NEW YORK, NY — (MARKET WIRE) — 01/26/09 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that Diamondback Operating, LP (“Diamondback”)has repaid Prospect’s $9.2 million loan in full from the sale of 65% ofDiamondbank’s Rock Springs oil and gas property interests. Prospect hasrealized an approximately 17% cash on cash internal rate of return (“IRR”)on the Diamondback investment. Prospect continues to hold the right toreceive 15% of any future Diamondback equity distributions.
“We are delighted to have worked with Mark and Pat Patrick to build valueat Diamondback,” said Mark Hull, a Vice President at Prospect CapitalManagement. “We look forward to providing capital to other entrepreneurslike the Patricks of Diamondback in the future.”
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com/) is a closed-endinvestment company that lends to and invests in private and microcap publicbusinesses. Our investment objective is to generate both current income andcapital appreciation through debt and equity investments.
We have elected to be treated as a business development company under theInvestment Company Act of 1940 (“1940 Act”). We are required to comply witha series of regulatory requirements under the 1940 Act as well asapplicable NASDAQ, federal and state laws and regulations. We have electedto be treated as a regulated investment company under the Internal RevenueCode of 1986. Failure to comply with any of the laws and regulations thatapply to Prospect could have a material adverse effect on us and ourshareholders.
This press release contains forward-looking statements within the meaningof the Private Securities Litigation Reform Act of 1995. Any suchstatements, other than statements of historical fact, are likely to beaffected by other unknowable future events and conditions, includingelements of the future that are or are not under the Company’s control, andthat the Company may or may not have considered; accordingly, suchstatements cannot be guarantees or assurances of any aspect of futureperformance. Actual developments and results are highly likely to varymaterially from these estimates and projections of the future. Suchstatements speak only as of the time when made, and we undertake noobligation to update any such statement now or in the future.
For further information, contact:Grier EliasekPresident and Chief Operating OfficerEmail Contact(212) 448-9577