NEW YORK, NY — (MARKET WIRE) — 05/01/08 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has provided debt financing of $20million to support the acquisition by Peerless Mfg Co. (“Peerless”),headquartered in Dallas, Texas, of Nitram Energy Inc. (“Nitram”).
Established in 1933, Peerless is a leading designer, manufacturer, andmarketer of industrial environmental separation and filtration systems.Products include absolute separators, nuclear plant steam separators,scrubbers, vane separators, mist extractors, coalescers, filters, andselective catalytic reduction systems for removal of particulats,pollutants, and other contaminants. Established in 1978, Nitram focuses onseparation, heat transfer, pulsation dampening, and industrial silencingproducts. Nitram’s business units include Burgess-Manning, Inc., AlcoProducts Division, and Bos-Hatten, Inc.
Peerless and Nitram serve a diversified, global list of customers inindustries such as oil and gas production, gas pipelines, chemical andpetrochemical processing, and power generation. The combination of thesetwo companies creates one of the leading players for environmental,separation and filtration equipment in the industry. Peerless is led byPeter Burlage, who has worked at Peerless for more than 16 years. Followingits acquisition of Nitram, Peerless has more than 400 employees worldwide,with several manufacturing facilities located in Texas.
Prospect’s debt is secured by a second lien on all of the assets ofPeerless and Nitram, including receivables, inventory and equipment.
“The Prospect team impressed us with their responsiveness and knowledge ofour end user markets,” said Peter Burlage, Chief Executive Officer ofPeerless. “We look forward to growing our combined business with theirsupport.”
“We find the environmental controls sector to be an attractive market,”said David Belzer, a Managing Director with Prospect Capital Management.”Peerless continues our theme of building more diversity into theportfolio, both in the energy and industrial marketplace and beyond.”
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 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 Prospect undertakes noobligation to update any such statement now or in the future.