Prospect Capital Announces Pricing of $150 Million in Aggregate Liquidation Preference of 5.35% Series A Perpetual Preferred ...
July 12 2021 - 4:45PM
Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or
“we”) announced today the pricing of an underwritten public
offering of 6 million shares, or $150 million in aggregate
liquidation preference, of newly designated 5.35 % Series A Fixed
Rate Cumulative Perpetual Preferred Stock (“Series A Preferred
Stock”) at a public offering price of $25.00 per share. In
addition, Prospect has granted the underwriters a 30-day option to
purchase up to an additional 900,000 shares of Series A Preferred
Stock solely to cover over-allotments. This offering is expected to
close on July 19, 2021, subject to customary closing conditions.
Morgan Stanley, RBC Capital Markets and UBS Investment Bank are
acting as joint book-running managers for this offering. Goldman
Sachs & Co. LLC is acting as lead manager for this offering.
Ladenburg Thalmann, InspereX, Wedbush Securities and William Blair
are acting as co-managers for this offering.
Prospect expects to use the net proceeds of this offering to
maintain and enhance balance sheet liquidity, including repayment
of debt under its credit facility, if any, investments in high
quality short-term debt instruments or a combination thereof, and
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 July 12, 2021, the
preliminary prospectus supplement dated July 12, 2021 and the
accompanying prospectus dated February 13, 2020, each of which have
been filed with the Securities and Exchange Commission, contain
this and other information about Prospect and should be read
carefully before investing.
The information in the pricing term sheet, the preliminary
prospectus supplement 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) Morgan Stanley & Co.
LLC toll-free at 1-800-584-6837; (2) RBC Capital Markets, LLC
toll-free at 1-866-375-6829; or (3) UBS Securities LLC toll-free at
1-888-827-7275.
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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