Allied Capital Expects $22.5 Million Gain on the Sale of Its Warrants in CorrFlex Graphics, LLC.Business Editors WASHINGTON--(BUSINESS WIRE)--April 29, 2004 Allied Capital Corporation (NYSE NYSE See: New York Stock Exchange :ALD ALD abbr. adrenoleukodystrophy ALD, n.pr See adrenoleukodystrophy. ALD aldolase. ) announced today that CorrFlex Graphics, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (CorrFlex) has signed a definitive agreement to be sold to Sonoco, Inc. (NYSE:SON), a global provider of packaging products and services. The definitive agreement places a total transaction value of approximately $250 million on the sale of the company, including repayment of outstanding debt. Upon closing of the transaction, Allied Capital expects to be repaid its $12 million in outstanding mezzanine debt and to realize a gain on its warrants of approximately $22.5 million, subject to working capital and other closing adjustments. The sale transaction is subject to certain closing conditions, including regulatory approval, and is anticipated to close by the end of the second quarter. "CorrFlex has been a very successful investment for Allied Capital shareholders," said Tom Westbrook, Managing Director of Allied Capital. "Over the past six years, the CorrFlex management team has increased the company's revenues from $25 million to more than $200 million and built CorrFlex into one of the nation's leading point-of-purchase display companies." "Since 1998, not only have we relied on Allied Capital's strength and trustworthiness as a financial partner, we have enjoyed it. Allied Capital's timely advice and long-standing support of our business allowed CorrFlex the opportunity to achieve growth and prominence in our industry," said Kerry Vickar, CorrFlex 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. . About Allied Capital Allied Capital is the nation's largest business development company and provides 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 investment capital to companies in a variety of industries. The company also participates in the real estate capital markets as an investor in non-investment grade commercial mortgage-backed securities and collateralized debt obligation Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, bonds and preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . 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. About CorrFlex Graphics, LLC CorrFlex Graphics, LLC, through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. CorrFlex Display & Packaging, LLC, is today one of the largest Point-of-Purchase display and assembly/fulfillment companies in North America. With nine manufacturing and assembly facilities and four remote sales and design offices that stretch from the east coast to the west coast, the company is able to accommodate the needs of any users of its vast array of products and services. The company was formed in 1998 and is based in Statesville, NC. About Sonoco, Inc. Sonoco, founded in 1899, is a global manufacturer of industrial and consumer products and provider of packaging services, with more than 295 operations in 32 countries serving customers in some 85 nations. For more information on the Company, visit their Web site at www.sonoco.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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