Prospect Capital Corporation announced that it has increased total commitments to the five-year $650 million revolving credit facility for Prospect Capital Funding LLC by $10 million to $492.5 million in the aggregate.
The facility includes an accordion feature that allows Prospect to accept up to an aggregate of $650 million of revolving commitments, a target Prospect expects to reach with additional and existing lenders. The $10 million in new commitments has come from one new lender and one existing lender, bringing the total number of lenders to 15. The facility has an investment grade Moody's rating of Aa3.
"The facility upsizing demonstrates a broad interest in the facility within the lender community," said Brian Oswald, CFO of Prospect. "We continue to identify potential new participants for the facility and look forward to increasing the commitments to our $650 million target."
In addition, Prospect exited its C&J Cladding investment through the sale of Prospect's remaining equity position. Together with prior cash flows and including cash received by C&J Cladding Holding Company Inc., 100% owned but not yet distributed to Prospect, the pre-tax exit results in a 36% IRR and 2.3 times cash multiple on the C&J Cladding investment.
Prospect has closed more than $500 million of originations to date in the current June 2012 quarter. Prospect's advanced investment pipeline aggregates more than $400 million of potential opportunities.
Prospect Capital Corporation is a closed-end investment company that lends to and invests in private and microcap public businesses.