Allied Capital Closes $722.5 Million Three-Year Unsecured Revolving Line of Credit

Exhibit 99.1

Allied Capital Closes $722.5 Million Three-Year Unsecured Revolving Line of Credit

September 30, 2005 –– Washington, DC –– Allied Capital Corporation (NYSE: ALD) announced that today it has closed a three-year unsecured revolving line of credit facility with a committed amount of $722.5 million provided by 18 banks. The facility may be expanded through new or additional commitments up to $922.5 million at the company’s option during the three-year period. The credit facility generally bears interest at a rate equal to LIBOR plus 1.30%, and has an annual commitment fee on the committed amount of 20 basis points.

This facility will be used to fund new investments as well as for general corporate purposes. On September 30, 2005, there were no outstanding borrowings under this facility.

Banc of America Securities LLC acted as the placement agent for t