 Declared             0.13
    Q2 (IPO = 10 May 2007)  0.10
SHAREHOLDER CALL
European Capital invites shareholders, analysts and other
interested persons to attend the European Capital Shareholder Call on
Thursday 23 August 2007 at 15:00 BST (10:00 EDT). The dial in number
will be +1-612-332-0335. Callers within the United States should dial
+1-800-288-8961. Please advise the operator you are dialling in for
the European Capital Shareholder Call.
Point your browser to www.EuropeanCapital.com and click on the Q2
2007 Shareholder Call Slide Show button.
BEFORE THE CALL:
REVIEW SLIDE PRESENTATION IN ADVANCE OF THE SHAREHOLDER CALL
The quarterly shareholder presentation includes a slide
presentation to accompany the call that participants may download and
print prior to the call. You may wish to take the time to review the
slides in advance of the Shareholder Call.
DURING THE CALL:
ST. PETER PORT, Guernsey, Channel Islands, August 22 /PRNewswire/ --
VIEW STREAMING SLIDE PRESENTATION DURING THE SHAREHOLDER CALL
During the Shareholder Call you may watch and listen to the
webcast or listen to the Shareholder Call by phone and step through
the slides at your own pace.
AFTER THE CALL:
ST. PETER PORT, Guernsey, Channel Islands, August 22 /PRNewswire/ --
LISTEN AND VIEW AUDIO SLIDE PRESENTATION AFTER THE CALL
The audio of the Shareholder Call combined with the slide
presentation will be made available after the call on 23 August on
our website www.EuropeanCapital.com.
AUDIO ONLY PRESENTATION AVAILABLE AFTER THE SHAREHOLDER CALL:
There will be a phone recording available from 22:00 BST Thursday
23 August until 04:59 BST Saturday 8 September. If you are interested
in hearing the recording of the presentation, please dial
+1-320-365-3844. Callers within the United States may dial
+1-800-475-6701. The access code for all callers is 882240.
For further information or questions, please do not hesitate to
call our Investor Relations Department at +44-0-800-458-0770.
ABOUT EUROPEAN CAPITAL
European Capital is a publicly traded investment company for
pan-European equity, mezzanine and senior debt investments with
capital resources of approximately euro 2.1 billion (US$2.9 billion).
It is managed by European Capital Financial Services (Guernsey)
Limited ("ECFSG" or "the Investment Manager"), a wholly-owned
affiliate of American Capital Strategies, Ltd ("American Capital").
European Capital invests in and sponsors management and employee
buyouts, invests in private equity buyouts and provides capital
directly to private and public companies headquartered predominantly
in Europe. European Capital generally invests between euro 5 million
and euro 500 million per transaction in equity, mezzanine debt and
senior debt to fund growth, acquisitions and recapitalisations.
The investment objective of European Capital is to provide
investors with dividend income and the potential for share value
appreciation by investing in debt and equity investments in private
and public companies headquartered primarily in Europe.
European Capital seeks to achieve this through pursuing the
following types of investments:
European Capital One Stop Buyouts(TM)
Through our One Stop Buyouts(TM), European Capital provides
equity, mezzanine debt and senior debt as the lead investor in the
buyout of private and public companies.
Mezzanine Direct with Sponsors
European Capital provides debt and equity financing for buyouts
sponsored by private equity firms where European Capital is either
the sole or lead mezzanine debt investor.
Syndicated Mezzanine and Senior Debt
European Capital provides mezzanine and senior financing for
buyouts sponsored by private equity firms where European Capital is
neither the sole nor lead mezzanine or senior debt investor.
Direct Investments
European Capital provides debt and equity financing directly to
private and public companies, which is used for growth, acquisitions
or recapitalisations, and investing in structured finance vehicles.
Companies interested in learning more about European Capital's
flexible financing should contact Simon Henderson or Nathalie Faure
Beaulieu at +44-0-20-7539-7000 in London, Jean Eichenlaub at
+33-0-1-40-68-06-66 in Paris, Robert von Finckenstein at
+49-0-69-71-71-297-0 in Frankfurt, or Luis Felipe Castellanos at
+34-91-745-99-63 in Madrid, or visit the website at
www.EuropeanCapital.com.
ABOUT AMERICAN CAPITAL
American Capital Strategies Ltd. is an affiliate of European
Capital and the only alternative asset management company that is a
member of the S&P 500. With US$16 billion in assets under management,
American Capital is the largest U.S. publicly traded private equity
fund and one of the largest publicly traded alternative asset
managers. American Capital, both directly and through its global
asset management business, is an investor in management and employee
buyouts, private equity buyouts, and early stage and mature private
and public companies. American Capital provides senior debt,
mezzanine debt and equity to fund growth, acquisitions,
recapitalizations and securitizations. American Capital and its
affiliates invest from US$5 million to US$800 million per company in
North America and euro 5 million to euro 500 million per company in
Europe.
IMPORTANT DISCLOSURES
This document may contain "forward-looking statements". By their
nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances. Many of these
risks and uncertainties relate to factors beyond European Capital's
control or which cannot be estimated precisely. These Factors
include, but are not limited to, uncertainties associated with the
timing of transaction closings, changes in interest rates,
availability of transactions, changes in regional, national or
international economic conditions, and changes in the conditions of
the industries in which European Capital has made investments. Actual
outcomes and results may therefore differ materially from any
outcomes or results expressed or implied by any such forward-looking
statements.
Performance data quoted above represents past performance of
European Capital. Past performance does not guarantee future results
and the investment return and principal value of an investment in
European Capital will likely fluctuate. Consequently, an investor's
shares, when sold, may be worth more or less than their original
cost. Additionally, European Capital's current performance may be
lower or higher than the performance data quoted above.
Nothing in this document is intended to be a profit forecast.
CONTACT:
    John Erickson, Chief Financial Officer, American Capital
    +1-301-951-6122
    Tom McHale, Senior Vice President, Finance, American Capital
    +1-301-951-6122
Web site: http://www.EuropeanCapital.com

Contact:

John Erickson, Chief Financial Officer, American Capital,
+1-301-951-6122, or Tom McHale, Senior Vice President, Finance,
American Capital, +1-301-951-6122

Plus de actualités: European Capital
Plus de actualités: European Capital
  • 26.04.2007 – 11:07

    European Capital Opens Frankfurt Office

    Frankfurt, Germany (ots/PRNewswire) - - Expands Pan European Mezzanine Group European Capital Financial Services Limited ("European Capital") announced today the opening of its Frankfurt office. The office will concentrate on mezzanine investments. European Capital is an affiliate of American Capital Strategies Ltd. (Nasdaq: ACAS), a United States based publicly traded alternative asset manager ...