NEW YORK, NY -- 08/17/07 --
Prospect Capital Corporation (NASDAQ: PSEC)
("Prospect") announced today that Arctic Acquisition Corp., dba Cougar
Pressure Control ("Cougar"), has repaid the unamortized portion of
Prospect's loan to Cougar. With the approximately $400 thousand prepayment
premium from the loan, Prospect has realized an approximately 20% cash
internal rate of return on the Cougar investment, representing an
approximately 1.25 times cash on cash multiple, not including an equity
interest in Cougar which Prospect continues to hold.
Cougar represents the fifth realization to date in Prospect's portfolio.
These five realizations have averaged an approximately 59% IRR and 1.5
times cash on cash multiple, such returns not including equity interests
still held by Prospect in four of the five portfolio companies, including
Cougar.
"Cougar has been a terrific investment for Prospect and our shareholders,
and we greatly value our relationship with both the company and the equity
sponsor, Petro Capital," said Grier Eliasek, President and Chief Operating
Officer of Prospect. "We look forward to future successful transactions
with both Petro Capital and other sponsors."
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 the Company's control, and
that the Company 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 the Company undertakes
no obligation to update any such statement now or in the future.
Please send investment proposals to:
Grier Eliasek
President and Chief Operating Officer
grier@prospectstreet.com
(212) 448-9577
