Prospect Capital Corporation Invests $43.5 Million to Recapitalize Credit Central
Summary
Prospect structured the primary operating finance and holding businesses of Credit Central as tax advantaged limited liability companies. Credit Central competes successfully with deposit-based commercial banks due to branch location convenience, loan processing speed, customer service, and other factors. The company has delivered profits in every quarter, increased earnings, maintained underwriting quality, and expanded its branch and geographic footprint. "With its significant borrower diversity, prudent third-party leverage, secured lending orientation, long history, consistent financial performance, steady growth, tax efficiency, and attractive yields, Credit Central represents a compelling portfolio company investment opportunity," said Richard T. Carratu, a Managing Director of Prospect Capital Management LLC. "We are impressed that Credit Central has delivered such solid and consistent financial results over the last ten years," said Jim Clippard, a Vice President of Prospect Capital Management LLC.