Prospect Capital Corporation Prices Public Offering of $50 Million of 6.25% Unsecured Notes due 2028
01 June 2018 - 5:00AM
Prospect Capital Corporation (NASDAQ:PSEC) ("Prospect", “our”, or
“we”) announced today that it has priced an underwritten public
offering of $50 million in aggregate principal amount of 6.25%
unsecured notes due 2028 (the “Notes”). The Notes will mature on
June 15, 2028 and may be redeemed in whole or in part at any time
or from time to time at our option on or after June 15, 2021. The
Notes will bear interest at a rate of 6.25% per year payable
quarterly on March 15, June 15, September 15 and December 15 of
each year, with the first interest payment occurring on September
15, 2018.
UBS Investment Bank, Morgan Stanley and RBC Capital Markets are
acting as joint book-running managers for this offering. Citigroup
and Ladenburg Thalmann are acting as joint lead managers for this
offering. BB&T Capital Markets, B. Riley FBR, Incapital and
Maxim Group LLC are acting as co-managers for this offering. The
offering is expected to close on June 7, 2018, subject to customary
closing conditions. Prospect has granted the underwriters a 30 day
option to purchase up to an additional $7.5 million in aggregate
principal amount of the Notes.
Prospect expects to use a portion of the net proceeds of this
offering to repay debt under its credit facility. Prospect intends
to use the remainder of the net proceeds from this offering to
invest in high quality short term debt investments, and/or to make
long term investments in accordance with its investment objective
and/or to repurchase certain of its unsecured notes.
Investors are advised to carefully consider the investment
objective, risks, charges and expenses of Prospect before
investing. The preliminary prospectus supplement dated May 31, 2018
and the accompanying prospectus dated October 30, 2017, each of
which have been filed with the Securities and Exchange Commission,
contain this and other information about Prospect and should be
read carefully before investing.
The information in the preliminary prospectus supplement, the
accompanying prospectus and this press release is not complete and
may be changed. The preliminary prospectus supplement, the
accompanying prospectus and this press release are not offers to
sell any securities of Prospect and are not soliciting an offer to
buy such securities in any state where such offer and sale is not
permitted.
The offering of these securities may be made only by means of a
preliminary prospectus supplement and an accompanying prospectus,
copies of which may be obtained from (1) UBS Securities LLC, 1285
Avenue of the Americas, New York, NY 10019, Attention: Prospectus
Specialist, Telephone: 888-827-7275, (2) Morgan Stanley & Co.
LLC, 180 Varick Street, New York, NY 10014, Attention: Prospectus
Department, Telephone: 800-584-6837, and (3) RBC Capital Markets,
LLC, Attention: Investment Grade Syndicate Desk, Brookfield Place,
200 Vesey Street, 8th floor, New York, NY 10080, Telephone:
866-375-6829, e-mail: rbcnyfixedincomeprospectus@rbccm.com.
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. Failure to comply with any of the laws and
regulations that apply to Prospect could have an adverse effect on
Prospect 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
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