Allied Capital Announces Investment in DCS Business Services, Inc.Business Editors WASHINGTON--(BUSINESS WIRE)--Jan. 8, 2004 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 provided $26.0 million in 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 $1.5 million in preferred stock as part of the recapitalization of Diversified Collection Services, Inc. (DCS (1) See also DSC. (2) Digital Cross-connect System) A network switching and grooming device used by telecom carriers. See digital cross-connect. ), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of DCS Business Services, Inc. DCS is a leading private collections agency for government obligations, such as delinquent student loans and taxes. The recapitalization was led by Parthenon Capital. "DCS is an established industry leader that has consistently been ranked a top government debt collector by its clients," 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. "The company has a proven track record of success and continues to lead the industry in recovery rates due to its extensive experience and strong talent pool." About Allied Capital Allied Capital is the nation's largest business development company and provides 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 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. The company is headquartered in Washington, DC. For more information, 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. About Diversified Collection Services Diversified Collection Services (DCS), of Livermore, California, has specialized in providing repayment services for various types of both State and Federal debt for over two decades. Founded in 1976, DCS earned its reputation as the nation's leader in this unique and specialized industry, and has grown to become the largest provider of repayment services for federally funded student loans, delinquent individual and business taxes owed to state governments, and non-tax debt owed to states and the federal government. DCS is currently handling an active inventory in excess of $2 billion. For more information, visit www.dcswins.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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