Allied Capital and Startec Global Communications Announce Accounts Receivable Purchase Facility.Business Editors WASHINGTON--(BUSINESS WIRE)--April 16, 2001 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) ) and Startec Global Communications Corporation (Nasdaq:STGC STGC St. George's College (Kingston, Jamaica) STGC Startec Global Communications Corporation ) have entered into an agreement to provide Startec with $15 million in capital through the sale of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying to Allied Capital. Allied Capital will receive collections on the purchased accounts receivable directly through a lock-box account. Scott Binder, Managing Director of Allied Capital, said, "This transaction is an excellent example of Allied Capital's ability to assist a portfolio company in strengthening its balance sheet while providing a strong investment return along with protection of principal. Startec's customer and revenue base remain very strong. By purchasing accounts receivable, we will collect our principal directly from Startec's customers." About Allied Capital Allied Capital is the country's largest business development company, and provides long-term investment capital to support the expansion of growing companies nationwide. 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 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. 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. |
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