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Prospect Energy Corporation Announces Repayment of Investment in Cypress Consulting Services, Inc.
| Source: Prospect Energy Corporation
NEW YORK, NY -- (MARKET WIRE) -- February 12, 2007 -- Prospect Energy Corporation (NASDAQ : PSEC )
("Prospect") announced today that it expects repayment of, and a gain on,
Prospect's $4.3 million debt investment in Cypress Consulting Services,
Inc. ("Cypress"), a seismic surveying company based in Houston, Texas.
Cypress has executed an asset purchase agreement to sell its assets to a
larger energy services company, with such sale expected to close this
month. At closing, Prospect expects to receive a combined prepayment
premium and net profits interest payment of approximately $2.1 million.
Prospect expects to earn a 1.6 times cash-on-cash return on the Cypress
investment, over the five months since Prospect made this investment, for a
175% realized cash annualized internal rate of return.
"We found Prospect to be a responsive financing partner with a thorough
understanding of the oilfield services sector," said Dennis Gray, Chief
Executive Officer of Cypress.
"The Cypress management team has delivered outstanding shareholder value,"
said Bart J. de Bie, a Managing Director of Prospect Capital Management.
"We look forward to providing capital to other dynamic energy sector
companies."
ABOUT PROSPECT ENERGY CORPORATION
Prospect Energy Corporation (www.prospectenergy.com) is a closed-end
investment company that lends to and invests in energy-related businesses.
Prospect Energy's investment objective is to generate both current income
and capital appreciation through debt and equity investments.
Prospect Energy 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 Energy could have a material adverse
effect on Prospect Energy 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.