NEW YORK, NY — (MARKET WIRE) — 06/25/09 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has completed a first closing on anexpanded $250 million revolving credit facility (the “Facility”).
The new Facility, for which lenders have closed on $175 million to date,includes an accordion feature which allows the Facility to accept up to anaggregate total of $250 million of commitments, a “hard cap” Prospectexpects to reach with additional lenders. The revolving period of theFacility extends through June 2010, with an additional one yearamortization period after the completion of the revolving period. Thematurity date of the Facility is June 2020. Pricing for the Facility isone-month Libor plus 4%, subject to a minimum Libor floor of 2%. TheFacility has an investment grade Moody’s rating of A2.
“With $75 million of net participations available before we hit our ‘hardcap,’ we are hopeful that we can include each of the additional banks nowmoving through their committees to close, even if we cannot assure everybank the amount of participation it might desire in this investment gradefacility,” said John Barry, Chairman and Chief Executive Officer ofProspect.
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 andlong-term capital 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 rules 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 us could have an adverse effect on us and our shareholders.
This press release contains forward-looking statements within the meaningof the Private Securities Litigation Reform Act of 1995, whose safe harborfor forward-looking statements does not apply to business developmentcompanies. Any such statements, other than statements of historical fact,are highly likely to be affected by other unknowable future events andconditions, including elements of the future that are or are not under ourcontrol, and that we 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 additional information, contact:Grier EliasekPresident and Chief Operating OfficerEmail Contact(212) 448-9577