Contact Information: For additional information, contact: Grier Eliasek President and Chief Operating Officer (212) 448-9577
Prospect Capital Corporation Announces Commencement of Public Offering of 5,000,000 Shares of Common Stock
| Source: Prospect Capital Corporation
NEW YORK, NY--(Marketwire - May 18, 2009) - Prospect Capital Corporation (NASDAQ : PSEC )
("Prospect") today announced the commencement of a public offering of
5,000,000 shares of its common stock, par value $0.001 per share. Prospect
also plans to grant the underwriters a 30-day option to purchase up to an
additional 750,000 shares of its common stock to cover over-allotments, if
any.
Prospect expects to use the net proceeds of this offering to maintain
balance sheet liquidity, involving repayment of a portion of the amounts
outstanding under its credit facility, make investments in high quality
short-term debt instruments or a combination thereof, and thereafter to make
long-term investments in accordance with its investment objective. Citi
and UBS Investment Bank are the joint bookrunning managers for the
offering. BB&T Capital Markets, a division of Scott & Stringfellow, LLC
and RBC Capital Markets are the
co-managers.
The offering will be made under a shelf registration statement filed under
the Securities Act of 1933, as amended, and previously declared effective
by the Securities and Exchange Commission. The offering of common shares of
Prospect is being made solely by means of a prospectus supplement. This
press release does not constitute an offer to sell or the solicitation of
an offer to buy nor will there be any sale of the shares referred to in
this press release in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such state or jurisdiction. A
copy of the prospectus for the offering may be obtained from: Citi,
Brooklyn Army Terminal, 140 58th Street, Brooklyn, NY 11220, Attn:
Prospectus Department; and UBS Investment Bank, 299 Park Avenue, New York,
NY 10171, Attn: Prospectus Department, 888-827-7275.
Investors are advised to carefully consider the investment objectives,
risks and charges and expenses of Prospect before investing. The prospectus
supplement and prospectus contain this and other information about Prospect
and should be read carefully before investing.
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.