SOURCE: Prospect Capital Corporation

Prospect Capital Corporation

September 20, 2013 07:00 ET

Prospect Capital Purchases $48.0 Million of Senior Secured Floating Rate Debt and Equity in Recapitalization of Mity Enterprises

NEW YORK, NY--(Marketwired - Sep 20, 2013) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that it has recapitalized Mity Enterprises, Inc. ("Mity" or the "Company") with $48.0 million of combined senior secured floating rate debt and equity.

Mity designs, manufactures, and sells a full suite of multipurpose room furniture and specialty healthcare seating products. The Company was founded in 1987 and is based in Orem, Utah. Mity has two operating units, Mity-Lite and Broda, which are located in Orem, Utah, and Kitchener, Ontario, respectively. Mity-Lite is a well-established, leading manufacturer of branded, lightweight, durable chairs and tables sold primarily by Mity's direct sales force to the hospitality, education, public assembly, government, and office end markets. Broda produces a line of branded, premium specialty chairs for disabled individuals. Broda sells such chairs to long-term care facilities and other customers in the healthcare market. As a result of this recapitalization, Prospect is a senior lender to Mity, and Prospect has acquired a controlling equity interest in Mity.

"We are excited to work with Prospect as we continue building industry-leading products for an expanding base of long-term customers," said John Dudash, CEO of Mity. "We look forward to benefiting from Prospect's substantial resources as we grow Mity-Lite and Broda."

"We look forward to supporting Mity's impressive management team, which has co-invested in the recapitalization," said Bart J. de Bie, a Managing Director of Prospect Capital Management LLC. "Our investment demonstrates Prospect's ability to make one-stop combined debt and equity investments as one of Prospect's strategies to drive yield and total return for our shareholders."

Prospect has closed approximately $2.1 billion of originations to date in the 2013 calendar year. Prospect closed more than $3.0 billion of originations in the twelve months ended June 30, 2013.

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. 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 any forward-looking statements. 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.