PSEC – A Prospect Capital Fund

Prospect Capital Announces 17% Realized Cash on Cash IRR Monetization of Diamondback Operating, LP

January 26, 2009

NEW YORK, NY – (MARKET WIRE) – 01/26/09 – Prospect Capital Corporation
(NASDAQ: PSEC) (“Prospect”) announced today that Diamondback
Operating, LP (“Diamondback”) has repaid Prospect’s $9.2 million loan
in full from the sale o…