Prospect Capital Corporation Announces Pricing of $100 Million of Notes due 2024
September 27 2018 - 4:35PM
Prospect Capital Corporation (NASDAQ:PSEC) ("Prospect", “our”, or
“we”) announced today the pricing of $100 million in aggregate
principal amount of 6.375% unsecured notes due 2024 (the “Notes”).
The Notes will mature on January 15, 2024 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 6.375% per year payable semi-annually in
arrears on January 15 and July 15 of each year, commencing on
January 15, 2019. The Notes will be general senior unsecured
obligations of Prospect, will rank equally in right of payment with
Prospect's existing and future senior unsecured debt, and will rank
senior in right of payment to any potential subordinated debt,
should any be issued in the future.
RBC Capital Markets and Goldman Sachs & Co. LLC are acting
as joint book-running managers for this offering. Barclays and BNP
PARIBAS are acting as lead managers for this offering. BB&T
Capital Markets, Comerica Securities, KeyBanc Capital Markets and
Mizuho Securities are acting as co-managers for this
offering. The offering is expected to close on October 1,
2018, subject to customary closing conditions.
Prospect expects to use the net proceeds of this offering
initially for the 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 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 preliminary prospectus supplement dated September
27, 2018 and the accompanying prospectus dated October 30, 2017,
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 preliminary prospectus supplement, the
accompanying prospectus and this press release is not complete and
may be changed. The preliminary prospectus supplement, the
accompanying prospectus and this press release are not offers to
sell any securities of Prospect and are not soliciting an offer to
buy such securities in any state where such offer and sale is not
permitted.
The offering of these securities may be made only by means of a
preliminary prospectus supplement and an accompanying prospectus,
copies of which may be obtained from (1) RBC Capital Markets, LLC,
Attention: Investment Grade Syndicate Desk, Brookfield Place, 200
Vesey Street, 8th floor, New York, NY 10080, Telephone:
866-375-6829, e-mail: rbcnyfixedincomeprospectus@rbccm.com, or (2)
Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200
West Street, New York, NY 10282, Telephone: 866-471-2526, email:
prospectus-ny@ny.email.gs.com.
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation is a business development company
that focuses on lending to and investing in private businesses.
Prospect's investment objective is to generate both current income
and long-term capital appreciation through debt and equity
investments.
Prospect has elected to be treated as a business development
company under the Investment Company Act of 1940 ("1940 Act").
Prospect is required to comply with a series of regulatory
requirements under the 1940 Act as well as applicable NASDAQ,
federal and state rules and regulations. We have elected to be
treated as a regulated investment company under the Internal
Revenue Code of 1986. Failure to comply with any of the laws and
regulations that apply to Prospect could have an adverse effect on
Prospect and our 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 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@prospectstreet.comTelephone (212)
448-0702
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