SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

January 08, 2014 07:00 ET

Prospect Capital Provides Over $40 Million of Senior Secured Floating Rate Debt to Support the Recapitalization of Crosman Corporation by Wellspring Capital and the Acquisition of PrimeSport by Clearlake Capital

NEW YORK, NY--(Marketwired - Jan 8, 2014) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect in December 2013 provided $40 million of senior secured floating rate debt to support the recapitalization of Crosman Corporation ("Crosman") by Wellspring Capital Partners, a leading investment firm focused on middle-market companies.

Headquartered in East Bloomfield, New York, Crosman is the leading designer, manufacturer and marketer of airguns, airsoft guns, and related accessories. Crosman has a longstanding presence in airgun design and a proud tradition of producing high quality pellet and BB air rifles and pistols. Crosman is also one of the world's leading producers of airsoft guns, multiple varieties of airgun and airsoft ammunition, and CO2 powerlets.

Prospect also announced today that Prospect in December 2013 provided a senior secured floating rate loan facility to support the acquisition of PrimeSport, Inc. ("PrimeSport") by investment funds managed by Clearlake Capital Group, L.P. ("Clearlake"), a leading private investment firm focused on special situations and private equity investments.

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 management team has developed trusted, long-term official partnerships with sports teams and events that give PrimeSport's customers access to the most sought after sporting events, including the NCAA Final Four, BCS National Championship, Super Bowl, Daytona 500, and many other events.

"Clearlake selected Prospect over multiple lenders based on Prospect's creative and flexible financing structure designed to support PrimeSport's growth strategy," said Behdad Eghbali, a founding partner of Clearlake.

"Prospect is excited to complete this inaugural transaction with Clearlake," said Jason Wilson, a Managing Director of Prospect Capital Management LLC. "We pulled out all the stops to support Clearlake's acquisition of PrimeSport, a company with a compelling value proposition for professional and collegiate sports leagues, teams, and fans involved in some of the biggest sporting events in the world."

Prospect closed approximately $2.7 billion of new originations during calendar year 2013, with further origination activity expected in January and the coming months.

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.