NEW YORK, NY — (MARKET WIRE) — 11/12/07 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has made a second lien debt investmentof $12 million in Qualitest Pharmaceuticals, Inc., and affiliates(“Qualitest”), a leading manufacturer and distributor of genericpharmaceuticals based in Huntsville, Alabama.
Founded in 1983, Qualitest is a fully-integrated developer, manufacturer,and marketer of a full line of generic prescription pharmaceuticals andover-the-counter products with a focus on attractive specialized nicheareas, including generic liquids, semi-solids, and narcotics. The company,with more than 400 products and a robust pipeline of future launches, is atop 10 national supplier of generic pharmaceuticals based on both volumeand revenues. Qualitest distributes its finished products to major drugwholesalers, large pharmacy chains, and independent pharmacies throughoutthe United States. Qualitest has been acquired by an affiliate of ApaxPartners Worldwide LLP (“Apax”), a global private equity group with morethan $20 billion in assets under management and a nearly 20 year trackrecord of healthcare and diversified sector investing.
Prospect’s second lien secured debt, along with equity capital from Apax aswell as debt from other institutional providers, is being utilized toacquire a controlling interest in Qualitest.
“Qualitest’s recurring cash flow history, prospective growth, andsignificant private equity sponsorship, from a firm we have known for manyyears, were all important factors leading to our investment,” said GautamShirhattikar, an investment professional with Prospect Capital Management.
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