Prospect Capital invests $65 million in Taos Footwear through loans and equity to support its growth and innovation.
Quiver AI Summary
Prospect Capital Corporation has announced a $65 million investment in Taos Footwear Holdings, LLC, which includes a first lien senior secured term loan, a convertible term loan, and preferred equity. Taos Footwear is known for its innovative and stylish footwear, particularly its supportive footbed, making a significant impact in the lifestyle footwear market over the past two decades. Glen Barad, founder and CEO of Taos Footwear, expressed that they sought a collaborative partner to provide capital and strategic guidance for continued growth, making Prospect Capital an ideal choice. Robert Melman, Managing Director at Prospect, expressed enthusiasm for supporting Taos Footwear's expansion and innovation in the footwear industry.
Potential Positives
- Prospect Capital Corporation has successfully completed a significant financial transaction, investing $65 million in Taos Footwear, which enhances its portfolio and strengthens its position in the footwear sector.
- The investment will provide Taos Footwear with both capital and strategic expertise, potentially leading to enhanced growth and innovation within the company.
- Prospect’s collaboration with a well-regarded brand like Taos Footwear aligns with its investment strategy aimed at generating long-term capital appreciation.
- The acknowledgment from Taos Footwear’s leadership reinforces Prospect’s reputation as a valuable partner for growing businesses in need of support and expertise.
Potential Negatives
- The reliance on a significant investment in a partnership with a potentially volatile business like Taos Footwear could expose Prospect Capital Corporation to financial risk should the footwear market decline or if the Company's performance does not meet expectations.
- The cautionary statements about the unpredictability of forward-looking information may raise concerns among investors about the stability and predictability of their investment strategy.
- The necessity for a "value-added collaborator" like Prospect may imply that Taos Footwear requires external assistance to achieve its growth, potentially signaling weaknesses in its current operational strategies or financial management.
FAQ
What investment did Prospect Capital Corporation make in Taos Footwear?
Prospect Capital Corporation invested $65 million in Taos Footwear through a combination of term loans and preferred equity.
Why did Taos Footwear partner with Prospect Capital?
Taos Footwear sought a value-added collaborator for both capital and strategic expertise to help elevate their brand.
What is Taos Footwear known for?
Taos Footwear is renowned for its supportive footbed and innovative, stylish footwear products in the lifestyle segment.
Who is the founder of Taos Footwear?
The founder of Taos Footwear is Glen Barad, who currently serves as the CEO of the company.
What is Prospect Capital Corporation's investment strategy?
Prospect Capital Corporation focuses on generating current income and long-term capital appreciation through debt and equity investments.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
NEW YORK, Jan. 31, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) has provided a first lien senior secured term loan, a first lien senior secured convertible term loan, and a preferred equity investment to Taos Footwear Holdings, LLC (“Taos Footwear” or "Company"), aggregating $65 million, in collaboration with Taos Footwear’s founder and leadership team.
Taos Footwear is a leading, innovative footwear brand providing customers with stylish and supportive footwear products. The Company is renowned for its supportive footbed that has reshaped the lifestyle footwear industry over the past 20 years.
“During the last 20 years, the Taos Footwear team has developed differentiated products meeting the needs of our loyal customers, resulting in significant growth for our company," said Taos Footwear Founder and CEO, Glen Barad. "As the business has scaled, we saw a need for a value-added collaborator that could offer both capital and strategic expertise to elevate our brand. Prospect is the ideal fit to help us achieve our vision and drive continued success.”
“Prospect is excited about our investment in Taos Footwear and is pleased to complete this important transaction alongside the Taos Footwear team,” said Robert Melman, Managing Director at Prospect. “Taos Footwear is a leading brand providing an array of innovative and supportive footwear products to its vast customer base. We look forward to supporting the Company’s continued growth.”
About Prospect Capital Corporation
Prospect is a business development company lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.
For further information, contact:
Grier Eliasek, President and Chief Operating Officer
Telephone (212) 448-0702