NEW YORK, NY--(Marketwire - June 3, 2010) - Prospect Capital Corporation (
Founded in 1947 and headquartered in Oshkosh, Wisconsin, Hoffmaster primarily serves the foodservice and consumer market segments, which have a recurring need for the Company's tableware products. The Company's products are distributed to a variety of end-user customers, including restaurants, hotels, healthcare providers, airlines, and country clubs. The Company's leading brands include Hoffmaster®, Linen-Like®, American®, CaterWrap®, and EarthWise™.
Hoffmaster is controlled by affiliates of Kohlberg & Company, L.L.C. ("Kohlberg"), a leading middle market private equity firm which has raised $3.7 billion and invested in approximately 100 transactions since 1987. Since 2007, Kohlberg has significantly improved Hoffmaster through the successful completion of several strategic initiatives, including the acquisition of the Company's largest competitor in the foodservice market.
Prospect's secured second lien debt investment supports a transaction to refinance the Company's existing capital structure and provide the Company with operating flexibility to execute its business plan.
"We chose Prospect because we wanted a debt investor who understood the strategic and operating demands of the business and was willing to tailor a financing package to suit our needs," said Rory Leyden, CEO of Hoffmaster.
"By providing an anchor order early in our marketing, Prospect played a critical role in ensuring a successful transaction in a volatile market environment," said Gordon Woodward, a Partner at Kohlberg.
"We are pleased to deliver on our relationship with Kohlberg, and look forward to working on new senior and junior debt opportunities with Kohlberg and other private equity sponsors," said Sachin Sarnobat, an investment professional with Prospect Capital Management.
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com) is a closed-end investment company that lends to and invests in private and microcap public 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 these estimates and projections of the future. 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.