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[ALLIED CAPITAL LOGO]
ALLIED CAPITAL COMPLETES ACQUISITION OF BLC FINANCIAL SERVICES
WASHINGTON, DC - JANUARY 2, 2001 -- Allied Capital Corporation (Nasdaq: ALLC)
today announced that it completed its acquisition of BLC Financial Services Inc.
on December 31, 2000. The new portfolio company has changed its name to Business
Loan Express, Inc.
As part of the transaction, Allied Capital is merging its Allied Capital Express
operations into Business Loan Express. Business Loan Express is a non-bank small
business lender licensed as a participant in the SBA 7(a) Guaranteed Loan
Program. The company is headquartered in New York City, has 22 offices
throughout the country and is an SBA-designated Preferred Lender in 64 markets.
To effect the transaction, Allied Capital issued approximately 4.2 million
shares of common stock, and BLC shareholders will receive a fixed exchange ratio
of 0.18 shares of Allied Capital common stock for each share of BLC stock in a
tax-free exchange. In addition, in a separate transaction, Allied Capital has
acquired a corporate shareholder of BLC for approximately $9.1 million in cash.
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,
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 toll-free at
(888) 818-5298 or e-mail us at [email protected].
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
company's periodic filings with the Securities and Exchange Commission.
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