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Prospect Capital Provides $7.4 Million in Financing for Palladium Equity Partners Portfolio Company
| Source: Prospect Capital Corporation
NEW YORK, NY--(Marketwire - August 4, 2008) - Prospect Capital Corporation (NASDAQ : PSEC )
("Prospect") announced today that it has provided $7.4 million in debt
financing to Castro Cheese Company, Inc. ("Castro" or "Company"), based in
Houston, Texas.
Founded in 1971, the Company is a leading manufacturer, marketer, and
distributor of Hispanic cheeses and creams. Castro Cheese markets its
products under the "La Vaquita" brand and is well known for the high
quality and authenticity of its products. Castro's customers include
wholesalers, grocery retailers, and mass merchandisers.
Prospect's second lien secured debt investment supports a prior acquisition
of the Company by Palladium Equity Partners ("Palladium"), a private equity
firm based in New York with more than $1 billion of assets under
management.
"We have a long-term relationship with the Prospect Capital team, and
appreciate their support of this growing portfolio company," said Alex
Ventosa, Managing Director of Palladium.
"Palladium's private equity sponsorship was an important consideration for
our investment," said Montgomery Cook, a Managing Director with Prospect
Capital Management. "In addition, we view the branded, recurring revenue
consumer products arena as a compelling sector for our capital."
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.
ABOUT PALLADIUM EQUITY PARTNERS
Palladium Equity Partners, LLC (www.palladiumequity.com) is an investment
firm targeting companies in food/restaurants, financial and business
services, consumer/retail, healthcare, manufacturing and media. Palladium
has a focus on companies that are well-positioned to capitalize on the
fast-growing Hispanic market. The principals of Palladium have invested
over $2.5 billion of equity in more than 60 portfolio companies over the
last two decades. Formed in 1997, Palladium currently has capital under
management in excess of $1 billion.
ABOUT CASTRO CHEESE COMPANY
Founded in 1971, Castro Cheese Company (www.castrocheese.com) is a leading
manufacturer, marketer, and distributor of queso fresco and other varieties
of Hispanic cheeses and creams. Castro's products are marketed under the La
Vaquita brand in Texas and other southwestern states and are known for
their quality, authenticity, and freshness.