NEW YORK, NY — (MARKET WIRE) — 10/09/08 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that its Board of Directors has approved ashare repurchase plan. Under this plan, Prospect may repurchase up to$20,000,000 of its common stock at prices below its net asset value asreported in its then most recently published financial statements.
In addition, Prospect has updated its net investment income guidance forthe quarter ending September 30, 2008, to 79 to 87 cents per share,including 34 cents from the previously announced realizations of netprofits interests in IEC Systems LP and Advanced Rig Services LLC.
In addition, the Board of Directors has modified Prospect’s windows forinsider purchases to allow for insiders to purchase stock on the openmarket, through and including the close of business October 24, 2008.
Prospect anticipates that share purchases will be made from time to time,depending upon market conditions. Shares may be purchased in the openmarket, including through block purchases. Prospect will not repurchase anyshares from directors, officers or other affiliates of Prospect. Therepurchase program does not obligate Prospect to acquire any specificnumber of shares and may be discontinued at any time.
Prospect intends to fund the repurchases with available cash. Therepurchase program is expected to be in effect after shareholders receivenotice through the mail, which should be on or about the week of October20, 2008, until the approved dollar amount has been used to repurchaseshares.
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. Prospect Capital’s investment objective is to generate bothcurrent income and capital appreciation through debt and equityinvestments.
Prospect Capital has elected to be treated as a business developmentcompany under the Investment Company Act of 1940 (“1940 Act”). We arerequired to comply with a series of regulatory requirements under the 1940Act as well as applicable NASDAQ, federal and state laws and regulations.We have elected to be treated as a regulated investment company under theInternal Revenue Code of 1986. Failure to comply with any of the laws andregulations that apply to Prospect Capital could have a material adverseeffect on Prospect Capital and its shareholders.
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 the Company undertakesno obligation to update any such statement now or in the future.
Please send investment proposals to:Grier EliasekPresident and Chief Operating OfficerEmail Contact(212) 448-9577