NEW YORK, NY--(Marketwire - June 14, 2010) -  Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that it has completed a first closing on an expanded three-year $300 million revolving credit facility (the "Facility").

The new Facility, for which lenders have closed on $210 million to date, includes an accordion feature at Prospect's discretion, which allows the Facility to accept up to an aggregate total of $300 million of commitments, a target Prospect expects to reach with additional lenders. The revolving period of the Facility extends through June 2012, with an additional one year amortization period (with distributions allowed) after the completion of the revolving period. Pricing for the Facility is one-month Libor plus 3.25%, subject to a minimum Libor floor of 1%, a 1.75% reduction in pricing from the previous pricing of Libor plus 4%, which was subject to a minimum Libor floor of 2%. The Facility has an investment grade Moody's rating of A2. Improvements in the Facility include an increase in advance rate as well as an expansion of allowed new collateral to include subordinated debt.

"We are pleased to announce the upsizing of our credit facility on attractive terms, with broad support from the lender community, allowing us to increase the utilization of our facility going forward for the accretive benefit of our shareholders," said John F. Barry III, Chairman and Chief Executive Officer of Prospect.


Prospect Capital Corporation ( 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.