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Prospect Capital Provides $25.6 Million in Debt Financing for Dividend Recapitalization of IEC/ARS
| Source: Prospect Capital Corporation
NEW YORK, NY--(Marketwire - November 26, 2007) - Prospect Capital Corporation (NASDAQ : PSEC )
("Prospect") announced today that it has provided combined debt financing
of $25.6 million to IEC Systems LP ("IEC") and Advanced Rig Services LLC
("ARS"), two related oilfield service companies based in Houston, Texas.
Founded in 1991, IEC provides a full suite of electrical products and
services to the drilling rig industry. Primary activities for IEC include
electrical system design, installation, and repair; silicon controller
rectifier and variable frequency drive system manufacturing and repair; and
electrical parts distribution. Founded in 2005, ARS provides in its 20-acre
yard complete rig-up services, including fabrication and procurement of rig
components as well as assembly and testing of rigs. Both IEC and ARS have
significant and growing sales in offshore and international markets. IEC
and ARS are led by Stephen Cope, founder and Chief Executive Officer of
both companies.
Prospect's debt investments in IEC and ARS are two separate senior secured
instruments with cross-collateralized guarantees. Prospect's capital is
being utilized for a recapitalization of IEC and ARS. Prospect also
received a net profit interest in each company as part of its investment.
"We appreciate having a financing partner with meaningful experience
working with oilfield companies such as ours," said Mr. Cope of IEC and
ARS.
"We are enthusiastic about our new relationship with the experienced and
successful team at IEC and ARS," stated Bart J. de Bie, a Managing Director
with Prospect Capital Management. "We look forward to supporting their
expanding presence in the offshore and international drilling markets."
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. Prospect Capital's investment objective is to generate both
current income and capital appreciation through debt and equity
investments.
Prospect Capital has 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 laws 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 Prospect Capital could have a material adverse
effect on Prospect Capital and its shareholders.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Any such
statements, other than statements of historical fact, are likely to be
affected by other unknowable future events and conditions, including
elements of the future that are or are not under the Company's control, and
that the Company 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 the Company undertakes
no obligation to update any such statement now or in the future.