NEW YORK, NY — (MARKET WIRE) — 08/01/07 — Prospect Capital Corporation (NASDAQ: PSEC)(“Prospect”) announced today that Prospect has provided growth financing ofapproximately $15.0 million to the Wind River Resources Corporation andWind River II Corporation (collectively, “Wind River”), a privately heldoil and gas production business based in Salt Lake City, Utah.
Wind River is engaged in the exploration, development, and production ofcrude oil and natural gas in Utah’s Uinta basin. Wind River currently ownsinterests in over 56,000 acres in Utah and operates all but 7,300 of theseacres. The entire acreage is now covered by high resolution 3-D seismicsurveys.
Wind River is led by Thomas Bachtell, Chief Executive Officer, and MarcEckels, Chief Operating Officer, who together have more than six decades ofexperience in the oil and gas production industry, including in the legal,operational, geological, and engineering functions. Wind River has been aleader in the Rocky Mountains in the use of 3-D seismic technology to imagepotential oil and gas prospects. Its seismic activities were featured in,and on the cover of, the Oil and Gas Journal, on March 21, 2005, with afocus on the initial 28 square-mile North Hill Creek survey.
Wind River is utilizing Prospect’s financing for the drilling andcompletion of new wells, as well as the refinancing of existingindebtedness. Prospect’s investment is in the form of a senior secured debtinstrument with a first lien on all assets of Wind River, includingreceivables, wells, leases, and other infrastructure. Prospect has receiveda net profit interest in Wind River as part of its investment.
“This financing allows Wind River to accelerate its drilling program,enabling us to realize the true potential of our asset base,” said MarcEckels, Chief Operating Officer of Wind River.
“We like this management team’s track record of development using 3-Dseismic interpretation to high grade its portfolio of drilling locations,”said David Belzer, a Managing Director with Prospect Capital Management.
“The Wind River transaction brings the overall Prospect portfolio toapproximately 70% in senior secured and collateralized positions, with thebalance largely in second lien secured positions, and the vast bulk inenergy-related companies, a different profile from the subprime residentialhousing mortgage market,” said John F. Barry, Chairman and Chief ExecutiveOfficer of Prospect.
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