NEW YORK, NY — (MARKET WIRE) — 11/09/06 — Prospect Energy Corporation(NASDAQ: PSEC) (“Prospect”) announced today that it has provided $6.5million of financing for the acquisition of Jettco Marine Services LLC(“Jettco”), an offshore supply vessel (“OSV”) company based in Morgan City,Louisiana.
Jettco has a fleet of three OSVs that are leased to oil and gas industryparticipants in the Gulf of Mexico. Jettco also has a brokerage businessthat arranges for the leasing of third-party vessels. Jettco’s OSVs, whichrange in length from 170 feet to 200 feet, transport equipment, supplies,and crews to offshore locations in the Gulf in order to supportconstruction, maintenance, and drilling activities. Customers include oiland gas companies as well as businesses supplying offshore logistics.
Jettco has hired Sidney Forrestier as the new CEO of Jettco. Untilrecently, Mr. Forrestier directed operations for a fleet of nearly fiftyvessels for a prominent Gulf Coast firm. He has approximately thirty yearsof experience across various managerial roles within the marinetransportation sector.
Prospect’s investment is in the form of a subordinated secured debtinstrument with a second lien on all assets of Jettco. JPMorgan Chaseprovided senior secured debt. Elm Street Capital Partners (“Elm Street”),a private equity firm based in Purchase, New York, is the controllingequity sponsor of the acquisition.
“Prospect’s team is responsive and has valuable expertise in the energymarkets, and we look forward to working with them on future acquisitions,”said Timothy Clark, Principal of Elm Street.
“Jettco represents our first marine transportation investment, and we areinterested in pursuing other opportunities in the sector,” said Bart deBie, a senior investment professional with Prospect Capital Management. “Welook forward to future opportunities to provide acquisition financing tofinancial sponsors in the marine sector and otherwise.”
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 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.
ContactPlease send investment proposals to:Grier EliasekPresident and Chief Operating Officergrier@prospectstreet.com(212) 448-9577