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) 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.
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