Daily News: June 2, 2014

Prospect Capital Increases Revolver Commitments

Prospect Capital announced that it has increased total commitments to its five-year $1 billion revolving credit facility by $20 million to $857.5 million in the aggregate.

Prospect said the $20 million commitment comes from one new lender, bringing the total number of lenders to 28, more lenders than any other business development company revolving credit facility. The facility has an investment grade Moody’s rating of Aa3.

Prospect noted that the facility includes an accordion feature that allows Prospect to accept up to an aggregate of $1 billion of revolving commitments, a target Prospect expects to reach with additional and existing lenders.

“The addition of a new lender demonstrates a continued interest in the facility within the bank community,” said Steven Stone, chief credit officer of Prospect. “This senior lender conducted extensive due diligence before deciding to lend to us. We continue to identify potential new participants for the facility and look forward to increasing the commitments to our $1 billion target.”

New York-based Prospect Capital is a business development company that focuses on lending to and investing in private businesses.