SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

August 18, 2014 07:00 ET

Prospect Capital Provides $210 Million of First Lien Senior Secured Debt to Support the Recapitalization of a Leading Food Services Company in the H.I.G. Capital Portfolio

NEW YORK, NY--(Marketwired - Aug 18, 2014) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect recently provided a $210 million first lien senior secured credit facility to support the recapitalization of a leading food services company in the H.I.G. Capital ("H.I.G.") portfolio.

"Prospect's one-stop financing provides an attractive alternative for our investment strategy," said Jeff Zanarini, a Managing Director of H.I.G. "In this case, a creative approach and accelerated time table convinced us to select Prospect over the syndicated capital markets."

"We are pleased to provide financing to H.I.G. for this industry leading company," said Jason Wilson, a Managing Director of Prospect Capital Management LLC. "This transaction further demonstrates Prospect's ability to lead, agent, and hold significantly sized transactions. Prospect's focus on middle-market and larger companies enables Prospect to compete with syndicated debt markets and to provide creative capital financing to our private equity sponsor and other relationships."

The $210 million financing provided by Prospect marks the ninth time in the last two years that Prospect has invested over $100 million in a single transaction.

Prospect has closed approximately $2 billion of new originations so far in calendar year 2014.

Separately, Prospect recently announced the sale of AMU Holdings Inc. and Airmall Inc. ("Airmall"), resulting in a gross 16.7% internal rate of return and 1.61x cash-on-cash return to Prospect. RBC Capital Markets acted as a financial advisor to Airmall for the sale.

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. 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.