Allied Capital Increases Investment Activity by 44% for 1999.Business Editors WASHINGTON--(BUSINESS WIRE)--Jan. 27, 2000 Allied Capital Corporation (Nasdaq: 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 the company invested a total of $752 million for 1999, a 44% increase over 1998 new loans and investments of $524 million. For the fourth quarter of 1999, new loans and investments totaled $218 million, a 25% increase over 1998 fourth quarter investment activity. Private Finance For 1999, the private finance group invested a total of $347 million in mezzanine transactions, an increase of 47% over $236 million invested in 1998. During 1999, the company originated 27 new private financings with an average investment size of $9.6 million. The company completed eight new private finance transactions in the fourth quarter and invested $109 million in mezzanine financings. Fourth quarter investment activity included the following new financings: -- $3.8 million of 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 Sure-Tel, Inc., a local telephone service company, to finance its growth; -- $8.0 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". with warrants to J3 Technology Services Corporation, an information technology service provider, to finance an acquisition; -- $9.7 million of subordinated debt with warrants and common stock to Woodstream Corporation, a leading manufacturer and marketer of pest control pest control n → control m de plagas pest control n → lutte f contre les nuisibles pest control pest n products, to finance a buyout; -- $25.0 million of subordinated debt with warrants and preferred stock to Outsource Partners, Inc., a leading provider of security and janitorial services, to finance a buyout; and -- $28.3 million of subordinated debt, preferred and common stock to Garden Ridge
Allied Capital Express For 1999, Allied Capital Express funded $116.5 million in secured small business loans, a 58% increase over 1998 funding activity of $73.9 million. During the fourth quarter of 1999, Allied Capital Express funded a total of $37.1 million, including two transactions sourced through the 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. web site, which became operational in November 1999. Most loans originated through Allied Capital Express are originated for sale to generate loan sale premiums. Real Estate Finance During 1999, the company invested $246 million in non-investment grade commercial mortgage-backed securities Commercial mortgage-backed securities (CMBS) are a type of bond commonly issued in American security markets. They are a type of Mortgage-backed security which are backed by mortgages on commercial rather than residential real estate. (CMBS CMBS See: Commercial Mortgage Backed Securities ). In the fourth quarter of 1999, new CMBS investments totaled $63 million in three transactions. The company's total purchased CMBS portfolio is secured by more than 1,800 properties nationwide. Bill Walton William Theodore Walton III, better known as Bill Walton (born November 5, 1952), is a former American basketball player and current television sportscaster. He is the father of current Los Angeles Lakers player Luke Walton. , Allied Capital's 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. , remarked, &uot;We continue to see solid growth in our investment portfolio. By carefully focusing on niches where our exceptional talent pool and strong balance sheet are strategic advantages, we have achieved a meaningful competitive presence in each of our three businesses. &uot;Our private finance group's strategy of partnering with the nation's leading private equity firms is paying off. We have achieved significant leverage from their deal origination network and equity capital, and have invested in some very exciting companies this year.&uot; Walton continued, &uot;We have aggressively re-engineered Allied Capital Express to capitalize fully on the opportunities presented by the Internet, and foresee dramatic growth for this business. &uot;In real estate finance, we took advantage of extremely favorable market conditions to purchase non-investment grade CMBS, and have built a portfolio with exceptional yield and credit characteristics that should provide an excellent source of interest income for Allied Capital for years to come.&uot; Allied Capital will announce the first quarter dividend on February 4, 2000, and will release fourth quarter and year-end financial results before the market opens on February 15, 2000. The company will host a webcast/conference call at 10:15 Eastern, on Tuesday, February 15, 2000 to discuss 1999 financial results. All interested parties are welcome to attend the live webcast, which will be hosted through our website at www.alliedcapital.com . You can access the conference call by dialing (800) 839-4890 approximately 15 minutes prior to the call; please reference the passcode &uot;Allied Capital.&uot; International callers should dial (402) 998-1604. For complete information about the webcast/conference call, please visit our website or call Allied Capital Investor Relations Investor relations The process by which the corporation communicates with its investors. at (888) 818-5298. An archived replay of event will be available on our website. Allied Capital provides long-term capital to fuel the expansion of growing companies nationwide. The company's private finance group 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. ranging in size from $5 million to $25 million. Allied Capital Express, the company's small business loan program, provides secured financing of up to $3 million for small businesses. The company is also an active participant in the real estate capital markets, providing commercial mortgage loans and investing in commercial mortgage-backed securities. The company is headquartered in Washington, DC and has eight regional offices 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. . For more information, please visit the web site at www.alliedcapital.com or call us toll-free at (888) 818-5298. 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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