NEW YORK, NY — (MARKET WIRE) — 03/17/08 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has provided debt financing of $14.5million to support the acquisition by a private equity sponsor of AmericanGilsonite Company (“AGC”), a specialty mineral company with operationsbased in Bonanza, Utah.
Formed in 1946 with predecessors dating back to 1885, AGC is the world’sleading producer of the asphaltum mineral marketed under the brand name”Gilsonite.” Gilsonite’s unique chemical and physical properties createsignificant value for customers in a variety of end-user markets, includingoil and gas, inks and paints, asphalt and foundry. AGC produces more thanan estimated 80% of the Gilsonite consumed worldwide, and has rights tomore than 20 years of proven reserves.
Prospect’s debt investment supports the acquisition of AGC by PalladiumEquity Partners (“Palladium”), a private equity firm based in New York withmore than $900 million of assets under management. Prospect also made anequity co-investment in AGC alongside Palladium.
“We appreciate having a dependable financing relationship with the Prospectteam,” said Kevin Reymond, a Managing Director with Palladium. “Inaddition, Prospect’s experience in energy and industrial sectors providedsubstantial value to our assessment of the investment opportunity.”
“AGC is a repeat transaction between Prospect and Palladium, and we greatlyvalue the relationship,” stated Montgomery Cook, a Managing Director withProspect Capital Management. “We expect our sponsor finance business tocontinue to grow as we see an increasing array of attractive opportunitiesin the marketplace.”
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.