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Prospect Capital Provides $28.2 Million in Financing to ICV Partners for the Acquisition of Stauber Performance Ingredients

NEW YORK, NY--(Marketwire - 01/26/11) - Prospect Capital Corporation (NASDAQ:PSEC - News) ("Prospect") announced today that Prospect has provided $28.2 million in senior secured credit facilities to support the acquisition of Stauber Performance Ingredients ("Stauber") by ICV Partners, a leading private investment firm with over $440 million in assets under management.Headquartered in Fullerton, California, Stauber offers the finest quality ingredients to the food, pharmaceutical, cosmetic, and health food supplement industries. Stauber has cultivated longstanding relationships with its customer and supplier base over Stauber's 40 year history by focusing on providing the highest level of product and service."Prospect showed significant flexibility and expertise throughout the transaction process, which demonstrated their strong support for ICV in this transaction," said Ira Moreland, a Managing Director of ICV Partners."Prospect was responsive in all phases of the deal process to ensure a successful financing," said Qian Elmore, a Principal of ICV Partners. "We look forward to growing our relationship with Prospect on future transactions.""Stauber provides a wide breadth of important products to its customers with best-in-class service offerings," said David Moszer, a Managing Director of Prospect Capital Management. "Prospect is pleased to have provided a one-stop financing solution in connection with ICV's acquisition of Stauber."Prospect has now closed ten originations aggregating more than $210 million since September 30, 2010.ABOUT PROSPECT CAPITAL CORPORATIONProspect 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.