Allied Capital Increases Quarterly Dividend by 12.5% to $0.45 Per Share; Board Adopts New Dividend Policy.Business Editors WASHINGTON--(BUSINESS WIRE)--Feb. 4, 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) ) announced today that is has increased its regular quarterly dividend by 12.5% to $0.45 per share for the first quarter of 2000. The regular quarterly dividend had previously been $0.40 per share. The record date is March 17, 2000 and the payable date is March 31, 2000. At their meeting yesterday, the company's Board established a policy to review the dividend rate quarterly, and to adjust the quarterly dividend rate throughout the year as the company's earnings momentum builds. In 1999, the Board had established a dividend policy of level quarterly dividends to approximate annual taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. . The Board changed its dividend policy for 2000 because of the company's significant portfolio growth and continued growth in recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. ordinary income. The Board of Directors also discussed the company's dividend policy with respect to the distribution of capital gains. As a regulated investment company Regulated investment company An investment company allowed to pass capital gains, dividends, and interest earned on fund investments directly to its shareholders so that it is taxed only at the personal level, and double taxation is avoided. , the company is not required to distribute its capital gains, but may retain them to support future growth. Historically, the company has distributed its capital gains. Again, because of the growth in ordinary taxable income combined with the increased size and diversity of the company's portfolio and its projected future capital gains, the Board has determined that it will evaluate whether to retain or distribute capital gains as they occur. The new policy will allow the company to continue to distribute some capital gains, but will also allow the company to retain gains that exceed a &uot;normal&uot; capital gains distribution level, and therefore avoid any unusual spike in dividends in any one year. The new policy also enables the Board to selectively retain gains to support future growth. 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. , 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;The reliable ordinary interest and fee income from our business continues to grow, and the Board's actions reflect their confidence in our company's ability to continue this momentum. We've made some exciting investments and continue to see excellent investment opportunities. As a result, in addition to the recurring portfolio income we annually recognize, we could see some significant capital gains from our portfolio in the future. The new dividend policy provides the flexibility to deliver a steady stream of dividends to our shareholders while retaining extraordinary capital gains to fuel our growth.&uot; Allied Capital 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 web site at www.alliedcapital.com. Please visit the web site to test your connection before the call. You can also access the conference call by dialing 888/606-5913 approximately 15 minutes prior to the call; please reference the passcode &uot;Allied Capital.&uot; International callers should dial 312/470-0052. For complete information about the webcast/ conference call, please visit our web site 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 the event will be available on our web site. 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 $30 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 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. . 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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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