Allied Capital Corporation Reports Second Quarter Investment Activity.WASHINGTON--(BUSINESS WIRE)--July 16, 1998--Allied Capital Corporation (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) ) today reported that it invested a total of approximately $141 million in growing businesses nationwide during the second quarter of 1998, a 31% increase over the company's investment activity during the first quarter of 1998, and a 17% increase over total investments during the second quarter of 1997. The company's second quarter investment activity included $45 million in new mezzanine financings. For the first six months of 1998, the company has originated a total of $83 million in new mezzanine investments, a 24% increase over the company's mezzanine finance activity for all of 1997. Nearly half of this second quarter mezzanine volume was originated by the company's Chicago office, which was established in mid-1997. Included in the company's second quarter investment activity were the following new financings: --$12 million of 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". to recapitalize Wilton Industries, Inc., a consumer products company specializing in housewares house·wares pl.n. Cooking utensils, dishes, and other small articles used in a household, especially in the kitchen. and home accessories; --$10 million of subordinated debt with warrants to finance the expansion of Nobel Education Dynamics, Inc., an education services company; --$9 million of subordinated debt to finance the buyout of Coverall cov·er·all n. A loose-fitting one-piece work garment worn to protect clothes. Often used in the plural. Noun 1. coverall - a loose-fitting protective garment that is worn over other clothing North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Inc., a commercial contract cleaning services company; --$5 million of subordinated debt to finance the growth of Mid-Atlantic Telecom Plus, a cable television and telecom services operator; --$4.25 million of subordinated debentures and 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. to finance the acquisition of Progressive International Corp., a designer and marketer of housewares, including kitchen preparation products. New commercial real estate financings totaled $82 million during the second quarter of 1998, bringing the total new commercial real estate financings for the first six months to $136 million, which is approximately equal to the company's commercial real estate investment activity for the first six months of 1997. New commercial real estate investments funded during the quarter included: --$22.3 million pool of 21 mortgage loans secured by a variety of property types including office buildings, shopping centers, warehouses, and residential complexes located in the southeast; --$18.5 million mortgage loan secured by a 168-room non-flagged, full service hotel used as flight crew quarters for a major airline located in downtown San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , CA; --$8 million mortgage loan secured by a multi-tenant industrial warehouse outside Detroit, MI. The company invested a total of $14 million in new SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government Section 7(a) guaranteed loans during the second quarter. Year to date, the company has invested a total of approximately $30 million in this product area, a 61% increase over new loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. for the first six months of 1997. During the second quarter, the company made 7(a) guaranteed loans to 39 borrowers operating in a variety of industries including automotive services, restaurants, funeral homes, manufacturing concerns and hotels. 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. , noted, "We're very pleased with the volume and quality of our new investments this quarter. It is especially gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. to see the production beginning to flow from our new offices. We're getting good results from our efforts to build our deal origination infrastructure. This has increased the number of deals we see, and has allowed us to be highly selective while maintaining our stringent underwriting standards." Allied Capital Corporation is a commercial finance company principally engaged in lending to and investing in private small and medium-sized businesses. For 40 years, the company has been dedicated to financing growing businesses nationwide. The company provides loans and investments ranging in size from $500,000 to $25 million in three areas: mezzanine finance, commercial real estate finance, and SBA 7(a) lending. The company has offices in Washington DC, Chicago, San Francisco, and Frankfurt, Germany. 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. For more information, please contact Suzanne V. Sparrow, Principal, Investor Relations Investor relations The process by which the corporation communicates with its investors. , at 888/818-5298 or 202/973-6326 for more information.
CONTACT: Allied Capital
Suzanne Sparrow, 202/973-6326
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