|By Marketwired .||
|May 30, 2014 07:00 AM EDT||
NEW YORK, NY -- (Marketwired) -- 05/30/14 -- Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect", or "we") today announced that Prospect has increased total commitments to its five-year $1.0 billion revolving credit facility (the "Facility") by $20.0 million to $857.5 million in the aggregate.
The Facility includes an accordion feature that allows Prospect to accept up to an aggregate of $1.0 billion of revolving commitments, a target Prospect expects to reach with additional and existing lenders. The $20.0 million commitment comes from one new lender, bringing the total number of lenders to 28, more lenders than any other business development company revolving credit facility. The Facility has an investment grade Moody's rating of Aa3.
"The addition of a new lender demonstrates a continued interest in the Facility within the bank community," said Steven Stone, Chief Credit Officer of Prospect. "This senior lender conducted extensive due diligence before deciding to lend to us. We continue to identify potential new participants for the Facility and look forward to increasing the commitments to our $1.0 billion target."
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.