Prospect Capital Corporation (NASDAQ: PSEC), a listed business development company, has launched a continuous preferred stock offering of up to 40 million shares, with a $1 billion aggregate liquidation preference. Each share of preferred stock will have an offering price of $25.00 per share, before the application of any commissions and discounts.
Preferred Capital Securities LLC, a broker dealer and wholesale distributor, serves as the dealer manager for the offering.
The preferred stock will have a stated annual dividend rate of 5.50 percent, paid monthly (resulting in an annual percentage yield of 5.64 percent), 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, make investments in short-term debt instruments, and to make long-term investments in accordance with its investment objective.
Shares of PSEC closed at $4.97 on Monday, down 0.8 percent from Friday’s close of $5.01 per share.
Prospect Capital Corporation is a business development company that focuses on lending to and investing in private businesses.
Formed in 2013, Preferred Capital Securities is a boutique managing broker-dealer that distributes investment products through broker-dealers and registered investment advisors.