SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

February 04, 2011 09:52 ET

Prospect Capital Provides $45 Million Secured Term Loan for Refinancing of Clearwater Seafoods, Plus Provides $7.5 Million in Senior Secured Financing for Recapitalization of Building Infrastructure Company

NEW YORK, NY--(Marketwire - February 4, 2011) -  Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has made a secured second-lien debt investment of $45 million to support the refinancing of Clearwater Seafoods Limited Partnership ("Clearwater"), a leading premium seafood company based in Nova Scotia, Canada.

Founded in 1976, Clearwater is one of North America's largest vertically-integrated harvesters, processors, and distributors of shellfish, with products that include scallops, lobsters, Arctic surf clams, and coldwater shrimp. As the largest holder of shellfish quotas in Canada, Clearwater harvests offshore in Atlantic Canada and Argentina using a sizeable fleet that includes several frozen-at-sea vessels. The company serves across more than 30 countries several hundred customers, including food service operators, retailers, specialty seafood outlets, and food processors. Clearwater employs more than 1,000 people.

"Prospect's flexibility provided significant value to Clearwater during our refinancing process," said Ian Smith, CEO of Clearwater. "This refinancing results in a substantial enhancement of our capital structure, allowing our management team to focus on growing our business and creating long-term value for our unitholders."

"Prospect is pleased to have the opportunity to provide Clearwater a $45 million secured term loan that supports Clearwater's strategy going forward," said Richard Carratu, Managing Director of Prospect Capital Management.

Separately, Prospect announced that Prospect has provided $7.5 million in senior secured financing to support the recapitalization of a building infrastructure company.

Prospect has now closed more than $260 million of new originations since September 30, 2010.

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.