Allied Capital Invests $22.0 Million in Universal Air Filter Co.WASHINGTON -- Allied Capital Corporation (NYSE NYSE See: New York Stock Exchange :ALD ALD abbr. adrenoleukodystrophy ALD, n.pr See adrenoleukodystrophy. ALD aldolase. ) announced today that it has committed $22.0 million of financing to support the leveraged recapitalization Leveraged Recapitalization A strategy where a company takes on significant additional debt with the purpose of either paying a large dividend or repurchasing shares. The result is a far more financially leveraged company. Notes: This is often used in risk arbitrage. of Universal Air Filter Company ("UAF UAF University of Alaska Fairbanks UAF Unite Against Fascism (UK) UAF University of Arkansas at Fayetteville UAF Union de l'Action Feminine (French) ") by The Riverside Company. Allied Capital's investment took the form of a unitranche debt security and a revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. . UAF is a leading designer and manufacturer of custom electronics cooling air filters used in a broad array of end markets, including communications, computer networking, industrial machinery, medical instruments, military, transportation, data storage and other electronics applications. "We are pleased to be partnering for the first time with The Riverside Company to support its recap of Universal Air Filter," said Mike Grisius, Managing Director of Allied Capital. "UAF has differentiated itself in a highly competitive market through its ability to provide quick-turn prototyping and customized air filter solutions to blue-chip customers like Lucent, Nortel, Alcatel, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Sun Microsystems and Cisco. UAF's engineering expertise, compliance with industry standards, consistently high quality and commitment to customer service have made them the leading provider of air filters to these growing end markets." "We are pleased to have Allied Capital as our financing partner for this transaction," said Will Bixby, a Partner in The Riverside Company's Dallas office. "Allied Capital's responsiveness and structural flexibility contributed to the successful closing of this transaction. Going forward, the shared strategic vision among all the stakeholders of the company will allow management to focus on future growth and building the company's leadership position in its market." About Allied Capital Allied Capital Corporation, a leading business development company with total assets of more than $3 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, the Company has provided 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 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 $10 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 toll-free at (888) 818-5298, or e-mail us at ir@alliedcapital.com. All media inquiries should be directed to Stan Collender of Financial Dynamics at (202) 434-0601. About Universal Air Filter Company Universal Air Filter is the industry leader in custom air filters for a range of applications in the communications, computer networking, industrial machinery, medical, military, transportation and data-storage industries. Its customers include both OEMs, who work with UAF to design a filter to meet specific needs, and end users, who purchase and use the filters for their high-end equipment. The Company's air filters are used in a broad range of communications equipment, including optical networking, wireless base stations, DSL/broadband, softswitches, voice-over Internet protocol gateways, servers, routers, cable modem termination systems, high-speed data transmission equipment, and fiber to the premises Fiber to the premises (FTTP) is a form of fiber-optic communication delivery in which an optical fiber is run directly onto the customers' premises. This contrasts with other fiber-optic communication delivery strategies such as fiber to the node (FTTN), fiber to the curb . UAF's air filters for Bell Lab's 5ESS digital switch are the standard in the communications industry. UAF is headquartered in Sauget, Illinois. For more information, please visit the Company's web sites at www.uaf.com, www.uafbroadband.com, www.uafpower.com, www.uafmedical.com, and www.uafdefense.com. About The Riverside Company The Riverside Company is the leading private equity firm focused on the small end of the middle market and is one of the industry's most experienced leveraged buyout investors. Riverside specializes in premier companies with enterprise values of less than $100 million, and partners with strong management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 115 transactions with a total value of $2.1 billion, sales of $2.4 billion, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of $263 million and 11,000 employees. More information on The Riverside Company can be found at www.riversidecompany.com and www.riversideeurope.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 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. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion