PSEC – A Prospect Capital Fund

Prospect Energy Corporation Provides Senior Secured Debt Financing to Arctic Acquisition Corp.

July 19, 2005

NEW YORK, NY – (MARKET WIRE) – 07/19/05 – Prospect Energy Corporation
(NASDAQ: PSEC) (“Prospect”) announced today that it has agreed to
provide $9.25 million of senior secured debt financing to Arctic
Acquisition Corp. (“Arctic”),…