Prospect Capital Announces Issuance of $103.5 Million of 4.95% Convertible Notes due 2022
19 May 2018 - 6:01AM
Prospect Capital Corporation (NASDAQ:PSEC) (“Prospect”, “our”, or
“we”), in connection with the previously announced public offering,
issued $103.5 million in aggregate principal amount of senior
unsecured 4.95% Convertible Notes Due 2022 (including $13.5 million
in aggregate principal amount of 4.95% Convertible Notes due 2022
pursuant to the exercise in full by the underwriter of its
over-allotment option) (the “Notes”).
The Notes are a further issuance of the 4.95% Convertible Notes
due 2022 that Prospect issued on April 11, 2017 in the aggregate
principal amount of $225,000,000 (the “existing 4.95% Convertible
Notes”). The Notes will be treated as a single series with the
existing 4.95% Convertible Notes under the indenture and will have
the same terms as the existing 4.95% Convertible Notes. The Notes
will have the same CUSIP number and will be fully fungible and rank
equally in right of payment with the existing 4.95% Convertible
Notes. The conversion price of the Notes is $9.98. After the
issuance of the Notes, the outstanding aggregate principal amount
of Prospect’s 4.95% Convertible Notes due 2022 is now $328.5
million.
The Notes will mature on July 15, 2022, unless earlier
converted, repurchased or redeemed in accordance with their terms.
Interest on the Notes will accrue from January 15, 2018 and will be
payable semi-annually in arrears on January 15 and July 15 of each
year, commencing on July 15, 2018. The Notes will be general
unsecured obligations of Prospect, will rank equally in right of
payment with Prospect’s existing and future senior unsecured debt,
and will rank senior in right of payment to any potential
subordinated debt, should any be issued in the future.
Prospect expects to use a portion of the net proceeds from the
sale of the Notes to repay debt under our credit facility. Prospect
intends to use the remainder of the net proceeds of the offering to
invest in high quality short term debt investments, and/or make
long term investments in accordance with its investment objective.
The Notes have no restrictions related to the type and security of
assets in which Prospect might invest.
Goldman Sachs & Co. LLC served as the sole underwriter for
the offering.
The offering of these securities may be made only by means of a
prospectus and a related prospectus supplement, a copy of which may
be obtained by contacting: Goldman Sachs & Co. LLC, Attention:
Prospectus Department, 200 West Street, New York, NY 10282,
telephone: (212) 902-1171 or email:
prospectus-ny@ny.email.gs.com.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of
these securities in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any state.
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation is a business development company
that focuses on lending to and investing in private businesses. Our
investment objective is to generate both current income and
long-term capital appreciation through debt and equity
investments.
We have elected to be treated as a business development company
under the Investment Company Act of 1940 (“1940 Act”). We are
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. Failure
to comply with any of the laws and regulations that apply to us
could have an adverse effect on us and our shareholders.
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 Officergrier@prospectstreet.comTelephone (212)
448-0702
Prospect Capital (NASDAQ:PSEC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Prospect Capital (NASDAQ:PSEC)
Historical Stock Chart
From Jul 2023 to Jul 2024