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 its Q2 financial results for the period ending December 31, 2021. Net Investment Income (NII) reached $85.6 million, with a basic NII per share of $0.22. Total income amounted to $175.4 million. Net income applicable to common stockholders was $246.4 million, translating to a basic net income per share of $0.63. The company declared monthly cash distributions of $0.06 per share, maintaining an annual yield of 8.6%. Total investments at fair value increased to $7 billion, reflecting strong performance in originations and a focus on enhancing NII growth through strategic initiatives.
Refuel Agency, based in Santa Barbara, has integrated with Thinking Cap Agency, enhancing its offerings in higher education marketing. This new collaboration aims to tackle enrollment challenges faced by institutions, focusing on military, teen, college, and multicultural markets. Thinking Cap, renowned for its proprietary research and marketing solutions, will benefit from Refuel's extensive audience engagement. The headquarters for Thinking Cap will remain in Princeton, NJ, while Refuel continues its operations in California.
Prospect Capital Corporation (NASDAQ: PSEC) has reported that its preferred stock offerings have surpassed $500 million in total liquidation preference since December 31, 2020. The preferred stock provides investors with recurring cash income and support from nearly $4 billion of junior common equity. Prospect's diverse investor base includes institutional and international channels, emphasizing broad market appeal. The ongoing offerings are managed by Preferred Capital Securities LLC.
Prospect Capital Corporation (PSEC) announced it will file its Form 10-Q report for the fiscal quarter ending December 31, 2021, on February 8, 2022, after market close. The earnings press release will also be issued on the same date. A conference call will follow on February 9, 2022, at 11:00 a.m. ET, offering investors insights into the company's performance. PSEC focuses on lending and investing in private businesses, aiming to generate income and long-term capital appreciation.
On January 4, 2022, Prospect Capital Corporation (PSEC) announced surpassing $450 million in preferred stock issuances since December 31, 2020. The offerings, which provide investors with recurring cash income and liquidity, have attracted various institutional investors. President Grier Eliasek highlighted strong support from channels including registered investment advisors and independent wealth firms. This press release serves informational purposes and does not constitute an offer to sell securities. Prospect aims to generate income and long-term capital appreciation through its investments.
Prospect Capital Corporation (NASDAQ: PSEC) announced that its preferred stock offerings have surpassed $400 million in aggregate liquidation preference since December 2020. The preferred stock is designed to provide investors with recurring cash income, a stable stated value, and access to nearly $4 billion in junior common equity credit support. Various investment channels, including institutional and independent wealth investors, have participated in these offerings. The release serves as informational and does not constitute an offer to buy these securities.
Prospect Capital Corporation (PSEC) reported strong financial results for the fiscal quarter ending September 30, 2021, with Net Investment Income (NII) of $81.4 million, translating to $0.21 per share. Total investments rose to $6.43 billion, with a Net Asset Value (NAV) per share of $10.12. Shareholders received $70 million in distributions, maintaining a consistent payout of $0.18 per share. The company declared monthly distributions of $0.06 for November 2021 through January 2022, yielding 8.6%. Notably, since October 2017, NII has exceeded distributions by $0.27 per share.
Prospect Capital Corporation (NASDAQ: PSEC) announced plans to file its Form 10-Q for the fiscal quarter ending September 30, 2021, on November 8, 2021, before market opening. An earnings press release will also be issued on the same day.
A conference call is scheduled for November 8 at 11:00 a.m. ET, with dial-in and webcast options available. The company operates as a business development firm focused on lending to private businesses, aiming for both current income and long-term capital appreciation through various investments.
Prospect Capital Corporation announced the results of its cash tender offer for outstanding notes, which expired on October 15, 2021. A total of $149,000 of notes were validly tendered. The company will pay $1,077.50 for each $1,000 principal amount of the eligible 6.375% Notes due 2024, plus any accrued interest, with a settlement date expected on October 20, 2021. D.F. King & Co., Inc. is serving as the Information and Tender Agent for the offering. This press release is informational and does not constitute a purchase offer.
Prospect Capital Corporation has initiated a cash tender offer to acquire all outstanding 6.375% Senior Notes due 2024, totaling $81,389,000. The Tender Offer will conclude on October 15, 2021, with settlement expected on October 20, 2021. Each validly tendered note will receive $1,077.50 plus accrued interest. A withdrawal option is available until the expiration. The company retains the right to amend, extend, or terminate the offer at its discretion.
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