NEW YORK, NY — (MARKET WIRE) — 04/22/09 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced that it has priced its public offering of 3.2million shares of common stock at $7.75 per share, raising $24.8 million ingross proceeds. Prospect has granted the underwriters an option to purchaseup to an additional 0.48 million shares to cover over-allotments, if any.The offering is subject to customary closing conditions and is expected toclose on April 27, 2009.
Prospect expects to use the net proceeds of this offering to initiallymaintain balance sheet liquidity by either repaying a portion of theamounts outstanding under its credit facility or making investments in highquality short-term debt instruments, and thereafter to make long-terminvestments in accordance with its investment objective. Fox-Pitt KeltonCochran Caronia Waller and SunTrust Robinson Humphrey are the jointbookrunning managers for the offering.
This press release does not constitute an offer to sell or the solicitationof an 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. Aregistration statement relating to these securities was filed and has beendeclared effective by the Securities and Exchange Commission. A copy of theprospectus for the offering may be obtained from: Fox-Pitt Kelton CochranCaronia Waller, 420 Fifth Ave., 5th Floor, New York, NY 10018, Fax: (212)849-0582, Email: prospectus@fpk.com; and SunTrust Robinson Humphrey, 303Peachtree St. NE, Atlanta, GA 30308, Fax: (404) 926-5464, Email:prospectus@rhco.com.
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