SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

July 30, 2012 07:00 ET

Prospect Capital Provides $85 Million in Financing to Support the Acquisition of Arctic Glacier's Business by H.I.G. Capital, Resulting in Approximately $900 Million in Originations to Date for Calendar Year 2012

NEW YORK, NY--(Marketwire - Jul 30, 2012) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has provided an $85 million senior subordinated loan to support the acquisition of substantially all the assets of Arctic Glacier Income Fund by funds affiliated with H.I.G. Capital ("H.I.G."). The new company, Arctic Glacier Holdings, Inc. ("Arctic Glacier"), will continue to conduct business under the "Arctic Glacier" name and be a leading producer, marketer, and distributor of high-quality packaged ice to consumers in Canada and the United States.

Based in Winnipeg, Canada, Arctic Glacier is the largest producer of packaged ice in Canada and the second largest producer of packaged ice in the U.S., primarily under the brand name of Arctic Glacier® Premium Ice. Arctic Glacier operates 39 production plants and 47 distribution facilities across Canada and the northeast, central and western United States, servicing more than 75,000 retail locations.

"Prospect's responsiveness and deep balance sheet provided the certainty of execution that we needed in order to close this important transaction on a tight timeline," said Bret Weiner, a Managing Director of H.I.G.

"Prospect is pleased to provide 100% of the senior subordinated capital in support of the Arctic acquisition, resulting in a financially strong company that is well positioned for growth," said Jason Wilson, a Managing Director of Prospect Capital Management.

Prospect has closed approximately $900 million of originations to date in the current 2012 calendar year. Prospect's advanced investment pipeline aggregates more than $350 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.

ABOUT H.I.G. CAPITAL
H.I.G. is a leading global private equity investment firm with more than $8.5 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York, and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Paris, and Rio de Janeiro, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding in 1993, H.I.G. invested in and managed more than 200 companies worldwide. The firm's current portfolio includes more than 50 companies. For more information, please refer to the H.I.G. website at www.higcapital.com.

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.