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) held its annual meeting of stockholders on December 2, 2022, where key proposals were discussed. As of September 12, 2022, the company had approximately 394.8 million shares of common stock and various preferred stocks outstanding. To allow more time for stockholder votes, the meeting was adjourned until December 9, 2022, at 10:30 a.m. ET. The company is a business development entity focused on lending and investing in private firms, aiming for both current income and long-term capital appreciation.
Prospect Capital Corporation has initiated a cash tender offer for its outstanding 5.875% Senior Notes due 2023 totaling $282,364,000. The offer will close on November 18, 2022, with a proposed settlement date on November 23, 2022. Holders can receive $987.50 per $1,000 principal, plus accrued interest. The offer is not dependent on a minimum amount of notes being tendered and may be amended or extended by the company. D.F. King & Co., Inc. is acting as the Information and Tender Agent.
Prospect Capital Corporation (PSEC) reported its financial results for the quarter ending September 30, 2022. Net Investment Income (NII) increased to $99,266,000, with a basic NII per share of $0.22. However, the company recorded a net loss of $(105,199,000), translating to a basic net loss per share of $(0.27). The Net Asset Value (NAV) per common share decreased to $10.01. Distributions to common shareholders remain steady at $0.18 per share. The company declared cash distributions for November 2022 through January 2023, maintaining a 9.8% annualized distribution yield based on recent stock prices.
Prospect Capital Corporation (NASDAQ: PSEC) will file its Form 10-Q report for Q4 ending September 30, 2022, on November 9, 2022, after market close. An earnings press release will follow the same day. A conference call is scheduled for November 10, 2022, at 11:00 a.m. ET, with dial-in options provided. Interested parties can also listen via webcast on the company's website. Prospect Capital focuses on debt and equity investments in private businesses, aiming for current income and long-term capital appreciation.
On October 24, 2022, Prospect Capital Corporation announced the results of its cash tender offer for its outstanding 5.875% Senior Notes due 2023. The offer, which expired on October 21, 2022, saw a total of $1,508,000 of notes tendered out of an outstanding principal of $283,872,000. Eligible notes will be purchased at $985.00 for each $1,000 principal amount, plus accrued interest, with a settlement date expected on October 26, 2022. The company is proceeding with the tender offer under the terms outlined in its Offer to Purchase.
Prospect Capital Corporation has initiated a cash tender offer to purchase its 5.875% Senior Notes due 2023, amounting to $283,872,000. The offer will expire on October 21, 2022, with expected settlement on October 26, 2022. Each validly tendered note will receive $985.00, plus accrued interest. The offer is not contingent on a minimum amount being tendered and may be amended or extended by the company. This announcement serves informational purposes only and does not constitute a solicitation for securities.
On October 7, 2022, Prospect Capital Corporation (NASDAQ: PSEC) announced the addition of new 6.50% Series A3 and M3 Preferred Stock to its offering of up to $1.5 billion in non-traded preferred stock, currently with approximately $611 million available for sale. The total liquidation preference for all preferred stock offerings has exceeded $1 billion since December 2020. This stock provides a 6.5% annualized cash dividend, monthly payments, and liquidity options, appealing to investors seeking stable returns amid market challenges.
Prospect Capital Corporation announced the results of its cash Tender Offer to purchase outstanding senior notes due in 2023. As of the September 23, 2022 expiration, a total of $347,000 of the notes were validly tendered. The company plans to pay $980 per $1,000 principal amount of the accepted notes, along with accrued interest. The settlement date is projected to be September 28, 2022. For additional details, interested parties can contact D.F. King & Co., Inc., the information and tender agent for the offer.
On September 19, 2022, Prospect Capital Corporation announced a cash tender offer to purchase all outstanding 5.875% Senior Notes due 2023, totaling $284.2 million. The offer will expire on September 23, 2022, unless extended. Each $1,000 principal amount of Notes will be bought for $980.00 plus accrued interest. The settlement is expected on September 28, 2022. The company retains the right to amend or terminate the offer at any time. D.F. King & Co., Inc. is the agent for this tender.
On September 9, 2022, Prospect Capital Corporation (NASDAQ: PSEC) reported that its preferred stock offerings exceeded $1 billion in aggregate liquidation preference since late 2020. Currently, approximately $645 million of Series A1, M1, and M2 Preferred Stock is available for sale. Additionally, Prospect announced an extension and upsizing of its revolving credit facility, effective September 15, 2022, increasing commitments from $1.500 billion to $1.584 billion from 44 lenders. The facility's term was extended for five years, securing significant funding for future investment opportunities.
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