Prospect Capital Grows Its Real Estate Yield Investment Business With Three New Investments


NEW YORK, NY--(Marketwired - May 13, 2013) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect recently closed three new multi-family residential real estate property investments aggregating $27.4 million.

Prospect has made these latest real estate investments by investing debt and equity into its portfolio company APH Property Holdings, LLC ("APH"), which owns a tax-efficient and private real estate investment trust ("REIT"). APH's REIT invested in Lofton Place, Vista at Palma Sola, and Arlington Park, which are all being actively managed by a property management firm that co-invested with APH in each transaction.

Lofton Place is a multi-family property located in Tampa, Florida. Constructed in 1988, Lofton consists of 280 garden-style apartments in 13 buildings on 17.9 acres.

Vista at Palma Sola is a multi-family property located in Bradenton, Florida. Constructed in 1991, Vista at Palma Sola consists of 340 garden-style apartments in 25 buildings on 24.9 acres.

Arlington Park is a multi-family property located in Marietta, Georgia. Constructed in 1983, Arlington consists of 198 garden-style apartments in 17 buildings on 14.3 acres.

"Prospect is actively pursuing real estate investments, particularly in the multi-family residential real estate asset class," said Bart J. de Bie, a Managing Director of Prospect Capital Management LLC. "These rent-producing properties generate attractive current yields as well as long-term capital appreciation potential. We have hundreds of millions of dollars of liquidity, are growing, and are actively screening new investment opportunities in real estate and beyond. We focus on businesses and assets that produce recurring and stable cash flow streams that we can distribute to our shareholders."

With more than $4.7 billion of assets and committed capital across more than 120 portfolio companies, Prospect is one of the largest and most diversified companies in the business development company peer universe. Prospect's diversified yield businesses include private equity sponsor finance, non-sponsor direct lending, Prospect-sponsored recapitalizations, structured credit investments, and real estate investments. Prospect examines all industries as part of its investment review.

Prospect has closed approximately $1 billion of new originations to date during the current calendar year. Prospect closed nearly $3 billion of originations in the twelve months ended March 31, 2013.

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. 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.