Prospect Capital Funds $202 Million in Senior Secured Floating Rate Term Loans to Progrexion  

Rhea-AI Summary

On July 29, 2021, Prospect Capital Corporation (PSEC) announced funding commitments totaling $202 million to PGX Holdings, Inc. (Progrexion). This includes a $49 million first lien senior secured floating rate term loan and a $153 million second lien senior secured floating rate term loan. Progrexion, a leader in the U.S. consumer credit repair market, aids consumers in correcting inaccuracies in their credit reports. This funding marks the 12th financing since H.I.G. Capital acquired Progrexion in 2010, showcasing Prospect's capability and commitment to flexible financing solutions.

Positive

• Total funding commitment of $202 million enhances Progrexion's refinancing capabilities.
• Prospect Capital's ability to provide significant financing reflects strong investment capacity.

Negative

• None.

NEW YORK, July 29, 2021 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) announced today that Prospect has funded total commitments of $202 million, comprised of a $49 million first lien senior secured floating rate term loan and a $153 million second lien senior secured floating rate term loan to support the refinancing of PGX Holdings, Inc. (“Progrexion”) a portfolio company of H.I.G. Capital, LLC (“H.I.G.”). 

Progrexion is the market leading provider of consumer credit repair services in the U.S., providing credit repair solutions directly to consumers and as a technology and services provider through a third party. Progrexion’s technology and services help consumers understand their credit report information, verify its fairness and accuracy, and correct inaccuracies with individual creditors, data providers, and national credit bureaus. 

“This transaction marks the 12th financing for Progrexion since H.I.G.’s acquisition in 2010," said Elliot Maluth, Managing Director of H.I.G. “We are once again pleased to engage with the Prospect team, which brought to bear both its $200 million hold capability as well as its diligent approach to provide a creative and flexible financing solution.”
  
“For the past 21 years, Progrexion has led the market in helping consumer clients fix errors in their credit reports as well as in maintaining the health of client credit reports,” said Jason Wilson, a Managing Director at Prospect Capital Management L.P. “I have personal and direct experience with Progrexion's services that assisted in the removal of multiple erroneous items from my credit report, thereby enabling me to secure significantly lower rates on mortgage refinancings as well as auto and home insurance. Our team at Prospect especially appreciates investment opportunities where we can directly verify a company’s strong value proposition for ourselves.” 

ABOUT PROSPECT CAPITAL CORPORATION

Prospect Capital Corporation (www.prospectcap.com) is a business development company that focuses on lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940 (“1940 Act”). Prospect is required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. Prospect has 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 Prospect could have an adverse effect on Prospect and its 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 Prospect’s control, and that Prospect 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 Prospect undertakes no obligation to update any such statement now or in the future.

For further information, contact:
Grier Eliasek, President and Chief Operating Officer
grier@prospectcap.com
Telephone (212) 448-0702

FAQ

What financing did Prospect Capital Corporation provide to PGX Holdings?

Prospect Capital Corporation provided a total of $202 million in funding commitments to PGX Holdings, consisting of a $49 million first lien loan and a $153 million second lien loan.

When did Prospect Capital announce the funding for Progrexion?

The funding was announced on July 29, 2021.

What is Progrexion known for?

Progrexion is the leading provider of consumer credit repair services in the U.S., helping consumers rectify inaccuracies in their credit reports.

How many financings has Progrexion received since its acquisition by H.I.G. Capital?

Progrexion has received a total of 12 financings since being acquired by H.I.G. Capital in 2010.

What is the significance of the $202 million financing for Prospect Capital's business strategy?

The $202 million financing underscores Prospect Capital's strategy to engage meaningfully in refinancing opportunities that demonstrate strong value propositions.