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
| Source: Prospect Capital Corporation
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.