NEW YORK, NY — (MARKET WIRE) — 05/03/07 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it is changing its name to ProspectCapital Corporation.
“Energy and industrial-related companies, including those in the oil andgas, midstream, power, oilfield service, and other energy sectors, continueto be the most significant area of our focus, and our transaction pipelinein those areas is more robust than we have ever had,” said John Barry,chief executive officer of Prospect. “We are changing our name for severalreasons. First, we want to clear up any marketplace confusion by statingthat we are an investment company, not an operating company. Second, wewant to reflect the diversification of the existing portfolio, whichincludes investments in sectors such as marine transportation, metalservices, construction, infrastructure, manufacturing, environmentalservices, and government contracting. Third, we seek to provide financingfor acquisitions and recapitalizations for other private equity sponsorsacross various industries, and the name change will help with thisimportant initiative. Fourth, we want to maximize our corporate creditfacility advance rates and minimize our debt cost of capital as we grow,and we believe diversification will enable us to achieve those goals. Webelieve this name change is in the best interest of our shareholders.”
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com/) is a closed-endinvestment company that lends to and invests in energy-related businesses.Prospect Capital’s investment objective is to generate both current incomeand capital appreciation through debt and equity investments.
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