HispanicBusiness

On May 1, 2012, we issued $100.0 million in principal amount of 6.95% senior unsecured notes due November 2022 (the "2022 Baby Bond Notes", and together with our Convertible Notes and our InterNotes, the "Unsecured Notes"). The 2022 Baby Bond Notes trade on the New York Stock Exchange with ticker PRY and further demonstrate our diversified access to longer-dated funding.

The Unsecured Notes are general unsecured obligations of Prospect, with no financial covenants, no technical cross default provisions, and no payment cross default provisions with respect to our revolving credit facility. The Unsecured Notes have no restrictions related to the type and security of assets in which Prospect might invest. The issuance of these notes has allowed us to grow our investment program in calendar year 2012 and prudently commit to loans with maturities longer than our existing revolving credit facility maturity. These Unsecured Notes have an investment-grade S&P rating of BBB. As of December 31, 2012, Prospect held more than $2.89 billion of unencumbered assets on its balance sheet, benefiting holders of Unsecured Notes and Prospect shareholders.

Since June 30, 2012, we have completed five equity issuances at prices above net asset value per share.

On June 1, 2012, we entered into an equity distribution agreement, relating to at-the-market offerings from time to time, of up to 9.5 million shares of our common stock (the "ATM Program"). During the period from July 2, 2012 to July 12, 2012, we sold approximately 2.25 million shares of our common stock at an average price of $11.59 per share, and raised $26.0 million of gross proceeds.

On July 16, 2012, and subsequently through exercise of the underwriter option, we issued 24,150,000 shares of our common stock at $11.15 per share, raising $269.3 million of gross proceeds.

On September 10, 2012, we entered into an equity distribution agreement, relating to at-the-market offerings from time to time, of up to 9.75 million shares of our common stock. During the period from September 13, 2012 to September 28, 2012, we sold approximately 6.8 million shares of our common stock at an average price of $11.86 per share, and raised $80.2 million of gross proceeds, under the program. During the period from October 1, 2012 to October 9, 2012, we sold approximately 1.25 million shares of our common stock at an average price of $11.53 per share, and raised $14.4 million of gross proceeds.

On November 7, 2012, we issued 35,000,000 shares of our common stock to the public at an initial price of $11.10 per share to the public (or $10.96 per share net proceeds after commissions and expenses), raising $383.6 million of net proceeds.

On December 21, 2012, we entered into an equity distribution agreement, relating to at-the-market offerings from time to time, of up to 17.5 million shares of our common stock. During the period from January 7, 2013 to February 5, 2013, we sold approximately 10.2 million shares of our common stock at an average price of $11.25 per share, and raised $115.3 million of gross proceeds, under the program.

We currently have no borrowings under our Facility. Assuming sufficient assets are pledged to the Facility and that we are in compliance with all Facility terms, and taking into account our cash balances on hand, we have over $740 million of new investment capacity. Any principal repayments or other monetizations of our assets would further increase our new investment capacity. Any issuance of equity, increase in our Facility size, or issuance of other debt, including additional term debt, would also further increase our investment capacity.