SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

December 01, 2014 07:00 ET

Prospect Capital Makes $127 Million Follow-On First Lien Senior Secured Debt Investment in InterDent

NEW YORK, NY--(Marketwired - Dec 1, 2014) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has expanded its existing term loan credit facilities to InterDent, Inc. ("InterDent"), an H.I.G. Capital, LLC ("H.I.G.") portfolio company, by $127 million as part of an add-on acquisition growth and recapitalization strategy. The incremental facility is comprised of a $120 million increase in the existing first lien senior secured term loan as well as a $7 million delayed draw term loan facility, resulting in a total Prospect facility size of $260 million.

Based in Inglewood, California, InterDent is one of the leading providers of dental practice support services to multi-specialty group dental offices in the United States. InterDent provides support services to over 170 affiliated dental offices with more than 600 dentists in Arizona, California, Hawaii, Kansas, Nevada, Oklahoma, Oregon, and Washington. InterDent's network of affiliated dental groups provides comprehensive, convenient, and high quality general dentistry in addition to dental specialty services that include orthodontics, periodontics, endodontics, pedodontics, prosthodontics, and oral surgery.

"Prospect's ability to quickly upsize and hold the entire one-stop facility, coupled with its ability to facilitate InterDent's acquisition strategy, allows the company to stay focused on executing a multi-pronged growth strategy and expanding its leading position in the marketplace," said Chris Laitala, a Managing Director of H.I.G.

"We are pleased to provide incremental capital supporting InterDent, a company led by a best-in-class management team and a dedicated sponsor in H.I.G.," said Jason Wilson, a Managing Director of Prospect Capital Management. "Prospect's one-stop financing solutions offer efficient alternatives to the syndicated debt market."

Currently with over $7 billion of capital under management, Prospect has closed approximately $3 billion of new originations so far in calendar year 2014.

ABOUT PROSPECT CAPITAL CORPORATION

Prospect Capital Corporation (www.prospectstreet.com) is a business development company that focuses on lending to and investing in private businesses. Prospect's investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940 ("1940 Act"). Prospect is required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. Prospect has 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 Prospect could have an adverse effect on Prospect and its shareholders.

ABOUT H.I.G. CAPITAL

H.I.G. Capital is a leading global private equity investment firm with more than $17 billion of equity capital under management (based on total capital commitments to funds managed by H.I.G. Capital and its affiliates). Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York, and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm's current portfolio includes more than 80 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

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 Prospect's control, and that Prospect 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 Prospect undertakes no obligation to update any such statement now or in the future.