Contact Information: Please send investment proposals to: Grier Eliasek President and Chief Operating Officer grier@prospectstreet.com (212) 448-9577
Prospect Energy Corporation Changes Name to Prospect Capital Corporation
| Source: Prospect Energy Corporation
NEW YORK, NY -- (MARKET WIRE) -- May 3, 2007 -- Prospect Energy Corporation (NASDAQ : PSEC )
("Prospect") announced today that it is changing its name to Prospect
Capital Corporation.
"Energy and industrial-related companies, including those in the oil and
gas, midstream, power, oilfield service, and other energy sectors, continue
to be the most significant area of our focus, and our transaction pipeline
in those areas is more robust than we have ever had," said John Barry,
chief executive officer of Prospect. "We are changing our name for several
reasons. First, we want to clear up any marketplace confusion by stating
that we are an investment company, not an operating company. Second, we
want to reflect the diversification of the existing portfolio, which
includes investments in sectors such as marine transportation, metal
services, construction, infrastructure, manufacturing, environmental
services, and government contracting. Third, we seek to provide financing
for acquisitions and recapitalizations for other private equity sponsors
across various industries, and the name change will help with this
important initiative. Fourth, we want to maximize our corporate credit
facility advance rates and minimize our debt cost of capital as we grow,
and we believe diversification will enable us to achieve those goals. We
believe this name change is in the best interest of our shareholders."
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com) is a closed-end
investment company that lends to and invests in energy-related 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.