Welcome to our dedicated page for Prospect Capital news (Ticker: PSEC), a resource for investors and traders seeking the latest updates and insights on Prospect Capital stock.
Overview of Prospect Capital Corporation (PSEC)
Prospect Capital Corporation is a publicly-traded, closed-end investment company that operates as a business development company (BDC) under the Investment Company Act of 1940. Specializing in providing flexible private debt and equity capital solutions, the company serves sponsor-owned and non-sponsor-owned middle market companies throughout the United States and Canada. As an entity focused on balancing current income with long-term capital appreciation, Prospect Capital leverages its extensive expertise in middle market lending, private debt, and equity investments to create a resilient portfolio built on established cash flow histories and asset-backed financing structures.
Core Business and Investment Strategy
At its core, Prospect Capital invests in a diversified range of financing opportunities. The company frequently undertakes investments in senior and subordinated debt, structuring transactions such as mezzanine financing, growth capital, acquisition financing, recapitalizations, and development financing. Its investment approach especially prioritizes first lien and senior secured loans, which provide a lower-risk profile due to historical and contractual cash flows and asset collateral. Additionally, the company selectively integrates equity co-investments to capture potential upside, making it a unique instrument within the private capital markets.
Business Model and Operational Framework
Prospect Capital’s business model revolves around its yield-oriented investment philosophy. The company places a strong emphasis on originating non-syndicated first lien senior secured loans for middle market companies, thereby ensuring multiple layers of protection for its portfolio. Furthermore, by rotating its credit portfolio with structured credit, CLO equity and real estate investments, Prospect seeks to enhance yield while maintaining a stable income stream. The operational framework is supported by an experienced team that manages deal sourcing, underwriting, and ongoing portfolio monitoring through a comprehensive due diligence process. This structured approach ensures that each investment is carefully assessed and aligned with the firm’s overall strategy of generating stable income and achieving capital preservation.
Prospect Capital (NASDAQ: PSEC) has received a reaffirmation of its investment grade issuer and long-term senior debt credit ratings at BBB(low) from Morningstar DBRS, with a revised trend of Stable.
The company highlights its strong business profile, including:
- Over $21 billion invested across 400+ investments
- $4.7 billion in cumulative principal bond repayments
- $2.1 billion credit facility with 48 institutional banks
- 0.40x debt to equity leverage
- 0.4% nonaccruals
- 13% unlevered investment level gross cash internal rate of return for exited investments
- Less than 1% book to look ratio from over 3,000 annual origination opportunities
The company maintains a majority senior secured loan book and reports strong counterparty relationships and high employee ownership.
Prospect Capital (NASDAQ: PSEC) has announced the complete and timely repayment of its convertible bond due March 2025. This milestone adds to the company's track record of responsible debt management, having repaid approximately $4.7 billion in principal bond obligations across 874 debt tranches throughout its 20-year history.
The repayments span diverse funding sources, including:
- Institutional non-convertible bonds
- Institutional convertible bonds
- Baby bonds
- Programmatic medium-term notes
According to President and COO Grier Eliasek, this achievement demonstrates the strength of their diversified and low leverage capital strategy, while maintaining strong relationships with credit providers and ensuring access to flexible, cost-effective funding sources.
Prospect Capital (NASDAQ: PSEC) has announced the release of an updated 'Prospect Highlights' document on their website as of March 10, 2025. The company has made the updated information available through their investor relations section, which also includes their Corporate Presentation and Press Releases. The company emphasizes their multi-decade operational history, track record, and market-leading best practices.
Prospect Capital (NASDAQ: PSEC) and its portfolio company Refuel Agency have announced a philanthropic partnership focused on supporting military veterans. Through the John and Daria Barry Foundation's connection with Refuel, support has been provided to two veteran-focused organizations: Team Red, White & Blue (Team RWB) and Avalon Action Alliance.
The support for Team RWB will help expand their Eagle Alliance Program, which provides corporate Veteran Employee Resource Group support, enhances digital infrastructure for veteran referrals, and strengthens health and wellness partnerships. For Avalon Action Alliance, the foundation's support will enhance their integrative trauma care model, focusing on Traumatic Brain Injury Treatment, Post-Traumatic Stress Recovery, and Substance Abuse Treatment.
Prospect Capital (PSEC) has reported its financial results for the fiscal quarter ended December 31, 2024. Key highlights include:
- Net Investment Income (NII) of $86.4 million ($0.20 per share), down from $96.9 million ($0.24 per share) year-over-year
- Net loss of $31 million (-$0.07 per share), compared to a loss of $51.4 million (-$0.13 per share) in the same quarter last year
- Monthly cash distributions declared at $0.0450 per share for February, March, and April 2025
- Net Asset Value (NAV) per share decreased to $7.84 from $8.92 year-over-year
The company's portfolio consisted of 114 companies across 33 industries, with 64.9% in first lien debt. The company maintains strong liquidity with $1.88 billion in cash and undrawn revolving credit facility commitments.
Prospect Capital (NASDAQ: PSEC) has announced key dates for its second fiscal quarter financial reporting. The company plans to file its Form 10-Q report with the SEC on February 10, 2025, containing results for the quarter ended December 31, 2024. The earnings press release will be issued after market close on the same day.
A conference call is scheduled for February 11, 2025, at 9:00 a.m. Eastern Time, accessible via dial-in number 888-338-7333. A replay will be available for approximately 30 days at 877-344-7529 using passcode 2146236. Additionally, investors can access a live listen-only webcast through the company's website at www.prospectstreet.com.
Prospect Capital (NASDAQ: PSEC) has made a $65 million investment in Taos Footwear Holdings, a leading footwear brand known for its supportive footbed technology. The investment package includes a first lien senior secured term loan, a first lien senior secured convertible term loan, and a preferred equity investment.
Taos Footwear, established 20 years ago, has built its reputation on providing stylish and supportive footwear products. The company's founder and CEO, Glen Barad, indicated that the partnership with Prospect aims to provide both capital and strategic expertise to elevate the brand and drive continued growth.
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.
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