Allied Capital Corp., an investor and lender to middle-market businesses, said Monday it raised $193 million through the private placement of unsecured debt.
Allied Capital issued $140.5 million of five-year notes that have a fixed interest rate of 7.82 percent. It issued another $52.5 million of seven-year notes that have a fixed interest rate of 8.14 percent.
The proceeds will be used to repay an outstanding revolving line of credit and to fund new portfolio investments. Money will also be used for general corporate purposes.
Shares of Allied Capital fell 87 cents, or 5.5 percent, to $15 in morning trading. Earlier in the session, shares hit a nearly 10-year low of $14.98.
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