NEW YORK, NY — (MARKET WIRE) — 11/02/07 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has made a second lien secured debtinvestment, as well as a small equity co-investment, aggregatingapproximately $14 million in Maverick Healthcare, Inc. d/b/a PreferredHomecare (“Preferred”), a leading comprehensive home healthcare servicesprovider based in Mesa, Arizona, and focused on the Southwestern UnitedStates.
Founded in 1997, Preferred serves nearly 35,000 patients per month withapproximately 550 employees and contractors through 27 facilities inArizona, California, Colorado, New Mexico, and Nevada. The company alsooperates eight independent sleep diagnostic testing facilities.Preferred’s diversified services include home respiratory therapy, durablemedical equipment, rehabilitation equipment, home infusion therapy, andsleep diagnostic testing services. The company also has diversified payors,including various private, state, and federal plans through which Preferredgenerates revenues from both capitation agreements as well asfee-for-service agreements. Preferred is led by co-Chief Executive OfficersThomas Martin and David Scheven, who have decades of industry experience.Preferred has been acquired by Beecken Petty O’Keefe & Company, LLC(“BPOC”), a Chicago-based private equity firm with approximately $600million under management exclusively focused on the healthcare industry.
Prospect’s second lien secured debt, along with additional first and secondlien debt from other lenders as well as equity from BPOC and management,has been utilized to support the acquisition of Preferred. Prospect hasalso made a small equity co-investment as part of its investment.
“The BPOC team welcomes Prospect as an important financing partner for thisrapidly growing business,” said Gregory Moerschel, a partner with BPOC.
“Our investment in Preferred, we believe, exemplifies the benefits to ourshareholders of providing financing to other leading private equity firms,”said Gautam Shirhattikar, an investment professional with Prospect CapitalManagement. “Here, we are supporting a world-class, industry-focusedinvestor to acquire a business experiencing significant revenue and profitgrowth in the vibrant Southwestern healthcare market. While we willcontinue to deploy significant capital in energy and industrial relatedbusinesses, we will also selectively invest in financing opportunities inadditional sectors where we believe attractive risk-adjusted returns can beearned on behalf of our shareholders. We are pleased to see some of thenation’s leading buyout firms, many of which are steps from our offices inmidtown Manhattan, look to us for financing their acquisitions.”
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