2. Nasdaq: ACAS
Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
This presentation contains statements that, to the extent they are not recitations of historical fact,
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constitute "forward-looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. All such forward-looking statements are intended to be subject to the safe
harbor protection provided by the Reform Act. Actual outcomes and results could differ materially
from those forecast due to the impact of many factors beyond the control of American Capital. All
forward looking statements included in this presentation are made only as of the date of this
presentation and are subject to change without notice. Certain factors that could cause actual
results to differ materially from those contained in the forward-looking statements are included in
our periodic reports filed with the SEC. Copies are available on the SEC’s website at
www.sec.gov. We disclaim any obligation to update our forward looking statements unless
required by law.
The following slides contain summaries of certain financial and statistical information about
American Capital, Ltd. They should be read in conjunction with our periodic reports that are filed
from time-to-time with the Securities and Exchange Commission including our annual report on
Form 10-K for the year ended December 31, 2009, quarterly report on Form 10-Q for the quarter
ended March 31, 2010 and our subsequent periodic filings. Historical results discussed in this
presentation are not indicative of future results.
Additional Information
No information contained in this presentation constitutes an offer or invitation to acquire or
dispose of any securities or investment advice in any jurisdiction. Any statements included herein
regarding earnings enhancement are not a profit forecast and should not be interpreted to mean
that American Capital’s future earnings will necessarily match or exceed those of any prior year.
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3. Nasdaq: ACAS
$
$2.3 B Debt Restructuring Completed
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Retaining Our Ability to Make New Investments
$1.0 B Cash Pay Down of Debt
100% of lenders wanting cash were paid cash in full
fl d ti h id h i f ll
$1.3 B of New Secured Debt Maturing December 2013
$528 MM non-amortizing debt
● With make-whole provision through August 2012
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$779 MM amortizing debt
2% Closing Fee Paid on the $1.3 B of New Secured Debt
1.0% fee on outstanding balance as of December 30, 2011 and December
31,
31 2012
$281 MM of New Debt is Floating Rate
LIBOR + 650 bps Interest Rate, with 2% LIBOR Floor
Rate reduced to LIBOR + 550 bps when debt outstanding is below $1.0 B
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$1.03 B of New Debt is Fixed Rate
8.96% interest rate
Declining to 7.96% when debt outstanding is below $1.0 B
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4. Nasdaq: ACAS
Amortization Schedule
Amortization to Avoid
Date Minimum Amortization Higher Interest Rates (1)
December 31, 2011 $0 $70,427,006
June 30, 2012 $0 $100,000,000
December 31 2012
31, $120 427 006 (2)
$120,427,006 $300,000,000
$300 000 000
June 30, 2013 $500,000,000 (3) $350,000,000
(1) Annual interest rates will increase by 50 basis points for each amortization that is not met until such
payments are made.
(2) Reflects utilization of permitted principal amortization deferral of $200,000,000.
(3) Reflects payment of scheduled amortization amount of $300,000,000 and payment of deferred
amortization of $200,000,000.
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5. Nasdaq: ACAS
Flexible Amortization Requirements
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Retaining Our Ability to Make New Investments
$779 MM of New Secured Amortizing Debt
No scheduled pay downs for next two and a half years until December 2012
Prepayments of principal will be applied in direct order of maturity
A Portion of Pledged Asset Disposition Proceeds, Excess Cash Flow and
Capital Raising Activities to be used to Prepay Amortization
However, the first $580 MM of such amounts need not be applied
● Will be available for new investments or other general corporate
purposes
Thereafter the following amounts prepay amortization
Thereafter,
● 50% of asset dispositions and excess cash flow
► Reducing to 25% when amortizing debt is below $422 MM
● 100% of new debt raises
● 0% of equity raises for first two years
► 50% of equity raises thereafter
For example, if the first $1.16 B of liquidity results from pledged assets
● 100% would be available for new investments or other general
corporate purposes
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6. Nasdaq: ACAS
Balance Sheet
Pro forma for Debt Restructuring and Equity Raise
Pre-Restructuring Restructuring Post-Restructuring
$ in Millions March 31, 2010 Adjustments March 31, 2010
Assets
Investments at Fair Value1 $5,698 $--- $5,698
Cash & Cash Equivalents 820 (779)2 41
Restricted Cash & Cash Equivalents 79 --- 79
Other Assets 160 24 184
Total Assets $6,757 $(755) $6,002
Liabilities
Secured Debt $--- $1,308 $1,308
Unsecured Debt 2,349 (2,338) 11
Securitized Debt 1,677 --- 1,677
Total Debt 4,026 (1,030) 2,996
Other Liabilities 205 (13) 192
Total Liabilities $4,231 ($1,043) $3,188
Shareholders’ Equity
Total Shareholders’ Equity $2,526 288 $2,814
Total Liabilities and Shareholders’ Equity $6,757 ($755) $6,002
Debt to Equity 1.6x 1.1x
1. Assumes no appreciation or depreciation in investment assets from March 31, 2010
2. Represents closing payment of $1.03 B paid to creditors at closing plus payment of accrued interest, closing fees and other
transaction fees as well as $295 MM proceeds from an equity offering completed in April 2010
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7. Nasdaq: ACAS
Value Proposition
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Potential Asset Appreciation with Economic Recovery
Potential Appreciation of ECAS
Equity investment valued at $278 MM at March 31, 2010
● Versus $770 MM NAV at ECAS
Potential Accretion of Performing Debt Assets to Cost at ACAS and ECAS
$199 MM below cost at ACAS at March 31, 2010
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$288 MM below cost at ECAS at March 31, 2010
Potential Appreciation of Equity Assets as the Economy Recovers
$425 million of net appreciation of portfolio since GDP turned positive
in Q3 2009
Expect continued appreciation if the economy remains positive
Delivered 22% Annualized ROE Through March 31, 2010 Since GDP
Turned Positive in Q3 2009
T d P iti i
$0.89 or 12% Growth in NAV per Share Over Last 3 Quarters
After dilution from $295 million equity offering in April 2010 and stock
dividend in June 2009
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