Prospect Capital Corporation Increases Total Commitments to its Revolving Credit Facility for Prospect Capital Funding LLC
January 02, 2019 at 09:29 am EST
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On December 27, 2018, Prospect Capital Corporation (“Prospect”) increased total commitments to its revolving credit facility (the “Facility”) for Prospect Capital Funding LLC, a GAAP consolidated subsidiary of Prospect, by $20 million to $1.02 billion in the aggregate. The Facility includes an accordion feature that allows the Facility, at Prospect's discretion, to accept up to a total of $1.5 billion of commitments. The $20 million commitment comes from one new lender. The total number of lenders in the Facility is now 29. On August 1, 2018, the Facility was extended to March 27, 2024, and the interest rate on drawn amounts was reduced to one-month Libor plus 2.20%.
Prospect Capital Corporation is a business development company that focuses on lending to and investing in private businesses. The Companyâs investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. It invests primarily in senior and subordinated debt and equity of private companies in need of capital for acquisitions, divestitures, growth, development, recapitalizations and other purposes. It invests primarily in first and second lien secured loans and unsecured debt, which in some cases includes an equity component. It invests in debt and equity positions of structured credit, which are a form of securitization in which the cash flows of a portfolio of loans are pooled and passed on to different classes of owners in various tranches. It may also acquire controlling interests in companies in conjunction with making secured debt investments in such companies. Its investment adviser is Prospect Capital Management L.P.
PROSPECT CAPITAL CORPORATION 
