NEW YORK, NY — (MARKET WIRE) — 11/26/07 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has provided combined debt financingof $25.6 million to IEC Systems LP (“IEC”) and Advanced Rig Services LLC(“ARS”), two related oilfield service companies based in Houston, Texas.
Founded in 1991, IEC provides a full suite of electrical products andservices to the drilling rig industry. Primary activities for IEC includeelectrical system design, installation, and repair; silicon controllerrectifier and variable frequency drive system manufacturing and repair; andelectrical parts distribution. Founded in 2005, ARS provides in its 20-acreyard complete rig-up services, including fabrication and procurement of rigcomponents as well as assembly and testing of rigs. Both IEC and ARS havesignificant and growing sales in offshore and international markets. IECand ARS are led by Stephen Cope, founder and Chief Executive Officer ofboth companies.
Prospect’s debt investments in IEC and ARS are two separate senior securedinstruments with cross-collateralized guarantees. Prospect’s capital isbeing utilized for a recapitalization of IEC and ARS. Prospect alsoreceived a net profit interest in each company as part of its investment.
“We appreciate having a financing partner with meaningful experienceworking with oilfield companies such as ours,” said Mr. Cope of IEC andARS.
“We are enthusiastic about our new relationship with the experienced andsuccessful team at IEC and ARS,” stated Bart J. de Bie, a Managing Directorwith Prospect Capital Management. “We look forward to supporting theirexpanding presence in the offshore and international drilling markets.”
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