American Capital, a publicly traded private equity firm and global asset manager, has reached an agreement in principle with a steering committee of lenders to restructure its revolving line of credit facility.
The company will be presenting the terms of the proposed restructuring to all of the lenders in its revolving line of credit facility and to the holders of its privately placed term notes and publicly issued bonds for approval.
Malon Wilkus, chairman and chief executive officer at American Capital , said: “We believe that the terms provide a basis for a complete restructuring of our $2.4 billion of unsecured debt. Representatives of the holders of the privately placed term notes and publicly issued bonds participated with the bank steering committee and its advisors in certain negotiations with respect to the material terms of the agreement in principle.”
In addition to the revolving line of credit facility, American Capital’s principal unsecured credit facilities include $550m of publicly issued bonds and $390m in original principal amount of privately placed term notes. The company is filing a term sheet reflecting the agreement in principle with the Securities and Exchange Commission as part of a current report on Form 8-K.
The terms of the agreement in principle are nonbinding and subject to further negotiations, various conditions and final agreements.
