NEW YORK, NY — (MARKET WIRE) — 09/08/09 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that PMFG, Inc. (“PMFG”), parent of PeerlessMfg. Co., has repaid to Prospect the entire balance of its $20 millionacquisition loan. With this repayment, Prospect has realized anapproximately 19% cash-on-cash internal rate of return on the PMFGinvestment.
“The PMFG repayment of our junior debt position at an attractive returnprofile validates our strategy of conservative multiple of cash flowlending structures,” said David Belzer, a Managing Director at ProspectCapital. “The repayment of this energy-related loan also reflects thecontinued diversification of our portfolio, and we look forward toredeploying the proceeds in this opportunity-rich investment environment.”
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 further information, contact:Grier EliasekPresident and Chief Operating Officergrier@prospectstreet.com(212) 448-9577