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.
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.
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
Prospect Capital (NASDAQ: PSEC) announced financial results for the fiscal quarter and year ended June 30, 2024. Key highlights include:
- Net Investment Income (NII) of $102.9 million ($0.25 per share) for Q4 2024
- Declared 86th consecutive $0.06 monthly dividend
- Total assets of $7.86 billion as of June 30, 2024
- NAV per common share of $8.74 as of June 30, 2024
- Successful completion of amended and extended $2.1 billion credit facility
- 81% of portfolio in first lien, secured, or underlying secured assets
- Annualized current yield on all investments of 9.8%
- Non-accrual loans at 0.3% of total assets
Prospect continues to focus on downside protection and maintaining a diversified investment portfolio across multiple strategies. The company has distributed $21.12 per share since inception, representing 2.4 times June 2024 NAV.
Prospect Capital (NASDAQ: PSEC) has announced its schedule for releasing fiscal year earnings and hosting a conference call. The company expects to file its Form 10-K report and issue an earnings press release on August 28, 2024, after market close. A conference call is scheduled for August 29, 2024, at 9:00 a.m. Eastern Time.
Investors can dial 888-338-7333 to join the call. A replay will be available for approximately 30 days by calling 877-344-7529 with passcode 2929037. Additionally, a live listen-only webcast will be accessible on the company's website at www.prospectstreet.com.
NewStar Exchange, a subsidiary of NEWSTAR, has fully subscribed its NewStar 6 Tranquil Gardens BTR, DST offering, raising $19.1 million from Section 1031 exchange investors. This marks the company's third successful 1031 exchange Delaware Statutory Trust offering, bringing their total equity raised to approximately $50 million since launching two years ago.
The Tranquil Gardens project comprises 73 newly constructed three-bedroom and four-bedroom homes for rent in northwest Atlanta, Georgia. The community has been performing well, meeting investment projections and achieving a 6% annualized increase in in-place rents. Notably, it's commanding a 25% rent premium compared to its competitive set.
Preferred Capital Securities (PCS) served as the managing broker-dealer for this offering. PCS has a strong track record, having raised over $3 billion in retail capital across 8 offerings since 2011.
Prospect Capital (NASDAQ: PSEC) announced its financial results for the quarter ended March 31, 2024, including NII of $94.4 million and a net loss per common share of $0.27. The company declared its 84th consecutive $0.06 dividend to common shareholders, with total assets of $7.9 billion and total liabilities of $2.6 billion. Prospect's strategic focus includes growing NII and NAV through various investment initiatives.
Prospect Capital (NASDAQ: PSEC) announced its upcoming earnings release for the fiscal quarter ended March 31, 2024, scheduled for May 8, 2024. The company will host a conference call on May 9, 2024, providing investors with an opportunity to learn more about the financial results.
FAQ
What is the current stock price of Prospect Capital (PSEC)?
What is the market cap of Prospect Capital (PSEC)?
What is Prospect Capital Corporation (PSEC)?
What types of investments does PSEC make?
How does PSEC manage its risk?
What is the purpose of PSEC's monthly distributions?
What were PSEC's financial highlights for the quarter ended September 30, 2023?
When is PSEC's next earnings call?
Who is the investment advisor for Prospect Capital Corporation?
What is PSEC's primary investment objective?
In which regions does PSEC primarily operate?
How does PSEC communicate with its investors?
