Making MONEY? ...In GA? Who Knew? American Capital Realizes $31 Million Gain From Piper Sale

Here's a shocker... not only did Piper get sold last week (in a story FIRST broken by ANN) to a concern (Imprimis) that really intends to let it grow... but the folks that sold it wound up making a boat-load of wampum (Get it? Wampum... Cherokees, Arrows, Senecas, Seminoles... oh, never mind).

American Capital Ltd. tells ANN that the May 1st sale of Piper Aircraft allowed for a gain of $31 million from the transaction, subject to post closing adjustments. American Capital's total inception to date realized gains on its Piper investments were $48 million and its compounded annual rate of return, including interest and fees earned over the life of its investment was 19%. Including investments in Piper by American Capital's affiliated funds under management, the inception to date realized gains were $51 million and the compounded annual rate of return was 18%.

Including the sale, American Capital received 4.5 times its equity and subordinated debt investments. The proceeds received by American Capital were greater than the fourth quarter 2008 valuation of the investment by $7.7 million, or 33%.

American Capital first invested $20 million in subordinated debt in Piper in May 1998. In June 2003, American Capital invested a subsequent $34 million in the buyout and recapitalization of Piper. American Capital's 2003 investment took the form of senior debt and a revolving credit facility.

"With this sale of Piper, American Capital is exiting one of its first investments with an excellent outcome. Our investment in Piper is an outstanding example of American Capital's long term commitment to portfolio companies and their management teams as well as our value creation capabilities," said Gordon O'Brien, President, Specialty Finance and Operations. "Following our initial investment in Piper in 1998 and then our buyout in 2003, we have worked closely with Piper's management team, which has done a tremendous job growing an iconic brand in the aviation industry through product innovations, quality manufacturing and a dedicated workforce. We are proud to have been a part of Piper's growth and success story."

"We are extremely delighted with the impressive results of our sale of Piper. The sale of Piper during such challenging economic times demonstrates that the market is still receptive to the acquisition of strong assets," said Steve Price, Managing Director, Operations Team.

"We are excited for Piper as it moves forward with new ownership under Imprimis and expands in new geographic markets, especially Asia, with its comprehensive product line."

FMI: www.americancapital.com, www.americancapital.com/our_portfolio/companies/new_piper_aircraft.html