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 (NASDAQ: PSEC) has announced the acquisition of $29 million in first lien senior secured floating rate notes to finance the recapitalization of Thermal Product Solutions, Inc. (TPS). TPS, a leading manufacturer of industrial ovens and test chambers, has been in operation since 1912, serving major Fortune 500 companies. The financing aims to enhance TPS's growth across various sectors, including aerospace and pharmaceuticals. The collaboration is built on Prospect's extensive experience in the capital equipment industry.
Prospect Capital Corporation (Nasdaq: PSEC) announced its annual meeting of stockholders will be held virtually on December 2, 2020, at 3:30 p.m. EST due to COVID-19 safety concerns. Stockholders must use a 16-digit control number to participate in the meeting via webcast. Those holding shares in 'street name' should follow their broker’s instructions for obtaining this number. The meeting agenda remains unchanged from the previously mailed proxy statement dated September 28, 2020. Stockholders are encouraged to vote in advance and attend the meeting early.
Prospect Capital Corporation announced cash tender offers for up to $30 million of its 5.875% Senior Notes due 2023 and $10 million of its 6.375% Notes due 2024. The offers expire on December 16, 2020. Holders of 2023 Notes will receive $1,050 per $1,000 principal amount, while those with 2024 Notes will receive $1,080. The company retains the right to amend or terminate the offers. Validly tendered notes can be withdrawn prior to the expiration date.
Prospect Capital Corporation (PSEC) reported Q1 fiscal 2021 net investment income of $57.5 million, or $0.15 per share, down from $71.1 million or $0.19 per share year-over-year. Total net income surged to $167.7 million from $18.1 million a year prior, with per share net income at $0.45. Distributions remain stable at $0.18 per share. Notably, NAV increased to $8.40 from $8.18 quarter-over-quarter. PSEC announced cash distributions of $0.06 per share for the next three months, yielding 14.5% based on a share price of $4.97. The company plans to enhance NII through various strategic initiatives.
Prospect Capital Corporation (NASDAQ: PSEC) will file its Form 10-Q on November 9, 2020, detailing fiscal Q1 results ending September 30, 2020. The earnings press release will also be issued on the same day post-market close.
A conference call is scheduled for November 10, 2020, at 11:00 a.m. ET. Investors can participate via dial-in or listen to a live webcast on the company’s website.
Prospect Capital Corporation has initiated a cash tender offer to purchase all outstanding 4.95% Senior Convertible Notes due in 2022, totaling $222,785,000. The offer expires at midnight on November 17, 2020, with a consideration of $1,026.25 per $1,000 principal, plus accrued interest. Validly tendered notes can be withdrawn before the expiration. The settlement is expected within three business days following the expiration, contingent on conditions being met. D.F. King & Co., Inc. is the appointed Information and Tender Agent for the notes.
Prospect Capital Corporation has initiated a cash tender offer for its outstanding 4.95% Senior Convertible Notes due 2022, totaling $228.82 million. This offer, which is set to expire on October 2, 2020, will allow holders to exchange $1,010 principal amount of notes for $1,000, plus accrued interest. The company anticipates the settlement date to occur within three business days following this expiration, contingent upon all conditions being satisfied or waived. The tender offer is not conditional on a minimum number of notes being tendered.
Prospect Capital Corporation (PSEC) reported financial results for its fiscal year ending June 30, 2020. Net Investment Income (NII) totaled $265.7 million, down from $312.9 million year-over-year, with NII per share at $0.72. The net loss was $16.2 million, or $0.04 per share, contrasting with a profit of $144.5 million the previous year. Despite lower NII, the company declared regular distributions of $0.18 per share, maintaining a 13.9% annualized yield. As of June 30, 2020, NAV per share decreased to $8.18 from $9.01 a year earlier. Total investments reached $5.23 billion, while insider ownership increased to over 27%.
Prospect Capital Corporation (NASDAQ: PSEC) announced it will file its Form 10-K report for the fiscal year ending June 30, 2020, on August 26, 2020, after market close. An earnings press release will accompany this filing. The company will host a conference call on August 27, 2020, at 11:00 a.m. ET, with a dial-in number of 888-338-7333. A replay will be available for 30 days. The conference call can also be accessed via a webcast on the company’s website.
On August 3, 2020, Prospect Capital Corporation (NASDAQ: PSEC) announced a continuous preferred stock offering of up to 40 million shares, totaling a $1 billion aggregate liquidation preference. Each share will be priced at $25.00, with a 5.50% annual dividend rate paid monthly, providing an annual yield of 5.64%. The proceeds aim to enhance balance sheet liquidity, repay debt, and invest in high-quality short-term debt instruments. The offering is designed to deliver attractive risk-adjusted returns to investors while enhancing common stock value.
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