NEW YORK, NY — (MARKET WIRE) — 08/26/08 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it led a senior secured debt financingand co-invested alongside Great Point Partners, LLC (“Great Point”) in itsgrowth recapitalization of BNN Holdings Corp. d/b/a Biotronic NeuroNetwork(“Biotronic”), based in Ann Arbor, Michigan.
Founded in 1978, Biotronic is the largest independent national provider ofintra-operative neurophysiological monitoring (“IONM”) services. IONMrefers to the monitoring of critical nerve functions during various typesof surgeries, including orthopedic, spinal, neurocranial, vascular, andcardiothoracic. Outsourced IONM, both onsite and remotely supported,improves surgical outcomes and safety, decreases litigation risk, andreduces cost burdens for hospitals. Biotronic has more than 120 trainedtechnicians and neurologists providing technical and professional servicesin more than 20,000 procedures per year to over 300 hospitals and 1,000surgeons across the country.
Great Point is a leading healthcare investment firm based in Greenwich,Connecticut, with approximately $700 million of assets under management.Prospect’s senior secured debt investment and equity co-investment supportsGreat Point’s acquisition of Biotronic.
“I have known the senior leadership of Prospect for a decade, and our teamis impressed with Prospect’s professionalism and responsiveness. We lookforward to having Prospect as a partner to help fuel organic andacquisitive growth at Biotronic,” said Adam Dolder, Managing Director ofGreat Point.
“We value Great Point’s domain expertise in the healthcare sector,” saidGautam Shirhattikar, a Vice President with Prospect Capital Management.”With our equity co-investment, we expect to benefit from Biotronic’s rapidgrowth as the market leader.”
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 Prospect’s control, andthat Prospect may or may not have considered; accordingly, such statementscannot be guarantees or assurances of any aspect of future performance.Actual developments and results are highly likely to vary materially fromthese estimates and projections of the future. Such statements speak onlyas of the time when made, and Prospect undertakes no obligation to updateany such statement now or in the future.
Please send investment proposals to:Grier EliasekPresident and Chief Operating OfficerEmail Contact(212) 448-9577