Prospect Capital Corporation Extends and Increases Revolving Credit Facility to Over $2.1 Billion of Aggregate Commitments

Rhea-AI Summary

Prospect Capital (NASDAQ: PSEC) has successfully extended and increased its revolving credit facility for Prospect Capital Funding , a GAAP consolidated subsidiary. The facility's total commitments now stand at $2.1215 billion, with participation from 48 banks boasting a combined asset base exceeding $7.5 trillion. This marks the largest number of lenders for any business development company's credit facility.

Key features of the facility include:
- An accordion feature allowing commitments to increase up to $2.25 billion
- A five-year term with maturity on June 28, 2029
- A four-year revolving period through June 28, 2028
- An additional one-year amortization period

Grier Eliasek, President and COO of Prospect, expressed satisfaction with the longstanding support from relationship banks, some dating back to 2009. He emphasized that this industry-leading facility provides Prospect with efficient capital to meet investment and financing needs for their business and portfolio companies.

Positive

• Increased revolving credit facility commitments to $2.1215 billion
• Participation from 48 banks with a combined asset base over $7.5 trillion
• Facility includes an accordion feature allowing commitments to increase up to $2.25 billion
• Extended maturity to June 28, 2029, with a four-year revolving period

Negative

• None.

NEW YORK, Oct. 07, 2024 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) extended and increased total commitments for its revolving credit facility (the “Facility”) for Prospect Capital Funding LLC, a GAAP consolidated subsidiary of Prospect, with the most recent upsize in the quarter ended September 30, 2024.

Facility commitments currently aggregate $2.1215 billion from a group of 48 banks (with a combined asset base of over $7.5 trillion), which Prospect considers the largest number of lenders to any business development company’s credit facility. The Facility includes an accordion feature allowing aggregate commitments to be increased up to $2.25 billion.

The Facility term comprises five years from the initial closing, with a maturity of June 28, 2029. The Facility has a revolving period of four years from the initial closing, extending through June 28, 2028 and followed by an additional one-year amortization period.

"Prospect Capital is pleased to have the longstanding support of so many strong relationship banks, some of which date all the way back to 2009 with our credit relationship," said Grier Eliasek, President and Chief Operating Officer of Prospect. "We look forward to continuing such relationships for many years to come, with our industry leading facility providing Prospect with efficient capital to help meet the investment and financing needs of our business and portfolio companies."

About Prospect Capital Corporation

Prospect 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 total commitment for Prospect Capital 's (PSEC) revolving credit facility?

Prospect Capital 's (PSEC) revolving credit facility now has total commitments of $2.1215 billion.

How many banks are participating in PSEC's revolving credit facility?

48 banks are participating in Prospect Capital 's (PSEC) revolving credit facility.

When does PSEC's extended revolving credit facility mature?

Prospect Capital 's (PSEC) extended revolving credit facility matures on June 28, 2029.

What is the maximum potential commitment for PSEC's revolving credit facility?

The maximum potential commitment for Prospect Capital 's (PSEC) revolving credit facility is $2.25 billion, thanks to its accordion feature.