Prospect Capital Corporation Launches $1 Billion 5.5% Perpetual Preferred Stock Offering

NEW YORK, Aug. 03, 2020 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ:PSEC) (“Prospect”) announced today a continuous preferred stock offering of up to 40,000,000 shares, with a $1,000,000,000 aggregate liquidation preference (the “Preferred Stock”) (the “Offering”). Each share of Preferred Stock will have an offering price of $25.00 per share, before the application of any commissions and discounts.

The Preferred Stock will have a stated annual dividend rate of 5.50%, paid monthly (resulting in an annual percentage yield of 5.64%), and will rank senior to Prospect’s common stock. Prospect expects to use the net proceeds from the 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. The Preferred Stock provides Prospect with a diversified source of accretive fixed-rate capital without creating maturity risk due to the perpetual term.

“Prospect is pleased to offer the preferred stock in an accretive fashion to deliver consistent, attractive risk-adjusted returns to investors while enhancing the value of Prospect’s common stock,” John F. Barry III, Chairman and Chief Executive Officer of Prospect.

Preferred Capital Securities, LLC (“PCS”), a broker dealer and wholesale distributor, is the dealer manager for the Offering.

Investors are advised to carefully consider the investment objective, risks, charges and expenses of Prospect before investing. A prospectus supplement dated August 3, 2020, related to the Offering, and an accompanying prospectus dated February 13, 2020, which have been filed with the Securities and Exchange, contain this and other information about Prospect and should be read carefully before investing.

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 Offering is being made only by means of the prospectus supplement and the accompanying prospectus, copies of which may be obtained by writing to Preferred Shareholder Services at 3284 Northside Parkway NW, Suite 150, Atlanta, GA 30327.