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 (PSEC) reported mixed financial results for the fiscal year ending June 30, 2022. Net Investment Income (NII) rose to $343.9 million, or $0.81 per share, up from $285.7 million, or $0.74 per share, in the previous year. However, net income applicable to common shareholders fell significantly to $556.6 million, or $1.43 per share, from $962.1 million, or $2.51 per share. Distributions remained stable at $0.72 per share. As of June 30, 2022, total investments increased to $7.6 billion, while Net Asset Value (NAV) per share reached $10.48. The company declared ongoing monthly distributions of $0.06 per share for September and October 2022, maintaining a robust yield of 9.2%.
Prospect Capital Corporation (NASDAQ: PSEC) has rescheduled its fourth-quarter financial results release to August 29, 2022. The Annual Report on Form 10-K for the fiscal year ended June 30, 2022, will be filed on this date. Additionally, the conference call to discuss these results has been moved to August 30, 2022, at 11:00 a.m. ET, with a dial-in number provided for participants. A live webcast will also be available, and a recording of the call will be accessible for 30 days following the event.
Prospect Capital Corporation (NASDAQ: PSEC) plans to file its Form 10-K on August 24, 2022, reporting fiscal results for the year ended June 30, 2022. The earnings announcement will coincide with the filing, occurring after market closure. Following this, a conference call is scheduled for August 25, 2022, at 12:00 p.m. ET. Interested parties can join via a dial-in number, and a recording will be accessible for 30 days. Prospect Capital focuses on private business lending, aiming for current income and long-term capital growth.
Prospect Capital Corporation (NASDAQ: PSEC) raised over $100 million in its recent closing of the Series A1, M1, and M2 Preferred Stock offerings, totaling approximately $687 million sold to date. The offering size increased from $1 billion to $1.5 billion, now allowing for $813 million more to be sold. Since December 2020, these Preferred Stock issuances have exceeded $840 million. The company's President highlighted the recurring cash income and liquidity benefits of the preferred stock. The offering is managed by Preferred Capital Securities LLC, which has raised about $3 billion since 2011.
On June 9, 2022, Prospect Capital Corporation (NASDAQ: PSEC) announced an increase in its Series A1, M1, and M2 Preferred Stock offering from $1 billion to $1.5 billion. Approximately $565 million has already been raised, leaving $935 million available. This initiative has collectively exceeded $700 million in aggregate liquidation preference since December 2020. President Grier Eliasek emphasized the stable cash income and liquidity of these offerings. Preferred Capital Securities LLC is the dealer manager for this offering, having raised approximately $3 billion since 2011.
Prospect Capital Corporation (NASDAQ: PSEC) reported its financial results for the third quarter ended March 31, 2022. Net Investment Income (NII) rose to $87 million, with basic NII per share at $0.22. Net Income applicable to common stockholders reached $157 million, down from $246 million year-on-year. The company declared monthly distributions of $0.06 per share for four consecutive months, yielding 9.2% based on a closing stock price of $7.81. NAV increased to $10.81 per share. Prospect has invested $18.7 billion across 394 investments since its inception in 2004.
Prospect Capital Corporation (NASDAQ: PSEC) has rescheduled its conference call to Tuesday, May 10, 2022, at 4:00 p.m. ET, originally set for 11:00 a.m. The call will follow the release of its Form 10-Q for the fiscal quarter ended March 31, 2022, which is expected to be filed after market close on May 9, 2022. A recording of the call will be available for 30 days. Investors can tune in through the company’s website for a live listen-only webcast and access an audio replay afterward.
Prospect Capital Corporation (NASDAQ: PSEC) will file its Form 10-Q for the fiscal quarter ended March 31, 2022, on May 9, 2022, after market close. The earnings press release will also be issued on the same day.
A conference call is scheduled for May 10, 2022, at 11:00 a.m. Eastern Time, with the dial-in number 888-338-7333. A replay will be available for 30 days. The call can also be accessed via a live webcast on the company’s website.
Prospect Capital Corporation (NASDAQ: PSEC) has announced that its preferred stock offerings have reached approximately $650 million in aggregate liquidation preference since December 31, 2020. These offerings provide investors with recurring cash income, stable value, and liquidity, supported by over $4 billion in junior common equity. Various investment channels have participated in the preferred stock offerings, highlighting investor confidence. The ongoing offering of Series A1, M1, and M2 Preferred Stock is managed by Preferred Capital Securities LLC.
On March 28, 2022, Prospect Capital Corporation (NASDAQ: PSEC) announced that its preferred stock offerings have amassed approximately $600 million in aggregate liquidation preference since December 31, 2020. According to President Grier Eliasek, the preferred stock provides investors with recurring cash income, stability, and over $4 billion in junior common equity credit support. The offering involves Series A1, M1, and M2 Preferred Stock managed by Preferred Capital Securities LLC.
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