Prospect Capital Announces Pricing of $70 Million of 5.875% Senior Notes due 2023
June 18 2018 - 4:01PM
Prospect Capital Corporation (NASDAQ:PSEC) (“Prospect”, “our”, or
“we”) announced today the pricing of $70 million in aggregate
principal amount of senior unsecured 5.875% Senior Notes due 2023
(the “Notes”).
The Notes will be a further issuance of the 5.875% Senior Notes
due 2023 that Prospect issued on March 15, 2013 in the aggregate
principal amount of $250,000,000 (the "existing 5.875% Senior
Notes”). The Notes will be treated as a single series with the
existing 5.875% Senior Notes under the indenture and will have the
same terms (other than issue date and issue price) as the existing
5.875% Senior Notes. The Notes will have the same CUSIP number and
will be fully fungible and rank equally in right of payment with
the existing 5.875% Senior Notes. Upon the issuance of the Notes,
the outstanding aggregate principal amount of Prospect’s 5.875%
Senior Notes due 2023 will be $320 million.
The Notes will mature on March 15, 2023, unless earlier
repurchased in accordance with their terms. Interest on the Notes
will accrue from March 15, 2018 and will be payable semi-annually
in arrears on March 15 and September 15 of each year, commencing on
September 15, 2018. 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.
Prospect expects to use the net proceeds from the sale of the
Notes to finance a tender offer to purchase for cash its 5.00% 2019
Notes pursuant to an offer to purchase dated June 7, 2018 and
related notice of guaranteed delivery, which set forth the terms
and conditions of the tender offer.
RBC Capital Markets, LLC and Barclays Capital Inc. are acting as
the joint book-running managers for this offering. UBS Securities
LLC is acting as the co-manager for this offering.
The offering of these securities may be made only by means of a
prospectus and a related prospectus supplement, a copy of which may
be obtained by contacting: (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) Barclays
Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, New York 11717; Barclaysprospectus@broadridge.com
(phone: 888-603-5847).
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of
these securities in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any state.
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation 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. Failure
to comply with any of the laws and regulations that apply to us
could have an adverse effect on us 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 Officer grier@prospectstreet.com Telephone (212)
448-0702
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