Prospect Capital Provides $200 Million of First-Lien Senior Secured Debt to Support the Refinancing of a Logistics Services Company Controlled by H.I.G. Capital


NEW YORK, NY--(Marketwire - Mar 22, 2013) -  Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect recently provided a $200 million first-lien senior secured credit facility to support the refinancing of a logistics services portfolio company controlled by H.I.G. Capital ("H.I.G.").

The H.I.G. portfolio company is a leading provider of third-party logistics (3PL) services. The $200 million financing provided by Prospect marks the third consecutive time in the last two years that Prospect has supported H.I.G.'s efforts, positioning the company for continued growth and long-term success.

"Prospect is a constructive and reliable financing relationship," said Jeff Zanarini, a Managing Director of H.I.G. "Prospect provided a compelling alternative to the syndicated capital markets and allowed us to consummate an attractive refinancing on a highly expedited basis."

"Since investing in this logistics services company, Prospect has seen the company grow its leadership position as a provider of 3PL services to distribution center operators," said Jason Wilson, a Managing Director of Prospect Capital Management LLC. "This transaction shows Prospect can lead significant-sized transactions for middle-market and larger companies, competing effectively with syndicated debt markets and providing more debt capital options for our private equity sponsor and other relationships."

Prospect has closed nearly $700 million of new originations during the current March 2013 quarter, bringing trailing-twelve-month originations to nearly $2.8 billion.

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.