NEW YORK, NY — (Marketwire) — 12/17/12 — Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) announced today that Prospect has funded a recapitalization of CCPI Inc. (“CCPI” or the “Company”) with $33.9 million of combined debt and equity financing.
CCPI was founded in 1957 and is headquartered in Blanchester, Ohio. The Company develops, manufactures, and sells a range of proprietary refractory materials, temperature sensing devices, and other consumable products. CCPI–s high-tolerance products are used in multiple industrial applications, including steel production, aluminum production, and industrial heat treating. CCPI has manufacturing facilities in Ohio, Connecticut, the United Kingdom, and Bahrain. The Company also maintains a sales office in the Netherlands. CCPI sells its products under various proprietary brands including COMAT® and TunTemp®.
The purpose of the recapitalization was to provide an opportunity for the owners of CCPI to monetize their ownership interests. As a result of the recapitalization, Prospect is the controlling shareholder of CCPI.
“The senior managers of CCPI, who have invested alongside Prospect in the recapitalization, look forward to growing CCPI with Prospect,” said Mike Williams, President and CEO of CCPI. “Prospect has extensive experience as a supportive, long-term investor in US-based mid-sized industrial and other businesses.”
“We are impressed with the Company–s technical excellence and expansive product offering as a global leader in its market,” said Bart J. de Bie, a Managing Director of Prospect Capital Management LLC. “This recapitalization of CCPI demonstrates Prospect–s ability to make combined debt and equity investments to generate compelling yield and total return for our shareholders.”
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation () 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 any forward-looking statements. 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.