Prospect Capital Announces Offering of Senior Convertible Notes Due 2017

Prospect Capital Corporation

announced today that it intends to privately offer, subject to market and other conditions, $130 million in aggregate principal amount of senior unsecured convertible notes due 2017. In addition, the Company expects to grant the initial purchasers of the Notes an overallotment option to purchase up to an additional $20 million in aggregate principal amount of Notes. The Notes will be offered in a private placement only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The Notes will mature on October 15, 2017. The Notes will be convertible into shares of the Company's common stock at a conversion rate to be determined. Interest on the Notes will be payable semi-annually in arrears on April 15 and October 15 of each year, commencing on October 15, 2012. The interest rate, the conversion rate and other terms of the Notes will be determined at the time of pricing of the offering.