November 15, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — American Capital Ltd. (NASDAQ: ACAS) said that it has given notice to the holders of its secured debt due in 2013 that it will voluntarily prepay $107 million of the debt on November 29, 2010.

American said that, with this prepayment, the amount outstanding under such secured debt will be less than $1 billion, causing the interest rate on the remaining debt to decline to the lowest level under the governing debt agreements.

The company's fixed rate notes, representing 83% of the remaining secured debt, will bear interest at an annual rate of 7.96% and its secured loans and floating rate notes will have an annual interest rate of LIBOR plus 550 basis points, with a 2% LIBOR floor.

American added that these rates are 1% less than the rates currently being paid.

The secured debt is due in December 2013 and was issued by American in June 2010 in connection with the refinancing of the company's $2.4 billion of then-outstanding unsecured indebtedness.

The company voluntarily prepaid $200 million of the secured debt in the third quarter of the year. With the voluntary prepayments, there is no scheduled amortization of the remaining secured debt until June 30, 2013.

With this payment, American Capital will have reduced its total debt by $3 billion since its peak at the end of the second quarter of 2007.

Maryland-based American Capital is a private equity firm and global asset manager.  

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