Prospect Capital Invests $14 Million for Royal Adhesives + Sealants Acquisition

Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has made a senior subordinated debt investment of $14 million to support the acquisition of Royal Adhesives & Sealants LLC ("Royal") by Arsenal Capital Partners.

Royal is a leading producer of proprietary, high-performance adhesives and sealants. Headquartered in South Bend, Indiana, the company offers a broad range of specialty formulated products designed to solve complex bonding, laminating, and sealing applications across a diverse range of markets, including aerospace and defense, construction, specialty packaging, automotive, and industrial. The company offers a broad spectrum of customized thermosetting epoxy and urethane, solvent-based, and water-based technologies to meet the most demanding adhesive and sealant applications.

"Prospect demonstrated remarkable flexibility and responsiveness in tailoring the terms of its financing package to our requirements," said Anthony Giorgio of Arsenal Capital Partners.

"This transaction exemplifies Prospect Capital's commitment to work with leading private equity sponsors to provide customized financing solutions," said David Moszer of Prospect Capital Management.

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