Prospect Capital Corporation Launches $1 Billion 5.5% Perpetual Preferred Stock Offering
04 August 2020 - 6:34AM
Prospect Capital Corporation (NASDAQ:PSEC) (“Prospect”) announced
today a continuous preferred stock offering of up to 40,000,000
shares, with a $1,000,000,000 aggregate liquidation preference (the
“Preferred Stock”) (the “Offering”). Each share of Preferred Stock
will have an offering price of $25.00 per share, before the
application of any commissions and discounts.
The Preferred Stock will have a stated annual dividend rate of
5.50%, paid monthly (resulting in an annual percentage yield of
5.64%), and will rank senior to Prospect’s common stock. Prospect
expects to use the net proceeds from the Offering to maintain and
enhance balance sheet liquidity, including repayment of debt under
its credit facility, if any, investments in high quality short-term
debt instruments, or a combination thereof, and to make long-term
investments in accordance with its investment objective. The
Preferred Stock provides Prospect with a diversified source of
accretive fixed-rate capital without creating maturity risk due to
the perpetual term.
“Prospect is pleased to offer the preferred stock in an
accretive fashion to deliver consistent, attractive risk-adjusted
returns to investors while enhancing the value of Prospect’s common
stock,” John F. Barry III, Chairman and Chief Executive Officer of
Prospect.
Preferred Capital Securities, LLC (“PCS”), a broker dealer and
wholesale distributor, is the dealer manager for the Offering.
Investors are advised to carefully consider the
investment objective, risks, charges and expenses of Prospect
before investing. A prospectus supplement dated August
3, 2020, related to the Offering,
and an accompanying prospectus dated February 13, 2020, which have
been filed with the Securities and Exchange, contain this and other
information about Prospect and should be read carefully before
investing.
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 Shareholder Services
at 3284 Northside Parkway NW, Suite 150, Atlanta, GA
30327.
About Prospect Capital CorporationProspect
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 regulatory requirements
under the 1940 Act as well as applicable NASDAQ, federal and state
rules and regulations. Prospect has also elected to be treated as a
regulated investment company under the Internal Revenue Code of
1986.
About Preferred Capital Securities,
LLCPreferred Capital Securities, LLC intends to serve as
the dealer manager for Prospect Capital Corporation and has been a
member of FINRA/SIPC since 2015. Formed in 2013, PCS is a boutique
managing broker dealer that distributes investment products through
broker dealers and registered investment advisors. For more
information, call 855-330-6594 or visit
prefcapitalsecurities.com.
Caution Concerning Forward-Looking
StatementsThis press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, Section 21E of the Securities Exchange Act of
1934, as amended, and the Private Securities Litigation Reform Act
of 1995, whose safe harbor for forward-looking statements does not
apply to business development companies. These forward-looking
statements include statements regarding expectations as to the
completion of the transactions contemplated by the Offering. For
example, Prospect’s statement regarding Prospect’s proposed use of
net proceeds is a forward-looking statement. Forward-looking
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 Prospect 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 Prospect undertakes no obligation to update any
such statement now or in the future.
For further information, contact:Grier Eliasek, President and
Chief Operating Officergrier@prospectcap.comTelephone (212)
448-0702
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