NEW YORK, NY — (MARKET WIRE) — 05/18/09 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) today announced the commencement of a public offering of5,000,000 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 750,000 shares of its common stock to cover over-allotments, ifany.
Prospect expects to use the net proceeds of this offering to maintainbalance sheet liquidity, involving repayment of a portion of the amountsoutstanding under its credit facility, make investments in high qualityshort-term debt instruments or a combination thereof, and thereafter to makelong-term investments in accordance with its investment objective. Citiand UBS Investment Bank are the joint bookrunning managers for theoffering. BB&T Capital Markets, a division of Scott & Stringfellow, LLCand RBC Capital Markets are theco-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: Citi,Brooklyn Army Terminal, 140 58th Street, Brooklyn, NY 11220, Attn:Prospectus Department; and UBS Investment Bank, 299 Park Avenue, New York,NY 10171, Attn: Prospectus Department, 888-827-7275.
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-end investment company that lendsto and invests in private and microcap public businesses. Our investmentobjective is to generate both current income and long-term capitalappreciation 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