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) 0.10SHAREHOLDER 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
+1-301-951-6122Web 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