Prospect Capital Corporation Continuous Preferred Stock Offering Issuances Exceed $75 Million Since Initial Closing

Rhea-AI Summary

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.

Positive

• Issued $80.6 million in preferred stock since December 2020, indicating strong investor interest.
• Preferred stock offers a 5.5% annual dividend, enhancing income for investors.
• Ranked senior to over $3.4 billion of common stock, providing security for investors.

Negative

• None.

NEW YORK, April 23, 2021 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”), announced today that our continuous preferred stock offering of up to 40,000,000 shares of Series A1, M1, and M2 with a $1 billion aggregate liquidation preference (the “Preferred Stock”) has issued $80.6 million in aggregate preference amount since the initial closing in the quarter ending December 31, 2020. Prospect issued $19.7 million in aggregate preference amount of the Preferred Stock since March 15, 2021.

“Prospect’s Preferred Stock delivers a consistent, attractive risk-adjusted return to investors and is accretive to Prospect’s common stock,” said Grier Eliasek, President and Chief Operating Officer of Prospect Capital Corporation.

The Preferred Stock has a stated annual dividend rate of 5.5%, paid monthly (resulting in an annual percentage yield of 5.64%) and ranks senior to over $3.4 billion of Prospect’s common stock. The Preferred Stock is perpetual and convertible into our publicly traded common stock at the preferred investor’s discretion (with conversions occurring twice per month, subject to certain conditions and fees that decline to zero over time, if applicable).

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 Offering is being made only by means of the prospectus supplement and the accompanying prospectus, copies of which may be obtained by writing to Preferred Capital Securities LLC 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 preferred stock offering by Prospect Capital Corporation?

Prospect Capital Corporation is offering up to 40 million shares of preferred stock with a $1 billion liquidation preference, aimed at attracting investors.

What is the dividend rate for the preferred stock of PSEC?

The preferred stock has a stated annual dividend rate of 5.5%, paid monthly.

When was the press release regarding the preferred stock issued?

The press release was issued on April 23, 2021.

How much preferred stock has Prospect Capital issued since December 2020?

Since December 2020, Prospect Capital has issued $80.6 million in preferred stock.

What is the significance of the preferred stock ranking for PSEC investors?

The preferred stock ranks senior to over $3.4 billion of common stock, providing a layer of security for investors.