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Prospect Capital Provides $39.8 Million of First and Second Lien Debt and Equity for Recapitalization of Ajax Rolled Ring & Machine

Prospect Capital Provides $39.8 Million of First and Second Lien Debt and Equity for Recapitalization of Ajax Rolled Ring &

NEW YORK, NY -- (MARKET WIRE) -- 04/04/08 -- Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that it has provided $39.8 million of first and second lien debt and equity for the recapitalization of Ajax Rolled Ring & Machine ("Ajax"), a custom forger of seamless rolled steel rings located in York, South Carolina.

Ajax operates two ring rolling mills within a 140,000 square-foot facility, with value-added services including engineering, heat treating, shot blasting, and machining. Ajax's rings range in diameter from seven to 120 inches. The rings are used by Ajax's name brand customers as key components in the manufacture of a range of capital goods, including equipment used in the global construction, mining, petrochemical, power generation (both traditional and wind power), industrial machinery, and other diversified markets. Ajax employs approximately 75 employees. Ajax is led by President and CEO Simon Ormerod, who has many years of experience in the industry, including Ajax since 2006.

Prospect's debt is secured by a first lien on inventory, machinery, and certain other assets of Ajax. Prospect has purchased a controlling equity interest in Ajax from Dogwood Equity, a North Carolina-based private equity firm. Senior managers of Ajax invested equity alongside Prospect in the transaction.

"We appreciate Prospect's understanding of industrial companies such as Ajax, and we look forward to having Prospect's support as we continue to drive growth in the business," said Simon Ormerod, CEO of Ajax.

"Ajax is an attractive opportunity for Prospect to invest in a steady cash flow business," said Bart J. de Bie, a Managing Director with Prospect Capital Management, LLC. "Because Ajax's seamless rings are utilized in a wide range of global end-markets, we believe that Ajax will continue to generate attractive margins and distributable cash flow."


Prospect Capital Corporation ( is a closed-end investment company that lends to and invests in private and microcap public businesses. Prospect Capital's investment objective is to generate both current income and capital appreciation through debt and equity investments.

Prospect Capital has 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 laws 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 Prospect Capital could have a material adverse effect on Prospect Capital and its shareholders.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company's control, and that the Company 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 the Company undertakes no obligation to update any such statement now or in the future.

Please send investment proposals to:

Grier Eliasek
President and Chief Operating Officer
[email protected]
(212) 448-9577

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