After first completing a $45 million refinancing of Allied Defense Group’s principal European subsidiary, Source Capital, Ltd. next went to work on building a capital base to provide funding to support the Company’s North American acquisition activities. Various alternatives had to be considered because: (i) the Company expected significant earnings contributions from its foreign subsidiaries to support its North American growth plans, (ii) the Board and Management wished to avoid premature dilution and (iii) the bulk of the Company’s value was reflected in its foreign operations, thereby, increasing the perceived credit and investment risk. This announcement memorializes the successful completion of the second round of financing for Allied Defense Group.

Since 1982, Source Capital, Ltd. has represented many middle market companies on matters relating to refinancing or recapitalizing their balance sheets to provide adequate funding to support their acquisition plans.