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Prospect Capital Provides $50 Million of Floating-Rate Senior-Secured Financing to Leading Payments Processor and Supports Acquisition of Joule by System One

NEW YORK, NY — (Marketwired) — 09/09/13 — Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) announced today that Prospect has provided a $50 million floating-rate senior-secured term loan to a leading payments processor (“Processor”).

Processor is a leading provider of transaction processing services and point-of-sale (“POS”) equipment used by tens of thousands of merchants across the United States. Processor–s full suite of solutions allows merchants to accept and process transactions made by credit, debit, prepaid, gift, and loyalty cards through traditional credit card readers, mobile payment devices, or one of the company–s proprietary touch-screen POS systems. The proceeds of the transaction are being used to facilitate growth.

“This transaction represents a milestone in our plan to enhance our strategic position in the credit card processing and point-of-sale system industry,” said the CEO of Processor. “Prospect is a supportive financing provider with a large capital base and a veteran team, and we look forward to executing on our acquisition and growth strategy with Prospect.”

“This transaction demonstrates our ability to originate, structure, diligence, and close non-sponsored transactions just as well as sponsored opportunities,” said Jim Clippard, a Vice President of Prospect Capital Management LLC.

Separately, Prospect announced today that Prospect has provided additional floating-rate senior-secured financing to support the acquisition of Joulé Inc. (“Joulé”) by System One Holdings, LLC (“System One”), controlled by MidOcean Partners (“MidOcean”), to create a leading provider (the “Company”) of professional staffing services.

This combination creates a top five engineering staffing company and a top ten scientific staffing company with combined revenue of more than $450 million and over 6,000 employees across 30 offices in the United States. The Company offers a range of specialized outsourced staffing services to a variety of sectors including energy, life sciences, telecommunications, utility, engineering, and legal.

“Prospect–s willingness to support the growth of System One with acquisition capital to fund this add-on transaction again demonstrates Prospect–s responsiveness, flexibility, and deep balance sheet,” said Elias Dokas, a Principal of MidOcean.

“We are delighted to support MidOcean again by providing additional capital to support the acquisition of Joulé, which further enhances the scale and diversity of System One–s business,” said Jason Wilson, a Managing Director of Prospect Capital Management LLC.

Prospect has closed approximately $2.0 billion of originations to date in the 2013 calendar year. Prospect closed more than $3.0 billion of originations in the twelve months ended June 30, 2013.

Prospect Capital Corporation () is a business development company that focuses on lending to and investing in private 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.

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