This excerpt taken from the ALD 10-K filed Mar 16, 2005.
Unsecured Notes Payable. The Company has issued unsecured long-term notes to private institutional investors. The notes require semi-annual interest payments until maturity and have original terms of five or seven years. At December 31, 2004, the notes had remaining maturities of five months to seven years. The notes may be prepaid in whole or in part, together with an interest premium, as stipulated in the note agreement.
On November 15, 2004, the Company issued $252.5 million of five-year and $72.5 million of seven-year unsecured long-term notes, primarily to insurance companies. The five- and seven-year notes have fixed interest rates of 5.53% and 5.99%, respectively, and have substantially the same terms as the Companys existing unsecured long-term notes. In addition, on November 15, 2004, $102.0 million of the Companys existing unsecured long-term notes matured and the Company used the proceeds from the new long-term note issuance to repay this debt.
During 2004, the Company also repaid $112.0 million of the unsecured notes payable that matured on May 1, 2004.
On March 25, 2004, the Company issued five-year unsecured long-term notes denominated in Euros and Sterling for a total U.S. dollar equivalent of $15.2 million. The notes have fixed interest rates and have substantially the same terms as the Companys existing unsecured notes. The Euro notes require annual interest payments and the Sterling notes require semi-annual interest payments until maturity. Simultaneous with issuing the
ALLIED CAPITAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 4. Debt, continued
notes, the Company entered into a cross-currency swap with a financial institution which fixed the Companys interest and principal payments in U.S. dollars for the life of the debt.