American Capital, Ltd. declared the divesture of its portfolio company Pan Am Holdings, Inc. and its subsidiaries, including Pan Am International Flight Academy, Inc. to ANA Holdings Inc. – the parent company of All Nippon Airways Co. Ltd. The company and its affiliated funds received $94 million for the deal in debt and equity income and recognized a profit of $12 million, inclusive of post-closing adjustments.
Of the proceeds, American Capital received $79 million from the deal and earned a gain of $7 million, subject to post-closing adjustments. The company has earned 16% compounded annual rate of return over the life of its investment, including interest, gains and fees.
Earlier in Jul 2006, American Capital invested in One Stop Buyout of Pan Am. Based in Miami, Fla., Pan Am International Flight Academy offers airlines and individual training on over 60 full-flight simulators along with courses for Pilots, Cabin Crew, Mechanics and Aircraft Dispatchers. Primary customers for the company include commercial passenger airlines and air freight carriers, along with air traffic control authorities globally.
American Capital directly and through its asset management business, initiates, underwrites and manages investments in middle-market private equity, leveraged finance, real estate and structured products. Since its IPO in 1997 through the second quarter of 2013, the company has earned 26% compounded annual return on the exit of its equity investments, including dividends, fees and net gains.
American Capital carries a Zacks Rank #5 (Strong Sell). Some better performing stocks in the same industry include Hercules Technology Growth Capital, Inc. (HTGC - Analyst Report) , Marlin Business Services Corp. (MRLN - Snapshot Report) and MCG Capital Corporation . All the 3 companies carry a Zacks Rank #2 (Buy).