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Unitranche Fund LLC Announces Third Closing - Invests $88 Million of Unitranche Debt in Leading Provider of Railroad Maintenance-of-Way Equipment

NORWALK, Conn., May 12, 2008 (BUSINESS WIRE) -- The Unitranche Fund LLC, co-managed by affiliates of GE Commercial
Finance and Allied Capital, announced today the closing of its third
financing, a $103 million debt package to support the acquisition of
Central Power Products ("Shuttlewagon") by Nordco Inc., a portfolio
company of The Riverside Company, and for the recapitalization of
Nordco. The facility consisted of an $88 million unitranche term loan
from the Unitranche Fund and a $15 million revolver from GE Antares
Capital.

Shuttlewagon, an innovative manufacturer of railcar movers, is the
third add-on to Nordco, a leading designer and provider of new and
rebuilt maintenance-of-way equipment, repair parts and services for
North American railroads. Based in Grandview, Missouri, Shuttlewagon
is one of only three manufacturers of railcar movers in the United
States, and is the only one to use rubber tires for traction instead
of steel wheels. Rubber tires offer a significant competitive
advantage and benefit customers by allowing the railcar mover to pull
more railcars than comparably-sized movers using steel wheel
technology.

"We were delighted to work with The Riverside Company and Nordco
to finance this acquisition and recapitalization," said Peter McWeeny,
Senior Vice President of GE Antares Capital. "The unitranche loan was
an ideal product to fully finance the transaction while providing
speed and certainty to close."

"The combined efforts of GE Antares and Allied Capital were
critical to achieving this successful financing. Their unitranche loan
product made them our clear choice as a partner," said Chip Walker,
Principal of The Riverside Company. "In a challenging financing
market, GE Antares and Allied Capital stepped up in a big way to
support Nordco's acquisition of Shuttlewagon which is why they are
such valued partners."

About Unitranche Fund LLC

Unitranche Fund LLC (the "Fund") was formed in December 2007 by
Allied Capital and GE Commercial Finance. The $3.6 billion Fund can
invest up to $270 million for a single borrower, while Allied Capital
and GE Commercial Finance may jointly underwrite amounts above that,
up to $500 million in total debt financing. The Fund will retain a
majority of each credit facility. The Fund targets investments in a
wide range of industry sectors, including business services,
healthcare, media, energy, aerospace and transportation. A unitranche
loan blends senior and junior debt pricing and terms into a single
first lien debt facility, and provides a simple, attractive
alternative to traditional 1st lien/2nd lien structures. Borrowers
benefit from simplified documentation through a single credit
agreement, greater certainty of execution, and reduced decision-making
complexity throughout the life of the loan.

About GE Antares Capital

GE Antares Capital is a unit of GE Commercial Finance - Global
Sponsor Finance. With $13 billion in assets, and offices in Chicago,
London, Los Angeles, New York, and San Francisco, GE Antares offers a
"one-stop" source for GE's lending and other services offered to
middle market private equity sponsors. For more information, visit the
GE Antares website at www.geantares.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
industrial products, 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 (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 is celebrating 50 years of
investing in and supporting the U.S. entrepreneurial economy.

Allied Capital invests long-term debt and equity capital in
management and sponsor-led 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 December 31, 2007, the Company's private finance portfolio
included investments in 120 companies that currently generate
aggregate revenues of over $13 billion and employ more than 95,000
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 (NYSE: ALD). Allied Capital has paid consistent or increasing
regular, quarterly cash dividends annually to shareholders since 1963.
For more information, please visit www.alliedcapital.com.

Forward-Looking Statements

The information contained in this press release contains
forward-looking statements. These forward-looking statements are
subject to the inherent uncertainties in predicting future results and
conditions. Certain factors could cause actual results and conditions
to differ materially from those projected in these forward-looking
statements.

SOURCE: GE Commercial Finance

GE Commercial Finance, Norwalk
Ned Reynolds, 203-229-5717
ned.reynolds@ge.com

Copyright Business Wire 2008


 
 

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