BETHESDA, Md. (AP) - Asset manager American Capital Ltd. said Friday it plans to prepay $107 million of secured debt due in 2013 on Nov. 29.
The prepayment reduces the company's outstanding secured debt to less than $1 billion and decreases the interest rate on the remaining amount by 1 percent. The company's fixed rate notes, representing 83 percent of the remaining secured debt, will bear interest at an annual rate of 7.96 percent.
The rates on secured loans and floating rate notes are based on the London Interbank Offered Rate ? or LIBOR ? plus 5.5 percent also are 1 percent less than the rates currently being paid.
The secured debt is due in December 2013 and was issued by the company in June 2010 in connection with the refinancing of its $2.4 billion of then-outstanding unsecured indebtedness.
The company voluntarily prepaid $200 million of the secured debt in the third quarter.
With the voluntary prepayments, there is no scheduled amortization of the remaining secured debt until June 30, 2013.
With this payment, American Capital will have reduced its total debt by $3 billion since its peak at the end of the second quarter of 2007.
Shares fell 21 cents, or 2.9 percent, to $7.13.
This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php
Five Filters featured article: Beyond Hiroshima - The Non-Reporting of Falluja's Cancer Catastrophe.
No comments:
Post a Comment