Welcome to our dedicated page for Prospect Capital Corporation news (Ticker: PSEC), a resource for investors and traders seeking the latest updates and insights on Prospect Capital Corporation stock.
Prospect Capital Corporation (NASDAQ: PSEC) is a leading closed-end investment company based in the United States, focusing on generating current income and long-term capital appreciation through flexible private debt and equity investments. As an investment advisor, Prospect Capital Management L.P. guides PSEC under the Investment Company Act of 1940, making it a Business Development Company (BDC).
Prospect Capital Corporation primarily invests in senior and subordinated debt and equity of private companies for a variety of financial situations. These include acquisitions, divestitures, growth, development, and recapitalizations. The company's investment portfolio is diverse, encompassing private equity, sponsored transactions, direct company investments, structured credit, real estate, and syndicated debt.
In recent developments, PSEC has reported financial results for the fiscal quarter ended September 30, 2023. The company announced monthly distributions to its 6.50% preferred shareholders at an annual rate of 6.50% of the stated value of $25.00 per share. As of September 30, 2023, PSEC held over $1.6 billion in preferred stock outstanding, demonstrating substantial financial strength and liquidity.
In its portfolio, PSEC has invested in subordinated structured notes benefiting from individual standalone financings non-recourse to Prospect. This strategy limits risk to the net investment. For the September 2023 quarter, PSEC showcased substantial term debt issuance and repurchase/repayment activity, bolstering its capital and liquidity position. Additionally, PSEC's middle-market loan portfolio continues to perform well, with weighted average EBITDA and net leverage metrics indicating strong financial health.
Prospect Capital Corporation maintains active communication with its investors. For instance, the company hosts regular earnings conference calls, providing detailed updates on financial performance and investment activities. The next earnings call is scheduled for November 9, 2023, at 10:30 a.m. Eastern Time.
Overall, Prospect Capital Corporation stands out for its robust investment strategies and commitment to delivering value to its shareholders through disciplined financial management and strategic investment decisions.
NEWSTAR Exchange has acquired Hadley Crossing, a 44-unit single-family rental community in Charlotte, North Carolina, and launched a new Delaware Statutory Trust (DST) offering for accredited investors. The property features 4-bedroom detached homes with premium amenities and achieved the #3 highest build-to-rent rental rates in Charlotte, with average household incomes exceeding $200,000.
The DST offering, Newstar 14 Hadley Crossing, is financed through Fannie Mae with 43% leverage and aims to raise approximately $14 million in equity. This marks NEWSTAR's fourth DST offering, following successful closures of three previous programs that raised over $50 million in equity. The property reached stabilization in less than 8 months and is being distributed by Preferred Capital Securities under Rule 506(c) of Regulation D.
Prospect Capital (NASDAQ: PSEC) announces an upcoming webinar titled 'Preferred Stock as a Low Volatility, Downside Protected, and Income Generating Asset Class' scheduled for December 12, 2024, at 2:00pm ET. The educational session, which offers 1 CFP®/IWI/CFA CE Credit, will focus on explaining the preferred stock asset class and its distinctions from other fixed income investments.
This marks the third webinar in Prospect's ongoing investor education series, organized in collaboration with RIA Channel, a leading provider of educational investment content for financial advisors.
Prospect Capital (NASDAQ: PSEC) has announced its participation in the upcoming 2024 Markets Group NYC Private Credit Conference. Grier Eliasek, President and Chief Operating Officer, will be a panel speaker discussing 'New Ways to Counter Today's Headwinds with Opportunistic and Niche Credit Strategies' on Wednesday, December 4, 2024, at 10:10am.
Prospect Capital announced financial results for Q3 2024, highlighting a strategic shift in its investment focus. The company is rotating from structured credit CLO equity and real estate investments toward first lien senior secured middle market loans, which now comprise 65% of total investments. Interest income reached 94% of total income, an increase of over 800 basis points year-over-year. Net Investment Income was $89,877,000 ($0.21 per share), and the company declared monthly distributions of $0.0450 per share for November 2024 through January 2025.
Prospect Capital (PSEC) announced it will file its Form 10-Q report for the fiscal quarter ended September 30, 2024, on November 8, 2024. The company will release its earnings before market opening on the same day and host a conference call at 9:00 a.m. Eastern Time. Investors can join via phone at 888-338-7333 or through a live webcast on the company's website. A replay will be available for approximately 30 days by calling 877-344-7529 with passcode 3863672.
Prospect Capital (NASDAQ: PSEC) has announced an upsize to its preferred stock offering, which has seen strong demand from various investor channels. The offering has reached $1.8 billion in aggregate liquidation preference issuances since its initial closing in Q4 2020. Prospect is currently the leading issuer of non-traded preferred stock in 2023 and 2024 year-to-date.
The company's A4/M4 preferred stock series offers a 7.28% annualized floating rate dividend structure with a 6.50% dividend rate floor, which Prospect believes is attractive for income-oriented investors, especially with declining interest rates. The ongoing offering is being made through Preferred Capital Securities (PCS), which has raised $5.0 billion of capital since 2011.
Prospect Capital (NASDAQ: PSEC) has provided first lien senior secured term and convertible loans to support the acquisition of Druid City Infusion by Inlet Road Capital Management. Druid City, a leading ownership group within the Vital Care Infusion Services franchise system, operates nine territories across the South and Mountain West regions of the United States. Vital Care is a national home infusion platform with over 160 infusion pharmacy locations in 35 states.
The acquisition aims to enhance Druid City's commitment to patient care and service delivery. Inlet Road partners highlighted Prospect's ability to create a comprehensive financing solution and its collaborative approach as key factors in choosing them for the transaction. Prospect expressed optimism about Druid City's future performance and its value proposition in delivering pharmacy and infusion services.
Prospect Capital (NASDAQ: PSEC) closed $764 million of new investments during its fiscal year ended June 30, 2024, investing in 38 new and existing portfolio companies. Notably, 91% of PSEC's originations were first lien, senior secured loans. Key investments included:
- $56 million in clinical trial services
- $60 million in business process outsourcing
- $26 million in healthcare services
- $30 million in direct-to-consumer marketing
- $37 million in logistics services
- $13 million in furniture provision
- $10 million in home-based infusion pharmacy services
- $20 million in branded jewelry design
As of October 14, 2024, Prospect is processing an investment pipeline of over $350 million, with transactions still under due diligence and analysis.
Prospect Capital (NASDAQ: PSEC) has successfully extended and increased its revolving credit facility for Prospect Capital Funding , a GAAP consolidated subsidiary. The facility's total commitments now stand at $2.1215 billion, with participation from 48 banks boasting a combined asset base exceeding $7.5 trillion. This marks the largest number of lenders for any business development company's credit facility.
Key features of the facility include:
- An accordion feature allowing commitments to increase up to $2.25 billion
- A five-year term with maturity on June 28, 2029
- A four-year revolving period through June 28, 2028
- An additional one-year amortization period
Grier Eliasek, President and COO of Prospect, expressed satisfaction with the longstanding support from relationship banks, some dating back to 2009. He emphasized that this industry-leading facility provides Prospect with efficient capital to meet investment and financing needs for their business and portfolio companies.
Prospect Capital (NASDAQ: PSEC) celebrates its 20th anniversary as a leading provider of private debt and equity to U.S. middle-market companies. With over $20 billion invested and more than 300 portfolio company exits, Prospect has established itself as one of the largest and longest-running publicly traded business development companies (BDCs).
Founded in 2004, Prospect has $7.9 billion in total assets as of the recent fiscal year-end. The company is managed by Prospect Capital Management, which has a nearly 37-year history spanning three major business cycles. Prospect has been a BDC industry innovator, achieving several firsts, including:
- First BDC to achieve an investment grade rating post-Global Financial Crisis
- First BDC to acquire another BDC
- First BDC to complete at-market issuance programs for common stock and listed senior unsecured notes
- First BDC to issue convertible bonds, medium-term program notes, and non-traded perpetual preferred stock
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