Allied Capital Announces Agreement to Purchase Financial Pacific Company.WASHINGTON -- 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 agreed to purchase Financial Pacific Company (FinPac), a specialized commercial finance company focused on providing leases for business-essential equipment to small businesses nationwide. The total transaction amount is expected to be approximately $94 million, which includes closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, and is subject to adjustments. Allied Capital intends to provide both subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. for the transaction. The purchase is scheduled to close in the third quarter and is subject to certain closing conditions and regulatory approvals. "Under the direction of an experienced management team, FinPac's disciplined, conservative approach to underwriting has made the company a leader in small business finance," said Edward Ross, Managing Director at Allied Capital. "We look forward to adding FinPac to our portfolio because we believe the company has strong financial dynamics and the opportunity to prudently grow its asset base." 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 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 and collateralized debt obligation Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, 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 about Allied Capital, please visit the web site at www.alliedcapital.com, call Allied Capital Investor Relations toll-free at 888-818-5298, or e-mail us at ir@alliedcapital.com. For all media inquiries, please contact Allied Capital's Marketing Department at 202-331-1112. About Financial Pacific Company Financial Pacific Company is a specialized commercial finance company, which provides lease financing to small businesses nationwide through a network of independent brokers. FinPac's portfolio of $200 million in lease assets covers over 25 categories of equipment, including industrial, food service, data processing, vehicles, trailers, construction, and maintenance equipment. The company, which was founded in 1975, employs over 120 professionals and is headquartered in Federal Way, WA. The company's current majority owner is Windward Capital Partners, L.P. For more information, please visit www.finpac.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 the company's periodic filings with the Securities and Exchange Commission. |
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