SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

September 09, 2009 08:30 ET

Prospect Capital Announces Repayment of $3.15M Senior Term Loan to C&J Cladding, Producing a 19% Realized Cash-on-Cash IRR

NEW YORK, NY--(Marketwire - September 9, 2009) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that C&J Cladding LLC ("C&J") has repaid to Prospect the full remaining balance of its $3.15 million acquisition loan, as well as a prepayment premium. With this repayment, Prospect has realized an approximately 19% cash-on-cash internal rate of return on the C&J investment, not including a significant ongoing equity interest which Prospect continues to hold.

"The management team approached us nearly three years ago to seek our financial support to acquire C&J, and we are pleased to have helped them realize their aspirations," said Mark Hull, a Vice President at Prospect Capital. "We are also pleased to have generated another significant cash realization on one of our energy-related investments."

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.

Contact Information

  • For further information, contact:

    Grier Eliasek
    President and Chief Operating Officer
    Email Contact
    (212) 448-9577