NEW YORK, NY--(Marketwire - December 14, 2010) - Prospect Capital Corporation (
Headquartered in Simpsonville, South Carolina, Para-Chem offers specialty adhesives, coatings, polymers, surfactants, and thickeners across a diverse range of North American markets, including carpeting, personal care, household, institutional, industrial, graphic arts, construction, specialty textiles, paper, packaging, and military. The company specializes in custom formulations offering flexible production, applications development, technical support, and excellent service.
"We are pleased by Prospect's continued support of our company and creative business solutions," said Ted Clark, Chief Executive Officer of Royal.
"Prospect demonstrated considerable flexibility and innovation in providing Arsenal with the capital needed to expand its specialty chemicals platform," said John Televantos, a Partner at Arsenal Capital.
"Prospect is looking forward to deepening its relationship with Arsenal and Royal. We are delighted to be making an additional investment to support Royal's growth initiatives and expansion plans," said David Moszer of Prospect Capital. "We expect to continue to be busy with other originations over the next few weeks."
In addition, Prospect announced that it has completed a $30 million secured second-lien financing for an additional portfolio company for a dividend recapitalization. Prospect, which also owns equity in this company, received a $2 million dividend in conjunction with the recapitalization. Prospect has now closed five originations aggregating more than $100 million since September 30, 2010.
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 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.