PSEC – A Prospect Capital Fund

Prospect Energy Corporation Announces Refinancing of Gas Solutions

December 27, 2004

NEW YORK, NY – (MARKET WIRE) – 12/27/04 – Prospect Energy Corporation
(NASDAQ: PSEC) (the “Company”) announced today that its portfolio
investment Gas Solutions II Ltd. (“Gas Solutions”) has closed a senior
secured loan of $12.5 m…