Gibson, did this loan or buyout restart the business
AMERICAN CAPITAL PROVIDES UP TO $52.5 MILLION TO GIBSON GUITAR
Bethesda, MD - September 8, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has provided financing facilities of up to $52.5 million to Gibson Guitar Corp., a well-known designer, manufacturer, marketer and distributor of electric and acoustic guitars, bass guitars, banjos and mandolins, pianos, drums, keyboards, electronically synthesized instruments and a variety of instrument-related products and accessories, including amplifiers, speakers, string picks and straps. American Capital's financing facilities take the form of second lien notes and a second lien committed acquisition line. Bank of America is providing a revolving credit facility and investing in senior term debt. Gibson's current owners are maintaining their 100% equity ownership.
"We are delighted to support the development of a music industry icon," said American Capital Chief Operating Officer Ira Wagner. "Our ability to directly invest capital in middle market companies is critical to their success. At Gibson, we are backing an excellent management team with substantial company ownership that has produced an enviable track record of growth and strong cash flows."
American Capital has invested over $2.8 billion in the last twelve months, over $1.9 billion year to date and $636 million quarter to date. For more information about American Capital's portfolio, go to http://www.americancapital.com/our_p...portfolio.cfm.
"Gibson sells some of the most recognized brand names in the musical instruments industry," said American Capital Managing Director Jeff MacDowell."Both Henry Juszkiewicz, Chairman and CEO, and David Berryman, President, are highly motivated individuals, dedicated to maintaining the Company's leading position and taking it to another level by capitalizing on growth opportunities at home and abroad."
"Worldwide demand for Gibson products is extremely high. This financing will give Gibson flexibility as it continues to grow both organically and through acquisitions," said American Capital Vice President John Drennan.
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