Prospect Capital Announces Originations Exceeding $1.5 Billion in Calendar Year 2012, Including a $42.0 Million Senior Secured Loan to Support the Acquisition of Gulf Coast Machine and Supply Company by Altus Capital Partners


NEW YORK, NY--(Marketwire - Oct 15, 2012) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has provided a $42.0 million senior secured loan to support the acquisition of Gulf Coast Machine and Supply Company ("Gulfco") by Altus Capital Partners ("Altus"), a leading private investment firm.

Located in Beaumont, Texas, Gulfco is a preferred provider of value-added forging solutions to energy and industrial end markets. Gulfco's specialized equipment and skilled professionals offer advanced ring rolling, open die forging, machining, heat treating, and testing for products formed into large format discs, shaped dies, seamless rolled rings, bushings, and blocks. The company's unique capabilities and track record providing forgings that meet customer design and delivery specifications have positioned Gulfco as a preferred supplier for blue-chip customers operating within highly demanding environments, including subsea production facilities, refineries, offshore oil and gas rigs, and mining.

"Gulfco is a leading quick-turn supplier of large format forgings to the expanding offshore oil and gas and industrial markets," said Robert Melman, a Vice President with Prospect Capital Management. "Prospect appreciates the opportunity to support the Altus acquisition of this growing company."

"Prospect's responsiveness and flexible capital solution helped to ensure a successful closing," said Dale Cheney, a Principal at Altus. "We look forward to working with Prospect, a reliable capital source, on future transactions."

Prospect has closed more than $1.5 billion of originations to date in the current 2012 calendar year, including approximately $750 million in the September 2012 quarter. Prospect's advanced investment pipeline aggregates more than $600 million of potential opportunities.

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 statements. 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.