NEW YORK, NY — (MARKET WIRE) — 08/17/07 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that Arctic Acquisition Corp., dba CougarPressure Control (“Cougar”), has repaid the unamortized portion ofProspect’s loan to Cougar. With the approximately $400 thousand prepaymentpremium from the loan, Prospect has realized an approximately 20% cashinternal rate of return on the Cougar investment, representing anapproximately 1.25 times cash on cash multiple, not including an equityinterest in Cougar which Prospect continues to hold.
Cougar represents the fifth realization to date in Prospect’s portfolio.These five realizations have averaged an approximately 59% IRR and 1.5times cash on cash multiple, such returns not including equity interestsstill held by Prospect in four of the five portfolio companies, includingCougar.
“Cougar has been a terrific investment for Prospect and our shareholders,and we greatly value our relationship with both the company and the equitysponsor, Petro Capital,” said Grier Eliasek, President and Chief OperatingOfficer of Prospect. “We look forward to future successful transactionswith both Petro Capital and other sponsors.”
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 Officergrier@prospectstreet.com(212) 448-9577