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Through various pay downs at and before closing, the Company noted, it has reduced its total debt outstanding under the Notes by $174.0 million. The highlights of the debt restructuring include:
- Total outstanding debt under the Notes was reduced through various paydowns to $841.0 million at closing from $1,015.0 million at June 30,
o The existing Notes were restructured into three new series with Series A maturing on June 15, 2010, Series B maturing on June 15, 2011 and Series C maturing primarily on March 31, 2012, with the remainder maturing on April 1, 2012
- The Facility was restructured into a term facility maturing on November 13, 2010; total commitments were reduced to $96.0 million from $115.0 million at July 2009
- The Company granted to its Noteholders and Facility lenders a pari-passu blanket lien on a substantial portion of its assets
- The restructured Notes and Facility provide the Company with increased financial covenant flexibility
- The restructured debt results in a significantly increased cost of capital, including significant fees in connection with closing
- After giving effect to the restructuring, the Company had cash and cash equivalents of approximately $175 million at August 31,
"We are pleased to have completed what has been a long and complex debt restructuring in a very challenging refinancing market," said John Scheurer, President and CEO of Allied Capital. "We believe the new debt agreements provide significant financial covenant relief and result in a reasonable maturity profile. With this restructuring now behind us, we will continue to focus on de-levering the balance sheet and executing our business strategy to move the company forward and rebuild shareholder value. This is important not only for our shareholders, but also for the thousands of middle market businesses in the US, many of which are facing significant capital needs and look to companies like Allied Capital for their financing," added Scheurer.
Allied Capital had $1,015.0 million of Notes outstanding at June 30. Through various paydowns at and prior to the closing of the restructuring, the total debt outstanding under the Notes has been reduced to $841.0 million.
Allied Capital is a business development company (BDC). Allied Capital invests long-term debt and equity capital in middle market businesses nationwide.
Information:
http://www.alliedcapital.com
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