SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

April 13, 2010 09:00 ET

Prospect Capital Invests $12.3 Million in Secured Debt in Seaton Corp.

NEW YORK, NY--(Marketwire - April 13, 2010) -  Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has invested $12.3 million in secured debt in Seaton Corp. ("Seaton"), a leading provider of recruiting, Vendor-On-Premise ("VOP") staffing, and end-to-end supplier management solutions for strategic users of contingent labor.

Founded in 1988 and based in Chicago, Seaton operates through three business units -- Staff Management, PeopleScout, and StudentScout. Staff Management has been an industry pioneer of the VOP staffing solution model, which has now evolved into a platform that provides sustainable workforce solutions to Fortune 500, Global 2000, and high growth companies. PeopleScout is a leading provider of recruitment process outsourcing services designed to help firms manage their exempt and non-exempt hiring needs. PeopleScout facilitates over 187,000 annual hires and recently placed its one-millionth full-time hire. StudentScout designs and implements customized student recruitment processing and support solutions to help post-secondary educational institutions recruit new students. Seaton is a portfolio company of Leeds Equity Partners, a private equity firm based in New York. Prospect's investment in Seaton is a secured second lien loan.

"The Seaton transaction presented a special opportunity to support a private equity sponsor relationship," said David Moszer, a senior professional with Prospect Capital Management. "Seaton has performed favorably during the latest recession, and we believe Seaton is well-positioned to benefit from an expected rebound in the economy."

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.

ABOUT LEEDS EQUITY PARTNERS

Leeds Equity Partners (the "Firm") is a New York based private equity firm that manages the largest private equity fund in the United States focused on investments in the education, information and training industries. Since its founding in 1993, the Firm, through its various investment partnerships, has raised and managed over $1 billion of committed capital and invested in more than 20 companies. The Firm is currently raising its fifth private equity fund. 

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