Prospect Capital Corporation Announces Pricing of $50 Million of 3.706% Notes due 2026
16 February 2021 - 11:00PM
Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or
“we”) announced today the pricing of $50 million in aggregate
principal amount of additional 3.706% notes due 2026 (the “Notes”)
on February 12, 2021.
The Notes will be a further issuance of the 3.706%
Notes due 2026 that Prospect issued on January 22, 2021 in the
aggregate principal amount of $325,000,000 (the “existing 3.706%
Notes”). The Notes will be treated as a single series with the
existing 3.706% Notes under the indenture and will have the same
terms (other than issue date and issue price) as the existing
3.706% Notes. The Notes will have the same CUSIP number and will be
fully fungible for U.S. federal income tax purposes and rank
equally in right of payment with the existing 3.706% Notes. Upon
the issuance of the Notes, the outstanding aggregate principal
amount of Prospect’s 3.706% Notes due 2026 will be
$375,000,000.
The Notes will mature on January 22, 2026 and may
be redeemed in whole or in part at any time or from time to time at
our option at par plus a “make-whole” premium, if applicable. The
Notes will bear interest at a rate of 3.706% per year payable
semi-annually in arrears on January 22 and July 22 of each year,
commencing on July 22, 2021. The Notes will be general senior
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.
Goldman Sachs & Co. LLC is acting as
book-running manager for this offering. Barclays and RBC Capital
Markets are acting as co-managers.
Prospect expects to use the net proceeds of this
offering primarily for the refinancing of existing indebtedness,
including but not limited to repayment of borrowings under its
revolving credit facility. Prospect intends to use the remainder of
the net proceeds from this offering, if any, to maintain balance
sheet liquidity, including to make investments in high quality
short-term debt instruments, and thereafter to make long-term
investments in accordance with its investment objective.
Investors are advised to carefully consider the
investment objective, risks, charges and expenses of Prospect
before investing. The pricing term sheet dated February 12, 2021,
the preliminary prospectus supplement dated February 12, 2021 and
the accompanying prospectus dated February 13, 2020, 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 pricing term sheet, the
preliminary prospectus supplement, the accompanying prospectus and
this press release is not complete and may be changed. The pricing
term sheet, the preliminary prospectus supplement, the accompanying
prospectus and this press release are not offers to sell any
securities of Prospect, and Prospect is 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 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.
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.
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 Officergrier@prospectcap.comTelephone
(212) 448-0702
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