NEW YORK, Jan. 14, 2021 (GLOBE NEWSWIRE) — Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) announced today the pricing of $325 million in aggregate principal amount of 3.706% notes due 2026 (the “Notes”). The Notes will mature on January 22, 2026 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 3.706% per year payable semi-annually in arrears on January 22 and July 22 of each year, commencing on July 22, 2021. 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.
Barclays, RBC Capital Markets and Goldman Sachs & Co. LLC are acting as joint book-running managers for this offering. KeyBanc Capital Markets, BNP PARIBAS, CIBC Capital Markets and Mizuho Securities are acting as joint lead managers for this offering. Truist Securities, Comerica Securities, R. Seelaus & Co., LLC, and UBS Investment Bank are acting as senior co-managers and Incapital and National Securities Corporation are acting as junior co-managers for this offering. The offering is expected to close on January 22, 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, redemption of its 6.25% Notes due 2024 and 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.
Investors are advised to carefully consider the investment objective, risks, charges and expenses of Prospect before investing. The pricing term sheet dated January 14, 2021, the preliminary prospectus supplement dated January 14, 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…
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