NEW YORK, NY--(Marketwire - Aug 25, 2011) - Prospect Capital Corporation (
Prospect's Board has authorized the repurchase plan because it believes the recent market turmoil may cause Prospect's common stock to be undervalued from time to time. Under this plan, Prospect may in its discretion repurchase up to $100,000,000 of its common stock at prices below its net asset value as reported in its then most recently published financial statements.
Prospect anticipates that share purchases may be made from time to time, depending upon market conditions. Shares may be purchased in the open market, including through block purchases. Prospect will not repurchase any shares from directors, officers, or other affiliates of Prospect. The repurchase program does not obligate Prospect to acquire any shares and may be discontinued at any time.
Prospect intends to fund potential repurchases, if any, with available cash. The repurchase program is expected to be in effect after shareholders receive notice through the mail, which should occur in the next few weeks, until the approved dollar amount has been used to repurchase shares or the plan is terminated.
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.