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Prospect Capital Makes $18 Million Second Lien Debt Investment in Shearer's
| Source: Prospect Capital Corporation
NEW YORK, NY--(Marketwire - November 6, 2007) - Prospect Capital Corporation (NASDAQ : PSEC )
("Prospect") announced today that it has made a second lien debt investment
of $18 million in Shearer's Foods, Inc. ("Shearer's"), a leading
manufacturer and distributor of snack food products based in Brewster,
Ohio.
Founded in 1974, Shearer's is the largest producer of kettle cooked potato
chips in the United States. The kettle-style chip segment is the fastest
growing category in the potato chip market. Shearer's also produces
traditional potato chips, tortilla chips, cheese curls, and other snack
products. The company serves a blue-chip list of co-pack, branded, private
label, and food service customers, including some of the best known branded
food companies in the industry. Shearer's has manufacturing facilities in
Brewster as well as in Lubbock, Texas. Robert Shearer, the company's Chief
Executive Officer and the former Chairman of the Board of Directors for the
Snack Food Association, has played a leadership role in the industry for
decades. Shearer's has been owned since 2005 by an affiliate of Winston
Partners, a multi-billion-dollar private equity and hedge fund-of-funds
asset management firm based in McLean, Virginia.
Prospect's second lien secured debt, along with first lien debt from a
syndicate led by National City Bank, is being utilized to refinance
existing indebtedness and to provide growth capital to Shearer's.
"As a private equity sponsor, we appreciate the responsiveness and
diligence brought to this investment by the Prospect team," said Scott
Andrews, Managing Partner of Winston Partners Group, LLC.
"Shearer's represents another successful example of our continued growth in
the sponsor finance business, where we are receiving robust transaction
flow from experienced private equity sponsors and syndication agents across
North America, as well as those steps from our offices in midtown
Manhattan," said Montgomery Cook, a Managing Director with Prospect Capital
Management.
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. Prospect Capital's investment objective is to generate both
current income and capital appreciation through debt and equity
investments.
Prospect Capital has 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 laws 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 Prospect Capital could have a material adverse
effect on Prospect Capital and its shareholders.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Any such
statements, other than statements of historical fact, are likely to be
affected by other unknowable future events and conditions, including
elements of the future that are or are not under the Company's control, and
that the Company 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 the Company undertakes
no obligation to update any such statement now or in the future.