SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

August 04, 2014 07:00 ET

Prospect Capital Exits AirMall at a Gross 16.7% Internal Rate of Return and 1.61x Cash-on-Cash Return

NEW YORK, NY--(Marketwired - Aug 4, 2014) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has sold its interests in AMU Holdings Inc. and Airmall Inc. ("AirMall") to Fraport AG Frankfurt Airport Services Worldwide. 

AirMall is a leading developer and manager of airport retail operations that manages significant retail operations and food and beverage concessions at four major east coast airports. For the twelve month period ended June 30, 2014, AirMall generated total revenue and airport level earnings before interest, taxes, depreciation, and amortization ("EBITDA") of $49.1 million and $12.1 million, respectively. AirMall has grown last twelve month revenue and airport level EBITDA by 17.3% and 19.5%, respectively, since Prospect acquired AirMall in July 2010.

The transaction results in a gross 16.7% internal rate of return and 1.61x cash-on-cash return to Prospect.

"We applaud the managers of AirMall, who continue to optimize passenger revenue in AirMall's airports," said Richard T. Carratu, a Managing Director of Prospect Capital Management. "Prospect Capital is actively looking for new one-stop control and non-control investments with a yield-orientation across all industries."


Prospect Capital Corporation ( is a business development company that focuses on lending to and investing in private 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 any forward-looking 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.