Prospect Capital Corporation Announces Results of Cash Tender Offer For Any and All of its Outstanding 6.375% Notes due 2024

Rhea-AI Summary

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.

Positive

• Total of $647,000 in principal amount of notes validly tendered.
• Consideration set at $1,087.50 per $1,000 principal, indicating a beneficial financial move.

Negative

• None.

NEW YORK, March 23, 2021 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (the “Company”) today announced the results of its previously announced cash tender offer (the “Tender Offer”) to purchase any and all of the outstanding notes listed below. The Tender Offer was made pursuant to an Offer to Purchase dated March 16, 2021 (the “Offer to Purchase”), which set forth the terms and conditions of the Tender Offer.

As of the previously announced expiration time of 5:00 p.m., New York City time, on March 22, 2021 (the “Expiration Time”), according to information provided by D.F. King & Co., Inc., the information and tender agent for the Tender Offer, a total of $647,000 aggregate principal amount of Notes (defined below) had been validly tendered and not validly withdrawn in the Tender Offer. This amount includes $0 tendered pursuant to the guaranteed delivery procedures described in the Offer to Purchase and notice of guaranteed delivery, dated March 16, 2021, which remains subject to the holders’ performance of the delivery requirements under such procedures. Withdrawal rights for the Notes expired at 5:00 p.m., New York City time, on March 22, 2021. The table below sets forth the aggregate principal amount and percentage of the Notes validly tendered and not validly withdrawn by the Expiration Time that will be accepted for purchase by the Company (the “Eligible Notes”).

Title of Security	CUSIP / ISIN Nos.	Outstanding Principal Amount	Principal Amount Tendered
6.375% Notes due 2024 (the “Notes”)	74348TAS1 / US74348TAS15	$82,262,000	$647,000

The consideration to be paid for the Eligible Notes is $1,087.50 for each $1,000 principal amount of Eligible Notes, plus accrued and unpaid interest on the Eligible Notes, if any, from the applicable last interest payment date up to, but not including, the settlement date, which date is expected to be March 25, 2021.

The Company has retained D.F. King & Co., Inc. to serve as the Information and Tender Agent for the Notes in the Tender Offer.

The Tender Offer is being made pursuant to the terms and conditions contained in the Offer to Purchase, a copy of which may be obtained from D.F. King & Co., Inc. at (212) 269-5550 (Banks and Brokers) or (866) 388-7452 (toll free), or via psec@dfking.com.

A copy of the Offer to Purchase is also available at the following web address:
https://dfking.com/psec/

This announcement is for informational purposes only and is not an offer to purchase or sell or a solicitation of an offer to purchase or sell, with respect to any securities. The solicitation of offers to buy the Notes is only being made pursuant to the terms of the Offer to Purchase, as it may be amended or supplemented. The Tender Offer is not being made in any state or jurisdiction in which such offer would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. None of the Company or the Information and Tender Agent are making any recommendation as to whether or not holders should tender their Notes in connection with the Tender Offer.

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 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 Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. These forward-looking statements include statements regarding expectations as to the completion of the transactions contemplated by the Tender Offer. 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 was the result of Prospect Capital's tender offer on March 22, 2021?

Prospect Capital reported $647,000 in principal amount of 6.375% Notes due 2024 was validly tendered by the expiration time.

What is the settlement date for the tender offer announced by Prospect Capital?

The expected settlement date for the tender offer is March 25, 2021.

What will investors receive for the tendered notes in the offer?

Investors will receive $1,087.50 for each $1,000 principal amount of the tendered notes, plus accrued interest.