Aug 7, 2007 – Allied Capital invests in Higginbotham & Associates
Allied Capital Invests in Leading Regional Insurance Brokerage Firm
WASHINGTON, Aug 07, 2007 — Allied Capital Corporation (NYSE:ALD) announced
today that it has committed $93.4 million to support the management-led
recapitalization of Higginbotham & Associates, a leading middle market insurance
brokerage and risk management firm. Allied Capital’s investment took the form of
senior and subordinated debt and non-voting common equity. The management and
employees of Higginbotham made a significant debt and equity investment alongside
Allied Capital, and will hold voting control of the company.
Headquartered in Fort Worth, Texas with multiple statewide offices, Higginbotham is a
long-standing insurance brokerage firm that provides property and casualty, employee
benefits and other insurance products and services. One of the nation’s 100 largest
independent brokers, the company has a dominant presence in the North Texas market
representing thousands of clients and more than 300 insurance carriers.
“Our investment in Higginbotham represents Allied Capital’s latest deal in the insurance
services sector, where we have developed significant experience,” said Bill Walton,
Chairman and CEO of Allied Capital. “This deal fits squarely into our investment
strategy of investing in strong, stable businesses with leading and defensible market
positions and experienced management teams,” added Mr. Walton.
“The stability of the Higginbotham business model, with its diverse client base, strong
insurance carrier relationships and solid producer partnerships made this an attractive
investment opportunity for us,” said Mike Grisius, Managing Director of Allied Capital.
Added Principal Matt Kelty, “we look forward to working with the company to create
additional value for all shareholders and support their acquisition and expansion
“As an employee-owned business, we found the partnership with Allied Capital very
appealing because their support of our management-led recapitalization has allowed us
to retain voting control of our company and maintain a significant level of employeeownership, while bringing in a strong financial partner to promote our growth,” said
Rusty Reid, President and CEO of Higginbotham. “We anticipate working with the
Allied Capital team to help position our company for its next phase of growth and our
continued expansion throughout the state,” added Mr. Reid.
About Allied Capital
Allied Capital Corporation (NYSE:ALD) is a leading business development company
(BDC) 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 consistent or increasing regular, quarterly cash dividends
annually to shareholders since 1963.
Allied Capital provides long-term debt and equity capital for management and sponsorled buyouts, and for recapitalizations, acquisitions and growth of middle market
companies. Allied Capital’s one-stop financing capabilities include first and second lien
senior loans, unitranche debt, junior or subordinated debt and equity. Allied Capital
seeks to invest in stable, less cyclical companies that produce significant free cash flow
and high returns on invested capital. At March 31, 2007, the Company’s private finance
portfolio included investments in 144 companies in a variety of industries. These
companies currently generate aggregate revenues of over $13 billion and employ more
than 90,000 people.
Headquartered in Washington, DC, Allied Capital offers shareholders the opportunity to
participate in the private equity industry through an investment in its New York Stock
Exchange-listed stock. Allied Capital invests in the American entrepreneurial economy
by providing long-term capital and access to managerial resources often unavailable to
middle market companies. For more information, please visit www.alliedcapital.com,
call Allied Capital investor relations toll-free at (888) 818-5298, or e-mail us at
About Higginbotham & Associates, Inc.
Higginbotham & Associates serves as a single source for insurance, risk management
and financial services by providing access to comprehensive commercial and personal
property and casualty coverage lines, employee benefits, retirement plans, life insurance
and executive compensation through more than 300 regional and national carrier
partnerships. Founded in 1948, Higginbotham is one of the fastest growing brokerage
firms in Texas, with nearly 220 employees. The company is headquartered in Fort
Worth, and has offices in Dallas, Austin, Denton, McKinney, Weatherford and Waco.
For more information, please visit www.higginbotham.net.
Mystic Capital Advisors Group, LLC provided transaction advisory services to Allied
Capital. For more information on Mystic Capital, please contact Kevin P. Donoghue at
212-251-0972 or visit www.mysticcapital.com
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