PBY Prospect Capital Corporaton

NEW YORK and CHATTANOOGA, Tenn., May 7 /PRNewswire/ -- MSD Capital, L.P., the private investment firm for Michael Dell and his family, and automotive retail industry veteran Jeffrey C. Rachor today announced that they have joined together to form MSD Automotive Partners, LLC, which will exclusively own and operate premier car dealerships across the United States. Mr. Rachor will serve as Chief Executive Officer of MSD Automotive, which will operate from Chattanooga, Tennessee. "Over the course of his 27-year career, Jeff Rachor has distinguished himself as one of the most reputable executives in the automotive retailing industry," said Howard M. Berk, a Partner at MSD Capital. "As the former President of Sonic Automotive, a Fortune 300 company and the third largest automotive retailer in the United States, he has successfully built and operated major businesses in this industry, and he possesses an exceptional appreciation of the perspectives of its many important stakeholders -- from dealer-owners to general managers to OEMs. Having spent several years evaluating the dealership space, we at MSD are thrilled to partner with Jeff in this new venture." Mr. Rachor said, "I am very excited to be getting back into the auto retailing industry, and I could not have chosen a better partner than MSD Capital. This well-capitalized, family investment firm is able to take a long-term view of its investments -- unlike many publicly-traded companies or private equity funds, which are often forced to have a shorter-term orientation. I believe that our new venture has a rare opportunity to leverage our mutual experience and develop the industry's leading business model that captures all the benefits of scale without sacrificing the entrepreneurial spirit that has always been the foundation of success in auto retailing. Together, we will build MSD Automotive Partners at a measured pace, to ensure that we're fully aligned with our auto manufacturer partners and other key constituents." Additional Biographical Information on Jeff Rachor Jeff Rachor served as President, CEO and a member of the Board of Directors of Pep Boys - Manny, Moe & Jack (NYSE:PBY) from March 2007 through April 2008. Previously, he was President of Sonic Automotive Inc. from 2004 to 2007; Executive Vice President from 2002 to 2004; and the company's Chief Operating Officer from 2002 to 2007. He also served as a member of Sonic's Board of Directors from 1999 to 2008. Mr. Rachor joined Sonic Automotive as Regional Vice President, Mid-South Region in 1997 and served as its Vice President of Retail Operations from 1998 and as EVP of Retail Operations from 1999. He served as President and COO of Bowers Transportation Group, a fourteen franchise dealer group with approximately $300 million in revenues based in Chattanooga, TN from 1989 to 1997. During this time, Mr. Rachor served as General Manager of luxury, import and domestic dealerships. Mr. Rachor served as an Assistant Regional Manager with American Suzuki Motor Corporation, from 1987 to 1989, and held a variety of sales and marketing positions with GM's Buick Motor Division from 1983 to 1987. About MSD Capital, L.P. MSD Capital exclusively manages the capital of Michael Dell and his family. Founded in 1998, the firm currently manages in excess of $12 billion in assets. The firm's principal investment objective is to build a portfolio focused on maximizing long-term capital appreciation. MSD Capital utilizes a multi-disciplinary approach, primarily consisting of private investments, real estate and investments in publicly-traded securities. The firm is headquartered in New York with offices in Los Angeles and London. For additional information, visit http://www.msdcapital.com/. Contacts: Media MSD Automotive Partners Todd Fogarty Jeffrey Rachor Kekst and Company 212-521-4854 423-240-1672 DATASOURCE: MSD Capital, L.P. CONTACT: Media, Todd Fogarty of Kekst and Company, +1-212-521-4854, , for MSD Capital, L.P.; or Jeffrey Rachor of MSD Automotive Partners, +1-423-240-1672, Web site: http://www.msdcapital.com/

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