Prospect Capital Announces Increase in Revolving Credit Facility
NEW YORK, NY--(Marketwire - September 29, 2009) - Prospect Capital Corporation
(NASDAQ: PSEC) ("Prospect" or "Company") today announced that Prospect has
increased total commitments to Prospect's revolving credit facility (the
"Facility") to $195 million in the aggregate, up from $175 million
previously.
The Facility includes an accordion feature which allows Prospect to accept
up to an aggregate of $250 million of revolving commitments, a target
Prospect expects to reach with additional lenders. Prospect has now
diversified its lender base from one bank to five banks over the past three
months.
The Facility has an investment grade Moody's rating of A2. In addition to
growing its revolving commitments from banks, Prospect is also exploring
the term loan market as a potential source of long-term funding to increase
the Facility size beyond $250 million.
"We are delighted to have another bank join our growing list of lender
relationships," said Brian Oswald, Chief Financial Officer of Prospect. "We
have been pleased with the strong interest that our facility has received
from new lenders, and we look forward to increasing the facility scale with
additional participants."
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. Our investment objective is to generate both current income and
long-term capital appreciation through debt and equity investments.
We have 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 rules 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 us could have an adverse effect on us and our shareholders.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, whose safe harbor
for forward-looking statements does not apply to business development
companies. Any such statements, other than statements of historical fact,
are highly likely to be affected by other unknowable future events and
conditions, including elements of the future that are or are not under our
control, and that we 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 we undertake no
obligation to update any such statement now or in the future.