Prospect Capital Provides $20 Million in Financing for Peerless Mfg Co. Acquisition of Nitram Energy
NEW YORK, NY--(Marketwire - May 1, 2008) - Prospect Capital Corporation (NASDAQ: PSEC)
("Prospect") announced today that it has provided debt financing of $20
million to support the acquisition by Peerless Mfg Co. ("Peerless"),
headquartered in Dallas, Texas, of Nitram Energy Inc. ("Nitram").
Established in 1933, Peerless is a leading designer, manufacturer, and
marketer of industrial environmental separation and filtration systems.
Products include absolute separators, nuclear plant steam separators,
scrubbers, vane separators, mist extractors, coalescers, filters, and
selective catalytic reduction systems for removal of particulats,
pollutants, and other contaminants. Established in 1978, Nitram focuses on
separation, heat transfer, pulsation dampening, and industrial silencing
products. Nitram's business units include Burgess-Manning, Inc., Alco
Products Division, and Bos-Hatten, Inc.
Peerless and Nitram serve a diversified, global list of customers in
industries such as oil and gas production, gas pipelines, chemical and
petrochemical processing, and power generation. The combination of these
two companies creates one of the leading players for environmental,
separation and filtration equipment in the industry. Peerless is led by
Peter Burlage, who has worked at Peerless for more than 16 years. Following
its acquisition of Nitram, Peerless has more than 400 employees worldwide,
with several manufacturing facilities located in Texas.
Prospect's debt is secured by a second lien on all of the assets of
Peerless and Nitram, including receivables, inventory and equipment.
"The Prospect team impressed us with their responsiveness and knowledge of
our end user markets," said Peter Burlage, Chief Executive Officer of
Peerless. "We look forward to growing our combined business with their
support."
"We find the environmental controls sector to be an attractive market,"
said David Belzer, a Managing Director with Prospect Capital Management.
"Peerless continues our theme of building more diversity into the
portfolio, both in the energy and industrial marketplace and beyond."
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 Prospect's control, and
that Prospect 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 Prospect undertakes no
obligation to update any such statement now or in the future.