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Prospect Capital Announces Full Repayment of $20 Million Subordinated Term Loan to PMFG, Producing a 19% Realized Cash-on-Cash I

Posted on: Tue, 08 Sep 2009 08:31:00 EDT

Symbols: PSEC

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NEW YORK, NY, Sep 08, 2009 (MARKETWIRE via COMTEX) --
PSEC | Quote | Chart | News | PowerRating -- Prospect Capital Corporation (NASDAQ: PSEC | Quote | Chart | News | PowerRating) ("Prospect") announced
today that PMFG, Inc. ("PMFG"), parent of Peerless Mfg. Co., has
repaid to Prospect the entire balance of its $20 million acquisition
loan. With this repayment, Prospect has realized an approximately 19%
cash-on-cash internal rate of return on the PMFG investment.

"The PMFG repayment of our junior debt position at an attractive
return profile validates our strategy of conservative multiple of cash
flow lending structures," said David Belzer, a Managing Director at
Prospect Capital. "The repayment of this energy-related loan also
reflects the continued diversification of our portfolio, and we look
forward to redeploying the proceeds in this opportunity-rich
investment environment."

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.


For further information, contact:

Grier Eliasek
President and Chief Operating Officer
grier@prospectstreet.com
(212) 448-9577

SOURCE: Prospect Capital Corporation

mailto:grier@prospectstreet.com

For full details on Prospect Capital Corporation (PSEC) PSEC. Prospect Capital Corporation (PSEC) has Short Term PowerRatings at TradingMarkets. Details on Prospect Capital Corporation (PSEC) Short Term PowerRatings is available at This Link.

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