Allied Capital Commits $72.5 Million to Leading Custom Aluminum Extrusion Business.WASHINGTON -- Allied Capital Corporation (NYSE NYSE See: New York Stock Exchange :ALD ALD abbr. adrenoleukodystrophy ALD, n.pr See adrenoleukodystrophy. ALD aldolase. ) announced today that it has committed $72.5 million to support the buyout of Postle Distributors, Inc. by private equity firm Strength Capital Partners. Allied Capital's commitment took the form of senior secured notes, a revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility, an undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely capital expenditures facility, and an equity co-investment An equity co-investment is a small minority investment made alongside a private equity investor, or financial sponsor, in an LBO, a recapitalization, or a growth capital transaction. . Postle Distributors, Inc. ("Postle") is a leading, vertically integrated distributor and manufacturer of custom and standard aluminum extrusions and related components. Its products are sold into a diverse group of end-markets, including the recreational vehicle ("RV"), fencing, specialty trailer, aluminum fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. , truck component and building products markets. In Northern Indiana Northern Indiana is the region of Indiana including 26 counties bordering parts of Illinois, Michigan, and Ohio. The area is generally sub-classified into other regions. The northwest is economically and culturally intertwined with Chicago, and is considered part of the Chicago , where the majority of domestic RVs are manufactured, Postle enjoys a dominant market position as the largest supplier of structural aluminum extrusions to RV OEMs. By operating its own captive aluminum manufacturing plant, Postle provides its customers with ready access to extrusion supplies, quick product turnaround times, and customized orders. "Allied Capital is pleased to be partnering for the first time with Strength Capital Partners in support of its buyout of Postle Distributors, one of the largest and most efficient distributors in the aluminum extrusion industry," said Thomas Lauer, Managing Director of Allied Capital. "Postle's leading market position and long-standing reputation for customer service will allow the company to continue to benefit from favorable aluminum industry dynamics and growing long-term demand in the end markets that it serves." "Allied Capital has been a true value-added financing partner in this transaction," said Strength Capital Partners' Mark McCammon. "Their timely commitment of flexible and competitive debt 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. were instrumental in getting this deal done. We look forward to working closely with the Allied Capital team as we build upon Postle's leading market position by expanding its platform of products, services and customers." Legal advisor to Allied Capital were Robinson, Bradshaw and Hinson located in Charlotte, NC. Dresner Partners provided financial advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal to Postle. About Allied Capital Allied Capital Corporation, a leading business development company with total assets of more than $4 billion, has paid regular, quarterly cash dividends to shareholders since 1963. Since its IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. in 1960, Allied Capital has provided 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 financing to thousands of middle market companies. Allied Capital invests in the American entrepreneurial economy by providing capital to companies seeking a long-term financial partner and access to managerial resources often unavailable to smaller companies. In serving its shareholders, Allied Capital helps build middle market businesses and support American jobs. The Company's private finance portfolio includes investments in over 100 companies that generate aggregate revenues of approximately $12 billion and employ more than 85,000 people. Allied Capital provides flexible, competitive debt and equity capital for management and sponsor-led buyouts, recapitalizations, acquisitions and growth of middle market companies. Allied Capital's seamless, one-stop financing capabilities include first and second lien senior loans, unitranche debt, junior or mezzanine debt and equity. Headquartered in Washington, DC, Allied Capital offers shareholders the opportunity to participate in the private equity industry through an investment in the Company's New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Stock Exchange-listed stock, which is traded under the symbol ALD. For more information, please visit 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. All media inquiries should be directed to Stan Collender of Qorvis Communications at 202-448-3131. About Postle Distributors, Inc. Founded in 1974 and based in Elkhart, IN, Postle Distributors is a leading, vertically integrated distributor and manufacturer of standard and custom aluminum extrusions and related components. The Company's distribution business serves over 975 active customers in the recreational vehicle, fencing, specialty trailer, aluminum fabrication, truck component and building products markets. In addition to its main distribution facility in Elkhart, Indiana, the company maintains two other facilities located in Valdosta, GA and Woodland, CA, giving it a national footprint. The company's vertically integrated business model includes a captive manufacturing entity, DW Aluminum, which is located in Cassopolis, Michigan (15 miles north of Elkhart, IN). For more information, please visit www.postledistributors.com. About Strength Capital Partners SCP (1) (Service Control Point) A node in an SS7 telephone network that provides an interface to databases, which may reside within the SCP computer or in other computers. is a Birmingham, Michigan-based private equity firm focused on acquiring late-stage middle market businesses primarily located in the Midwest. SCP is currently investing its second fund with total committed capital of $140 million. The firm's strategy is to acquire companies with $15 - $150 million in annual sales that have continued prospects for growth, relatively low fixed asset bases and a strong brand name or market presence. For more information, please visit www.strengthcapital.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 some of 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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