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American Capital invests $300M in lender

By Associated Press
May 19, 2008 | Comments (0)

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American Capital Strategies Ltd. said Monday it has invested $300 million in Core Business Credit, a commercial lender established last year.

American Capital Strategies will receive a stake in Core Business Credit as well as subordinated debt.

Aside from the $300 million commitment from American Capital Strategies, Core Business Credit has obtained a $125 million credit line with Autobahn Funding Co.

Dallas-based Core Business Credit, which has $425 million in capital, plans to issue loans to medium-sized companies needing to borrow $7.5 million to $30 million. The loans will be backed by collateral like inventory, accounts receivable, equipment and real estate.

The company, led by Michael Haddad, was created in July 2007. Core Business Credit focuses on companies with annual revenue of $35 million to $500 million.

American Capital Strategies manages $17 billion in investments. Its shares rose 28 cents to $33.10 in morning trading.

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