Allied Capital Commercial Corp. and Business Mortgage Investors Inc. raise $98 million through public offering of commercial mortgage collateralized bonds.

WASHINGTON--(BUSINESS WIRE)--Nov. 20, 1995--Allied Capital Commercial Corporation (ALCC) and Business Mortgage Investors, Inc., a private REIT, Monday received approximately $98 million in proceeds from the public sale of commercial mortgage collateralized bonds.

The bonds were issued by Allied Capital Funding, L.L.C., a joint venture between Allied Capital Commercial Corporation and Business Mortgage Investors, Inc.

Approximately $80 million of the proceeds will go to Allied Capital Commercial Corp., and will be used to retire approximately $48 million in outstanding lines of credit and to purchase and originate additional commercial mortgage loans.

The bonds, which have a fixed interest rate of 6.92%, were underwritten by Merrill Lynch & Co. and have been assigned a rating of "AA" by Fitch Investors Services, L.P. The bonds are non-recourse and are secured by commercial loans purchased or originated by Allied Capital Commercial Corp. and Business Mortgage Investors Inc.

John Scheurer, president and portfolio manager of Allied Capital Commercial Corp., remarked, "Our ability to secure lower cost long-term financing through securitization of our commercial mortgage loan portfolio will have a significant effect on our continued profitability. This is truly an exciting chapter in the growth of our company." -0-

Allied Capital Commercial Corp. is a publicly traded mortgage REIT headquartered in Washington, D.C., traded on the Nasdaq National Market, symbol ALCC. The company purchases and originates commercial mortgage loans across the United States. There are a total of 13,583,733 shares outstanding.

The company currently pays a regular quarterly cash dividend of 42 cents per share and for 1994 paid an extra cash distribution of 22 cents per share for a total distribution to shareholders for 1994 of $1.47 per share. The stock was recently quoted at $18 1/4 per share and the shares are marginable.

For additional information or a copy of the company's annual report, please contact Allied Capital's Investor Relations Department at 202/973-6334 or fax to 202/659-2053.

CONTACT: Allied Capital, Washington

Suzanne Sparrow, 202/973-6334