Prospect Capital Provides Financing for Private Equity Sponsor's Acquisition of American Gilsonite Company
| Source: Prospect Capital Corporation
NEW YORK, NY--(Marketwire - March 17, 2008) - Prospect Capital Corporation (NASDAQ : PSEC )
("Prospect") announced today that it has provided debt financing of $14.5
million to support the acquisition by a private equity sponsor of American
Gilsonite Company ("AGC"), a specialty mineral company with operations
based in Bonanza, Utah.
Formed in 1946 with predecessors dating back to 1885, AGC is the world's
leading producer of the asphaltum mineral marketed under the brand name
"Gilsonite." Gilsonite's unique chemical and physical properties create
significant value for customers in a variety of end-user markets, including
oil and gas, inks and paints, asphalt and foundry. AGC produces more than
an estimated 80% of the Gilsonite consumed worldwide, and has rights to
more than 20 years of proven reserves.
Prospect's debt investment supports the acquisition of AGC by Palladium
Equity Partners ("Palladium"), a private equity firm based in New York with
more than $900 million of assets under management. Prospect also made an
equity co-investment in AGC alongside Palladium.
"We appreciate having a dependable financing relationship with the Prospect
team," said Kevin Reymond, a Managing Director with Palladium. "In
addition, Prospect's experience in energy and industrial sectors provided
substantial value to our assessment of the investment opportunity."
"AGC is a repeat transaction between Prospect and Palladium, and we greatly
value the relationship," stated Montgomery Cook, a Managing Director with
Prospect Capital Management. "We expect our sponsor finance business to
continue to grow as we see an increasing array of attractive opportunities
in the marketplace."
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.