SOURCE: Prospect Capital Corporation
NEW YORK, NY--(Marketwire - Aug 8, 2012) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has provided a $27 million secured loan to support the acquisition of New Star Metals Inc. ("New Star"), a provider of specialized processing services to the steel industry, by funds managed by Insight Equity Management Company LLC ("Insight Equity").
With manufacturing operations in East Chicago, Indiana, New Star is the pre-eminent provider of electrogalvanizing services employed in the finishing of ultra-high-strength steel. New Star serves a broad array of end markets with leading applications in light-weight automotive designs.
"Prospect delivered customized support for the transaction by crafting a capital structure solution that addressed the specific needs of New Star," said Jack Waterstreet, a Senior Vice President at Insight Equity.
"We are delighted by Prospect's value-added and responsive expertise that helped drive the consummation of this transaction," said Victor Vescovo, COO & Managing Partner at Insight Equity.
"Prospect is pleased to provide financing to support Insight Equity's acquisition of New Star, a differentiated and industry-leading company," said David Moszer, a Managing Director of Prospect Capital Management.
Separately, Prospect recently provided $110 million of senior secured financing to support the acquisition of a leading provider of dental practice management services to dental professional corporations and associations in the United States.
Prospect has closed more than $1.1 billion of originations to date in the current 2012 calendar year. Prospect's advanced investment pipeline aggregates more than $600 million of potential opportunities.
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 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.