As part of the arrangement, Allied will be repaid for its outstanding mezzanine debt totaling $44 million. After all is said and done, the deal will yield $192 million in cash for the investment company. It is unclear how much, if any, of the funds will be directed toward the company's CMBS activity. But the company's relationship with Hillman will not exactly come to an end, as Allied has agreed to pony up $47.5 million in mezzanine financing for the hardware concern.

"The agreement to sell Hillman to Code Hennessy & Simmons LLC is a significant and positive event for our shareholders," Allied chairman and CEO Bill Walton notes. "In addition to a substantial capital gain, the largest in our history, we have the opportunity to continue our investment in Hillman as their mezzanine lender." The deal, supervised by Merrill Lynch & Co., is expected to close by the close of this quarter.