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) announced plans to file its Form 10-Q for the fiscal third quarter ending March 31, 2021, on May 10, 2021, after market close. An earnings press release will also be issued the same day. Additionally, a conference call is scheduled for May 11, 2021, at 11:00 a.m. ET, where investors can participate by dialing 888-338-7333 or via a live webcast. The company focuses on lending to and investing in private businesses for current income and long-term capital appreciation.
On April 23, 2021, Prospect Capital Corporation (NASDAQ: PSEC) announced progress in its continuous preferred stock offering of up to 40 million shares with a $1 billion liquidation preference. Since the initial closing in December 2020, $80.6 million has been issued, including $19.7 million since mid-March 2021. The preferred stock offers a 5.5% annual dividend, paid monthly, and ranks senior to over $3.4 billion of common stock. It is convertible into common stock at the investor's discretion. The press release also emphasizes prospective returns and business development strategies.
Prospect Capital Corporation has initiated two cash tender offers to repurchase up to $30 million of outstanding 5.875% Senior Notes due 2023 and 6.375% Notes due 2024. The offers expire on May 5, 2021. The consideration for the 2023 Notes is $1,041.50 per $1,000 principal, and for the 2024 Notes, it is $1,075.00 per $1,000. Tendered notes can be withdrawn before the expiration date. D.F. King & Co., Inc. is the Information and Tender Agent for these offers.
Prospect Capital Corporation has completed its cash tender offer, expiring on March 29, 2021, to purchase outstanding 5.875% Senior Notes due 2023. A total of $726,000 of notes were validly tendered by the expiration time. The consideration for accepted notes will be $1,042.00 for each $1,000 principal, plus accrued interest. The settlement date for the transaction is projected to be March 11, 2021. This tender offer aims to enhance the company's financial flexibility while managing its debt portfolio.
Prospect Capital Corporation has launched a cash tender offer to purchase all outstanding 5.875% Senior Notes due 2023, totaling $285.78 million. The offer expires on March 29, 2021, with settlement expected by April 1, 2021. Each $1,000 principal amount of validly tendered notes will receive $1,042, plus accrued interest. The Tender Offer is not contingent on a minimum amount being tendered and allows for valid withdrawals until the expiration time. D.F. King & Co., Inc. acts as the Information and Tender Agent.
Prospect Capital Corporation announced the results of its cash tender offer to purchase outstanding 6.375% Notes due 2024. As of March 22, 2021, $647,000 in principal of the notes was validly tendered. The offer includes a consideration of $1,087.50 per $1,000 principal amount plus accrued interest, with a settlement date set for March 25, 2021. The company aims to optimize its financial structure through this transaction, facilitated by D.F. King & Co., Inc., the Information and Tender Agent.
Prospect Capital Corporation has initiated a cash tender offer to acquire up to $30 million of its outstanding 4.95% Senior Convertible Notes due 2022. The offer will expire on April 14, 2021. Each validly tendered note will be bought at a price of $1,020.00 per $1,000 principal amount, plus accrued interest. The company may purchase the notes after the expiration date, contingent on conditions being satisfied. If the total tendered exceeds $30 million, a proration factor will apply. Further details can be obtained through D.F. King & Co., Inc.
Prospect Capital Corporation announced a cash tender offer to purchase its outstanding 6.375% Senior Notes due 2024 with a total outstanding principal of $82,262,000. The offer will expire on March 22, 2021, unless extended. Each $1,000 principal amount of validly tendered notes will receive $1,087.50 plus accrued interest. The settlement date is expected to be March 25, 2021. The offer is not conditioned on a minimum amount of notes being tendered and may be amended, extended, or terminated at the company's discretion.
Prospect Capital Corporation announced the completion of its cash tender offer for its 5.875% Senior Notes due 2023. As of the expiration time on March 15, 2021, a total of $4,219,000 in aggregate principal amount of notes was validly tendered. The company will pay $1,042.50 per $1,000 principal amount of eligible notes, plus accrued interest, with settlement expected on March 18, 2021. The offer was made according to the terms set in the Offer to Purchase, which is available through the company's information agent, D.F. King & Co., Inc.
Prospect Capital Corporation (PSEC) reported raising $60.9 million through its preferred stock offering, part of a larger goal of $1 billion. The offering includes up to 40 million shares, with a 5.5% annual dividend rate paid monthly. The Preferred Stock is senior to over $3.4 billion of common stock and is convertible into common stock at the investor's discretion. This fundraising reflects strong investor demand, providing capital protection and liquidity.
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