NEW YORK, NY — (MARKET WIRE) — 04/12/07 — Prospect Energy Corporation(NASDAQ: PSEC) (“Prospect”) announced today that it has providedacquisition and growth financing of approximately $12.2 million to ESAEnvironmental Specialists, Inc. (“ESA”), located in Charlotte, NorthCarolina.
Founded in 1995, ESA is a construction, engineering, and environmentalservices firm headquartered in Charlotte, with additional offices inFlorida, Pennsylvania, Virginia, and Texas, providing energy-related andother services primarily to the U.S. Government. ESA focuses its primaryservice offerings on all agencies and departments of the U.S. Navy, AirForce, Army, Marines, Veterans Administration, Drug Enforcement Agency,Department of Labor, Park Service, and Department of Justice. ESA maintainsdesignations and certifications secured under Small Business Administrationprograms that include recognition of ESA as an 8(a) firm, a ServiceConnected Disabled Veteran Owned business, a HUBZone business, a NativeAmerican Owned and Small Disadvantaged business, and a Veteran Ownedbusiness. As part of Prospect’s funding, ESA has acquired The Healing Staff(“THS”), a contractor focused primarily on providing outsourced medicalstaffing solutions to federal government agencies.
ESA has utilized Prospect’s financing for growth working capital, the THSacquisition, and repayment of existing debt. Prospect’s investment is inthe form of a senior secured debt instrument with a first lien on allassets of ESA, including receivables and real estate. Prospect has receiveda significant equity ownership in ESA as part of its investment.
“The Prospect team impressed us with its knowledge of energy, environmentaland construction businesses, and we look forward to Prospect’s support aswe continue our rapid growth,” said Charles Cole, CEO of ESA.
“We are impressed with ESA’s momentum, and we believe the management teamcan continue to drive the business to the next level with Prospect’sfinancial support,” said Eric Klaussmann, an investment professional withProspect Capital Management.
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.
Please send investment proposals to:Grier EliasekPresident and Chief Operating Officergrier@prospectstreet.com(212) 448-9577