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Prospect Capital Provides $27 Million of Secured Debt to Support the Acquisition of CHC Companies, Inc. by GTCR

NEW YORK, NY--(Marketwire - Jan 15, 2013) - Prospect Capital Corporation ( NASDAQ : PSEC ) ("Prospect") announced today that Prospect has provided $27 million of secured second-lien debt financing for CHC Companies, Inc. ("CHC"), one of the largest outsourced providers of healthcare services to correctional facilities in the United States. The financing was used, together with proceeds from senior debt facilities, in support of the acquisition of CHC by GTCR, a leading private equity firm.

CHC provides primary care, dental, behavioral, pharmacy, utilization management, and other healthcare services to public and private prisons and jails across 26 states. CHC offers a full suite of healthcare services for the continuum of custody, which extends care at the point of arrest through incarceration and release. The company's continuity of care expertise is a key competitive advantage, placing CHC at the forefront of a paradigm shift in the correctional healthcare market towards a pre-custody, custody, and post incarceration model.

"Prospect is pleased to have been selected by GTCR for the lead role to provide the second lien financing for this important transaction," said Geoffrey Chang, Managing Director at Prospect Capital Management LLC. "Prospect responded quickly and effectively to the tight timetable here, and we are thrilled to have structured a transaction that supports CHC's growth strategy going forward."


Founded in 1980, GTCR (www.gtcr.com) is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare, and Information Services & Technology industries. The Chicago-based firm pioneered the "Leaders Strategy" -- finding and partnering with management leaders as the critical first step in identifying, acquiring and building market-leading companies through acquisitions and organic growth. Since its inception, GTCR has invested more than $10 billion in over 200 companies.


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 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.