Allied Capital Invests $37 Million in York Insurance Services Group.
WASHINGTON -- Allied Capital Corporation (NYSE NYSE
See: New York Stock Exchange :ALD ALD
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aldolase. ) announced today that it has invested $37 million to support the buyout of York Insurance Services Group, Inc. ("York") by private equity firm Odyssey Investment Partners, LLC (Logical Link Control) See "LANs" under data link protocol.
LLC - Logical Link Control . Allied Capital's investment took the form of senior secured notes, senior subordinated notes and an equity co-investment An equity co-investment is a small minority investment made alongside a private equity investor, or financial sponsor, in an LBO, a recapitalization, or a growth capital transaction. . Allied Capital's senior loan group, AC Finance LLC, served as Syndication Agent for the senior loan financing package. Allied Capital expects to sell its senior secured notes, totaling $17 million, post closing.
York is a leading third-party claims administrator ("TPA (Transient Program Area) See transient area.
TPA - Transient Program Area ") providing outsourced processing, adjusting and settlement claims services to insureds on behalf of its customers, which are primarily insurance carriers, state agencies and self-insured companies. The company has set itself apart in the industry by managing large and complex claims in niche segments of the insurance sector, including national property & casualty industry programs, state residual plans, and specialized loss adjusting. The company performs its services across multiple business lines, including property, general liability, automotive and workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. .
"We are pleased to be partnering with Odyssey once again to support its buyout of York," said John Fruehwirth, Managing Director of Allied Capital. "Odyssey brings deep operating experience in the insurance segment to this transaction and, combined with the outstanding management team of York, positions this company to further capitalize on Cap´i`tal`ize on`
v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the positive outsourcing trends in the insurance industry."
"We are delighted to have Allied Capital as our financing partner for this transaction," said Doug Rotatori, Managing Principal of Odyssey Investment Partners. "Allied Capital proved itself again to be a value-added partner to our firm by initially introducing us to this opportunity and then committing to provide the financing we needed to complete it."
About Allied Capital
Allied Capital Corporation, a leading business development company with total assets of more than $4 billion, has paid regular, quarterly cash dividends to shareholders since 1963. Allied Capital invests in the American entrepreneurial economy by providing capital to companies seeking a long-term financial partner and access to managerial resources often unavailable to smaller companies. Since its IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. in 1960, Allied Capital has provided long-term debt Long-Term Debt
Loans and financial obligations lasting over one year.
For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term 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. to thousands of middle market companies. In serving its shareholders, Allied Capital helps build middle market businesses and support American jobs. The Company's private finance portfolio includes investments in over 100 companies that generate aggregate revenues of more than $12 billion and employ more than 90,000 people.
Headquartered in Washington, DC, Allied Capital offers shareholders the opportunity to participate in the private equity industry through an investment in the Company's New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Stock Exchange-listed stock, which is traded under the symbol ALD. For more information, please visit 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 email@example.com. All media inquiries should be directed to Stan Collender of Qorvis Communications at 202-448-3131.
About York Insurance Services Group, Inc.
York Insurance Services Group, Inc. ("York" or "the Company") is primarily a third-party claims administrator ("TPA") providing processing, adjusting, and settlement claims services to insured members on behalf of insurance carriers. York focuses on profitable, higher service oriented niche segments where insurance carriers tend to outsource a greater portion of the claims processing. York also provides services for more standard insurance markets such as stand-alone self-insureds and overflow claims processing from insurance carriers. York is headquartered in Parsippany, New Jersey and employs approximately 525 people. For more information, please visit www.yorkclaims.com.
About Odyssey Investment Partners, LLC
Odyssey Investment Partners manages $1.5 billion of capital in two private equity funds, a $760 million fund raised in 1998, and a $750 million fund raised in 2005. Odyssey makes majority, control investments primarily in established middle-market companies in a variety of industries, including industrial manufacturing, business and financial services aerospace products and services, and route-based services. For more information, please visit www.odysseyinvestment.com.
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 some of 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 Allied Capital's periodic filings with the Securities and Exchange Commission.