SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

January 20, 2015 07:00 ET

Prospect Capital Announces Increase in Revolving Credit Facility Commitments to $885 Million

NEW YORK, NY--(Marketwired - Jan 20, 2015) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has increased total commitments to its recently renewed 5.5-year $1.5 billion revolving credit facility (the "Facility") by $75 million to $885 million in the aggregate.

The Facility was extended to March 2020 and pricing was reduced to Libor plus 2.25% in September 2014. The Facility includes an accordion feature that allows Prospect to accept up to an aggregate of $1.5 billion of revolving commitments. The $75 million commitment comes from a new lender, increasing the number of lenders in the Facility to 22. The Facility has an investment grade Moody's rating of Aa3.

"The addition of a large money center bank demonstrates continued support of the Facility within the bank community," said Nishil Mehta, Head of Capital Markets of Prospect.

ABOUT PROSPECT CAPITAL CORPORATION

Prospect Capital Corporation (www.prospectstreet.com) is a business development company that focuses on lending to and investing in private businesses. Prospect's investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940 ("1940 Act"). Prospect is required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. Prospect has 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 could have an adverse effect on Prospect and its 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 Prospect's control, and that Prospect 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 any forward-looking statements. Such statements speak only as of the time when made, and Prospect undertakes no obligation to update any such statement now or in the future.