NEW YORK, NY--(Marketwire - Jan 4, 2013) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has funded a recapitalization of Valley Electric Company of Mt. Vernon, Inc. ("Valley" or the "Company") with $53 million of combined debt and equity financing.
Valley was founded in 1982 and is headquartered in Everett, Washington. The Company, one of the largest 50 electrical contractors in the United States, is a leading provider of specialty electrical services in the state of Washington. Valley offers a comprehensive array of contracting services, primarily for commercial, industrial, and transportation infrastructure applications, including new installation, engineering and design, design-build, traffic lighting and signalization, low to medium voltage power distribution, construction management, energy management and control systems, 24-hour electrical maintenance, testing, special projects, and tenant improvement services.
The purpose of the recapitalization was to provide an opportunity for the non-management owners of Valley to monetize their ownership interests and provide an opportunity for management to co-invest in Valley. As a result of the recapitalization, Prospect is the controlling shareholder of Valley.
"The senior managers of Valley, who have invested alongside Prospect in the recapitalization, look forward to growing Valley with Prospect," said Jeret Garcia, CEO of Valley. "Prospect has extensive experience as a supportive, long-term investor in US-based mid-sized companies."
"We are impressed with the Company's technical expertise and history of major project execution in the greater Seattle and Washington market," said Robert Melman, a Vice President of Prospect Capital Management LLC. "This recapitalization of Valley demonstrates Prospect's ability to find and close investment opportunities that generate attractive yield and total return for our shareholders."
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 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.