Prospect Capital Corporation Announces Pricing of $300 Million of 3.437% Notes Due 2028
September 23, 2021 at 04:16 pm EDT
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Prospect Capital Corporation announced he pricing of $300 million in aggregate principal amount of 3.437% notes due 2028. The Notes will mature on October 15, 2028 and may be redeemed in whole or in part at any time or from time to time at option at par plus a make-whole premium, if applicable. The Notes will bear interest at a rate of 3.437% per year payable semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2022. 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, Goldman Sachs & Co. LLC and BNP PARIBAS, are acting as joint book-running managers for this offering. KeyBanc Capital Markets, Barclays, CIBC Capital Markets, Mizuho Securities and R. Seelaus & Co., LLC are acting as joint lead managers for this offering. WauBank Securities LLC, M&T Securities, Comerica Securities, Morgan Stanley, UBS Investment Bank and InspereX are acting as senior co-managers for this offering. The offering is expected to close on September 30, 2021, subject to customary closing conditions. Prospect expects to use the net proceeds of this offering primarily for the refinancing of existing indebtedness, including but not limited to, 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 to make investments in high quality short-term debt instruments, and thereafter to make long-term investments in accordance with its investment objective.
Prospect Capital Corporation is a business development company that focuses on lending to and investing in private businesses. The Companyâs investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. It invests primarily in senior and subordinated debt and equity of private companies in need of capital for acquisitions, divestitures, growth, development, recapitalizations and other purposes. It invests primarily in first and second lien secured loans and unsecured debt, which in some cases includes an equity component. It invests in debt and equity positions of structured credit, which are a form of securitization in which the cash flows of a portfolio of loans are pooled and passed on to different classes of owners in various tranches. It may also acquire controlling interests in companies in conjunction with making secured debt investments in such companies. Its investment adviser is Prospect Capital Management L.P.
PROSPECT CAPITAL CORPORATION 
