NEW YORK, NY — (MARKET WIRE) — 08/03/10 — Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) announced today that Prospect has closed a $21.5 million senior secured credit facility for Northwestern Management Services, LLC (d/b/a Gentle Dental) (“NMS” or the “Company”), a leading dental practice management company in the Southeast Florida market. Prospect’s senior secured credit facility is being utilized to support a recapitalization of the Company and provide funding for the acquisition of six dental practices in Southeast Florida known as the Dental Team.
The NMS investment is Prospect’s 10th investment in the last four months, with such investments aggregating nearly $250 million. Prospect currently has an investment pipeline of over $1 billion of potential investment opportunities.
Founded in 2002, NMS manages a network of 19 general, cosmetic, and multi-specialty dental practices with nearly 50 dentists and specialists, and is the largest dental practice management company operating solely in Southeast Florida. NMS provides comprehensive general family dentistry, preventive care, and specialty dental services.
NMS is led by CEO David Willens and sponsored by The Beekman Group LLC (“TBG”), a leading private equity firm dedicated to bringing financial and operational resources to lower-middle-market companies. Since December 2007, NMS management and TBG have approximately doubled the Company’s revenues by opening new practices, expanding existing practices, and acquiring additional offices.
“We are pleased to support the growth initiatives of TBG and NMS, a strong company in an attractive end market,” said Andrew Brown, a senior investment professional with Prospect Capital Management. “This transaction exemplifies Prospect’s ability to craft creative financing solutions to benefit our private equity sponsor relationships.”
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com/) is a closed-end investment company that lends to and invests in private and microcap public businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
We have elected to be treated as a business development company under the Investment Company Act of 1940 (“1940 Act”). We are required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. Failure to comply with any of the laws and regulations that apply to us could have an adverse effect on us and our shareholders.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.