Prospect Capital Makes $12 Million Second Lien Debt Investment in Qualitest
NEW YORK, NY--(Marketwire - November 12, 2007) - Prospect Capital Corporation (NASDAQ: PSEC)
("Prospect") announced today that it has made a second lien debt investment
of $12 million in Qualitest Pharmaceuticals, Inc., and affiliates
("Qualitest"), a leading manufacturer and distributor of generic
pharmaceuticals based in Huntsville, Alabama.
Founded in 1983, Qualitest is a fully-integrated developer, manufacturer,
and marketer of a full line of generic prescription pharmaceuticals and
over-the-counter products with a focus on attractive specialized niche
areas, including generic liquids, semi-solids, and narcotics. The company,
with more than 400 products and a robust pipeline of future launches, is a
top 10 national supplier of generic pharmaceuticals based on both volume
and revenues. Qualitest distributes its finished products to major drug
wholesalers, large pharmacy chains, and independent pharmacies throughout
the United States. Qualitest has been acquired by an affiliate of Apax
Partners Worldwide LLP ("Apax"), a global private equity group with more
than $20 billion in assets under management and a nearly 20 year track
record of healthcare and diversified sector investing.
Prospect's second lien secured debt, along with equity capital from Apax as
well as debt from other institutional providers, is being utilized to
acquire a controlling interest in Qualitest.
"Qualitest's recurring cash flow history, prospective growth, and
significant private equity sponsorship, from a firm we have known for many
years, were all important factors leading to our investment," said Gautam
Shirhattikar, an investment professional with Prospect Capital Management.
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
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.
Contact Information: Please send investment proposals to:
President and Chief Operating Officer