Prospect Capital Corporation Closes Public Offering of Common Stock Including Over-Allotment Option

NEW YORK, NY, Jul 07 (MARKET WIRE) --
Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced that
it has completed a public offering of 5,175,000 shares of common stock
(including 675,000 shares pursuant to the exercise by the underwriters of
their over-allotment option) at $9.00 per share, raising $46.58 million
in gross proceeds.

Prospect expects to use the net proceeds of this offering to maintain
balance sheet liquidity, possibly including repayment of a portion of the
amounts outstanding under its credit facility, investments in high quality
short-term debt instruments or a combination thereof, and to make
long-term investments in accordance with its investment objectives.
Fox-Pitt Kelton Cochran Caronia Waller, Oppenheimer & Co., and RBC
Capital Markets were joint bookrunning managers for the offering. BB&T
Capital Markets, a division of Scott & Stringfellow, LLC, was joint lead
manager. Ladenburg Thalmann & Co. Inc. and Maxim Group LLC were
co-managers.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy nor will there be any sale of the shares
referred to in this press release in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of such state or
jurisdiction. A copy of the prospectus for the offering may be obtained
from: Fox-Pitt Kelton Cochran Caronia Waller, 420 Fifth Ave., 5th Floor,
New York, NY 10018, Phone: (212) 857-6212, Fax: (212) 849-0582, Email:
prospectus@fpk.com; Oppenheimer & Co., Attn: Syndicate Prospectus
Department, 300 Madison Ave., 5th Floor, New York, NY 10017, Phone (212)
667-8563, Fax (212) 667-6141, Email: EquityProspectus@opco.com; and RBC
Capital Markets Corporation, Three World Financial Center, 200 Vesey St.,
8th Floor, New York, NY 10281-8098, Attention: Equity Syndicate, Phone:
(212) 428-6670, Fax: (212) 428-6260.

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.

For additional information, contact:

Grier Eliasek
President and Chief Operating Officer
Email Contact
(212) 448-9577

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