American Capital Senior Floating to invest in leveraged loans via IPO

By Toni Weeks

San Luis Obispo, Calif., Aug. 2 - American Capital Senior Floating, Ltd. plans to raise $270 million via an initial public offering of its common shares, according to an N-2 filing with the Securities and Exchange Commission. The underwriters will have a 30-day greenshoe.

The newly organized, externally managed finance company seeks to provide attractive, risk-adjusted returns over the long term primarily through current income while seeking to preserve capital.

The company intends to achieve its investment objective by constructing and actively managing a leveraged portfolio composed primarily of first-lien and second-lien floating-rate loans to large-market, U.S.-based companies. Investments may also include equity tranches of collateralized loan obligations that are collateralized primarily by leveraged loans, loans issued by middle-market companies, unitranche loans, high-yield bonds and debt tranches of CLOs collateralized primarily by leveraged loans.

Primary oversight for investments is the responsibility of president and chief investment officer Mark Pelletier, who is supported by the leveraged finance group, which includes Michael Cerullo, Dana Dratch, Juan Miguel Estela, Christian Toro, William Weiss, Jay Heirshberg, Nicoleen Prince-Burrell, Leona Clague and Ajay Nanda.

The company intends to have its shares trade on the Nasdaq under the symbol "ACSF." The share price and sales load have not yet been determined. The management fee will be 0.8% per year.

Bethesda, Md.-based American Capital ACSF Management, LLC will be the investment manager.

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