Prospect Capital Corporation : Prospect Capital Announces Expanded Five-Year $650 Million Revolving Credit Facility
03/28/2012| 07:44am US/Eastern
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NEW YORK, NY -- (Marketwire) -- 03/28/12 -- Prospect Capital
Corporation (NASDAQ: PSEC) ("Prospect") announced
today that it has completed a first closing on an expanded
five-year $650 million revolving credit facility (the
"Facility") for Prospect Capital Funding LLC
("PCF").
The new Facility, for which ten lenders have closed on $410
million to date, includes an accordion feature that allows
the Facility, at Prospect's discretion, to accept up to a
total of $650 million of commitments, an objective Prospect
targets reaching with additional lenders. The revolving
period of the Facility extends through March 2015, followed
by an additional two year amortization period, with
distributions allowed to Prospect after the completion of the
revolving period. Pricing for the Facility is one-month Libor
plus 2.75%, with no minimum Libor floor -- achieving an
approximately 125 basis point reduction in pricing (based on
current Libor) from the previous three-year facility pricing
of Libor (with a minimum Libor floor of 1%) plus 3.25%. The
new Facility has an investment grade Moody's rating of
Aa3. Improvements in the Facility include increases in
advance rates under certain conditions, decreases in unused
line fees, increases in maximum eligible loan sizes, and
increases in baskets for longer-dated and quarterly pay
loans.
"We are pleased to announce the upsizing of our credit
facility on attractive terms, with broad support from our
existing lenders, allowing us to secure longer-dated
liabilities for the accretive benefit of our
shareholders," said John F. Barry III, Chairman and
Chief Executive Officer of Prospect. "Removing the Libor
floor saves us 75 basis points, and the rate reduction
another 50 basis points -- both enhancing our bottom line.
Because PCF is in a separate entity, Prospect continues with
a capital structure attractive to both Prospect shareholders
and unsecured creditors because of the significant
unencumbered assets Prospect retains outside of PCF."
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.
Source: Prospect Capital Corporation
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This press release was issued by Prospect Capital Corporation and was initially posted at http://www.prospectstreet.com/file.aspx?IID=4092630&FID=13018331 . It was distributed, unedited and unaltered, by noodls on 2012-03-28 13:42:05 PM. The issuer is solely responsible for the accuracy of the information contained therein.
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