NEW YORK, NY — (MARKET WIRE) — 08/04/08 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has provided $7.4 million in debtfinancing to Castro Cheese Company, Inc. (“Castro” or “Company”), based inHouston, Texas.
Founded in 1971, the Company is a leading manufacturer, marketer, anddistributor of Hispanic cheeses and creams. Castro Cheese markets itsproducts under the “La Vaquita” brand and is well known for the highquality and authenticity of its products. Castro’s customers includewholesalers, grocery retailers, and mass merchandisers.
Prospect’s second lien secured debt investment supports a prior acquisitionof the Company by Palladium Equity Partners (“Palladium”), a private equityfirm based in New York with more than $1 billion of assets undermanagement.
“We have a long-term relationship with the Prospect Capital team, andappreciate their support of this growing portfolio company,” said AlexVentosa, Managing Director of Palladium.
“Palladium’s private equity sponsorship was an important consideration forour investment,” said Montgomery Cook, a Managing Director with ProspectCapital Management. “In addition, we view the branded, recurring revenueconsumer products arena as a compelling sector for our capital.”
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.
ABOUT PALLADIUM EQUITY PARTNERS
Palladium Equity Partners, LLC (www.palladiumequity.com) is an investmentfirm targeting companies in food/restaurants, financial and businessservices, consumer/retail, healthcare, manufacturing and media. Palladiumhas a focus on companies that are well-positioned to capitalize on thefast-growing Hispanic market. The principals of Palladium have investedover $2.5 billion of equity in more than 60 portfolio companies over thelast two decades. Formed in 1997, Palladium currently has capital undermanagement in excess of $1 billion.
ABOUT CASTRO CHEESE COMPANY
Founded in 1971, Castro Cheese Company (www.castrocheese.com) is a leadingmanufacturer, marketer, and distributor of queso fresco and other varietiesof Hispanic cheeses and creams. Castro’s products are marketed under the LaVaquita brand in Texas and other southwestern states and are known fortheir quality, authenticity, and freshness.
Please send investment proposals to:Grier EliasekPresident and Chief Operating OfficerEmail Contact(212) 448-9577