On November 3, 2009, American Capital, Ltd. (the "Company") announced that it had reached an agreement in principle with a steering committee (the "Steering Committee") of the lenders to its $1.4 billion Revolving Line of Credit Agreement with Wachovia Bank, National Association as Administrative Agent dated as of May 16, 2007 (as amended, the "Credit Agreement") with regard to the proposed restructuring of the Company's unsecured obligations under the Credit Agreement ("Credit Agreement Obligations") and certain other debt obligations.

A summary of the terms and conditions of the proposed restructuring of the Credit Agreement Obligations are set forth in a non-binding term sheet attached hereto as Exhibit 99.1 and incorporated herein by reference.

A copy of the Company's press release announcing the agreement in principle with the Steering Committee is also attached hereto as Exhibit 99.2 and is incorporated herein by reference.

(a) None.

(b) None.

(c) Exhibits

               Exhibit No.   Description

                  99.1       Term Sheet, dated November 3, 2009

                  99.2       Press Release, dated November 3, 2009