Prospect BDC makes debt and equity play

BDC Prospect Capital has invested $279m in debt and equity in point of sale processor Habortouch.

US-listed business development company Prospect Capital Corporation has funded a recapitalisation of transaction processor Harbortouch Payments with $279 million of first-lien senior secured debt and equity, according to a statement on Tuesday.

In a co-investment with Jared Isaacman, founder and chief executive of Harbortouch, Prospect built on an earlier round of financing through the investment of equity in addition to further debt. 

Isaacman said: “This transaction represents a key milestone in our company's history with respect to building our scale and brand. This is the second transaction we have closed with Prospect.”

Jim Clippard, a vice president of Prospect Capital Management, added: “Jared and his team have built an impressive track record in the payments industry, and we are pleased to back them in the next chapter of Harbortouch's growth. We have been so impressed with the performance of our previous Harbortouch investment that we wanted to have a greater ownership in the business to help propel the company to new heights.”

The news follows the announcement yesterday of two first-lien loans totalling $293.5 million provided by Prospect to two companies. In a busy first quarter for the lender, Prospect has made more than $1.3 billion of originations, a record amount for the firm.