Prospect Capital Provides $30 Million Senior Secured Loan to Support the Recapitalization of Spartan Energy Services
NEW YORK, NY -- (Marketwire) -- 12/31/12 -- Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has provided a $30 million first-lien senior secured loan to support the recapitalization of Spartan Energy Services, LLC ("Spartan"), a leading provider of thru tubing and flow control services to oil and gas companies operating throughout the United States. The recapitalization was completed by Harren Equity Partners ("Harren") in partnership with Spartan's management team and employees.
Headquartered in Lafayette, Louisiana, Spartan provides oil and gas services through its two subsidiaries, Spartan Thru Tubing Services, LLC ("Spartan Thru Tubing") and Spartan Flow Control Services, LLC ("Spartan Flow Control"). Spartan Thru Tubing is a thru tubing milling and fishing company that provides drilling, milling, and fishing services used in conjunction with coiled tubing, snubbing, and work-over rigs. Spartan Flow Control is a flow control company that provides frac valves, flowback equipment, and qualified personnel to oil and gas companies.
"Prospect's responsiveness, domain expertise, and structuring flexibility, coupled with its access to capital, provided the certainty of execution that we needed in order to close this acquisition on a tight year-end timeline," said Jonathan Earnhardt, a Partner of Harren.
"Prospect is pleased to provide the entire senior secured term loan in support of Spartan, a financially strong company that is well positioned to take advantage of the strong growth in developing shale plays across the United States," said David Belzer, a Managing Director of Prospect Capital Management.
Prospect has closed approximately $2.1 billion of originations to date in the current 2012 calendar year. Prospect's advanced investment pipeline aggregates more than $650 million of potential opportunities.
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