Prospect Capital Makes $15 Million Second Lien Investment in Deb Shops
NEW YORK, NY--(Marketwire - December 11, 2007) - Prospect Capital Corporation (NASDAQ: PSEC)
("Prospect") announced today that it has made a second lien secured debt
investment of $15 million in Deb Shops, Inc. ("DEB"), a leading specialty
apparel retailer based in Philadelphia, Pennsylvania.
Founded in 1932, DEB offers value-oriented apparel to junior and junior
plus-size female consumers, targeting the ages of 10 through 25, a rapidly
growing demographic. DEB is the only national retailer to offer both junior
regular and plus-sized apparel in a unified store format. DEB has
approximately 337 stores in regional malls and strip shopping centers in 42
states, with a concentration in the Midwest and Northeast.
Prospect's second lien secured debt, along with other financing, supports
the acquisition of DEB by an affiliate of Lee Equity Partners ("Lee
Equity"), a New York-based private equity firm founded by Thomas H. Lee.
Allen Questrom, a Senior Advisor to Lee Equity, and former Chief Executive
Officer of JC Penney, Federated Department Stores, Neiman Marcus, and
Barneys New York, has joined DEB as its new non-executive Chairman.
"I have personally known the senior team at Prospect for more than a
decade, and we welcome their support of our acquisition," said Benjamin
Hochberg, partner with Lee Equity.
"Deb Shops continues an important strategic thrust by Prospect to provide
financing to top-tier private equity sponsors," 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
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.
Contact Information: Please send investment proposals to:
Grier Eliasek
President and Chief Operating Officer
grier@prospectstreet.com
(212) 448-9577