NEW YORK, NY — (MARKETWIRE) — 06/29/07 — Prospect Capital Corporation(NASDAQ: PSEC) (“Prospect”) announced today that it has provided debt andequity of approximately $19.5 million for the acquisition of R-VIndustries, Inc. (“R-V”), located in Honey Brook, Pennsylvania.
Founded by Victor D. Dodd and Ronald L. Putt in 1974, R-V is a diversifiedengineering and manufacturing company. R-V designs and fabricates steel andother metal products for customers in a range of industries, includingpower generation, paper manufacturing, health sciences, petrochemicals, andfood processing. Products manufactured by R-V are highly engineered andbuilt to demanding specifications. R-V employs approximately 250individuals in three facilities aggregating approximately 160,000 squarefeet in and around Honey Brook. R-V is led by Kirk Putt and Kevin Putt, whohave been senior managers at the company for several years.
Prospect has invested both equity and debt, the latter secured by a secondlien on receivables, machinery, and other assets of the company. Prospecthas a controlling interest in R-V.
“Prospect has enabled the generational transfer of our company, and we lookforward to continuing our growth with Prospect’s backing,” said Kirk Putt,CEO of R-V.
“The owners and managers of R-V have done an excellent job of building asuccessful business selling to customers across a diversified range ofindustries, and we are excited about R-V’s prospects for future growth,”said Bart J. de Bie, a Managing Director with Prospect Capital Management,LLC.
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