Prospect Capital Corporation Announces New 6.50% Series A3 and M3 for Current Non-Traded Preferred Stock Offering

Rhea-AI Summary

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.

Positive

• New 6.50% Series A3 and M3 Preferred Stock offers a 6.5% annual dividend.
• Approximately $611 million currently available for sale enhances liquidity.
• The total preferred stock offerings have exceeded $1 billion in liquidation preference since 2020.

Negative

• None.

NEW YORK, Oct. 07, 2022 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) announced today that Prospect has added new 6.50% Series A3 and M3 Preferred Stock to our ongoing offering of up to $1.5 billion of non-traded preferred stock (the “Offering”), which is being raised in the private wealth, registered investment advisor, and institutional channels. The Offering has approximately $611 million now available for sale.

The aggregation of this Offering, together with Prospect’s other preferred stock offerings, has exceeded $1.0 billion in aggregate liquidation preference issuances since the initial closing in the quarter ending December 31, 2020.

“Prospect’s non-traded preferred stock offers investors a 6.5% annualized cash dividend paid monthly, a stable stated value, ongoing twice monthly liquidity, management investment alignment, regulatory leverage limitations, and approximately $4 billion of junior common equity credit support." said Grier Eliasek, President of Prospect. “Prospect is a leading issuer of non-traded preferred stock, with investors especially appreciating our non-traded preferred stock downside protection and stable returns in the current challenging macroeconomic environment. With multiple liquidity events occurring in the non-traded registered marketplace ​with other products this year, we welcome interest from any such investors and their advisors regarding Prospect's preferred stock.”

Preferred Capital Securities LLC (“PCS”) is a securities broker dealer and the dealer manager for the ongoing Offering of the Series A3 and M3 Preferred Stock. PCS has raised approximately $3 billion in non-traded preferred stock since its formation in 2011.

This press release is for informational purposes and is not an offer to purchase or sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The ongoing Offering of the Series A3 and M3 Preferred Stock is being made only by means of the prospectus supplement and the accompanying prospectus, copies of which may be obtained by writing to PCS at 3284 Northside Parkway NW, Suite 150, Atlanta, GA 30327.

About Prospect Capital Corporation

Prospect Capital Corporation is a business development company that focuses on lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940 (“1940 Act”). Prospect is required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.

For further information, contact:
Grier Eliasek, President and Chief Operating Officer
grier@prospectcap.com
Telephone (212) 448-0702

FAQ

What is the new Preferred Stock offering by PSEC?

Prospect Capital Corporation has introduced new 6.50% Series A3 and M3 Preferred Stock.

How much of the Preferred Stock Offering is available for sale?

Approximately $611 million of the non-traded preferred stock is currently available for sale.

What is the annual dividend rate of Prospect Capital's new Preferred Stock?

The new Preferred Stock offers a 6.5% annualized cash dividend paid monthly.

When did Prospect Capital exceed $1 billion in preferred stock liquidation preference?

Prospect Capital's preferred stock offerings exceeded $1 billion since the first closing in December 2020.

Who is managing the ongoing Preferred Stock Offering for PSEC?

Preferred Capital Securities LLC is the dealer manager for the ongoing Offering of the Series A3 and M3 Preferred Stock.