Prospect Capital Corporation Announces Pricing of $300 Million of 3.364% Notes due 2026
21 May 2021 - 6:31AM
Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or
“we”) announced today the pricing of $300 million in aggregate
principal amount of 3.364% notes due 2026 (the “Notes”). The Notes
will mature on November 15, 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 3.364% per year payable semi-annually in arrears on
May 15 and November 15 of each year, commencing on November 15,
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.
RBC Capital Markets, Goldman Sachs & Co. LLC
and Barclays, are acting as joint book-running managers for this
offering. KeyBanc Capital Markets, BNP PARIBAS, CIBC Capital
Markets, Mizuho Securities and R. Seelaus & Co., LLC are acting
as joint lead managers for this offering. WauBank Securities LLC,
M&T Securities, Comerica Securities, UBS Investment Bank and
Incapital are acting as senior co-managers for this offering. The
offering is expected to close on May 27, 2021, subject to customary
closing conditions.
Prospect expects to use the net proceeds of this
offering primarily for the refinancing of existing indebtedness,
including but not limited to, redemption of its 6.25% Senior Notes
due 2028 and 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 May 20, 2021, the
preliminary prospectus supplement dated May 20, 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 and 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 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) 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 or (2) 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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