Allied Capital Corp. raises $8.2 million in rights offering.WASHINGTON--(BUSINESS WIRE)--March 4, 1996--Allied Capital Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ALLC ALLC Association for Literary and Linguistic Computing ALLC Allied Capital Corporation (stock symbol) ALLC Army Logistics Leadership Center (Red River Defense Complex, Texarkana, TX) ) completed its 1-for-7 non-transferable rights offering, and announced Monday that the company raised $8.2 million, net of expenses. Shareholders of record as of Jan. 22, 1996 subscribed for a total of 656,670 shares, which includes 404,767 shares subscribed for pursuant to the primary subscription and 251,903 shares subscribed for pursuant to the oversubscription privilege Oversubscription privilege In a rights issue, arrangement by which shareholders are given the right to apply for any shares that are not taken up. oversubscription privilege . The final subscription price was $13.11 per share and equaled 95% of the average of the closing price of a share of common stock on the Nasdaq National Market on the expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. of the offering and each of the four preceding business days. The company will now proceed to collect the 21 cent per share difference between the final subscription price and the estimated subscription price of $12.90 per share from all subscribing shareholders. Once the remaining amount per share due has been remitted to the company, a 2.5% per share solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual fee will be paid to eligible broker-dealers for facilitating the exercise of subscription rights and the purchase of additional shares through the offering. The company estimates it will pay total solicitation fees of approximately $154,000. Total expenses of the offering, including these fees, are estimated at $458,000. The company may sell the remaining 361,595 registered shares in the future to other investors on similar terms. "We're very pleased with the results of this offering," said Cabell Williams, president and portfolio manager, "and we are anxious to invest this new capital into growing small businesses. As always, we are thankful for the continued support of our stockholders." Allied Capital Corp. is a publicly traded business development company, headquartered in Washington, D.C. traded on Nasdaq National Market, symbol ALLC. The company makes long-term investments ranging in size from $2 million to $8 million in small, private growing businesses throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . There are 6,228,126 total shares outstanding. Allied Capital pays a regular quarterly dividend of 26 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. and an annual extra distribution which is determined at year end. The company paid a total of $1.44 per share for the year ended Dec. 31, 1995, and paid a total of $1.40 per share, including a 60 cents per share annual extra distribution in the form of shares of Allied Capital Lending Capital lending is the process of a large company, or corporation, offering financing on large "ticket" items to encourage the customer to purchase that item. Many major corporations have set up finance divisions, or subsidiaries, to help the customer purchase their product over Corp., for the year ended Dec. 31, 1994. Allied Capital paid $1.35 per share in cash distributions for the year ended Dec. 31, 1993 and $1.32 per share for 1992. Allied Capital has paid regular quarterly distributions and an annual extra distribution since 1964. All numbers have been adjusted for stock splits. Allied Capital's stock is marginable. A recent quote of the stock was $13 3/8. For additional information, please contact Allied Capital's Investor Relations Investor relations The process by which the corporation communicates with its investors. Department at 202/973-6343 or fax to 202/659-2053. CONTACT: Allied Capital, Washington Suzanne Sparrow, 202/973-6326 |
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