Prospect Capital Corporation Surpasses $1 Billion Preferred Fundraising Milestone and Upsizes Extended Credit Facility to $1.584 Billion
September 09 2022 - 6:01AM
Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or
“we”) announced today that Prospect’s preferred stock offerings
(collectively, the “Preferred Stock”) have exceeded $1.0 billion in
aggregate liquidation preference issuances since the initial
closing in the quarter ending December 31, 2020. The ongoing
offering of the Series A1, M1, and M2 Preferred Stock being raised
in the private wealth, institutional, and Registered Investment
Advisor channels has approximately $645 million now available
for sale.
In addition, on September 7, 2022, Prospect entered into an
extension and upsizing of the revolving credit facility (the
“Facility”) for Prospect Capital Funding LLC (“PCF”), a GAAP
consolidated and non-recourse subsidiary of Prospect, which (i)
will become effective on September 15, 2022, (ii) extends the term
five years and the revolving period four years from such effective
date, (iii) changes the interest rate on drawn amounts from
one-month LIBOR plus 2.05% to one-month Term SOFR plus 2.05%, and
(iv) increases the accordion feature, which allows the Facility, at
Prospect's discretion, to accept additional commitments for up to a
total of $2.000 billion of commitments.
The Facility is increasing from $1.500 billion of commitments
from 43 lenders to $1.584 billion of commitments from 44
lenders.
Upon effectiveness of the extension, the Facility (i) will
mature on September 15, 2027 and (ii) will include a revolving
period that extends through September 15, 2026, followed by an
additional one-year amortization period.
“Prospect’s non-traded preferred stock offers investors
recurring cash income with a stable stated value, ongoing
liquidity, management alignment, leverage caps, and
over $4 billion of junior common equity
credit support." said Grier Eliasek, President of Prospect.
“Prospect is a leading issuer of non-traded preferred stock, with
each of institutional, registered investment advisor, wirehouse,
independent private wealth, and international investor channels
having invested in Prospect’s preferred stock. With
multiple liquidity events occurring with products in the
nontraded registered marketplace here in 2022, we welcome
interest from any such investors and their advisors in Prospect's
preferred stock offerings. We also appreciate the support of our
institutional bank lenders with the recent upsizing and extension
of our revolving credit facility, which together with our preferred
fundraising arms us with significant funding to help us capitalize
on attractive investment opportunities in the marketplace
today.”
Preferred Capital Securities LLC (“PCS”) is a securities broker
dealer and the dealer manager for the ongoing offering of the
Series A1, M1, and M2 Preferred Stock. PCS has raised
approximately $3 billion in non-traded preferred stock since its
formation in 2011.
This press release is for informational purposes and is not an
offer to purchase or sell or a solicitation of an offer to buy
these securities, nor shall there be any sale of these securities
in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of such state or jurisdiction. The ongoing
offering of the Series A1, M1, and M2 Preferred Stock is being
made only by means of the prospectus supplement and the
accompanying prospectus, copies of which may be obtained by writing
to PCS at 3284 Northside Parkway NW, Suite 150, Atlanta, GA
30327.
About Prospect Capital Corporation
Prospect Capital Corporation is a business development company
that focuses on lending to and investing in private businesses.
Prospect’s investment objective is to generate both current income
and long-term capital appreciation through debt and equity
investments.
Prospect has elected to be treated as a business development
company under the Investment Company Act of 1940 (“1940 Act”).
Prospect is required to comply with a series of regulatory
requirements under the 1940 Act as well as applicable NASDAQ,
federal and state rules and regulations. We have elected to be
treated as a regulated investment company under the Internal
Revenue Code of 1986.
Caution Concerning Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, whose safe harbor for forward-looking statements does not
apply to business development companies. Any such statements, other
than statements of historical fact, are highly likely to be
affected by other unknowable future events and conditions,
including elements of the future that are or are not under our
control, and that we may or may not have considered; accordingly,
such statements cannot be guarantees or assurances of any aspect of
future performance. Actual developments and results are highly
likely to vary materially from any forward-looking statements. Such
statements speak only as of the time when made, and we undertake no
obligation to update any such statement now or in the future.
For further information, contact:Grier Eliasek, President and
Chief Operating Officergrier@prospectcap.comTelephone (212)
448-0702
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