|By Marketwired .||
|January 16, 2014 07:00 AM EST|
NEW YORK, NY -- (Marketwired) -- 01/16/14 -- Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect", or "we") today announced that Prospect has expanded the accordion feature of its Prospect Capital Funding LLC five-year revolving credit facility (the "Facility") from $650 million to $1 billion and increased the commitments to the Facility by $62.5 million to $712.5 million.
The $62.5 million commitment increase comes from one new lender and one existing lender, bringing the total number of lenders to 22, more lenders than to any other business development company ("BDC") revolving credit facility. The Facility has an investment grade Moody's rating of Aa3. Prospect expects its availability from the Facility to increase significantly due to an increase in loan concentration size baskets as a result of the increase in the Facility size.
"The expansion of the accordion commitment target and addition of a new lender demonstrate continued interest in the Facility among our existing lenders and in the lender community as a whole," said Brian Oswald, Chief Financial Officer of Prospect. "As our balance sheet continues to grow, we will continue to pursue additional lenders to expand commitments to the Facility given its efficient funding cost among our debt issuance options."
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com) is a business development company that focuses on lending to and investing in private 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 any forward-looking statements. 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.