Contact Information: Please send investment proposals to: Grier Eliasek President and Chief Operating Officer grier@prospectstreet.com (212) 448-9577
Prospect Capital Provides $39.8 Million of First and Second Lien Debt and Equity for Recapitalization of Ajax Rolled Ring & Machine
| Source: Prospect Capital Corporation
NEW YORK, NY--(Marketwire - April 4, 2008) - Prospect Capital Corporation (NASDAQ : PSEC )
("Prospect") announced today that it has provided $39.8 million of first
and second lien debt and equity for the recapitalization of Ajax Rolled
Ring & Machine ("Ajax"), a custom forger of seamless rolled steel rings
located in York, South Carolina.
Ajax operates two ring rolling mills within a 140,000 square-foot facility,
with value-added services including engineering, heat treating, shot
blasting, and machining. Ajax's rings range in diameter from seven to 120
inches. The rings are used by Ajax's name brand customers as key components
in the manufacture of a range of capital goods, including equipment used in
the global construction, mining, petrochemical, power generation (both
traditional and wind power), industrial machinery, and other diversified
markets. Ajax employs approximately 75 employees. Ajax is led by President
and CEO Simon Ormerod, who has many years of experience in the industry,
including Ajax since 2006.
Prospect's debt is secured by a first lien on inventory, machinery, and
certain other assets of Ajax. Prospect has purchased a controlling equity
interest in Ajax from Dogwood Equity, a North Carolina-based private equity
firm. Senior managers of Ajax invested equity alongside Prospect in the
transaction.
"We appreciate Prospect's understanding of industrial companies such as
Ajax, and we look forward to having Prospect's support as we continue to
drive growth in the business," said Simon Ormerod, CEO of Ajax.
"Ajax is an attractive opportunity for Prospect to invest in a steady cash
flow business," said Bart J. de Bie, a Managing Director with Prospect
Capital Management, LLC. "Because Ajax's seamless rings are utilized in a
wide range of global end-markets, we believe that Ajax will continue to
generate attractive margins and distributable cash flow."
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. Prospect Capital's investment objective is to generate both
current income and capital appreciation through debt and equity
investments.
Prospect Capital 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 Capital could have a material adverse
effect on Prospect Capital 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.