BDCs BDC image Log on |  Join ($$) business development company image Welcome, guest! Learn about guest access          
bdcs.valueforum.com

Prospect Capital Corporation - PSEC | ValueForum Member Stock Ratings

Last rating update for PSEC was made by a ValueForum member on Mar. 19 2012, 8:36 PM ET. Factoring this and past ratings, on average PSEC is rated 1.92 on a scale of Strong Buy (1.00) to Strong Sell (5.00) by 12 different member(s) of ValueForum.com. Full rating pages available to members only (click here) contain additional rating information including commentary by the 12 member(s) who entered the ratings. These ratings are posted by site users; this content is not intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by ValueForum.com

PROSPECT CAPITAL CORPORATION (NASD: PSEC)
Last Trade
4:00 p.m. - 6.01
Change
 0.29 ( 5.07%)
Shares Traded
27,454
Day's Volume
5,546,277
Book Value
NA
Price/Book
NA
Beta
0.6762
Day's Range
5.74 - 6.035
Prev Close
5.72
Open
5.74
52 Wk Range
3.675 - 6.65
EPS
-0.04
PE
NA
Monthly Div/Shr
0.06
Ex-Div
01/28/21
Yield
11.98%
Shares Out.
380.59M
Market Cap.
2.29B
  • 1 Year Stock Performance:

CAGR - Chart the growth of a $10K investment in PSEC

   Click here to search the Discussion Forum section for posts mentioning stock symbol PSEC »

Related news from
Thu, 14 Jan 2021
22:20:00 +0000
Prospect Capital Corporation Announces Pricing of $325 Million of 3.706% Notes due 2026
NEW YORK, Jan. 14, 2021 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) announced today the pricing of $325 million in aggregate principal amount of 3.706% notes due 2026 (the “Notes”). 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. Barclays, RBC Capital Markets and Goldman Sachs & Co. LLC are acting as joint book-running managers for this offering. KeyBanc Capital Markets, BNP PARIBAS, CIBC Capital Markets and Mizuho Securities are acting as joint lead managers for this offering. Truist Securities, Comerica Securities, R. Seelaus & Co., LLC, and UBS Investment Bank are acting as senior co-managers and Incapital and National Securities Corporation are acting as junior co-managers for this offering.   The offering is expected to close on January 22, 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% Notes due 2024 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 January 14, 2021, the preliminary prospectus supplement dated January 14, 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) Barclays Capital Inc., Attention: Syndicate Registration, 745 Seventh Avenue, New York, New York 10019, Telephone: 888-603-5847, email: barclaysprospectus@broadridge.com or (2) 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 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 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 Officer grier@prospectcap.com Telephone (212) 448-0702
Thu, 14 Jan 2021
17:34:06 +0000
Prospect Capital Corporation -- Moody's rates Prospect Capital's senior unsecured notes Baa3, negative outlook
Moody's Investors Service, ("Moody's") assigned a Baa3 long-term senior unsecured rating to Prospect Capital Corporation's (PSEC) senior unsecured notes due 2026. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating.
Mon, 28 Dec 2020
21:28:00 +0000
Prospect Capital Corporation Announces Launch of Cash Tender Offer For its 6.375% Convertible Notes due 2025
NEW YORK, Dec. 28, 2020 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (the “Company”) today announced that it has commenced a cash tender offer (the “Tender Offer”) to purchase up to $20,000,000 aggregate principal amount of outstanding 6.375% Convertible Notes due 2025 (the “Notes”). The Tender Offer will expire at 12:00 midnight, New York City time, on January 27, 2021 (one minute after 11:59 p.m., New York City time, on January 26, 2021), or any other date and time to which the Company extends the Tender Offer (such date and time, as it may be extended, the “Expiration Date”). The Tender Offer is made pursuant to an Offer to Purchase dated today, which sets forth the terms and conditions of the Tender Offer. Title of SecurityCUSIP / ISIN Nos.Outstanding Principal AmountAggregate Principal Amount Sought      6.375% Convertible Notes due 202574348TAT9 / US74348TAT97$201,250,000$20,000,000 The consideration to be paid for each $1,000 principal amount of Notes that are validly tendered and not validly withdrawn on or prior to the Expiration Date is $1,110.00, plus accrued and unpaid interest on the Notes, if any, from the last interest payment date up to, but not including, the Settlement Date (as defined herein).The Company will purchase any Notes that have been validly tendered at or prior to the Expiration Date and accepted for purchase, subject to all conditions to the Tender Offer having been either satisfied or waived by the Company, promptly following the Expiration Date (the date of such acceptance and purchase, the “Settlement Date”). If Notes with an aggregate principal amount in excess of $20,000,000 are validly tendered and not validly withdrawn at or prior to the Expiration Date, proration for each holder tendering Notes will be calculated with a proration factor of such amount so that the Company only accepts for purchase an aggregate principal amount of Notes of $20,000,000. The Settlement Date is expected to occur within three business days following the Expiration Date, assuming the conditions to the Tender Offer have been either satisfied or waived by the Company at or prior to the Expiration Date.As described in the Offer to Purchase, tendered Notes may be validly withdrawn from the Tender Offer at or prior to the Expiration Date. The Tender Offer is not conditioned on any minimum amount of Notes being tendered. The Company may amend, extend or, subject to certain conditions and applicable law, terminate the Tender Offer at any time in its sole discretion.The Company has retained D.F. King & Co., Inc. to serve as the Information and Tender Agent for the Notes in the Tender Offer.The Tender Offer is being made pursuant to the terms and conditions contained in the Offer to Purchase, a copy of which may be obtained from D.F. King & Co., Inc. at (212) 269-5550 (Banks and Brokers) or (866) 388-7452 (toll free), or via psec@dfking.com.A copy of the Offer to Purchase is also available at the following web address: http://www.dfking.com/psecThis announcement is for informational purposes only and is not an offer to purchase or sell or a solicitation of an offer to purchase or sell, with respect to any securities. The solicitation of offers to buy the Notes is only being made pursuant to the terms of the Offer to Purchase, as it may be amended or supplemented. Holders should read the Company’s commencement Tender Offer statement on Schedule TO filed with the SEC in connection with the Tender Offer, which will include as an exhibit the Offer to Purchase and related materials, as well as any amendments or supplements to the Schedule TO when they become available, because they will contain important information. Each of these documents will be filed with the SEC, and, when available, holders may obtain them for free from the SEC at its website (www.sec.gov) or from the Company’s information and tender agent in connection with the Tender Offer. The Tender Offer is not being made in any state or jurisdiction in which such offer would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. None of the Company or the Information and Tender Agent are making any recommendation as to whether or not holders should tender their Notes in connection with the Tender Offer.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. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.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 Tender Offer. 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 Officer grier@prospectcap.com Telephone (212) 448-0702
Tue, 22 Dec 2020
12:00:00 +0000
National Property REIT Corp. (NPRC) Acquires Five Multifamily Properties for $250 Million
NEW YORK, Dec. 22, 2020 (GLOBE NEWSWIRE) -- National Property REIT Corp. (“NPRC”) announced today the recent acquisitions of five separately financed multifamily properties for an aggregate asset purchase price of $250.4 million. These acquisitions add 1,856 units to NPRC’s diversified multifamily portfolio, which now includes 44 separately financed properties totaling 17,946 units across 14 different states, primarily in Southeast and Midwest markets. NPRC’s multifamily portfolio has a total current market asset value in excess of $2.5 billion.These acquisitions continue NPRC’s core strategy of investing in suburban workforce housing with value-add potential, a sector that, based on rent growth and occupancy, has outperformed large central city housing, office, retail, and multiple other real estate segments during the past year. NPRC’s recent property acquisitions are geographically diverse, with locations in Atlanta, Birmingham, Charleston, and Dallas, all Sunbelt cities exhibiting favorable employment growth and multifamily supply-demand dynamics.“Despite market challenges from the ongoing pandemic, NPRC continues to deliver strong net operating income and rent collection performance in its portfolio of multifamily workforce apartment communities,” said Daniel Ackerman, Chief Operating Officer and Vice President of Acquisitions of NPRC. "Our recently completed acquisitions continue with our strategy of addressing this underserved important market segment, and we are pleased with our pipeline of additional potential acquisitions in other attractive markets.”ABOUT NATIONAL PROPERTY REIT CORP. National Property REIT Corp. (www.npreitcorp.com) is a REIT that acquires real estate properties, with a particular focus on multifamily real estate. NPRC may acquire real estate assets directly or through joint ventures alongside operating partners. NPRC’s current multifamily portfolio consists of 44 properties with a market value in excess of $2.5 billion.NPRC is a portfolio company of Prospect Capital Corporation (NASDAQ: PSEC), a publicly traded investment firm with $5.4 billion of assets under management as of September 30, 2020.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 NPRC’s control, and that NPRC 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 NPRC undertakes no obligation to update any such statement now or in the future.For further information, contact: Daniel Ackerman, Chief Operating Officer & Vice President of Acquisitions dackerman@npreitcorp.com Telephone (646) 912-6184
Tue, 22 Dec 2020
12:00:00 +0000
Prospect Capital Purchases $25 Million of First Lien Senior Secured Floating Rate Notes Issued by KM² Solutions
NEW YORK, Dec. 22, 2020 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) announced today that Prospect has purchased $25 million of first lien senior secured floating rate notes issued to support the recapitalization of KM2 Solutions, LLC (“KM2”), led by affiliates of H.I.G. Capital, LLC (“H.I.G.”).Headquartered in New York and founded in 2004, KM2 provides high quality, cost effective business process outsourcing services, including receivables management, sales and marketing, customer engagement, back office support, professional services, and technical services to customers primarily within the finance and healthcare end markets.“We appreciate the creativity, reliability, and future add-on financing capability that Prospect provides through its flexible debt financing solutions,” said Todd Ofenloch, Managing Director of H.I.G. “This transaction constitutes our 30th financing with the Prospect team.”“As a significant validation of KM2’s customer value proposition, one of our portfolio companies in the healthcare sector recently enlisted KM2’s services with positive results,” said Jason Wilson, Managing Director of Prospect Capital Management L.P. “We look forward to supporting KM2’s strong momentum and growth initiatives envisioned under H.I.G. and KM2 management leadership.”ABOUT PROSPECT CAPITAL CORPORATION Prospect Capital Corporation (www.prospectcap.com) 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. Prospect has 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 its 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 Prospect’s 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 Officer grier@prospectcap.com Telephone (212) 448-0702
Wed, 16 Dec 2020
21:16:00 +0000
Prospect Capital Corporation Announces Launch of Cash Tender Offer For its Outstanding 4.95% Senior Convertible Notes due 2022
NEW YORK, Dec. 16, 2020 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (the “Company”) today announced that it has commenced a cash tender offer (the “Tender Offer”) to purchase any and all of the aggregate principal amount of outstanding 4.95% Senior Convertible Notes due 2022 (the “Notes”). The Tender Offer will expire at 12:00 midnight, New York City time, on January 15, 2021 (one minute after 11:59 p.m., New York City time, on January 14, 2021), or any other date and time to which the Company extends the Tender Offer (such date and time, as it may be extended, the “Expiration Date”). The Tender Offer is made pursuant to an Offer to Purchase dated today, which sets forth the terms and conditions of the Tender Offer.  Title of Security CUSIP / ISIN Nos.Outstanding Principal Amount         4.95% Senior Convertible Notes due 202274348T AR3 / US74348TAR32$162,922,000  The consideration to be paid for each $1,000 principal amount of Notes that are validly tendered and not validly withdrawn on or prior to the Expiration Date is $1,035.00, plus accrued and unpaid interest on the Notes, if any, from the last interest payment date up to, but not including, the Settlement Date (as defined herein).The Company will purchase any Notes that have been validly tendered at or prior to the Expiration Date and accepted for purchase, subject to all conditions to the Tender Offer having been either satisfied or waived by the Company, promptly following the Expiration Date (the date of such acceptance and purchase, the “Settlement Date”). The Settlement Date is expected to occur within three business days following the Expiration Date, assuming the conditions to the Tender Offer have been either satisfied or waived by the Company at or prior to the Expiration Date.As described in the Offer to Purchase, tendered Notes may be validly withdrawn from the Tender Offer at or prior to the Expiration Date. The Tender Offer is not conditioned on any minimum amount of Notes being tendered. The Company may amend, extend or, subject to certain conditions and applicable law, terminate the Tender Offer at any time in its sole discretion.The Company has retained D.F. King & Co., Inc. to serve as the Information and Tender Agent for the Notes in the Tender Offer.The Tender Offer is being made pursuant to the terms and conditions contained in the Offer to Purchase, a copy of which may be obtained from D.F. King & Co., Inc. at (212) 269-5550 (Banks and Brokers) or (866) 388-7452 (toll free), or via psec@dfking.com. A copy of the Offer to Purchase is also available at the following web address: http://www.dfking.com/psec This announcement is for informational purposes only and is not an offer to purchase or sell or a solicitation of an offer to purchase or sell, with respect to any securities. The solicitation of offers to buy the Notes is only being made pursuant to the terms of the Offer to Purchase, as it may be amended or supplemented. Holders should read the Company’s commencement Tender Offer statement on Schedule TO filed with the SEC in connection with the Tender Offer, which will include as an exhibit the Offer to Purchase and related materials, as well as any amendments or supplements to the Schedule TO when they become available, because they will contain important information. Each of these documents will be filed with the SEC, and, when available, holders may obtain them for free from the SEC at its website (www.sec.gov) or from the Company’s information and tender agent in connection with the Tender Offer. The Tender Offer is not being made in any state or jurisdiction in which such offer would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. None of the Company or the Information and Tender Agent are making any recommendation as to whether or not holders should tender their Notes in connection with the Tender Offer.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. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.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 Tender Offer. 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 Officer grier@prospectcap.com  Telephone (212) 448-0702
Wed, 09 Dec 2020
12:00:00 +0000
Prospect Capital Purchases $29 Million of First Lien Senior Secured Floating Rate Notes Issued by Thermal Production Solutions
NEW YORK, Dec. 09, 2020 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) announced today that Prospect has purchased $29 million of first lien senior secured floating rate notes issued to support the recapitalization of Thermal Product Solutions, Inc. (“TPS”), a portfolio company of Resilience Capital Partners. Founded in 1998 and headquartered in East Troy, Wisconsin, Thermal Product Solutions designs and manufactures industrial and laboratory ovens and furnaces, as well as environmental temperature cycling and stability test chambers. Product brands include Wisconsin Oven, Tenney, Blue M, Gruenberg, Lindberg, MPH, and Baker. TPS is a market leading provider with an extensive offering across end markets, applications, and temperature/environmental settings, serving top Fortune 500 businesses since the earliest predecessor company to TPS was founded over a century ago in 1912.“We are delighted with Prospect’s support on this financing,” said Ron Cozean, Chairman of TPS and Operating Partner at Resilience Capital Partners. “Prospect understood our business from the start given decades of Prospect team investment experience in the capital equipment industry, resulting in differentiated insights and a tailored financing solution. Resilience and the TPS management team are pleased to be teaming up with Prospect as together we seek to accelerate the growth of TPS in our aerospace, pharmaceutical, space mission, transportation, life sciences and battery core markets.” “We are impressed with Thermal Product Solution’s long-tenured and broad branded product portfolio, custom manufacturing capabilities, and ability to serve a highly diversified customer end-market base,” said Nick Bodurian, Senior Associate at Prospect Capital Management L.P. “It has been a pleasure to work with the TPS management team, CEO Greg Jennings, and Resilience Capital Partners with this investment.”ABOUT PROSPECT CAPITAL CORPORATION Prospect Capital Corporation (www.prospectcap.com) 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. Prospect has 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 its 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 Prospect’s 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 Officer grier@prospectstreet.com Telephone (212) 448-0702
Fri, 04 Dec 2020
13:33:17 +0000
Should I Buy Prospect Capital Corporation (PSEC)?
The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as […]
Fri, 20 Nov 2020
21:02:00 +0000
Prospect Capital Corporation Announces Change to Virtual Meeting for 2020 Annual Meeting of Stockholders
NEW YORK, Nov. 20, 2020 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (Nasdaq: PSEC) (the “Company”) announced today that its annual meeting of stockholders, scheduled for Wednesday, December 2, 2020, at 3:30 p.m. EST (with any postponements or adjournments, the “Annual Meeting”), will be held by Internet webcast in order to mitigate potential risks to the health and safety of the Company’s stockholders, directors, service providers, personnel and other stakeholders arising from the public health impact of the coronavirus outbreak. If you are a stockholder as of the record date you may participate in the Annual Meeting via live audio webcast by visiting the following website and following the registration and participation instructions contained therein: www.virtualshareholdermeeting.com/PSEC2020.  * If you hold your shares directly, please have the 16-digit control number located on your proxy card or notice available. * If you hold your shares in “street name” (i.e., through an account at a broker or other nominee), please follow your broker’s or nominee’s instructions you previously received to obtain your 16-digit control number. * If you are a stockholder of record (i.e., your shares are registered in your name with American Stock Transfer & Trust (“AST”)) and want the ability to vote or ask a question at the Annual Meeting, you must contact AST via email (proxy@astfinancial.com) to request a control number by December 1, 2020. If you do not have your control number, you may still attend the Annual Meeting as a guest but will not have the option to ask questions or vote your shares during the meeting.The agenda for the Annual Meeting is unchanged from the proxy statement dated September 28, 2020, and the proxy statement and proxy card that were mailed to record date stockholders on or about that date remain valid. Stockholders of record at the close of business on September 14, 2020 are entitled to attend and vote at the Annual Meeting. We encourage you to access the Annual Meeting 15 minutes prior to the start time. Online check-in will begin at 3:15 p.m. EST.If you have already voted by mail, by telephone or online, you do not need to do anything further to vote your shares. If you have any other questions about the Annual Meeting or about voting, please call our solicitor, AST Fund Solutions, LLC, at (866) 387-0770.Whether or not stockholders plan to attend the virtual-only Annual Meeting, the Company urges stockholders to vote and submit their proxies in advance of the meeting by one of the methods described in the proxy materials.THIS NOTICE SHOULD BE READ IN CONJUNCTION WITH THE PROXY STATEMENT.IF YOU HAVE NOT YET VOTED, PROSPECT CAPITAL CORPORATION NEEDS YOUR VOTE IMMEDIATELY.For further information, contact:Investor Relations Telephone (212) 448-0702
Tue, 17 Nov 2020
21:18:00 +0000
Prospect Capital Corporation Announces Launch of Cash Tender Offers For its Outstanding 5.875% Senior Notes due 2023 and 6.375% Notes due 2024
NEW YORK, Nov. 17, 2020 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (the “Company”) today announced that it has commenced two separate cash tender offers (each a “Tender Offer” and collectively, the “Tender Offers”) to purchase (i) up to $30,000,000 aggregate principal amount of outstanding 5.875% Senior Notes due 2023 (the “2023 Notes”), and (ii) up to $10,000,000 aggregate principal amount of outstanding 6.375% Notes due 2024 (the “2024 Notes” and together with the 2023 Notes, the “Notes”). Each Tender Offer will expire at 12:00 midnight, New York City time, on December 16, 2020 (one minute after 11:59 p.m., New York City time, on December 15, 2020), or any other date and time to which the Company extends the applicable Tender Offer (such date and time, as it may be extended, the “Expiration Date”). The Tender Offers are made pursuant to an Offer to Purchase dated today, which set forth the terms and conditions of the Tender Offers Title of Security CUSIP / ISIN Nos.Outstanding Principal AmountAggregate Principal Amount Sought      5.875% Senior Notes due 202374348T AJ1 / US74348TAJ16$320,000,000$30,000,000 6.375% Notes due 202474348T AS1 / US74348TAS15$100,000,000$10,000,000 The consideration to be paid for each $1,000 principal amount of 2023 Notes that are validly tendered and not validly withdrawn on or prior to the Expiration Date is $1,050.00, plus accrued and unpaid interest on the 2023 Notes, if any, from the last interest payment date up to, but not including, the Settlement Date (as defined herein). The consideration to be paid for each $1,000 principal amount of 2024 Notes that are validly tendered and not validly withdrawn on or prior to the Expiration Date is $1,080.00, plus accrued and unpaid interest on the 2024 Notes, if any, from the last interest payment date up to, but not including, the Settlement Date.The Company will purchase any Notes that have been validly tendered at or prior to the Expiration Date and accepted for purchase, subject to all conditions to the Tender Offers having been either satisfied or waived by the Company, promptly following the Expiration Date (the date of such acceptance and purchase, the “Settlement Date”). If 2023 Notes with an aggregate principal amount in excess of $30,000,000 are validly tendered and not validly withdrawn at or prior to the Expiration Date, proration for each holder tendering 2023 Notes will be calculated with a proration factor of such amount so that the Company only accepts for purchase an aggregate principal amount of 2023 Notes of $30,000,000. If 2024 Notes with an aggregate principal amount in excess of $10,000,000 are validly tendered and not validly withdrawn at or prior to the Expiration Date, proration for each holder tendering 2024 Notes will be calculated with a proration factor of such amount so that the Company only accepts for purchase an aggregate principal amount of 2024 Notes of $10,000,000. The Settlement Date is expected to occur within three business days following the Expiration Date, assuming the conditions to the Tender Offers have been either satisfied or waived by the Company at or prior to the Expiration Date.As described in the Offer to Purchase, tendered Notes may be validly withdrawn from the Tender Offers at or prior to the Expiration Date. The Tender Offers are not conditioned on any minimum amount of Notes being tendered. The Company may amend, extend or, subject to certain conditions and applicable law, terminate the Tender Offers at any time in its sole discretion.The Company has retained D.F. King & Co., Inc. to serve as the Information Agent and Tender Agent for the Notes in the Tender Offers.The Tender Offers are being made pursuant to the terms and conditions contained in the Offer to Purchase, a copy of which may be obtained from D.F. King & Co., Inc. at (212) 269-5550 (Banks and Brokers) or (866) 388-7452 (toll free), or via psec@dfking.com.A copy of the Offer to Purchase is also available at the following web address: http://www.dfking.com/psecThis announcement is for informational purposes only and is not an offer to purchase or sell or a solicitation of an offer to purchase or sell, with respect to any securities. The solicitation of offers to buy the Notes is only being made pursuant to the terms of the Offer to Purchase, as it may be amended or supplemented. The Tender Offers are not being made in any state or jurisdiction in which such offer would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. None of the Company or the Information and Tender Agent are making any recommendation as to whether or not holders should tender their Notes in connection with the Tender Offers.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. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.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 Tender Offer. 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 Officer grier@prospectcap.com Telephone (212) 448-0702
Tue, 10 Nov 2020
15:40:03 +0000
Prospect Capital (PSEC) Q1 Earnings Miss Despite Lower Costs
Prospect Capital (PSEC) witnesses a decline in total investment income and expenses in first-quarter fiscal 2021.
Mon, 09 Nov 2020
22:55:10 +0000
Prospect Capital (PSEC) Q1 Earnings and Revenues Lag Estimates
Prospect Capital (PSEC) delivered earnings and revenue surprises of -16.67% and -6.66%, respectively, for the quarter ended September 2020. Do the numbers hold clues to what lies ahead for the stock?
Mon, 09 Nov 2020
21:51:32 +0000
Prospect Capital: Q1 Earnings Insights
Shares of Prospect Capital (NASDAQ:PSEC) rose 0.65% in after-market trading after the company reported Q1 results.Quarterly Results Earnings per share decreased 21.05% over the past year to $0.15, which missed the estimate of $0.16.Revenue of $142,880,000 decreased by 11.74% from the same period last year, which missed the estimate of $146,120,000.Outlook Prospect Capital hasn't issued any earnings guidance for the time being.View more earnings on PSECProspect Capital hasn't issued any revenue guidance for the time being.Recent Stock Performance 52-week high: $6.7552-week low: $3.67Price action over last quarter: down 2.53%Company Profile Prospect Capital Corp is a closed-end investment company based in the United States. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. The company invests primarily in senior and subordinated debt and equity of private companies for acquisitions, divestitures, growth, development, recapitalizations, and other purposes. It makes investments, including lending in private equity, sponsored transactions, directly to companies, investments in structured credit, real estate, and syndicated debt.See more from Benzinga * Click here for options trades from Benzinga * Recap: DHT Holdings Q3 Earnings * Recap: Reed's Q3 Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Mon, 09 Nov 2020
21:04:00 +0000
Prospect Capital Reports September 2020 Quarterly Results, Declares 39th, 40th, and 41st Consecutive $0.06 per Common Share Monthly Cash Distributions, Declares 1st Monthly Cash Preferred Share Distribution, and Announces 3% Increase in Net Asset Value per Common Share
NEW YORK, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our fiscal quarter ended September 30, 2020. FINANCIAL RESULTSAll amounts in $000’s except per share amounts (on weighted average basis for period numbers)Quarter Ended September 30, 2020Quarter Ended June 30, 2020Quarter Ended September 30, 2019      Net Investment Income (“NII”)$57,545$58,273$71,060 Interest as % of Total Investment Income92.6%88.8%90.2%      NII per Common Share$0.15$0.16$0.19      Net Income$167,746$162,613$18,065 Net Income per Common Share$0.45$0.44$0.05      Distributions to Common Shareholders$67,861$66,823$66,111 Distributions per Common Share$0.18$0.18$0.18      Since October 2017 NII per Common Share$2.34$2.19$1.66 Since Oct 2017 Distributions per Common Share$2.16$1.98$1.44 Since Oct 2017 NII Less Distributions per Common Share$0.18$0.21$0.22      NAV per Common Share at Period End$8.40$8.18$8.87      Net of Cash Debt to Equity Ratio69.8% 69.6%66.3% Net of Cash Asset Coverage of Debt Ratio247%244%243%      Unsecured Debt as % of Total Debt88.6%89.1%95.2% Unsecured and Non-Recourse Debt as % of Total Debt100%100%100% CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATIONProspect is declaring distributions to common shareholders as follows:Monthly Cash Common Shareholder DistributionRecord DatePayment DateAmount ($ per share) November 202011/30/202012/24/2020$0.0600 December 202012/31/202001/21/2021$0.0600 January 202101/29/202102/18/2021$0.0600 These monthly cash distributions represent the 39th, 40th, and 41st consecutive $0.06 per share distributions to common shareholders.Prospect expects to declare February 2021, March 2021, and April 2021 distributions to common shareholders in February 2021.Based on the declarations above, Prospect’s closing stock price of $4.97 at November 6, 2020 delivers to our common shareholders an annualized distribution yield of 14.5%.Taking into account past distributions and our current share count for declared distributions, Prospect since inception through our January 2021 distribution will have distributed $18.36 per share to original common shareholders, aggregating over $3.2 billion in cumulative distributions to all common shareholders.Since October 2017, our NII per share has aggregated $2.34 while our common shareholder distributions per share have aggregated $2.16, resulting in our NII exceeding distributions during this period by $0.18 per share.Initiatives focused on enhancing accretive NII per share growth include (1) our recently announced $1 billion targeted perpetual preferred equity program, (2) a greater utilization of our cost efficient revolving credit facility (with an incremental cost of approximately 1.3% at today’s one month Libor), (3) retirement of higher cost liabilities, and (4) increased originations in senior secured debt and selected equity investments to deliver targeted risk-adjusted yields and total returns as we deploy available capital from our current underleveraged balance sheet.Our senior management team and employee insider ownership is currently over 27% of shares outstanding, representing over $850 million of our net asset value.CASH PREFERRED SHAREHOLDER DISTRIBUTION DECLARATIONProspect is declaring distributions to preferred shareholders based on an annual rate equal to 5.50% of the stated value of $25 per share, from the date of issuance or, if later, from the most recent dividend payment date, as follows:Monthly Cash Preferred Shareholder DistributionRecord DatePayment DateMonthly Amount ($ per share), before pro ration for partial periods October and November 202011/18/202012/1/2020$0.114583 PORTFOLIO UPDATE AND INVESTMENT ACTIVITYAll amounts in $000’s except per unit amounts As ofAs of September 30, 2020June 30, 2020     Total Investments (at fair value)$5,386,385$5,232,328 Number of Portfolio Companies122121 % Controlled Investments (at fair value)42.8%43.2%     Secured First Lien 45.9%46.9% Other Senior Secured Debt24.1%24.4% Subordinated Structured Notes13.6%13.5% Unsecured and Other Debt1.0%1.0% Equity Investments15.4%14.2% Mix of Investments with Underlying Collateral Security83.6%84.8%     Annualized Current Yield – All Investments9.7%9.7% Annualized Current Yield – Performing Interest Bearing Investments11.6%11.4%     Top Industry Concentration(1)15.4%15.2% Retail Industry Concentration(1)0%0% Energy Industry Concentration(1)1.2%1.6% Hotels, Restaurants & Leisure Concentration(1)0.4%0.4%     Non-Accrual Loans as % of Total Assets (2)0.7%0.9%     Weighted Average Portfolio Net Leverage(3)4.40x4.51x Weighted Average Portfolio EBITDA(3)$78,548$71,970 (1)   Excluding our underlying industry-diversified structured credit portfolio. (2)   Calculated at fair value. (3)   For additional disclosure see “Weighted Average Portfolio EBITDA and Net Leverage” at the end of this release.During the September 2020 and June 2020 quarters, our investment origination and repayment activity was as follows: All amounts in $000’s Quarter EndedQuarter Ended September 30, 2020June 30, 2020     Total Originations$177,141$56,867     Real Estate10.4% 52.8% Agented Sponsor Debt31.4%35.8% Non-Agented Debt28.2%0.0% Corporate Yield Buyouts16.3%8.5% Rated Secured Structured Notes13.7%2.9% Total Repayments$145,410$72,382     Originations, Net of Repayments$31,731($15,515) Note: “Agented” debt refers to non-control debt investments where Prospect acts as the administrative agent or similar role, while “Non-agented” debt refers to non-control debt investments where Prospect has no such role. “Sponsor” refers to third-party institutional ownership.We have invested in structured credit investments benefiting from individual standalone financings non-recourse to Prospect with our risk limited in each case to our net investment. At September 30, 2020 and June 30, 2020, our subordinated structured note portfolio at fair value consisted of the following:All amounts in $000’s except per unit amounts As ofAs of September 30, 2020June 30, 2020     Total Subordinated Structured Notes $730,514$708,961     of Investments3939     TTM Average Cash Yield(1)(2)13.8%17.4% Annualized Cash Yield(1)(2)(3)7.1%13.0% Annualized GAAP Yield on Fair Value(1)(2)13.6%12.5% Annualized GAAP Yield on Amortized Cost(2)9.0%8.1%     Cumulative Cash Distributions$1,224,434$1,211,395 % of Original Investment87.5%86.6%     of Underlying Collateral Loans1,6581,658 Total Asset Base of Underlying Portfolio$17,348,603$17,530,303     Prospect TTM Default Rate2.20%1.46% Broadly Syndicated Market TTM Default Rate4.17%3.23% Prospect Default Rate Outperformance vs. Market1.97%1.77% (1)   Calculation based on fair value. (2)   Excludes investments being redeemed. (3)   In the current quarter ending 12/31/2020, we have so far received scheduled quarterly payments on 37 out of 39 subordinated structured notes we hold. If we calculated the Annualized Cash Yield using these most recent payments, such cash yield would be 17.5% vs. the 7.1% shown in the table above for the quarter ended 9/30/2020. To date, including called investments being liquidated, we have exited nine subordinated structured notes totaling $263.4 million with an expected pooled average realized IRR of 16.7% and cash on cash multiple of 1.48 times.Since December 31, 2017 through today, 27 of our structured credit investments have completed multi-year extensions of their reinvestment periods (typically at reduced liability spreads and with increased weighted average life asset benefits). We believe further long-term optionality upside exists in our structured credit portfolio through additional refinancings and reinvestment period extensions.To date during the December 2020 quarter, we have completed new and follow-on investments as follows:All amounts in $000’s Quarter Ended December 31, 2020    Total Originations $89,246    Agented Sponsor Debt64.4% Non-Agented Debt21.6% Real Estate14.0%    Total Repayments$82,265 Originations, Net of Repayments$6,981 CAPITAL AND LIQUIDITY Our laddered funding profile includes a revolving credit facility (with 30 lenders), program notes, listed baby bonds, institutional bonds, convertible bonds, and our newly launched preferred stock. We have retired upcoming maturities, including a recent retirement in April 2020, and as of today have zero debt maturing until July 2022. On September 9, 2019, we completed an amendment of our existing revolving credit facility (the “Facility”) for Prospect Capital Funding, extending the term 5.0 years from such date. Pricing for amounts drawn under the Facility is one-month Libor plus 2.20%.The combined amount of our balance sheet cash and undrawn revolving credit facility commitments currently stands at approximately $501 million. Our total unfunded eligible commitments to non-control portfolio companies totals approximately $22 million.All amounts in $000’sAs of September 30, 2020As of June 30, 2020 Net of Cash Debt to Equity Ratio69.8%69.6% % of Interest-Bearing Assets at Floating Rates85.9%85.9% % of Liabilities at Fixed Rates88.6%89.1%     % of Floating Loans with Libor Floors83.5%85.2% Weighted Average Libor Floor1.66%1.67%     Unencumbered Assets$3,907,362$3,772,478 % of Total Assets71.9%71.2% The below table summarizes our September 2020 quarter term debt issuance and repurchase/repayment activity:All amounts in $000’sPrincipalRateMaturity Debt Issuances     Prospect Capital InterNotes®$38,6574.75% - 6.00%July 15, 2025 – October 15, 2030 Debt Repurchases/Repayments    2022 Notes$29,4204.95%July 2022 Prospect Capital InterNotes®$5654.75% - 6.75%July 2024 – September 2043 $1.0775 billion of Facility commitments have closed to date with 30 lenders. An accordion feature allows the Facility, at Prospect's discretion, to accept up to $1.5 billion of commitments. The Facility matures September 9, 2024. The Facility includes a revolving period that extends through September 9, 2023, followed by an additional one-year amortization period, with distributions allowed to Prospect after the completion of the revolving period.On November 7, 2019, we commenced a tender offer to purchase up to $50.0 million of our convertible notes that mature in July 2022 (“2022 Notes”). On December 7, 2019, $13.4 million was validly tendered and accepted, representing 4.4% of the outstanding notes. On December 23, 2019, we commenced a tender offer to purchase up to $25.0 million of the 2022 Notes. On January 22, 2020, $1.3 million was validly tendered and accepted, representing 0.5% of the outstanding notes. We repurchased an additional $32.6 million of the 2022 Notes during the March 2020 quarter. On July 23, 2020, we commenced a tender offer to purchase up to $100.0 million of the 2022 Notes during the September 2020 quarter. On August 20, 2020, $29.4 million was validly tendered and accepted, representing 11.4% of the outstanding notes. On September 3, 2020, we commenced a tender offer to purchase for cash any and all of the 2022 Notes during the September 2020 quarter. On October 2, 2020, $6.035 million was validly tendered and accepted representing 2.64% of the outstanding notes.On March 20, 2020, we commenced a tender offer to purchase up to $234.4 million of our unsecured notes that mature in June 2024 (“2024 Notes”). On March 31, 2020, $655 thousand was validly tendered and accepted.We currently have seven separate unsecured debt issuances aggregating $1.2 billion outstanding, not including our program notes, with laddered maturities extending to June 2029. At September 30, 2020, $718.3 million of program notes were outstanding with laddered maturities through October 2043.On August 3, 2020, we launched a $1 billion 5.50% perpetual preferred stock offering. Prospect expects to use the net proceeds from the Offering to maintain and enhance balance sheet liquidity, including repaying our credit facility and purchasing high quality short-term debt instruments, and to make long-term investments in accordance with our 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 holds recently reaffirmed investment grade company ratings from Standard & Poor’s (BBB-), Moody’s (Baa3), Kroll (BBB-), and Egan-Jones (BBB). Maintaining our investment grade ratings with prudent asset, liability, and risk management is an important objective for Prospect.DIVIDEND REINVESTMENT PLANWe have adopted a dividend reinvestment plan (also known as a “DRIP”) that provides for reinvestment of our distributions on behalf of our shareholders, unless a shareholder elects to receive cash. On April 17, 2020, our board of directors approved amendments to the Company’s DRIP, effective May 21, 2020. These amendments principally provide for the number of newly-issued shares pursuant to the DRIP to be determined by dividing (i) the total dollar amount of the distribution payable by (ii) 95% of the closing market price per share of our stock on the valuation date of the distribution (providing a 5% discount to the market price of our common stock), a benefit to shareholders who participate.HOW TO PARTICIPATE IN OUR DIVIDEND REINVESTMENT PLANShares held with a broker or financial institutionMany shareholders have been automatically “opted out” of our DRIP by their brokers. Even if you have elected to automatically reinvest your PSEC stock with your broker, your broker may have “opted out” of our DRIP (which utilizes DTC’s dividend reinvestment service), and you may therefore not be receiving the 5% pricing discount. Shareholders interested in participating in our DRIP to receive the 5% discount should contact their brokers to make sure each such DRIP participation election has been made through DTC. In making such DRIP election, each shareholder should specify to one’s broker the desire to participate in the "Prospect Capital Corporation DRIP through DTC" that issues shares based on 95% of the market price (a 5% discount to the market price) and not the broker's own "synthetic DRIP” plan (if any) that offers no such discount. Each shareholder should not assume one’s broker will automatically place such shareholder in our DRIP through DTC. Each shareholder will need to make this election proactively with one’s broker or risk not receiving the 5% discount. Each shareholder may also consult with a representative of such shareholder’s broker to request that the number of shares the shareholder wishes to enroll in our DRIP be re-registered by the broker in the shareholder’s own name as record owner in order to participate directly in our DRIP.Shares registered directly with our transfer agent If a shareholder holds shares registered in the shareholder’s own name with our transfer agent (less than 0.1% of our shareholders hold shares this way) and wants to make a change to how the shareholder receives dividends, please contact our plan administrator, American Stock Transfer and Trust Company LLC by calling (888) 888-0313 or by mailing American Stock Transfer and Trust Company LLC, 6201 15th Avenue, Brooklyn, New York 11219.EARNINGS CONFERENCE CALLProspect will host an earnings call on Tuesday, November 10, 2020 at 11:00 am. Eastern Time. Dial 888-338-7333. For a replay prior to December 9, 2020 visit www.prospectstreet.com or call 877-344-7529 with passcode 10149913. PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share and per share data) September 30, 2020 June 30, 2020 Assets        Investments at fair value:        Control investments (amortized cost of $2,321,471 and $2,286,725, respectively)$2,307,572  $2,259,292  Affiliate investments (amortized cost of $171,649 and $163,484, respectively)262,175  187,537  Non-control/non-affiliate investments (amortized cost of $3,335,811 and $3,332,509, respectively)2,816,638  2,785,499  Total investments at fair value (amortized cost of $5,828,931 and $5,782,718, respectively)5,386,385  5,232,328  Cash28,303  44,561  Receivables for:    Interest, net11,011  11,712  Other938  106  Deferred financing costs on Revolving Credit Facility8,596  9,145  Prepaid expenses907  1,248  Due from broker1,892  1,063  Due from Affiliate38  —  Total Assets5,438,070  5,300,163  Liabilities    Revolving Credit Facility250,993  237,536  Public Notes (less unamortized discount and debt issuance costs of $11,011 and $11,613, respectively)782,708  782,106  Prospect Capital InterNotes® (less unamortized debt issuance costs of $12,959 and $12,802, respectively)705,362  667,427  Convertible Notes (less unamortized debt issuance costs of $7,899 and $8,892, respectively)422,171  450,598  Due to Prospect Capital Management41,232  42,481  Interest payable17,374  29,066  Dividends payable22,727  22,412  Due to Prospect Administration8,164  7,000  Accrued expenses5,654  3,648  Due to broker—  1  Other liabilities658  2,027  Total Liabilities2,257,043  2,244,302  Commitments and Contingencies    Net Assets$3,181,027  $3,055,861       Components of Net Assets    Common stock, par value $0.001 per share (1,880,000,000 common shares authorized; 378,776,958 and 373,538,499 issued and outstanding, respectively)$379  $374  Paid-in capital in excess of par4,096,150  4,070,874  Total distributable earnings (loss)(915,502)  (1,015,387) Net Assets$3,181,027  $3,055,861  Net Asset Value Per Share $8.40  $8.18  PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) Three Months Ended September 30,  2020 2019 Investment Income    Interest income:    Control investments$48,727  $50,866  Affiliate investments7,362  239  Non-control/non-affiliate investments51,250  61,950  Structured credit securities24,900  32,901  Total interest income132,239  145,956  Dividend income:    Control investments—  3,800  Non-control/non-affiliate investments25  454  Total dividend income25  4,254  Other income:    Control investments9,071  11,383  Non-control/non-affiliate investments1,545  290  Total other income10,616  11,673  Total Investment Income142,880  161,883  Operating Expenses    Base management fee26,850  28,463  Income incentive fee14,386  17,765  Interest and credit facility expenses34,049  38,898  Allocation of overhead from Prospect Administration4,657  3,494  Audit, compliance and tax related fees938  375  Directors’ fees113  113  Other general and administrative expenses4,342  1,715  Total Operating Expenses85,335  90,823  Net Investment Income57,545  71,060  Net Realized and Net Change in Unrealized (Losses) Gains from Investments    Net realized (losses) gains    Control investments2,832  —  Non-control/non-affiliate investments11  (2,198) Net realized (losses) gains2,843  (2,198) Net change in unrealized (losses) gains    Control investments13,535  (39,021) Affiliate investments66,473  18,020  Non-control/non-affiliate investments27,836  (27,458) Net change in unrealized (losses) gains107,844  (48,459) Net Realized and Net Change in Unrealized (Losses) Gains from Investments110,687  (50,657) Net realized gains (losses) on extinguishment of debt(486) (2,338) Net (Decrease) Increase in Net Assets Resulting from Operations$167,746  $18,065  Net increase in net assets resulting from operations per share$0.45  $0.05  Dividends declared per share$(0.18) $(0.18) PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES ROLLFORWARD OF NET ASSET VALUE PER SHARE (in actual dollars) Three Months Ended September 30,  2020 2019 Per Share Data    Net asset value at beginning of period$8.18  $9.01  Net investment income(1)0.15  0.19  Net realized and change in unrealized gains (losses) (1)0.30  (0.14) Net increase (decrease) from operations0.45  0.05  Distributions of net investment income(0.18) (0.18) Common stock transactions(2)(0.05) (0.01) Net asset value at end of period$8.40  $8.87  (1)   Per share data amount is based on the weighted average number of common shares outstanding for the period presented (except for dividends to shareholders which is based on actual rate per share).(2)   Common stock transactions include the effect of issuances and repurchases of common stock, if any.WEIGHTED AVERAGE PORTFOLIO EBITDA AND NET LEVERAGEWeighted Average Portfolio Net Leverage (“Portfolio Net Leverage”) and Weighted Average Portfolio EBITDA (“Portfolio EBITDA”) provide clarity into the underlying capital structure of our portfolio debt investments and the likelihood that our overall portfolio will make interest payments and repay principal.         Portfolio Net Leverage reflects the net leverage of each of our portfolio company debt investments, weighted based on the current debt principal outstanding of such investments. The net leverage for each portfolio company is calculated based on our investment in the capital structure of such portfolio company, with a maximum limit of 10.0x adjusted EBITDA. This calculation excludes debt subordinate to our position within the capital structure because our exposure to interest payment and principal repayment risk is limited beyond that point. Additionally, structured credit residual interests and equity investments, for which principal repayment is not fixed, are also not included in the calculation. The calculation does not exceed 10.0x adjusted EBITDA for any individual investment because 10.0x captures the highest level of risk to us. Portfolio Net Leverage provides us with some guidance as to our exposure to the interest payment and principal repayment risk of our overall debt portfolio. We monitor our Portfolio Net Leverage on a quarterly basis.Portfolio EBITDA is used by Prospect to supplement Portfolio Net Leverage and generally indicates a portfolio company’s ability to make interest payments and repay principal. Portfolio EBITDA is calculated using the weighted average dollar amount EBITDA of each of our portfolio company debt investments. The calculation provides us with insight into profitability and scale of the portfolio companies within our overall debt investments.These calculations include addbacks that are typically negotiated and documented in the applicable investment documents, including but not limited to transaction costs, share-based compensation, management fees, foreign currency translation adjustments and other nonrecurring transaction expenses.Together, Portfolio Net Leverage and Portfolio EBITDA assist us in assessing the likelihood that we will timely receive interest and principal payments. However, these calculations are not meant to substitute for an analysis of our underlying portfolio company debt investments, but to supplement such analysis.ABOUT PROSPECT CAPITAL CORPORATIONProspect Capital Corporation (www.prospectstreet.com) 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 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.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. We undertake no obligation to update any such statement now or in the future.For additional information, contact:Grier Eliasek, President and Chief Operating Officer grier@prospectcap.com Telephone (212) 448-0702
Thu, 05 Nov 2020
22:00:00 +0000
Prospect Capital Schedules First Fiscal Quarter Earnings Release and Conference Call
NEW YORK, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (the “Company”) today announced it expects to file with the Securities and Exchange Commission its report on Form 10-Q containing results for the fiscal first quarter ended September 30, 2020 on Monday, November 09, 2020 after the close of the markets. The Company also expects to issue its earnings press release on Monday, November 09, 2020 after the close of the markets. The Company will host a conference call on Tuesday, November 10, 2020 at 11:00 a.m. Eastern Time. The conference call dial-in number will be 888-338-7333. A recording of the conference call will be available for approximately 30 days. To hear a replay, call 877-344-7529 and use passcode 10149913.The conference call will also be available via a live listen-only webcast on the Company’s website, www.prospectstreet.com. Please allow extra time prior to the call to visit the site and download any necessary software that may be needed to listen to the Internet broadcast. A replay of the audio webcast will be available on the Company's website for approximately 30 days following the conference call.About Prospect Capital CorporationProspect Capital Corporation (www.prospectstreet.com) 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.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. We undertake no obligation to update any such statement now or in the future.For additional information, contact:Grier Eliasek, President and Chief Operating Officer grier@prospectcap.com Telephone (212) 448-0702
Wed, 28 Oct 2020
16:32:04 +0000
Earnings Preview: Prospect Capital (PSEC) Q1 Earnings Expected to Decline
Prospect Capital (PSEC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Thu, 27 Aug 2020
13:44:01 +0000
Prospect Capital (PSEC) Q4 Earnings Meet Estimates, Costs Down
Prospect Capital (PSEC) records a decline in revenues and expenses in the fourth quarter of fiscal 2020.
Wed, 26 Aug 2020
21:25:09 +0000
Prospect Capital (PSEC) Meets Q4 Earnings Estimates
Prospect Capital (PSEC) delivered earnings and revenue surprises of 0.00% and 2.94%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?
Wed, 26 Aug 2020
21:15:40 +0000
Prospect Capital: Q4 Earnings Insights
Shares of Prospect Capital (NASDAQ:PSEC) rose 1% in after-market trading after the company reported Q4 results.Quarterly Results Earnings per share were down 15.79% year over year to $0.16, which were in line with the estimate of $0.16.Revenue of $145,229,000 declined by 11.64% from the same period last year, which beat the estimate of $143,370,000.Outlook Prospect Capital hasn't issued any earnings guidance for the time being.View more earnings on PSECRevenue guidance hasn't been issued by the company for now.Recent Stock Performance 52-week high: $6.7652-week low: $3.67Price action over last quarter: Up 16.90%Company Overview Prospect Capital Corp is a closed-end investment company based in the United States. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. The company invests primarily in senior and subordinated debt and equity of private companies for acquisitions, divestitures, growth, development, recapitalizations, and other purposes. It makes investments, including lending in private equity, sponsored transactions, directly to companies, investments in structured credit, real estate, and syndicated debt.See more from Benzinga * Earnings Scheduled For August 26, 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Wed, 26 Aug 2020
20:12:00 +0000
Prospect Reports June 2020 Financial Results, Declares 37th and 38th Consecutive $0.06 per Share Monthly Cash Distributions, and Announces 2.5% Increase in Net Asset Value per Share
NEW YORK, Aug. 26, 2020 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our fiscal quarter and year ended June 30, 2020. FINANCIAL RESULTSAll amounts in $000’s except per share amounts (on weighted average basis for period numbers)Quarter Ended June 30, 2020Quarter Ended March 31, 2020 Quarter Ended June 30, 2019      Net Investment Income (“NII”)$58,273 $68,476 $ 69,627   Interest as % of Total Investment Income 88.8% 89.8% 92.2%      NII per Share$0.16 $0.19 $0.19       Net Income (Loss)$162,613 $(185,699)$38,886  Net Income (Loss) per Share$0.44 $(0.51)$0.11       Distributions to Shareholders$66,823 $66,192 $66,069  Distributions per Share$0.18 $0.18 $0.18       Since October 2017 NII per Share$2.19 $2.04 $1.47  Since October 2017 Distributions per Share$1.98 $1.80 $1.26  Since October 2017 NII Less Distributions per Share$0.21 $0.24 $0.21       NAV per Share at Period End$8.18 $7.98 $9.01       Net of Cash Debt to Equity Ratio 69.6% 74.1% 70.0% Net of Cash Asset Coverage of Debt Ratio 244% 236% 246%      Unsecured Debt as % of Total Debt 89.1% 92.5% 93.1% Unsecured and Non-Recourse Debt as % of Total Debt 100% 100% 100% All amounts in $000’s except per share amountsYear Ended June 30, 2020 Year Ended June 30, 2019     NII$265,694 $312,859  NII per Share$0.72 $0.85      Net (Loss) Income$(16,224)$144,487  Net (Loss) Income per Share$(0.04)$0.39      Distributions to Shareholders$265,277 $263,624  Distributions per Share$0.72 $0.72      NII / Distributions to Shareholders 100% 119%         CASH SHAREHOLDER DISTRIBUTION DECLARATIONProspect is declaring shareholder distributions as follows:Monthly Cash Shareholder DistributionRecord DatePayment DateAmount ($ per share) September 20209/30/202010/22/2020$0.0600 October 202010/30/202011/19/2020$0.0600      These monthly cash distributions represent the 37th and 38th consecutive $0.06 per share distributions.Prospect expects to declare November 2020, December 2020, and January 2021 distributions in November 2020.Based on the declarations above, Prospect’s closing stock price of $5.17 at August 25, 2020 delivers to shareholders an annualized distribution yield of 13.9%.Taking into account past distributions and our current share count for declared distributions, Prospect since inception through our October 2020 distribution will have distributed $18.24 per share to original shareholders, aggregating over $3.16 billion in cumulative distributions to all shareholders.Since October 2017, our NII per share has aggregated $2.19 while our shareholder distributions per share have aggregated $1.98, resulting in our NII exceeding distributions during this period by $0.21 per share.Initiatives focused on enhancing accretive NII per share growth include (1) our recently announced $1 billion targeted perpetual preferred equity program, (2) a greater utilization of our cost efficient revolving credit facility (with an incremental cost of approximately 1.4% at today’s one month Libor), and (3) increased originations in senior secured debt and selected equity investments to deliver targeted risk-adjusted yields and total returns as we deploy available capital from our current underleveraged balance sheet.INSIDER PURCHASES During the month of March 2020, our senior management team made open market purchases of $138 million of Prospect shares. Senior management and employee insider ownership is now over 27% of shares outstanding.PORTFOLIO UPDATE AND INVESTMENT ACTIVITYAll amounts in $000’s except per unit amountsAs ofAs ofAs of  June 30, 2020March 31, 2020June 30, 2019      Total Investments (at fair value)$5,232,328 $5,144,542 $5,653,553  Number of Portfolio Companies 121  121  135  % Controlled Investments (at fair value) 43.2% 43.0% 43.8%      Secured First Lien  46.9% 44.8% 43.9% Other Senior Secured Debt 24.4% 23.6% 23.5% Subordinated Structured Notes 13.5% 13.7% 15.1% Unsecured and Other Debt 1.0% 0.9% 1.4% Equity Investments 14.2% 17.0% 16.1% Mix of Investments with Underlying Collateral Security 84.8% 82.1% 83.3%      Annualized Current Yield – All Investments 9.7% 10.1% 10.6% Annualized Current Yield – Performing Interest Bearing Investments 11.4% 12.4% 13.1%      Top Industry Concentration(1) 15.2% 14.7% 14.6% Retail Industry Concentration(1) 0% 0% 0% Energy Industry Concentration(1) 1.6% 1.7% 2.7% Hotels, Restaurants & Leisure Concentration(1) 0.4% 0.4% 0.7%      Non-Accrual Loans as % of Total Assets (2) 0.9% 1.6% 2.9%      Weighted Average Portfolio Net Leverage(3)4.51x  4.63x  4.67x   Weighted Average Portfolio EBITDA(3)$71,970 $72,281 $60,669                   (1)       Excluding our underlying industry-diversified structured credit portfolio.       (2)       Calculated at fair value.       (3)       For additional disclosure see “Weighted Average Portfolio EBITDA and Net Leverage” at the end of this release.During the June 2020 and March 2020 quarters, our investment origination and repayment activity was as follows:All amounts in $000’sQuarter EndedQuarter Ended  June 30, 2020March 31, 2020     Total Originations $36,563 $402,370      Real Estate 52.8% 0.0% Agented Sponsor Debt 35.8% 62.6% Non-Agented Debt 0.0% 27.3% Rated Secured Structured Notes 2.9% 8.8% Corporate Yield Buyouts 8.5% 1.3% Total Repayments$64,110 $266,510      Originations, Net of Repayments$(27,547)$135,860          Note: “Agented” debt refers to non-control debt investments where Prospect acts as the administrative agent or similar role, while “Non-agented” debt refers to non-control debt investments where Prospect has no such role. “Sponsor” refers to third-party institutional ownership.We have invested in structured credit investments benefiting from individual standalone financings non-recourse to Prospect with our risk limited in each case to our net investment. At June 30, 2020 and March 31, 2020, our subordinated structured note portfolio at fair value consisted of the following:All amounts in $000’s except per unit amountsAs ofAs of  June 30, 2020March 31, 2020     Total Subordinated Structured Notes $708,961 $704,403      of Investments 39  39      TTM Average Cash Yield(1)(2) 17.4% 18.3% Annualized Cash Yield(1)(2) 13.0% 18.1% Annualized GAAP Yield on Fair Value(1)(2) 12.5% 15.0% Annualized GAAP Yield on Amortized Cost(2)(3) 8.1% 9.7%     Cumulative Cash Distributions$1,211,395 $1,188,308  % of Original Investment 86.6% 84.9%     of Underlying Collateral Loans 1,658  1,683  Total Asset Base of Underlying Portfolio$17,530,303 $17,810,722      Prospect TTM Default Rate 1.46% 0.91% Broadly Syndicated Market TTM Default Rate 3.23% 1.84% Prospect Default Rate Outperformance vs. Market 1.77% 0.93%         (1)       Calculation based on fair value. (2)       Excludes investments being redeemed. (3)       Calculation based on amortized cost.To date, including called investments being liquidated, we have exited nine subordinated structured notes totaling $263.4 million with an expected pooled average realized IRR of 16.7% and cash on cash multiple of 1.48 times.Since December 31, 2017 through today, 27 of our structured credit investments have completed multi-year extensions of their reinvestment periods (typically at reduced liability spreads and with increased weighted average life asset benefits). We believe further long-term optionality upside exists in our structured credit portfolio through additional refinancings and reinvestment period extensions.To date during the September 2020 quarter, we have completed new and follow-on investments as follows:All amounts in $000’sQuarter Ended  September 30, 2020    Total Originations $109,875     Agented Sponsor Debt 43.9% Non-Agented Debt 22.7% Rated Secured Structured Notes 20.0% Real Estate 13.4%    Total Repayments$64,110  Originations, Net of Repayments$45,765       CAPITAL AND LIQUIDITY Our laddered funding profile includes a revolving credit facility (with 30 lenders), program notes, listed baby bonds, institutional bonds, and convertible bonds. We have retired upcoming maturities, including a recent retirement in April 2020, and as of today have zero debt maturing until July 2022. On September 9, 2019, we completed an amendment of our existing revolving credit facility (the “Facility”) for Prospect Capital Funding, extending the term 5.0 years from such date. Pricing for amounts drawn under the Facility is one-month Libor plus 2.20%.The combined amount of our balance sheet cash and undrawn revolving credit facility commitments currently stands at approximately $498 million. Our total unfunded eligible commitments to non-control portfolio companies totals approximately $24 million.All amounts in $000’sAs of June 30, 2020As of March 31, 2020As of June 30, 2019 Net of Cash Debt to Equity Ratio 69.6% 74.1% 70.0% % of Interest-Bearing Assets at Floating Rates 85.9% 86.1% 87.4% % of Liabilities at Fixed Rates 89.1% 92.5% 93.1%      % of Floating Loans with LIBOR Floors 85.2% 90.1% 84.9% Weighted Average LIBOR Floor 1.67% 1.55% 1.73%      Unencumbered Assets$3,772,478 $3,561,643 $4,121,775  % of Total Assets 71.2% 68.3% 71.1%            The below table summarizes our June 2020 quarter term debt issuance and repurchase/repayment activity: All amounts in $000’sPrincipalRateMaturity      Debt Issuances     Prospect Capital InterNotes®$9,0545.00% - 6.00%April 15, 2025 - July 15, 2030 Debt Repurchases/Repayments    2020 Notes$127,7114.75%April 2020 Prospect Capital InterNotes®$1,3844.50% - 6.63%May 2025 - October 2043      $1.0775 billion of Facility commitments have closed to date with 30 lenders. An accordion feature allows the Facility, at Prospect's discretion, to accept up to $1.5 billion of commitments. The Facility matures September 9, 2024. The Facility includes a revolving period that extends through September 9, 2023, followed by an additional one-year amortization period, with distributions allowed to Prospect after the completion of the revolving period.On November 7, 2019, we commenced a tender offer to purchase up to $50.0 million of our convertible notes that mature in July 2022 (“2022 Notes”). On December 7, 2019, $13.4 million was validly tendered and accepted, representing 4.4% of the outstanding notes. On December 23, 2019, we commenced a tender offer to purchase up to $25.0 million of the 2022 Notes. On January 22, 2020, $1.3 million was validly tendered and accepted, representing 0.5% of the outstanding notes. We repurchased an additional $32.6 million of the 2022 Notes during the March 2020 quarter. On July 23, 2020, we commenced a tender offer to purchase up to $100.0 million of the 2022 Notes during the September 2020 quarter. On August 20, 2020, $29.4 million was validly tendered and accepted, representing 11.4% of the outstanding notes.On March 20, 2020, we commenced a tender offer to purchase up to $234.4 million of our unsecured notes that mature in June 2024 (“2024 Notes”). On March 31, 2020, $655 thousand was validly tendered and accepted.We currently have eight separate unsecured debt issuances aggregating $1.9 billion outstanding, not including our program notes, with laddered maturities extending to June 2029. At June 30, 2020, $680.2 million of program notes were outstanding with laddered maturities through October 2043.On August 3, 2020, we launched a $1 billion 5.50% perpetual preferred stock offering. Prospect expects to use the net proceeds from the Offering to maintain and enhance balance sheet liquidity, including repaying our credit facility and purchasing high quality short-term debt instruments, 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 holds investment grade company ratings from Standard & Poor’s (BBB-), Moody’s (Baa3), Kroll (BBB-), and Egan-Jones (BBB). Maintaining our investment grade ratings with prudent asset, liability, and risk management is an important objective for Prospect.DIVIDEND REINVESTMENT PLANWe have adopted a dividend reinvestment plan (also known as a “DRIP”) that provides for reinvestment of our distributions on behalf of our shareholders, unless a shareholder elects to receive cash. On April 17, 2020, our board of directors approved amendments to the Company’s DRIP, effective May 21, 2020. These amendments principally provide for the number of newly-issued shares pursuant to the DRIP to be determined by dividing (i) the total dollar amount of the distribution payable by (ii) 95% of the closing market price per share of our stock on the valuation date of the distribution (providing a 5% discount to the market price of our common stock), a benefit to shareholders who participate.HOW TO PARTICIPATE IN OUR DIVIDEND REINVESTMENT PLAN Shares held with a broker or financial institutionMany shareholders have been automatically “opted out” of our DRIP by their brokers. Even if you have elected to automatically reinvest your PSEC stock with your broker, your broker may have “opted out” of our DRIP (which utilizes DTC’s dividend reinvestment service), and you may therefore not be receiving the 5% pricing discount. Shareholders interested in participating in our DRIP to receive the 5% discount should contact their brokers to make sure each such DRIP participation election has been made through DTC. In making such DRIP election, each shareholder should specify to one’s broker the desire to participate in the "Prospect Capital Corporation DRIP through DTC" that issues shares based on 95% of the market price (a 5% discount to the market price) and not the broker's own "synthetic DRIP” plan (if any) that offers no such discount. Each shareholder should not assume one’s broker will automatically place such shareholder in our DRIP through DTC. Each shareholder will need to make this election proactively with one’s broker or risk not receiving the 5% discount. Each shareholder may also consult with a representative of such shareholder’s broker to request that the number of shares the shareholder wishes to enroll in our DRIP be re-registered by the broker in the shareholder’s own name as record owner in order to participate directly in our DRIP.Shares registered directly with our transfer agent If a shareholder holds shares registered in the shareholder’s own name with our transfer agent (less than 0.1% of our shareholders hold shares this way) and wants to make a change to how the shareholder receives dividends, please contact our plan administrator, American Stock Transfer and Trust Company LLC by calling (888) 888-0313 or by mailing American Stock Transfer and Trust Company LLC, 6201 15th Avenue, Brooklyn, New York 11219.EARNINGS CONFERENCE CALLProspect will host an earnings call on Thursday, August 27, 2020 at 11:00 am. Eastern Time. Dial 888-338-7333. For a replay prior to September 28, 2020 visit www.prospectstreet.com or call 877-344-7529 with passcode 10147561.PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share and per share data)  June 30, 2020 June 30, 2019  (Audited) (Audited) Assets    Investments at fair value:    Control investments (amortized cost of $2,286,725 and $2,385,806, respectively)$2,259,292  $2,475,924  Affiliate investments (amortized cost of $163,484 and $177,616, respectively)187,537  76,682  Non-control/non-affiliate investments (amortized cost of $3,332,509 and $3,368,880, respectively)2,785,499  3,100,947  Total investments at fair value (amortized cost of $5,782,718 and $5,932,302, respectively)5,232,328  5,653,553  Cash44,561  107,098  Receivables for:    Interest, net11,712  26,504  Other106  3,326  Deferred financing costs on Revolving Credit Facility9,145  8,529  Prepaid expenses1,248  1,053  Due from broker1,063  —  Total Assets5,300,163  5,800,063  Liabilities    Revolving Credit Facility237,536  167,000  Public Notes (less unamortized discount and debt issuance costs of $12,802 and $13,826, respectively)782,106  780,548  Prospect Capital InterNotes® (less unamortized debt issuance costs of $11,613 and $12,349, respectively)667,427  695,350  Convertible Notes (less unamortized debt issuance costs of $8,892 and $13,867, respectively)450,598  739,997  Due to Prospect Capital Management42,481  46,525  Interest payable29,066  34,104  Dividends payable22,412  22,028  Due to Prospect Administration7,000  1,885  Accrued expenses3,648  5,414  Due to broker1  —  Other liabilities2,027  937  Total Liabilities2,244,302  2,493,788  Commitments and Contingencies    Net Assets$3,055,861  $3,306,275       Components of Net Assets    Common stock, par value $0.001 per share (1,000,000,000 common shares authorized; 373,538,499 and 367,131,025 issued and outstanding, respectively)$374  $367  Paid-in capital in excess of par4,070,874  4,039,872  Total distributable earnings (loss)(1,015,387) (733,964) Net Assets$3,055,861  $3,306,275  Net Asset Value Per Share $8.18  $9.01           PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) Three Months Ended June 30, Year Ended June 30,  2020 2019 2020 2019 Investment Income        Interest income:        Control investments$48,647  $50,006  $200,948  $211,212  Affiliate investments7,324  312  12,649  943  Non-control/non-affiliate investments50,901  66,963  229,963  271,907  Structured credit securities22,083  34,323  110,816  140,054  Total interest income128,955  151,604  554,376  624,116  Dividend income:        Control investments1,000  2,850  10,335  34,127  Affiliate investments—  —  —  659  Non-control/non-affiliate investments104  462  1,109  1,243  Total dividend income1,104  3,312  11,444  36,029  Other income:        Control investments13,299  6,680  47,311  36,011  Affiliate investments37  —  38  —  Non-control/non-affiliate investments1,834  2,757  10,361  7,611  Total other income15,170  9,437  57,710  43,622  Total Investment Income145,229  164,353  623,530  703,767  Operating Expenses        Base management fee26,279  29,149  108,910  121,833  Income incentive fee16,202  17,407  68,057  78,215  Interest and credit facility expenses34,765  39,721  148,368  157,231  Allocation of overhead from Prospect Administration4,646  3,746  18,247  14,837  Audit, compliance and tax related fees1,299  1,552  4,028  5,014  Directors’ fees115  116  453  457  Other general and administrative expenses1,316  3,035  9,773  13,321  Total Operating Expenses86,956  94,726  357,836  390,908  Net Investment Income58,273  69,627  265,694  312,859  Net Realized and Net Change in Unrealized (Losses) Gains from Investments        Net realized gains (losses)        Control investments—  —  —  14,309  Affiliate investments(7,311) —    —  Non-control/non-affiliate investments—  1,167  (7,574) 375  Net realized gains (losses)(7,311) 1,167  (7,574) 14,684  Net change in unrealized (losses) gains        Control investments54,775  27,234  (117,552) 5,105  Affiliate investments104,241  (11,699) 67,077  (35,449) Non-control/non-affiliate investments(47,310) (45,887) (221,167) (144,225) Net change in unrealized (losses) gains111,706  (30,352) (271,642) (174,569) Net Realized and Net Change in Unrealized (Losses) Gains from Investments104,395  (29,185) (279,216) (159,885) Net realized gains (losses) on extinguishment of debt(55) (1,556) (2,702) (8,487) Net (Decrease) Increase in Net Assets Resulting from Operations$162,613  $38,886  $(16,224) $144,487  Net (decrease) increase in net assets resulting from operations per share$0.44  $0.11  $(0.04) $0.39  Dividends declared per share$(0.18) $(0.18) $(0.72) $(0.72)                  PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES ROLLFORWARD OF NET ASSET VALUE PER SHARE (in actual dollars) Three Months Ended June 30,  Year Ended June 30,  2020  2019  2020 2019 Per Share Data          Net asset value at beginning of period$7.98   $9.08   $9.01  $9.35  Net investment income(1)0.16   0.19   0.72  0.85  Net realized and change in unrealized gains (losses) (1)0.28   (0.08)  (0.76) (0.46) Net increase (decrease) from operations0.44   0.11   (0.04) 0.39  Distributions of net investment income(0.18)  (0.18)  (0.72) (0.72) Common stock transactions(2)(0.05)  — (3) (0.07) (0.01) Net asset value at end of period$8.18 (4) $9.01   $8.18  $9.01                     (1) Per share data amount is based on the weighted average number of common shares outstanding for the period presented (except for dividends to shareholders which is based on actual rate per share).(2) Common stock transactions include the effect of issuances and repurchases of common stock, if any.(3) Amount is less than $0.01.(4) Does not foot due to rounding.WEIGHTED AVERAGE PORTFOLIO EBITDA AND NET LEVERAGEWeighted Average Portfolio Net Leverage (“Portfolio Net Leverage”) and Weighted Average Portfolio EBITDA (“Portfolio EBITDA”) provide clarity into the underlying capital structure of our portfolio debt investments and the likelihood that our overall portfolio will make interest payments and repay principal.Portfolio Net Leverage reflects the net leverage of each of our portfolio company debt investments, weighted based on the current debt principal outstanding of such investments. The net leverage for each portfolio company is calculated based on our investment in the capital structure of such portfolio company, with a maximum limit of 10.0x adjusted EBITDA. This calculation excludes debt subordinate to our position within the capital structure because our exposure to interest payment and principal repayment risk is limited beyond that point. Additionally, structured credit residual interests and equity investments, for which principal repayment is not fixed, are also not included in the calculation. The calculation does not exceed 10.0x adjusted EBITDA for any individual investment because 10.0x captures the highest level of risk to us. Portfolio Net Leverage provides us with some guidance as to our exposure to the interest payment and principal repayment risk of our overall debt portfolio.  We monitor our Portfolio Net Leverage on a quarterly basis.Portfolio EBITDA is used by Prospect to supplement Portfolio Net Leverage and generally indicates a portfolio company’s ability to make interest payments and repay principal.  Portfolio EBITDA is calculated using the weighted average dollar amount EBITDA of each of our portfolio company debt investments.  The calculation provides us with insight into profitability and scale of the portfolio companies within our overall debt investments. These calculations include addbacks that are typically negotiated and documented in the applicable investment documents, including but not limited to transaction costs, share-based compensation, management fees, foreign currency translation adjustments and other nonrecurring transaction expenses.Together, Portfolio Net Leverage and Portfolio EBITDA assist us in assessing the likelihood that we will timely receive interest and principal payments.  However, these calculations are not meant to substitute for an analysis of our underlying portfolio company debt investments, but to supplement such analysis.ABOUT PROSPECT CAPITAL CORPORATIONProspect Capital Corporation (www.prospectstreet.com) 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 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.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. We undertake no obligation to update any such statement now or in the future.For additional information, contact:Grier Eliasek, President and Chief Operating Officer grier@prospectcap.com Telephone (212) 448-0702

If you are already a Value Forum member but are not logged on, click here to log on. If you are a guest, thank you for visiting ValueForum -- click here for information about guest access or click here to join -- a Trial Pass can be purchased for $6.99 to help you decide if you want to commit to longer term membership. Did you know there are customized portals into VF like BDCs.ValueForum.com and also My ValueForum which lets you customize your VF experience to the posters and topics that most interest you!


"ValueForum is an active, private, online discussion community for stock & bond market investing. In discussion forums divided into finely grained topics, you will find sophisticated investors trading tips, research, and due diligence on value stocks, income investments, forex, market news, and more. Join in - trade ideas, strategies, current news, via our unique message bulletin boards, stock ratings system, and other online tools specifically geared toward our community."

Random member testimonial: "This last year I have subscribed to two investment services, ValueForum and a well known income newsletter. ValueForum costs a little over 200 per year. The income newsletter costs about 400 per year. I am up 11% on investments made because I heard about them on ValueForum (of course, I do my own research on everything but the ideas came from ValueForum and there was always some discussion of the pros and cons of each investment on VF). I am down 8% on investments made because I heard about them from the income newsletter. I might also add that I often hear about breaking events immediately on ValueForum and a day or two later the same information is finally available from the newsletter. Hmmm...... which service is the better value?" more testimonials »

Email / About | Privacy | Terms of Use | How To / FAQ | Msg Ticker | VF Home | My.vf | BDCs.vf | Energy.vf | REITs.vf | TA.vf
 
Nothing in ValueForum.com is intended to be investment advice, nor does it represent the opinion of, counsel
from, or recommendations by ValueForum.com. ©2003 - 2021, Powered in part by Ticker TechnologiesContact Us

Prospect Capital Corporation (PSEC)