ACAS Refinances!

Remember when I wrote that American Capital was going to want to refinance its bankruptcy-avoidance debt package to regain flexibility? Well, that deal appears imminent.

Read more at Seeking Alpha.

Seeking Alpha pays me more than Blogger (which pays clicks instead of impressions, and hasn't cut me a check literally in years), making the publication of financial analysis much more attractive.

Already, the Seeking Alpha article has attracted a critic who says share count is not shrinking, but due to insider selling is growing. Without going into the detailed history of issuance and buyback at ACAS, I'll simply post a chart for the relative period:

ACAS Shares Outstanding data by YCharts

To show how this works in more relevant terms, let's see it as a percentage:

ACAS Shares Outstanding data by YCharts

In less than a year, management has shrunk share count by over 5%. That means that every dime of earnings per share before the buybacks is worth 10.56¢ after the buybacks. And each buyback steepens the concentration. The last buyback of over 9m shares retired a higher percentage of ACAS' outstanding shares than the first >9m share repurchase.