Allied Capital Announces Agreement to Acquire Callidus Capital Management, LLC.Business Editors WASHINGTON--(BUSINESS WIRE)--Nov. 17, 2003 Allied Capital Corporation (NYSE NYSE See: New York Stock Exchange :ALD ALD abbr. adrenoleukodystrophy ALD, n.pr See adrenoleukodystrophy. ALD aldolase. ) today announced that it has signed a definitive purchase agreement to acquire Callidus Capital Management, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("Callidus Capital"), subject to certain conditions to closing. Following the acquisition, Allied Capital will be a majority owner and management will retain a significant minority position. Callidus Capital is an asset management company that structures and manages investments in collateralized debt obligations Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, (CDOs), senior loan collateralized loan obligations Collateralized loan obligation (CLO) A security backed by a pool of commercial or personal loans , structured so that there are several classes of bondholders with varying maturities, called tranches. Similar in structure to Collateralized Mortgage Obligations. (CLOs), and other related investments. The company currently has approximately $700 million in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . In conjunction with the transaction, Allied Capital will commit $100 million of financing to fund working capital, support warehouse facilities, and invest in the equity of future CLOs issued by Callidus Capital. Callidus Capital is lead by four senior industry professionals who possess, on average, 25 years of experience in the fixed income and bank loan markets. "We look forward to working with Callidus Capital's exceptional management team, who bring an outstanding record of superior investment performance based on a strong credit discipline. With the growth of the structured finance markets, we believe that an investment in this highly qualified manager of CLOs and CDOs will provide attractive current returns, while also offering Allied Capital an opportunity to receive referrals for new mezzanine financings as well as refer opportunities for senior loan financing," said Bill Walton, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Allied Capital. "We anticipate that Callidus Capital will be able to grow more rapidly its business of managing senior corporate loan assets with this additional financial support from Allied Capital." According to Richard Ivers, CEO of Callidus Capital, "This is a great match for us. We are all excited about forming what we believe will be a highly synergistic partnership with Allied Capital. Their resources and superb market stature will enable Callidus to enhance its investment capabilities, grow its existing lines of business, as well as develop new complimentary lines of business." About Allied Capital Allied Capital is the nation's largest business development company and provides long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and equity investment capital to support the expansion of companies in a variety of industries. The company also participates in the real estate capital markets as an investor in non-investment grade commercial mortgage-backed securities, collateralized debt obligation bonds and preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . The company is headquartered in Washington, DC. For more information, please visit the web site at www.alliedcapital.com, call Allied Capital Investor Relations Investor relations The process by which the corporation communicates with its investors. toll-free at 888-818-5298, or e-mail us at ir@alliedcapital.com. About Callidus Capital Management Callidus Capital is an asset management company that structures and manages investments in collateralized debt obligations, senior loan collateralized loan obligations, and other related investments. The company currently has $700 million in assets under management in three investment funds. Callidus Capital was formed in 2001 by a group of private investors. Senior members of the company's management team possess, on average, 25 years of experience in the fixed income and bank loan markets. For more information, please visit www.calliduscapital.com. Forward-Looking Statements The information contained in this press release contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, and these factors are enumerated This term is often used in law as equivalent to mentioned specifically, designated, or expressly named or granted; as in speaking of enumerated governmental powers, items of property, or articles in a tariff schedule. in Allied Capital's periodic filings with the Securities and Exchange Commission. |
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