NEW YORK, NY — (MARKET WIRE) — 04/04/08 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has provided $39.8 million of firstand second lien debt and equity for the recapitalization of Ajax RolledRing & Machine (“Ajax”), a custom forger of seamless rolled steel ringslocated in York, South Carolina.
Ajax operates two ring rolling mills within a 140,000 square-foot facility,with value-added services including engineering, heat treating, shotblasting, and machining. Ajax’s rings range in diameter from seven to 120inches. The rings are used by Ajax’s name brand customers as key componentsin the manufacture of a range of capital goods, including equipment used inthe global construction, mining, petrochemical, power generation (bothtraditional and wind power), industrial machinery, and other diversifiedmarkets. Ajax employs approximately 75 employees. Ajax is led by Presidentand CEO Simon Ormerod, who has many years of experience in the industry,including Ajax since 2006.
Prospect’s debt is secured by a first lien on inventory, machinery, andcertain other assets of Ajax. Prospect has purchased a controlling equityinterest in Ajax from Dogwood Equity, a North Carolina-based private equityfirm. Senior managers of Ajax invested equity alongside Prospect in thetransaction.
“We appreciate Prospect’s understanding of industrial companies such asAjax, and we look forward to having Prospect’s support as we continue todrive growth in the business,” said Simon Ormerod, CEO of Ajax.
“Ajax is an attractive opportunity for Prospect to invest in a steady cashflow business,” said Bart J. de Bie, a Managing Director with ProspectCapital Management, LLC. “Because Ajax’s seamless rings are utilized in awide range of global end-markets, we believe that Ajax will continue togenerate attractive margins and distributable cash flow.”
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