NEW YORK, NY — (MARKET WIRE) — 02/15/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has made a $3.0 million senior secureddebt and a $0.2 million preferred equity investment in Appalachian EnergyHoldings, LLC. (“AEH”), an energy services company based in Charleston,West Virginia.
AEH is led by R. William West, who has more than 30 years of experience innatural resource related construction, equipment fleet management, andservices. AEH is an energy services business focused on acquiring andexpanding small and medium-sized energy services companies in thefragmented Appalachian region. AEH provides services to customers in thecoal, natural gas, and oil industries. Existing lines of business includetree clearance, road construction, excavation, drill site preparation,pipeline construction, and reclamation.
Prospect’s capital, along with external equity, is being used by AEH toacquire East Cumberland, LLC, and C&S Oilfield and Pipeline Construction,LLC. Prospect is receiving additional penny warrants in conjunction withits investment.
“Prospect is an ideal partner for us as we expand our service andgeographic footprint across the Appalachian Basin,” said West.
“AEH marks our second energy services investment, and our sixth investmentin the Appalachian region,” said Bart de Bie, a senior investmentprofessional with Prospect Capital Management, Investment Adviser toProspect. “We look forward to growing the AEH relationship as well asfinancing other energy-related businesses in the upstream, midstream,downstream, and service sectors across North America.”
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 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 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