VanDeMark Chemical Secures Senior Debt

Prospect Capital Corporation has provided $31.1 million of senior secured debt to VanDeMark Chemical, a specialty chemical manufacturer located in Lockport, New York. VanDeMark is owned by an affiliate of Buckingham Capital Partners, a lower-middle-market private equity firm.


Prospect Capital Corporation PSEC -0.43% (“Prospect”) announced today that Prospect provided $31.1 million of senior secured debt in December 2011 to VanDeMark Chemical Inc. (“VanDeMark”), a specialty chemical manufacturer located in Lockport, New York.

VanDeMark manufactures phosgene and phosgene derivatives to serve the global pharmaceutical, agricultural-chemical, polymer, and fine chemical industries. Prospect’s credit facility will be used to recapitalize VanDeMark. VanDeMark is controlled by an affiliate of Buckingham Capital Partners (“Buckingham”), a leading lower-middle-market private equity firm.

“We are delighted to support Buckingham in its recapitalization of VanDeMark,” said Bart deBie, a Managing Director with Prospect Capital Management. “Prospect has significant domain expertise in the specialty chemicals industry in addition to other industry verticals.”

“Prospect’s responsiveness enabled an on-time execution of a complex refinancing that we desired to close before year end,” said Albert Naggar, a Managing Partner of Buckingham. “We look forward to working with Prospect in the future.”

Separately, Prospect provided $8.0 million of senior secured debt in December 2011 to a provider of non-destructive testing services to detect leaks and other defects in pipes, vessels, and related equipment for the oil and gas pipeline, chemical, and paper and pulp industries. Prospect also provided $52.0 million in secured financing to three separate existing portfolio companies in December 2011, to be used for varying purposes.

In addition, Prospect exited its Mac & Massey investment with $10.6 million of proceeds in December 2011 with full repayment of Prospect’s loan and monetization of Prospect’s equity position, resulting in a 36% IRR and 1.8 times cash on cash return on Prospect’s total investment.

Prospect closed over $1.0 billion in new investments in calendar year 2011.

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 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.

SOURCE: Prospect Capital Corporation