NEW YORK, NY -- (Marketwired) -- 07/09/13 -- Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect served as sole agent and provider of $18.0 million of incremental floating-rate second lien secured debt to New Star Metals ("NSM"), a portfolio company of investment funds managed by Insight Equity Holdings LLC ("Insight Equity"), to support the acquisition of Canfield Metal Coating Corporation ("CMC") and a partial recapitalization of NSM.
Based in the Chicago area, NSM provides steel processing, building products, and supply chain management services across a diverse array of end markets. NSM operates through its four divisions, including Electric Coating Technologies, Premier Resource Group, World Class Corrugating, and Canfield Coating.
"Prospect played a critical role in the transaction by providing additional debt capital to New Star as an already existing lender to the company," said Jack Waterstreet, a Principal of Insight Equity. "Once again, Prospect was responsive to the company's financing needs with a customized and value-added financing solution."
"Prospect is pleased to provide acquisition financing to the company to enable Insight Equity and the company to execute on their strategic initiatives," said David Moszer, a Managing Director of Prospect Capital Management LLC. "Prospect regularly provides follow-on financing solutions to facilitate tuck-in acquisition financing for our private equity owned portfolio companies."
Prospect has closed more than $1.5 billion of originations to date in the current 2013 calendar year, including nearly $800 million in originations in the June 2013 quarter. Prospect closed more than $3.0 billion of originations in the twelve months ended June 30, 2013.
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.
Most Popular Stories
- Stop-Start Engines Save Gas, Reduce Emissions
- Shia LaBeouf Plea Deal, Alcoholism Treatment
- Ohio State Band Chief Fired After Probe
- Hispanic Leader Goes the Extra Mile
- U.K. Economy Surpasses Pre-Crisis Peak
- Visa, Amazon Results Drag Down the Street
- World Tensions Don't Curb Enthusiasm for Stocks
- Pandora Tumbles in Late Trading
- Morgan Stanley Ponies Up $275 Million to Settle SEC Charges
- Ricky Martin Joins 'The Voice ... Mexico'