SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

November 16, 2010 08:00 ET

Prospect Capital Provides $15 Million in Financing to American Importing Company and Ann's House of Nuts to Support Acquisitions by Gryphon Investors

NEW YORK, NY--(Marketwire - November 16, 2010) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has made a senior subordinated debt investment of $15 million to support acquisitions of American Importing Company Inc. ("Amport") and Ann's House of Nuts Inc. ("Ann's") by affiliates of Gryphon Investors.

Ann's, based in Columbia, Maryland, is the largest manufacturer and marketer of trail mixes in North America. Amport, based in Minneapolis, Minnesota, is North America's largest private label manufacturer and marketer of dried fruits. According to Mintel, the nuts and dried fruit market grew from $4.1 billion in 2004 to $5.0 billion in 2008 and is expected to continue its attractive growth for the foreseeable future.

"Prospect supported us as a responsive lender that helped to structure a customized financing package for the acquisitions of Amport and Ann's," said Keith Stimson, Head of Consumer Products and Services at Gryphon Investors.

"This transaction demonstrates Prospect Capital's commitment to provide flexible capital solutions to private equity sponsors," said David Moszer of Prospect Capital Management.

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.