NEW YORK, NY — (MARKET WIRE) — 02/05/07 — Prospect Energy Corporation (NASDAQ: PSEC)(the “Company”) announced today that its 2006 dividends of $1.405 per sharewere a distribution of ordinary income. Of that amount, $0.26414 per sharewere qualified dividends and $1.14086 per share were non-qualifieddividends. Qualified dividend income is dividend income received fromdomestic corporations and certain qualified foreign corporations and isgenerally taxed to shareholders at the rates that apply to net capitalgains.
Prospect Energy Corporation has elected to be treated as a regulatedinvestment company and intends to continue to comply with the requirementsof the Internal Revenue Code of 1986 (the “Code”) applicable to regulatedinvestment companies.
The following is a table representing 2006 dividends and distributions paidby Prospect Energy Corporation.
Qual- ReturnDeclar- Amount Ordinary ified Capital ofation Record Payable Per Income Dividend Gains CapitalDate Date Date Share Amount Amount Amount Amount3/31/2006 3/23/2006 3/30/2006 $0.30000 $0.30000 $0.05640 -0- -0-6/14/2006 6/23/2006 6/30/2006 $0.34000 $0.34000 $0.06392 -0- -0-7/31/2006 9/22/2006 9/29/2006 $0.38000 $0.38000 $0.07144 -0- -0-12/15/2006 12/29/2006 1/5/2007 $0.38500 $0.38500 $0.07238 -0- -0-
Prospect Energy Corporation stockholders should receive IRS Form 1099-DIVcontaining this information from their brokers, transfer agents or otherinstitutions.
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 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 laws 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 a material adverseeffect on Prospect 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 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 of any aspect of future performance.Actual developments and results are highly likely to vary materially fromthese estimates and projections of the future. Such statements speak onlyas of the time when made, and the Company undertakes no obligation toupdate any such statement now or in the future.
Please send investment proposals to:Prospect Energy CorporationGrier EliasekPresident and Chief Operating Officergrier@prospectstreet.com(212) 448-0702