Allied Capital Provides Financing for Leading Defense Contractor.Business Editors WASHINGTON--(BUSINESS WIRE)--July 26, 2002 Allied Capital (NYSE NYSE See: New York Stock Exchange :ALD ALD abbr. adrenoleukodystrophy ALD, n.pr See adrenoleukodystrophy. ALD aldolase. ) today announced its investment of $22 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". in Scitor Corporation, a defense contractor Noun 1. defense contractor - a contractor concerned with the development and manufacture of systems of defense armed forces, armed services, military, military machine, war machine - the military forces of a nation; "their military is the largest in the region"; specializing in engineering, management consulting, and information sciences for commercial and government customers. Allied Capital's investment financed the Employee Stock Ownership Plan (ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). ) buyout of the company. The transaction was funded with a combination of subordinated debt from Allied Capital, senior debt from a syndicate of premier lenders, and financing from the employees. As a result of the transaction, Scitor's employees own 100% of the company through the ESOP. "At Scitor, our greatest assets are our people," said Jim Hoskins, President. "Our business is to provide consulting expertise for mission-critical government programs. Our reputation for integrity is the reason we have so many clients that trust us with long-term contracts, including one customer we have served for nearly 20 years." 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. William L. Walton said, "Scitor is an excellent example of the kind of investment on which we have built our business. The company meets all of our investment criteria - strong market leadership, a track record of high quality service, and a large and loyal customer base. Scitor will be a valuable addition to our portfolio." About Scitor Corporation Scitor Corporation, in business since 1979, provides systems engineering and project and process management solutions for classified government programs. Customers include the intelligence community, the Department of Defense, and aerospace and defense companies serving the industry. Scitor, which means "to seek to know" in Latin, enjoys a significant market share and is recognized for superior customer service. About Allied Capital Allied Capital is the nation's largest business development company, and provides long-term investment capital to support the expansion of growing middle-market companies. The company 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. , and also participates in the real estate capital markets as an investor in commercial mortgage-backed securities. 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. 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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