ALLIED CAPITAL CORP

ALLIED CAPITAL CORP

Previous company name
ALLIED CAPITAL LENDING CORP
Name change date
11/16/1993
Company Overview
Allied Capital Corporation, with registered head office in Washington, District of Columbia, United States, is a publicly quoted company engaged in the provision of financial services to growing businesses in a variety of industries. The company was founded in 1958 and went public in 1960.
Allied Capital, a leader in the private finance industry in the United States, provides debt and equity financing to primarily private, middle market companies. The company offers its investors the opportunity to participate in the US private equity industry through an investment in publicly traded stock. It provides long-term debt and equity capital services including the provision of senior loans, second lien debt, subordinated debt and unitranche facilities (a single debt investment that is a blend of senior and subordinated debt terms), as well as buying substantial equity stakes in middle market companies (i.e. buyout investing). Allied Capital, through its senior loan underwriting group AC Finance, provides senior loans, second lien loans and revolving lines of credit to middle market borrowers. AC Finance structures, originates, syndicates and manages middle market senior loans and provides fully underwritten commitments up to $150 million. Allied Capital’s unitranche debt facility combines traditional senior and junior debt terms into a single senior debt facility. It is particularly attractive to smaller companies that have no access to the larger senior syndicated loan market. Smaller companies have EBITDA (earnings before interest, taxes, depreciation and amortization) less than $15 million. Unitranche debt facility blends the cost of senior and junior debt, providing the borrower the ease of a single loan agreement, with a single interest rate from a single lender. The unitranche structure also offers simplified documentation, reduced amortization requirements, and the ease of future add-ons and modifications. Buyout investing covers the provision of equity capital, typically in conjunction with a debt investment, to support management.
As of June 2007, Allied Capital’s portfolio included investments in 143 companies that generate aggregate annual revenues of more than $12 billion.
Business Summary
Allied Capital Corporation is a closed-end, non-diversified management investment company. It operates as a business development company (BDC). The Company invests in primarily private middle market companies with earnings before interest, taxes, depreciation and amortization (EBITDA) of between $5 million and $150 million in a range of industries through long-term debt and equity capital instruments. The investment objective is to achieve current income and capital gains. In order to achieve this objective, the Company invests in debt and equity securities of private companies in a range of industries. At December 31, 2009, the private finance portfolio included investments in 77 companies. In April 2010, Ares Capital Corporation completed its merger with Allied Capital Corporation.
Description and history
Allied Capital Corporation is a closed-end, non-diversified management investment company. It operates as a business development company (BDC). The Company invests in primarily private middle market companies with earnings before interest, taxes, depreciation and amortization (EBITDA) of between $5 million and $150 million in a range of industries through long-term debt and equity capital instruments. The investment objective is to achieve current income and capital gains. In order to achieve this objective, the Company invests in debt and equity securities of private companies in a range of industries. At December 31, 2009, the private finance portfolio included investments in 77 companies. In April 2010, Ares Capital Corporation completed its merger with Allied Capital Corporation.

The private finance portfolio primarily is composed of debt and equity investments. Debt investments include senior loans, unitranche debt (an instrument that combines both senior and subordinated financing, generally in a first lien position), or subordinated debt (with or without equity features). The portfolio contains equity investments generally for a minority equity stake in portfolio companies, and includes equity features, such as nominal cost warrants, received in conjunction with the debt investments. The Company also have invested in the bonds and preferred shares/income notes of collateralized loan obligations (CLOs) or collateralized debt obligations (CDOs), where the underlying collateral pool consists primarily of senior loans.

In addition to managing its assets, the Company manages funds, which also invest in the debt and equity securities of private middle market companies in a range of industries and syndicated senior secured loans. At December 31, 2009, the Company had six separate funds under its management. In October 2009, the Company sold the investment including the outstanding commitments and the provision of management services, in the Senior Secured Loan Fund LLC to Ares Capital Corporation (Ares Capital). In December 2009, the Company sold the investment, including the provision of management services, in the Allied Capital Senior Debt Fund, L.P. to Ivy Hill Asset Management, L.P., a portfolio company of Ares Capital.

Business Line
Engaged in the provision of financial services to growing businesses in a variety of industries
Subsidiary
3SI SECURITY SYSTEMS HOLDING COMPANY, INC.
Advisor
KPMG LLP
IPO date
11/1993
US SIC Code
6726
Company Address
1919, Pennsylvania Avenue, N.W.

City province or state postal code
20006, WASHINGTON, DC
Phone: +1 202 721 6100
Fax: +1 202 721 6101
Country address: UNITED STATES OF AMERICA
Website url: www.alliedcapital.com