NEW YORK, NY — (MARKET WIRE) — 05/27/08 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) today announced the commencement of a public offering of3,000,000 shares of its common stock, par value $0.001 per share. Prospectalso plans to grant the underwriters a 30-day option to purchase up to anadditional 450,000 shares of its common stock to cover over-allotments, ifany.
Prospect expects to use the net proceeds from this offering to repayoutstanding indebtedness, to fund investments in portfolio companies andfor general corporate purposes. Citi, Wachovia Securities, Oppenheimer &Co. Inc., and RBC Capital Markets Corporation are the underwriters for theoffering. Citi and Wachovia Securities are the joint bookrunning managersfor the offering.
The offering will be made under a shelf registration statement filed underthe Securities Act of 1933, as amended, and previously declared effectiveby the Securities and Exchange Commission. The offering of common shares ofProspect is being made solely by means of a prospectus supplement. Thispress release does not constitute an offer to sell or the solicitation ofan offer to buy nor will there be any sale of the shares referred to inthis press release in any state or jurisdiction in which such offer,solicitation or sale would be unlawful prior to the registration orqualification under the securities laws of such state or jurisdiction. Acopy of the prospectus for the offering may be obtained from: Citi,Brooklyn Army Terminal, 140 58th Street, Brooklyn, NY 11220, Attn:Prospectus Department; Wachovia Capital Markets, LLC, 375 Park Avenue, NewYork, NY 10152-4077, Attn: Equity Syndicate; Oppenheimer & Co. Inc., 125Broad Street, 16th Floor, New York, NY 10004; RBC Capital MarketsCorporation, One Liberty Plaza, New York, NY 10016.
Investors are advised to carefully consider the investment objectives,risks and charges and expenses of Prospect before investing. The prospectussupplement and prospectus contain this and other information about Prospectand should be read carefully before investing.
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