NEW YORK, NY — (MARKET WIRE) — 09/21/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that F. Lee Liebolt, Jr. has joined Prospect’sBoard of Directors.
“We are pleased to announce the appointment of Lee to our Board ofDirectors,” said John Barry, Chairman and Chief Executive Officer ofProspect. “With Lee’s legal experience, spanning many years of seniorpractice in the financial securities industry, he will add great depth andexperience to our Board. We are delighted that we could recruit anaccomplished attorney like Lee to our Board of Directors as Prospect Energyenters into an important phase of growth and development.”
Mr. Liebolt is a corporate and securities lawyer concentrating in the areaof broker-dealer and investment adviser regulation. He has broad knowledgeof the capital markets and considerable experience with the development ofmany innovative financial products and the public and private offeringprocess. Mr. Liebolt regularly advises investment banks, broker-dealers,investment advisers and private investment entities on federal and variousstate regulatory matters, including disclosure and registration issues andrule-making initiatives of the Securities and Exchange Commission, NASD,the New York Stock Exchange, the North American Securities AdministratorsAssociation and various state regulators. Mr. Liebolt also consults onenforcement and litigation matters involving broker-dealers, investmentcompanies and investment advisers.
Mr. Liebolt has written and lectured extensively on securities law issues.He is the author of a chapter in “The Investment Company RegulationDeskbook” (Aspen Law & Business, 1997 & Supp. 1998), the author of anarticle on “The Revised Uniform Securities Act – Is ABA Endorsement in theOffing” in “The Business Lawyer” (May 1990) and the author of variousarticles in Practicing Law Institute course handbooks and “The InvestmentLawyer” (Aspen Law & Business). Mr. Liebolt has been a panelist at legalseminars sponsored by PLI, Southern Methodist University, the American BarAssociation and NASAA.
Mr. Liebolt is a member of the Federal Regulation of Securities Committeeand the State Regulation of Securities Committee of the ABA and served aschairman of the latter committee from 1986 to 1989. He has been a member ofvarious industry advisory committees to NASAA and NASD.
Mr. Liebolt was a partner in Sidley Austin Brown & Wood LLP and certainpredecessor firms, where he worked from 1967 to 2005. He is a graduate ofthe University of North Carolina (LL.B., 1966) and the University ofPennsylvania (B.A., 1963). He is a member of the New York Bar.
Prospect would also like to acknowledge the service of Robert A. Davidsonand Michael E. Basham as members of the Board during the past two years, aperiod encompassing Prospect’s initial public offering and Prospect’ssecondary offering. Both have resigned to pursue other personalactivities. “As one of the three original independent directors ofProspect Energy, it has been a privilege for me to serve the interests ofthe shareholders,” said Mr. Basham. “Now that the company is launched andappears to be on solid footing, I believe I must devote my time to mypersonal interests. I wish you and the shareholders continued good resultsand I am confident this will happen,” said Mr. Davidson.
Separately, Prospect wishes to confirm that it has never invested in, andhas no intention to invest in, companies engaged in speculative trading ofenergy commodities. “Speculation can cut both ways,” said Barry. “We areinterested in pursuing a business model that earns returns for ourshareholders for the long term across multiple commodity cycles.”
ABOUT PROSPECT ENERGY CORPORATION
Prospect Energy Corporation (www.prospectenergy.com) is a closed-endinvestment company that lends to and invests in energy-related businesses.Prospect Energy’s investment objective is to generate both current incomeand long-term capital appreciation through debt and equity investments.
Prospect Energy has elected to be treated as a business development companyunder the Investment Company Act of 1940 (“1940 Act”). We are required tocomply with a series of regulatory requirements under the 1940 Act as wellas applicable NASDAQ, federal and state rules and regulations. We haveelected to be treated as a regulated investment company under the InternalRevenue Code of 1986. Failure to comply with any of the laws andregulations that apply to Prospect Energy could have an adverse effect onProspect Energy 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 highly likely tobe affected 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:Prospect Energy CorporationJohn BarryChairman and Chief Executive Officerjbarry@prospectstreet.comGrier EliasekPresident and Chief Operating Officergrier@prospectstreet.com(212) 448-0702