NEW YORK, NY — (MARKET WIRE) — 08/09/07 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has provided growth andrecapitalization financing of approximately $6.0 million to Deep Down, Inc.(“Deep Down”), a deepwater drilling services and manufacturing providerbased in Houston, Texas.
Deep Down, founded in 1997, produces a line of specialized products,including umbilical hardware between platform and subsea wellheads, flowlines, distribution systems, steel flying leads, morays, carousels,umbilical terminations, controls, winches, and launch and retrievalsystems. The company also fabricates component parts and assemblies forsubsea support distribution systems specializing in the development ofoffshore subsea fields and tie backs. In addition, Deep Down providesinstallation management and engineering services for subsea applications.Deep Down is led by Ron Smith, President and Chief Executive Officer, whohas more than 25 years of experience in the offshore deepwater subseaindustry, and Gene Butler, Chief Financial Officer, who was formerly theChief Executive Officer of Weatherford International, Inc., one of thelargest diversified upstream oilfield service companies in the world. DeepDown’s strategy is to consolidate and grow service and manufacturingproviders in the offshore industry.
Deep Down is utilizing Prospect’s financing for growth capital andrepayment of existing liabilities. Prospect’s investment is in the form ofa senior secured debt instrument. Prospect has received warrants in DeepDown as part of its investment.
“Prospect’s capital will help us grow our business to meet the robustcustomer demand that we see in the subsea market, as well as significantlyenhance our ability to achieve the strategic objectives we have set forourselves in the creation of shareholder value,” said Ron Smith, Presidentand CEO of Deep Down.
“We believe Deep Down is well positioned to continue its growth in thedeepwater offshore business, a market we view as attractive,” said MarkHull, an investment professional with Prospect Capital Management.
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