Prospect Capital Provides $80 Mln Loan for Zicam Recap

Prospect Capital Corp. has provided an $80 million loan for the recap of Matrixx Initiatives, which owns Zicam. H.I.G. Capital owns a controlling share of Matrixx. Bridewater, N.J.-based Zicam which develops and markets over-the-counter cold remedy products under the Zicam brand.

PRESS RELEASE

NEW YORK, NY–(Marketwired – Aug 12, 2013) – Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) announced today that Prospect has provided $80.0 million of floating-rate first-lien senior-secured loans and a senior-secured revolving credit facility for the recapitalization of Matrixx Initiatives, Inc. (“Matrixx”), owner of Zicam, a leading developer and marketer of over-the-counter (“OTC”) cold remedy products under the Zicam brand. H.I.G. Capital, L.L.C. (“H.I.G.”), a leading private equity firm, owns a controlling position in Matrixx.

Based in Bridgewater, New Jersey, Zicam is a top 12 brand in the OTC market and is the number one brand in the cold recovery and cold prevention segment.

“We selected Prospect for its responsive culture, structuring creativity, and large balance sheet,” said Brian McMullen, a Principal with H.I.G.

“Zicam’s leading market position, nationwide distribution, and product innovation demonstrate the strength, diversity, and growth potential of the brand,” said Jason Wilson, a Managing Director with Prospect Capital Management LLC. “With this investment, Prospect so far in 2013 has closed one or more transactions with H.I.G.’s offices in Miami, San Francisco, Boston, and New York.”

Prospect has closed more than $1.8 billion of originations to date in the 2013 calendar year. Prospect closed more than $3.0 billion of originations in the twelve months ended June 30, 2013.

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. 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.