SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

July 06, 2011 07:00 ET

Prospect Capital Closes $105 Million in New Originations; Including $75 Million Senior Secured Debt Investment in a Leading Specialty Media Buying Business

NEW YORK, NY--(Marketwire - Jul 6, 2011) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has made a senior secured debt investment of $75 million in a market-leading specialty media buying business (the "Company") on June 30, 2011.

The Company is a leading specialty media placement agency that purchases and manages television inventory across national networks and local broadcast stations throughout the United States. Over its multi-decade history, the Company has established deep relationships with hundreds of media outlets across the country and nearly every major product marketer in its industry.

"We are pleased to be investing in a market leader proven to be the most innovative company in its industry," said Jason Wilson, a Principal of Prospect Capital Management.

Separately, Prospect provided $25 million in secured second lien financing for the recapitalization of a leading company in the occupational medical services industry.

Prospect also provided $5 million in secured second lien financing for the acquisition of a top company in the professional services subscription market.

"These investments demonstrate our deep expertise in the media, healthcare, and other diversified industries, as well as our repeat relationships with private equity sponsors," said Richard Carratu, a Managing Director of Prospect Capital Management.

Prospect has closed more than $660 million of new originations so far in calendar year 2011, including over $300 million in the June 2011 quarter.

Prospect Capital Corporation ( 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.