NEW YORK, NY — (MARKET WIRE) — 09/29/09 — Prospect Capital Corporation(NASDAQ: PSEC) (“Prospect” or “Company”) today announced that Prospect hasincreased total commitments to Prospect’s revolving credit facility (the”Facility”) to $195 million in the aggregate, up from $175 millionpreviously.
The Facility includes an accordion feature which allows Prospect to acceptup to an aggregate of $250 million of revolving commitments, a targetProspect expects to reach with additional lenders. Prospect has nowdiversified its lender base from one bank to five banks over the past threemonths.
The Facility has an investment grade Moody’s rating of A2. In addition togrowing its revolving commitments from banks, Prospect is also exploringthe term loan market as a potential source of long-term funding to increasethe Facility size beyond $250 million.
“We are delighted to have another bank join our growing list of lenderrelationships,” said Brian Oswald, Chief Financial Officer of Prospect. “Wehave been pleased with the strong interest that our facility has receivedfrom new lenders, and we look forward to increasing the facility scale withadditional participants.”
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.