PBY Prospect Capital Corporaton

The Pep Boys - Manny, Moe & Jack (NYSE:PBY), the nation's leading automotive aftermarket retail and service chain, announced today that it closed a $200 million senior secured term loan facility syndicated by Wachovia Capital Markets, LLC. The facility has a stated maturity of January 27, 2011, is secured by certain of the Company's real estate, amortizes 1% per year until maturity and is pre-payable at any time without penalty. The facility, as with all of the other present indebtedness of the Company, contains no ongoing operating performance covenants so long as availability under the Company's $357.5 million revolving credit facility remains above $50 million. The facility contains customary representations and covenants of a senior financing, including the timely repayment or refinancing of the Company's 4.25% Convertible Senior Notes due June 2007. The facility also has an expansion feature which allows the Company to expand the size of the facility by a further $125 million dollars, subject to the addition of further collateral and successful syndication. Proceeds were used to satisfy and discharge $43 million and $100 million in outstanding medium term notes that mature in 2006 (including approximately $5 million in interest expense) and to reduce borrowings under the Company's revolving credit facility. To repay the $100 million in outstanding medium term notes, the Company was required to settle the remarketing option attached to such notes, and will record the approximately $8.2 million cost in its fourth quarter. About Pep Boys Pep Boys has 593 stores and more than 6,000 service bays in 36 states and Puerto Rico. Along with its vehicle repair and maintenance capabilities, the Company also serves the commercial auto parts delivery market and is one of the leading sellers of replacement tires in the United States. Customers can find the nearest location by calling 1-800-PEP-BOYS or by visiting pepboys.com.