Energy Solutions Holdings, a portfolio company of Prospect Capital Corporation, has sold its gas gathering and processing assets for $200m.
The aggregate sale price comprises $172m in cash plus a $28m earnout based on the future performance of the assets sold.
Prospect Capital said that the exit price, together with prior cash flows and excluding both escrow and earnout, translates into a 57% internal rate of return and 5.5 times cash on cash return.
Prospect Capital president M Grier Eliasek said the sale of the gas gathering and processing assets represented another valuable realisation in the track record of the investment company.
"We continue to work both on other potentially valuable realisations and on originating and closing new investments to put the capital realised to work in a diversified array of new opportunities," Eliasek said.
Prior to the sale, Prospect Capital received dividend income of $10.8m from its assets in the December 2011 quarter, significantly greater than the $3.5m received in the September 2011quarter.
Energy Solutions was formerly known as Gas Solutions Holdings, and continues as a portfolio company of Prospect Capital with other energy-related operations.
