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Triton Pacific and Pathway Capital Shareholders Approve Merger of BDC and Interval Fund

Shareholders of Triton Pacific Investment Corporation Inc., a publicly registered non-traded business development company, and Pathway Capital Opportunity Fund Inc., a closed-end interval fund managed by Prospect Capital Management, approved the merger between the companies to create a non-traded BDC called the TP Flexible Income Fund Inc.

Shareholders of Triton Pacific Investment Corporation Inc., a publicly registered non-traded business development company, and Pathway Capital Opportunity Fund Inc., a closed-end interval fund managed by Prospect Capital Management, approved the merger between the companies to create a non-traded BDC called the TP Flexible Income Fund Inc. The boards of both companies previously approved the merger, which is expected to close on March 27, 2019.

At the Triton Pacific shareholder meeting, 96.2 percent of votes cast voted in favor of the merger, and at the Pathway meeting, 96.0 percent voted in favor of the merger.

Under the terms of the merger agreement, Pathway shareholders will receive a number of Triton Pacific shares with a net asset value equal to the net asset value of the company shares they hold, as determined shortly before closing of the merger.

Following completion of the merger, Triton Pacific will be the combined surviving company and will be renamed TP Flexible Income Fund Inc. The Fund will be externally managed by Prospect Flexible Income Management LLC, which is jointly owned by Prospect Capital Management and Triton Pacific.

The fund’s investments are expected to consist primarily of syndicated senior secured first lien loans, syndicated senior secured second lien loans, and to a lesser extent, subordinated debt, and up to 30 percent of its investments is expected to consist of other securities, including private equity (both common and preferred), dividend-paying equity, royalties, and the equity and junior debt tranches of pools of broadly syndicated loans known as collateralized loan obligations.

Triton Pacific Securities, LLC, founded in 2005 and registered in all 52 states and territories, will continue to act as the dealer manager for the registered offering of the fund.

Prospect Capital Management is a registered investment adviser with approximately $6.4 billion of assets under management as of December 31, 2018.

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