BETHESDA, Md., June 28, 2012 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) ("American Capital" or the "Company") announced today that in the second quarter of 2012, it made open market purchases of 9.1 million shares of American Capital common stock, or 2.8% of the Company's outstanding shares as of March 31, 2012. The shares were purchased at an average price of $9.34 per share, totaling $85.4 million.
Starting in the third quarter of 2011, American Capital has made open market purchases of 32.2 million shares, or 9.9%, of the Company's outstanding shares as of March 31, 2012, at an average price of $8.30 per share, totaling $267.3 million. Purchases starting in the third quarter of 2011 through March 2012 were $0.44 per share accretive to the Company's $15.71 net asset value per share ("NAV") as of March 31, 2012. Had these shares not been repurchased, American Capital would have had to earn an additional $143 million during that three quarter period to have produced the same NAV. Accretion from the purchases in the second quarter of 2012 will be disclosed in the Company's second quarter earnings release.
These share purchases were completed in accordance with the Company's Share Repurchase and Dividend Policy under which American Capital will consider quarterly setting an amount to be used for stock repurchases or dividends. Generally, the amount may be used for repurchases if the price of American Capital's common stock is at a discount to NAV, and generally, the amount may be used for payment of cash dividends if the price of American Capital's common stock is at a premium to NAV. In determining the quarterly amount for repurchases or dividends, the Company's Board will be guided by the Company's cumulative net cash provided by operating activities in the prior quarter and since the beginning of 2012, cumulative repurchases or dividends, cash on hand, debt service considerations, investment plans, forecasts of financial liquidity and economic conditions, operational issues and the then current trading price of American Capital stock.