Daily News: February 4, 2013

Prospect Capital, Wells Fargo Fund Nationwide Acceptance Recap


Prospect Capital Corporation funded a recapitalization of Nationwide Acceptance Corporation with $25.2 million of combined debt and equity financing. Wells Fargo provided a $75 million revolving credit facility.

Nationwide is a Chicago, IL-based specialty finance business based. It operates primarily as an indirect lender in the consumer auto loan business, where it purchases loans originated by used car dealers.

Led by CEO Martin Less, senior management of Nationwide invested alongside Prospect and owns, directly and through various incentive plans, approximately 6.2% of the fully-diluted economic interests in Nationwide. Prospect is the controlling shareholder of Nationwide.

“We are pleased to be partnering with the Nationwide management team and look forward to supporting continued profitable growth, including acquisitions, for the business,” said Ted Fowler, a managing director of Prospect Capital Management.

Milestone Advisors (now part of Houlihan Lokey) served as exclusive financial advisor to Nationwide.

Prospect Capital is a closed-end investment company that lends to and invests in private and microcap public businesses.