NORWALK, Conn.--(BUSINESS WIRE)--GE Commercial Finance and Allied Capital (NYSE: ALD) announced today that they have partnered to form a $3.6 billion senior secured unitranche loan fund. A unitranche loan blends senior and junior debt pricing and terms into a single first lien debt facility. Unitranche Fund LLC is designed to deliver a reliable loan product to borrowers with greater speed, simplicity and certainty of execution.
Financing commitments up to $500 million in size will be available for borrowers across a wide range of industry sectors, including healthcare, media, energy, aerospace, business services and transportation. The Fund will retain all or a majority of each credit facility. Borrowers will benefit from simplified documentation, greater certainty of execution, and reduced decision making complexity throughout the life of the loan.
"This new fund will deliver value for our friends in the private equity community," said Stuart Aronson, President of GE Global Sponsor Finance. "We are pleased to partner with Allied Capital, an experienced investor with an outstanding track record of providing unitranche financing, second lien loans, and subordinated debt, to build a strong unitranche fund."
"This partnership between Allied Capital and GE Commercial Finance, a leading senior debt provider in our market, brings together the unique expertise and financing capabilities of both firms to meet the increasingly challenging financing needs of companies and sponsors with greater certainty of execution," said Bill Walton, Chairman and CEO of Allied Capital.
About GE Commercial Finance, Global Sponsor Finance
With over $8 billion in assets, and offices in Boston, Chicago, Dallas, London, Los Angeles, New York, and San Francisco, GE Commercial Finance, Global Sponsor Finance represents a "one-stop" source for the comprehensive range of GE's lending and other structured financial services offered to the private equity sponsor market. For more information, please visit www.gegsf.com.
About GE Commercial Finance
GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of approximately $300 billion and is headquartered in Norwalk Connecticut. GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's website at www.ge.com.
About Allied Capital
Allied Capital Corporation (NYSE: ALD) is a leading business development company in the U.S. that invests private debt and equity capital in middle market businesses nationwide. Founded in 1958 and operating as a public company since 1960, Allied Capital has paid regular, quarterly cash dividends to shareholders since 1963.
With $5 billion in total assets, Allied Capital provides long-term debt and equity capital for management and sponsor-led buyouts, recapitalizations, and growth financings. Allied Capital's one-stop financing capabilities include first and second lien senior loans, junior or subordinated debt and equity. At September 30, 2007, the Company's private finance portfolio included investments in 110 companies that generate aggregate revenues of more than $12 billion and employ more than 90,000 people. For more information, please visit www.alliedcapital.com.
Contacts
GE Commercial Finance, Norwalk
Ned Reynolds, 203-229-5717
ned.reynolds@ge.com
or
Allied Capital Corporation
Investor Relations Inquiries:
Dale Lynch, 202-721-6100
or
Media Inquiries:
Sitrick and Company
Thomas Becker 212-573-6100
Jeff Wilson
GE Capital Corporate Finance
Jeffrey.Wilson@ge.com
1-203-749-6340