NEW YORK, NY--(Marketwire - April 4, 2011) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has provided a $58.0 million first-lien senior secured credit facility to support the acquisition of a cargo handling company ("Cargo") by a leading private investment firm. Prospect also made an equity co-investment in connection with the transaction.

Cargo is a leading provider of outsourced cargo handling and warehousing solutions to global air cargo carriers at key international gateway airports in North America. Cargo offers comprehensive third-party logistics services that facilitate the transfer of cargo between air and ground transportation modes and represent a critical link in the global supply chain.

"This new investment delivers best-of-breed cargo handling services to its customers on a national scale, providing the company a significant competitive advantage," said David Moszer, a Managing Director with Prospect Capital Management. "Prospect is excited to support the company's continued growth in connection with our financing."

Separately, Prospect provided a net $32 million in first-lien senior secured financing for the recapitalization of an existing Prospect portfolio company focused on the consumer credit information sector and controlled by an affiliate of H.I.G. Capital, LLC ("H.I.G."), a leading global private investment firm with over $8.5 billion of capital under management.

Prospect has closed more than $300 million of new originations in the quarter ended March 31, 2011. This represents a record quarter for new originations in Prospect's history.

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.