Prospect Capital Corporation Makes $65 Million Investment in Taos Footwear
Prospect Capital (NASDAQ: PSEC) has made a $65 million investment in Taos Footwear Holdings, a leading footwear brand known for its supportive footbed technology. The investment package includes a first lien senior secured term loan, a first lien senior secured convertible term loan, and a preferred equity investment.
Taos Footwear, established 20 years ago, has built its reputation on providing stylish and supportive footwear products. The company's founder and CEO, Glen Barad, indicated that the partnership with Prospect aims to provide both capital and strategic expertise to elevate the brand and drive continued growth.
Prospect Capital (NASDAQ: PSEC) ha effettuato un investimento di 65 milioni di dollari in Taos Footwear Holdings, un marchio di calzature leader noto per la sua tecnologia di supporto della soletta. Il pacchetto di investimento include un prestito garantito senior di primo grado, un prestito convertibile garantito senior di primo grado e un investimento azionario privilegiato.
Taos Footwear, fondata 20 anni fa, ha costruito la sua reputazione offrendo prodotti di calzature eleganti e di supporto. Il fondatore e CEO dell'azienda, Glen Barad, ha indicato che la partnership con Prospect mira a fornire sia capitale che competenze strategiche per elevare il marchio e guidare una crescita continua.
Prospect Capital (NASDAQ: PSEC) ha realizado una inversión de 65 millones de dólares en Taos Footwear Holdings, una marca de calzado líder conocida por su tecnología de plantilla de soporte. El paquete de inversión incluye un préstamo a plazo senior garantizado de primer grado, un préstamo convertible a plazo senior garantizado de primer grado y una inversión de capital preferente.
Taos Footwear, establecida hace 20 años, ha construido su reputación ofreciendo productos de calzado elegantes y funcionales. El fundador y CEO de la empresa, Glen Barad, indicó que la asociación con Prospect tiene como objetivo proporcionar tanto capital como experiencia estratégica para elevar la marca y fomentar un crecimiento sostenido.
Prospect Capital (NASDAQ: PSEC)는 Taos Footwear Holdings에 6,500만 달러를 투자했습니다. Taos Footwear는 지지력이 뛰어난 풋베드 기술로 유명한 선도적인 신발 브랜드입니다. 이번 투자 패키지는 선순위 담보 정기 대출, 선순위 담보 전환 정기 대출 및 우선주 투자를 포함합니다.
20년 전에 설립된 Taos Footwear는 스타일리시하면서도 지지력이 있는 신발 제품을 제공하며 명성을 쌓아왔습니다. 회사의 설립자이자 CEO인 Glen Barad는 Prospect와의 파트너십이 브랜드를 높이고 지속적인 성장을 이끌기 위해 자본과 전략적 전문지식을 제공하는 것을 목표로 하고 있다고 밝혔습니다.
Prospect Capital (NASDAQ: PSEC) a réalisé un investissement de 65 millions de dollars dans Taos Footwear Holdings, une marque de chaussures leader connue pour sa technologie de semelle intégrante. Le paquet d'investissement comprend un prêt senior garanti de premier rang, un prêt convertible senior garanti de premier rang et un investissement en actions privilégiées.
Créée il y a 20 ans, Taos Footwear a construit sa réputation sur la fourniture de produits de chaussures à la fois élégants et confortables. Le fondateur et PDG de l'entreprise, Glen Barad, a indiqué que le partenariat avec Prospect vise à fournir à la fois du capital et une expertise stratégique pour élever la marque et stimuler une croissance continue.
Prospect Capital (NASDAQ: PSEC) hat in Taos Footwear Holdings eine Investition in Höhe von 65 Millionen US-Dollar getätigt, eine führende Schuhmarke, die für ihre unterstützende Fußbetttechnologie bekannt ist. Das Investitionspaket umfasst ein besichertes Senior-Darlehen erster Linie, ein besichertes konvertierbares Senior-Darlehen erster Linie und eine Vorzugsaktieninvestition.
Taos Footwear, vor 20 Jahren gegründet, hat sich einen Ruf für stilvolle und unterstützende Schuhe aufgebaut. Der Gründer und CEO des Unternehmens, Glen Barad, gab an, dass die Partnerschaft mit Prospect darauf abzielt, sowohl Kapital als auch strategisches Fachwissen bereitzustellen, um die Marke zu stärken und das Wachstum weiter voranzutreiben.
- Secured $65 million in multi-faceted financing package
- Investment includes both debt and equity components, providing financial flexibility
- Partnership with an established brand with 20-year market presence
- None.
Insights
The
- First lien senior secured term loan providing downside protection
- First lien senior secured convertible term loan offering potential equity upside
- Preferred equity investment enabling participation in company growth
The investment structure reveals PSEC's strategic approach to balancing risk and reward. The first lien position provides priority claim on assets, while the convertible feature and preferred equity component offer potential upside if Taos Footwear continues its growth trajectory. The footwear sector has shown resilience, with the comfort footwear segment experiencing particular strength due to changing consumer preferences and an aging demographic seeking supportive footwear solutions.
For PSEC shareholders, this transaction represents a potential catalyst for income generation through interest payments and possible capital appreciation. The deal's structure suggests an estimated blended yield likely in the low-to-mid teens, consistent with PSEC's target returns. The investment also demonstrates PSEC's ability to structure complex transactions and secure deals with established brands, potentially strengthening its market position in the middle-market lending space.
NEW YORK, Jan. 31, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) has provided a first lien senior secured term loan, a first lien senior secured convertible term loan, and a preferred equity investment to Taos Footwear Holdings, LLC (“Taos Footwear” or "Company"), aggregating
Taos Footwear is a leading, innovative footwear brand providing customers with stylish and supportive footwear products. The Company is renowned for its supportive footbed that has reshaped the lifestyle footwear industry over the past 20 years.
“During the last 20 years, the Taos Footwear team has developed differentiated products meeting the needs of our loyal customers, resulting in significant growth for our company," said Taos Footwear Founder and CEO, Glen Barad. "As the business has scaled, we saw a need for a value-added collaborator that could offer both capital and strategic expertise to elevate our brand. Prospect is the ideal fit to help us achieve our vision and drive continued success.”
“Prospect is excited about our investment in Taos Footwear and is pleased to complete this important transaction alongside the Taos Footwear team,” said Robert Melman, Managing Director at Prospect. “Taos Footwear is a leading brand providing an array of innovative and supportive footwear products to its vast customer base. We look forward to supporting the Company’s continued growth.”
About Prospect Capital Corporation
Prospect is a business development company 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. 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
Telephone (212) 448-0702
FAQ
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