EXHIBIT 99.1
Published on April 14, 2004
EXHIBIT 99.1
Allied Capital Completes Sale of The Hillman Companies, Inc.,
Realizes $149 Million Gain on Investment
Washington, DC, March 31, 2004 Allied Capital Corporation (NYSE:ALD) and the Hillman Companies, Inc. (Hillman) (AMEX: HLM.PR) today announced that the sale of Hillman to an affiliate of Code Hennessy & Simmons LLC has been completed. The sale was originally announced on February 17, 2004.
Hillman was sold for a total transaction value of $510 million, including the repayment of outstanding debt and adding the value of the companys outstanding trust preferred shares. Allied Capital has been repaid its existing $44.6 million in outstanding mezzanine debt. Allied Capital has provided $47.5 million in new subordinated debt financing to Hillman in conjunction with the sale transaction. Net cash proceeds to Allied Capital from the transaction totaled approximately $197 million, subject to post-closing working capital and other adjustments.
At December 31, 2003, Allied Capital had estimated the enterprise value of Hillman to be approximately $500 million, which resulted in unrealized appreciation of $139.9 million on Allied Capitals investment. Based upon the transaction value of $510 million, Allied Capital has realized a gain on this investment of approximately $149 million, subject to post-closing working capital and other adjustments.
Hillmans publicly traded trust preferred securities will remain outstanding, will not be converted or exchanged, and will continue to trade on the AMEX. Management of Hillman will continue as owners in the company.
About Allied Capital
Allied Capital is the nations largest business development company and
provides long-term debt and equity investment capital to companies in a variety
of industries. The company also participates in the real estate capital
markets as an investor in non-investment grade commercial mortgage-backed
securities and collateralized debt obligation bonds and preferred shares. The
company is headquartered in Washington, DC. For more information, please visit
the web site at www.alliedcapital.com, call Allied Capital Investor Relations
toll-free at (888) 818-5298, or e-mail us at ir@alliedcapital.com.
About The Hillman Companies, Inc.
Hillman is a leading manufacturer of key making equipment and distributor of
key blanks, fasteners, signage, and other small hardware components and
operates in multiple channels of the retail marketplace such as hardware
stores, national and regional home centers, and mass merchants. Hillmans
primary operations are located in Cincinnati, OH.
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
in the companys periodic filings with the Securities and Exchange Commission.
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