SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

August 26, 2010 09:00 ET

Prospect Capital Declares the 26th and 27th Consecutive Cash Distributions of the Company

NEW YORK, NY--(Marketwire - August 26, 2010) -  Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect" or "Company") announced today that Prospect has declared monthly cash distributions in the following amounts and with the following dates:

10.0625 cents per share for September 2010 (record date of September 30, 2010 and payment date of October 29, 2010); and

10.0750 cents per share for October 2010 (record date of October 29, 2010 and payment date of November 30, 2010).

These distributions mark the Company's 26th and 27th consecutive cash distributions.

The Company expects to declare its November, December, and January distributions in November.

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.