SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

May 10, 2011 07:00 ET

Prospect Capital Invests $32 Million of Debt and Equity in Media Buying Business, Plus Invests $30 Million in Two Additional Transactions

NEW YORK, NY--(Marketwire - May 10, 2011) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has invested $32 million of senior debt, subordinated debt, and equity in an advertising media buying business (the "Company").

The Company is a leading provider of media buying services targeting college students, military personnel, and multicultural groups. The Company provides advertisers with access to these difficult-to-reach demographics through targeted media publications, owned out-of-home assets, and on-site marketing and sampling programs. Over its multi-decade history in the media industry, the Company has developed relationships with media publishers at thousands of colleges and all major military bases in the United States. The Company has six offices located throughout the United States, including offices in New York, Chicago, and Los Angeles.

Of Prospect's $32 million total investment, $24 million is structured as senior secured debt, $3 million as subordinated debt, and $4 million as controlling equity. All of the Company's managers will remain with the business.

"We are pleased to be investing in a market leader in the niche media marketing industry," said Jason Wilson, a Principal of Prospect Capital Management. "Our investment demonstrates Prospect's ability to make 'one-stop' combined debt and equity investments as one of Prospect's strategies to drive yield and total return for our shareholders."

Separately, Prospect provided $15 million in secured second lien acquisition financing for a top company in the in-store media industry.

Prospect also provided $15 million in secured second lien financing for the recapitalization of a leading company in the engineered glass materials industry.

Prospect has closed more than $410 million of new originations since December 31, 2010.

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.