Allied Capital Completes Sale of Wyoming Technical Institute; Realizes $60 Million Gain on Investment.Business Editors 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 completed the sale of Wyoming Technical Institute ("WyoTech") for approximately $84.4 million in cash. The sale was originally announced on April 10, 2002. "WyoTech is a home run for Allied Capital," said Bill Walton, Allied Capital 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. . "We acquired 91% of WyoTech in December 1998, and we have realized a gain of approximately $60 million on the transaction." Mr. Walton continued, "Our investment strategy is designed to provide long-term value for shareholders. The sale of WyoTech represents the single largest gain in Allied Capital's 44-year history. Allied Capital has thrived by maintaining a durable balance sheet, rigorously applying our credit risk standards and ensuring appropriate portfolio diversity. As a result, we have been able to build long-term shareholder value by consistently delivering steady and growing dividends to shareholders. With this $60 million cash gain, we are well positioned to deliver our targeted 10% growth for the 2002 dividend." Allied Capital's initial investment in WyoTech totaled $19.0 million, including a combination of debt, preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and common equity. WyoTech repaid $2.5 million of its debt in July 2001; the remaining $16.5 million investment has been repaid from the sale proceeds. Total cash proceeds from the sale of WyoTech and repayment of debt were approximately $76.5 million. At December 31, 2001 and March 31, 2002, Allied Capital had valued its investment in WyoTech at $60.5 million and $70.5 million, respectively. Allied Capital was advised on the transaction by Banc of America Securities LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and was represented in the transaction by Dickstein Shapiro Morin & O'Shinsky LLP LLP - Lower Layer Protocol . Allied Capital has a diverse portfolio of 133 companies from which to harvest gains and maintains a balance in the portfolio between traditional mezzanine investing and control transactions. About Allied Capital Allied Capital is the nation's largest business development company, and provides long-term investment capital to support the expansion of growing middle-market companies. The company provides mezzanine 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. , and also participates in the real estate capital markets as an investor in commercial mortgage-backed securities. 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. 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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