PE-backed Safe-Guard Inks Debt Financing

Prospect Capital Corp. has provided a $60 million first-lien senior secured credit facility for Safe-Guard Products International. Safe-Guard, a third-party administrator of finance and insurance for motor vehicles, is owned by private equity firm H.I.G. Capital. Safe-Guard is based in Atlanta.

Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) announced today that Prospect has closed a $60 million first-lien senior secured credit facility for Safe-Guard Products International, LLC (“Safe-Guard”), the leading third-party administrator of ancillary finance and insurance (“F&I”) products and services for new, used, and leased motor vehicles. Prospect’s credit facility is being utilized to support company growth initiatives and a recapitalization of Safe-Guard, which is controlled by an affiliate of H.I.G. Capital, LLC (“H.I.G.”), a leading global private investment firm with over $8.5 billion of capital under management.

Headquartered in Atlanta, Safe-Guard’s F&I products include Guaranteed Asset Protection (“GAP”) Insurance, Tire & Wheel Protection, and Excess Lease Wear & Tear. Safe-Guard provides a turnkey and fully-outsourced solution to blue-chip clients that wish to offer valuable ancillary F&I products to vehicle buyers. Safe-Guard’s products and services protect consumers by providing coverage on their investments and improving the product ownership experience.

“We are delighted to be making our third investment in less than a year supporting H.I.G.,” said Jason Wilson, a Principal with Prospect Capital Management. “We pride ourselves on our deep relationships and repeat business with private equity sponsors who appreciate the creative solutions and unique product offerings we bring to every deal.”

Separately, Prospect recently provided $12.5 million in first-lien senior secured financing to support the acquisition by an independent sponsor of a market leader in the bowhunting equipment industry.

Prospect also recently provided a net $20 million in second-lien secured financing for the recapitalization of an existing Prospect portfolio company in the specialty insurance agency, processing, and administration business.

Prospect has closed more than $215 million of new originations since December 31, 2010.

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.
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