SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

February 23, 2015 07:00 ET

Prospect Capital Provides First Lien Senior Secured Floating Rate Financing to Support the Acquisition of PrimeSport by Carlyle

NEW YORK, NY--(Marketwired - Feb 23, 2015) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect recently provided a first lien senior secured floating rate loan facility to support the acquisition of PrimeSport Holdings Inc. ("PrimeSport") by investment funds led by The Carlyle Group ("Carlyle").

PrimeSport is a leading global sports, travel, and event management company that offers tickets, corporate and fan travel packages, and hospitality events for corporations, professional sports teams, and fans. For over 20 years, the PrimeSport team has developed trusted, long-term official partnerships with teams and events that give PrimeSport's customers access to the most sought after sporting events, including the NCAA Final Four, College Football Playoff, U.S. Open, Daytona 500, and many other events. Joining Carlyle in its investment in PrimeSport are RSE Ventures and Moorad Sports Partners LLC, a company founded by Jeff Moorad, former CEO and partial owner of the Arizona Diamondbacks and San Diego Padres. Clearlake Capital Group, L.P. ("Clearlake") and management retained significant equity stakes in PrimeSport.

"Carlyle selected Prospect based on its ability to provide committed capital to finance our acquisition of PrimeSport on an accelerated basis due to Prospect's thorough knowledge of PrimeSport and its industry," said David Stonehill, a Managing Director of Carlyle.

"Prospect demonstrated creativity by parallel processing a dividend recapitalization, which closed in September 2014, with a possible change of control process, and we were pleased to strongly recommend Prospect as a leading provider of staple financing in this transaction," said Behdad Eghbali, a founding partner of Clearlake.

"Prospect is pleased to complete this important transaction with Carlyle," said Jason Wilson, a Managing Director of Prospect Capital Management L.P. "We look forward to continued strong performance at PrimeSport, a company with a compelling value proposition for professional and collegiate sports leagues, teams, and fans involved in many of the biggest sporting events in the world."

Prospect closed nearly $3.2 billion of new originations during calendar year 2014, with further origination activity expected in the current quarter.

ABOUT PROSPECT CAPITAL CORPORATION

Prospect Capital Corporation (www.prospectstreet.com) is a business development company that focuses on lending to and investing in private businesses. Prospect's investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940 ("1940 Act"). Prospect is required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. Prospect has 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 could have an adverse effect on Prospect and its 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 Prospect's control, and that Prospect 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 any forward-looking statements. Such statements speak only as of the time when made, and Prospect undertakes no obligation to update any such statement now or in the future.