On
June 1, 2009, Prospect Capital Corporation (“Prospect”) and Coöperative
Centrale Raisseisen-Boerenleenbank B.A., “Rabobank Nederland,” New York Branch
(“Rabobank”) entered into a Third Amendment to the Loan and Servicing Agreement
originally dated as of June 6, 2007, among Prospect Capital Funding LLC,
Prospect and Rabobank (the “Third Amendment”). The revolving period
for Prospect’s credit facility with Rabobank, which matures on June 6,
2010, was previously scheduled to finalize on June 6,
2009. Pursuant to the Third Amendment, Prospect and Rabobank agreed
to extend this revolving period date to June 30, 2009 to allow for
documentation of a further extension.
Prospect
is currently finalizing documentation with Rabobank and certain other banks
to further extend the revolving period date until June 2010, with an
expected maturity in June 2011, and Prospect is negotiating
final commitment letters and definitive documentation toward such
extension. The facility is expected to have an investment grade rating of
A2 or better, as well as an accordion feature to allow for
upsizing. The new facility is subject to documentation and other
conditions customary for such processes. While Prospect is optimistic
that it can successfully reach an agreement, there can be no guarantee any new
facility will be consummated.