NEW YORK, NY -- (Marketwire) -- 12/20/12 -- Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has provided $23.2 million of secured debt financing for the recapitalization of TB Corp. ("Taco Bueno" or the "Company").
Taco Bueno was founded in 1967 and is headquartered in Farmers Branch, Texas. The Company operates as a quick service restaurant chain offering fast, casual, and quality Mexican cuisine. As of October 2012, Taco Bueno operated 155 company-owned and 20 franchised locations across the Southwestern region of the U.S.
The purpose of the recapitalization was to repay existing debt and provide a dividend to existing shareholders.
"We continue to be pleased with our financial results, and we are very excited about Taco Bueno's potential in the years to come," said Edward M. Lambert, CEO of Taco Bueno. "We are leveraging the strength of our brand and geographic positioning to capitalize on a number of important growth opportunities, including store growth within our core markets, new territory development, and the extension of menu offerings."
"We are impressed with Ed and the rest of Taco Bueno's management team, along with the Company's ability to successfully perform over a 45 year history," said Richard Carratu, a Managing Director of Prospect Capital Management LLC. "The recapitalization of Taco Bueno demonstrates Prospect's ability to provide real value to financial sponsors, while generating a compelling yield for our shareholders."
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 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.
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