Allied Capital Securities Sale Yields $976M

WASHINGTON, DC-In a $976-million cash transaction, Allied Capital Corp. has closed the books on the disposition of its commercial mortgage-backed securities and collateralized debt obligation bonds portfolio to Canadian pension fund company Caisse de dépôt et placement du Québec. The deal, which also included the sale of Allied Capital preferred shares, will ultimately result in a $216-million net gain for the District-based commercial lending concern.

During a conference call held this morning, Allied Capital chairman and CEO Bill Walton offered details on the motive behind the sale. “It was the best course of action to sell the portfolio as a whole and realize the capital mass we had built,” he explained. “It allows us to focus on our core business, which is finance.”