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Prospect Capital Provides $25.5 Million Senior Secured Credit Facility for EXL Acquisition Corp.

^{Published on 2010-06-25 05:11:30 - Market Wire}
 

NEW YORK, NY--(Marketwire - June 25, 2010) - Prospect Capital Corporation (NASDAQ: [ PSEC ]) ("Prospect") announced today that Prospect has closed a $25.5 million senior secured credit facility for EXL Acquisition Corp. ("EXL" or the "Company"), a leading manufacturer and marketer of consumable lab testing equipment and supplies. Prospect's one-stop credit facility is being utilized to support a recapitalization of the Company.

Founded in 1988, EXL develops, manufactures, and markets consumable testing products used by various types of commercial and municipal laboratories located throughout the United States. The Company offers a broad array of products for numerous applications, including water/wastewater analysis, metals concentration analysis, toxic sample analysis, and many others.

"We believe EXL is well positioned to continue its growth in the environmental lab testing business, a market we view as attractive," said Andrew Brown, a senior investment professional with Prospect Capital Management. "This transaction exemplifies Prospect's ability to support our private equity sponsor relationships through creative 'one-stop' financing solutions."

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 these estimates and projections of the future. 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.