SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

January 06, 2010 08:00 ET

Prospect Capital Announces Corporate Investment Grade Rating From Standard & Poor's, Further Increase in Prospect's Investment Grade Revolving Credit Facility, and Completion of Patriot Capital Integration

NEW YORK, NY--(Marketwire - January 6, 2010) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect" or "Company") today announced that Prospect has received an investment grade long-term counterparty credit rating of BBB from Standard & Poor's Ratings Service.

In addition, Prospect has increased the total commitments to Prospect's revolving credit facility (the "Facility") to $210 million in the aggregate, up from $195 million previously.

The Facility includes an accordion feature which allows Prospect to accept up to an aggregate of $250 million of commitments. Prospect has now diversified its lender base from one lender to six lenders over the past few months.

The Facility has an investment grade rating of A2 from Moody's Investors Service. In addition to growing its revolving commitments from banks, Prospect is also exploring the term loan market as a potential source of long-term funding to increase Prospect's access to credit.

Prospect has also substantially completed key integration activities associated with its previously announced and closed acquisition of Patriot Capital Funding, Inc.

"We are pleased with our investment grade ratings and believe that they reflect both our conservative balance sheet and focus on performance," said Grier Eliasek, President and Chief Operating Officer of Prospect. "In addition, we believe we are the only company in our peer universe to expand our credit facility and add lender diversity during the past year. We are targeting to continue that path in 2010."

ABOUT PROSPECT CAPITAL CORPORATION

Prospect Capital Corporation (www.prospectstreet.com) is a closed-end investment company that lends to and invests in private and microcap public businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

We have elected to be treated as a business development company under the Investment Company Act of 1940 ("1940 Act"). We are required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. Failure to comply with any of the laws and regulations that apply to us could have an adverse effect on us and our shareholders.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.