Prospect Capital Provides $21.5 Million Senior Secured Loan to Support the Acquisition of CP Well Testing by Hastings Equity
NEW YORK, NY -- (Marketwire) -- 10/18/12 -- Prospect Capital Corporation (PSEC) ("Prospect") announced today that Prospect has provided a $21.5 million senior secured loan to support the acquisition of CP Well Testing, LLC ("CP"), a leading provider of flowback services to oil and gas companies operating in Western Oklahoma and the Texas Panhandle, by investment funds managed by Hastings Equity Partners ("Hastings").
Based in Elk City, Oklahoma, CP's services include providing equipment and personnel to remove gas, fluids, sand, and proppants from the well bore after fracking and before commercial production begins.
"CP provides services in a region with compelling drilling economics to well-capitalized customers with robust development plans, and Prospect is pleased to support Hastings as an experienced investor in oilfield service companies," said Mark Hull, a Principal of Prospect Capital Management.
"We are delighted to work with Prospect Capital as a knowledgeable financing provider with domain expertise in the energy sector and beyond," said Ted Patton, a Managing Director of Hastings. "We look forward to Prospect's quick-turn responsiveness as we grow CP Well Testing and pursue other acquisition opportunities."
Prospect has closed more than $1.6 billion of originations to date in the current 2012 calendar year. Prospect's advanced investment pipeline aggregates more than $600 million of potential opportunities.
ABOUT HASTINGS EQUITY PARTNERS
Hastings Equity Partners (www.hastingsequity.com) is a private equity firm focused on investing in lower-middle market businesses in the energy sector. The Hastings approach is to leverage the extensive operational experience of its firm's managers and investors, many of whom are active or former CEOs of Fortune 1000 companies. In addition, due to its expanding portfolio of oilfield services companies, Hastings is able to share best practices, technology trends and contacts across it platform to ensure that all of its investments benefit. Hastings strives to help companies create sustained value for their employees, customers, and investment partners.
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 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.
Source: Prospect Capital Corporation