NEW YORK, NY — (MARKET WIRE) — 06/30/09 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) today announced the commencement of a public offering of4,000,000 shares of its common stock. Prospect also plans to grant theunderwriters a 30-day option to purchase up to an additional 600,000 sharesof its common stock to cover over-allotments, if any.
Prospect expects to use the net proceeds of this offering to maintainbalance sheet liquidity, possibly including repayment of a portion of theamounts outstanding under its credit facility, investments in high qualityshort-term debt instruments or a combination thereof, and to make long-terminvestments in accordance with its investment objectives. Fox-Pitt KeltonCochran Caronia Waller, Oppenheimer & Co., and RBC Capital Markets arejoint bookrunning managers for the offering. BB&T Capital Markets, adivision of Scott & Stringfellow, LLC, is joint lead manager. LadenburgThalmann & Co. Inc. and Maxim Group LLC are co-managers.
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: Fox-PittKelton Cochran Caronia Waller, 420 Fifth Ave., 5th Floor, New York, NY10018, Phone: (212) 857-6212, Fax: (212) 849-0582, Email:prospectus@fpk.com; Oppenheimer & Co., Attn: Syndicate ProspectusDepartment, 300 Madison Ave., 5th Floor, New York, NY 10017, Phone (212)667-8563, Fax (212) 667-6141, Email: EquityProspectus@opco.com; and RBCCapital Markets, Three World Financial Center, 200 Vesey St., 8th Floor,New York, NY 10281-8098, Attention: Equity Syndicate, Phone: (212)428-6670, Fax: (212) 428-6260. Investors are advised to carefully considerthe investment objectives, risks and charges and expenses of Prospectbefore investing. The prospectus supplement and prospectus contain this andother information about Prospect and should be read carefully beforeinvesting.
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