Prospect backs Wellspring Capital’s recap of Crosman Corp

Prospect Capital Corp. said Wednesday that it provided $40 million in debt financing to support Wellspring Capital Partners‘ recapitalization of Crosman Corp. Also, Prospect provided a loan to back Clearlake‘s buy of PrimeSport. No financial terms were disclosed for this transaction. Based in East Bloomfield, NY, Crosman is a maker of airguns, airsoft guns and related accessories. PrimeSport is a sports, travel and event management company.

PRESS RELEASE

NEW YORK, NY–(Marketwired – Jan 8, 2014) – Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) announced today that Prospect in December 2013 provided $40 million of senior secured floating rate debt to support the recapitalization of Crosman Corporation (“Crosman”) by Wellspring Capital Partners, a leading investment firm focused on middle-market companies.
Headquartered in East Bloomfield, New York, Crosman is the leading designer, manufacturer and marketer of airguns, airsoft guns, and related accessories. Crosman has a longstanding presence in airgun design and a proud tradition of producing high quality pellet and BB air rifles and pistols. Crosman is also one of the world’s leading producers of airsoft guns, multiple varieties of airgun and airsoft ammunition, and CO2 powerlets.
Prospect also announced today that Prospect in December 2013 provided a senior secured floating rate loan facility to support the acquisition of PrimeSport, Inc. (“PrimeSport”) by investment funds managed by Clearlake Capital Group, L.P. (“Clearlake”), a leading private investment firm focused on special situations and private equity investments.
PrimeSport is a leading global sports, travel, and event management company that offers tickets, corporate and fan travel packages, and hospitality events for corporations, professional sports teams, and fans. For over 20 years, the PrimeSport management team has developed trusted, long-term official partnerships with sports teams and events that give PrimeSport’s customers access to the most sought after sporting events, including the NCAA Final Four, BCS National Championship, Super Bowl, Daytona 500, and many other events.
“Clearlake selected Prospect over multiple lenders based on Prospect’s creative and flexible financing structure designed to support PrimeSport’s growth strategy,” said Behdad Eghbali, a founding partner of Clearlake.
“Prospect is excited to complete this inaugural transaction with Clearlake,” said Jason Wilson, a Managing Director of Prospect Capital Management LLC. “We pulled out all the stops to support Clearlake’s acquisition of PrimeSport, a company with a compelling value proposition for professional and collegiate sports leagues, teams, and fans involved in some of the biggest sporting events in the world.”
Prospect closed approximately $2.7 billion of new originations during calendar year 2013, with further origination activity expected in January and the coming months.
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com) is a business development company that focuses on lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

 

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