NEW YORK, NY — (MARKET WIRE) — 09/09/09 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that C&J Cladding LLC (“C&J”) has repaid toProspect the full remaining balance of its $3.15 million acquisition loan,as well as a prepayment premium. With this repayment, Prospect hasrealized an approximately 19% cash-on-cash internal rate of return on theC&J investment, not including a significant ongoing equity interest whichProspect continues to hold.
“The management team approached us nearly three years ago to seek ourfinancial support to acquire C&J, and we are pleased to have helped themrealize their aspirations,” said Mark Hull, a Vice President at ProspectCapital. “We are also pleased to have generated another significant cashrealization on one of our energy-related investments.”
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 OfficerEmail Contact(212) 448-9577