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 Corporation has initiated a cash tender offer for its 5.875% Senior Notes due 2023, totaling $290 million. The offer, made through an Offer to Purchase, will expire on March 15, 2021, unless extended. Validly tendered notes will receive $1,042.50 per $1,000 principal, plus accrued interest, with settlement expected on March 18, 2021. The Tender Offer is not contingent upon a minimum number of notes being tendered and can be amended or terminated at the company's discretion. D.F. King & Co., Inc. is the Information and Tender Agent.
Prospect Capital Corporation announced the results of its cash tender offer, which expired on March 8, 2021. A total of $7,738,000 in principal amount of 6.375% Notes due 2024 was validly tendered. The company will pay $1,090.00 for each $1,000 principal amount of the Eligible Notes, plus accrued interest, with a settlement date expected on March 11, 2021. D.F. King & Co., Inc. has been retained as the Information and Tender Agent for this process.
On March 2, 2021, Prospect Capital Corporation announced a cash tender offer to buy all outstanding 6.375% Notes due 2024, with an outstanding principal amount of $90 million. The offer expires on March 8, 2021, at 5:00 p.m. New York City time, and the purchase price is set at $1,090.00 per $1,000 principal amount. Settlement is expected by March 11, 2021. D.F. King & Co., Inc. serves as the Information and Tender Agent. This announcement is informational and does not constitute an offer to sell or buy securities.
Prospect Capital Corporation (NASDAQ: PSEC) announced the pricing of $25 million in additional 3.706% notes due 2026, issued on February 17, 2021. This issuance is part of a larger total of $400 million in notes due 2026. The Notes will have identical terms to previously issued notes and will mature on January 22, 2026. The funds raised will primarily be used to refinance existing debt and maintain liquidity. Investors are encouraged to read the associated prospectus for detailed information.
Prospect Capital Corporation has announced the pricing of $50 million in additional 3.706% notes due 2026, bringing the total to $375 million. Issued on February 12, 2021, this issuance will share terms with the existing notes, maturing on January 22, 2026. The notes will yield 3.706% annually, with interest payable semi-annually starting July 22, 2021. Proceeds will primarily refinance existing debt and enhance liquidity for future investments. The offering is managed by Goldman Sachs and co-managed by Barclays and RBC Capital Markets.
Prospect Capital Corporation (NASDAQ: PSEC) reported strong financial results for Q1 2021, with Net Investment Income (NII) of $81.56 million, up from $57.55 million in Q4 2020. The NII per share increased to $0.21, and net income rose to $305.97 million from a loss of $11.20 million year-over-year. The company declared monthly distributions of $0.06 per share for February to April 2021, maintaining a 10.7% annualized distribution yield. With total assets at $5.7 billion and a net asset value per share of $8.96, PSEC aims to enhance NII through various strategic initiatives.
Prospect Capital Corporation has initiated a cash tender offer for up to $30,000,000 of its 4.95% Senior Convertible Notes due 2022. The tender offer, expiring on March 2, 2021, aims to purchase notes with a total outstanding principal amount of $136,228,000. Investors will receive $1,030.00 for each validly tendered $1,000 principal amount, plus accrued interest. If total tenders exceed the $30 million target, proration will apply. D.F. King & Co., Inc. is the appointed Information and Tender Agent.
Prospect Capital Corporation (NASDAQ: PSEC) announced the pricing of $325 million in 3.706% notes maturing on January 22, 2026. Interest on the notes will be paid semi-annually starting July 22, 2021. The proceeds aim to refinance existing debt, including redeeming 6.25% Notes due 2024, and to enhance liquidity for future investments. Barclays, RBC Capital Markets, and Goldman Sachs are joint book-running managers, with the closing expected on January 22, 2021. Investors should review the associated prospectus for risks and detailed information.
Prospect Capital Corporation announced a cash tender offer to buy up to $20 million of its 6.375% Convertible Notes due 2025. The offer will expire at 12:00 midnight on January 27, 2021. For each $1,000 principal amount of Notes tendered, the payment will be $1,110 plus accrued interest. If more than $20 million is tendered, a proration factor will apply. The offer is not contingent on a minimum amount of Notes being tendered and could be amended or terminated by the company at any time.
Prospect Capital Corporation (NASDAQ: PSEC) has acquired $25 million in first lien senior secured floating rate notes to support the recapitalization of KM2 Solutions, LLC, led by H.I.G. Capital. KM2 specializes in business process outsourcing, serving finance and healthcare markets. This marks the 30th financing collaboration between Prospect and H.I.G. According to Jason Wilson from Prospect, this investment validates KM2's customer value proposition, and the company aims to enhance its growth initiatives under new management.
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