Prospect Capital Purchases $31 Million of First Lien Senior Secured Floating Rate Notes for Recapitalization of Payliance
December 17 2019 - 7:00AM
Prospect Capital Corporation (NASDAQ:PSEC) (“Prospect”) announced
today that Prospect has purchased $31 million of first lien senior
secured floating rate notes for the recapitalization of Collections
Acquisition Company, Inc. (d/b/a “Payliance”).
Founded in 2009 and headquartered in Columbus,
Ohio, Payliance provides a complete suite of solutions for payments
processing, payments recovery, and risk management designed to
solve payment acceptance challenges and help customers drive
competitiveness and profitability. Payliance provides payment
processing solutions for Automated Clearing House (ACH), electronic
check (eCheck), remotely created check (RCC), debit card, and
credit card processing.
Payliance is a portfolio company of Serent
Capital (“Serent”), a leading lower-middle market private equity
firm focused on investing in high growth service and technology
businesses. Founded in 2008, Serent has offices in San Francisco,
California and Austin, Texas.
“We were pleased to work with Prospect, which
was proactive, diligent, and creative on this transaction,” said
Steve Marks, Vice President of Serent. “Our Serent team looks
forward to working with Prospect as we seek to grow Payliance and
close additional future transactions.”
“We found Payliance’s payment processing
solutions to be comprehensive, tailored to client needs, and
scalable, all attractive credit highlights in the payment
processing space,” said Angel Solis, Principal at Prospect Capital
Management L.P. “We are excited to support Serent on this
transaction and assist with the company’s growth.”
About Prospect Capital
Corporation
Prospect Capital Corporation 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. 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 Prospect could have an adverse effect on
Prospect and our shareholders.
Caution Concerning Forward-Looking
Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, Section 21E of the Securities Exchange Act of
1934, as amended, and the Private Securities Litigation Reform Act
of 1995, whose safe harbor for forward-looking statements does not
apply to business development companies. These forward-looking
statements include statements regarding expectations as to the
completion of the transactions contemplated by the Tender Offers.
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 any forward-looking
statements. 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.
For further information, contact:Grier Eliasek,
President and Chief Operating Officergrier@prospectcap.comTelephone
(212) 448-0702
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