Prospect Capital Corporation Updates Preferred Stock Series Offerings

Prospect Capital Corporation (NASDAQ: PSEC), a publicly traded business development company, has expanded its offering of up to 90 million shares, par value $0.001 per share, of preferred stock, with a $2.25 billion aggregate liquidation preference, to include two new series of preferred stock: 7.50% Series A5 and 7.50% Series M5. The maximum aggregate liquidation preference of preferred stock offered remains unchanged.

In connection with this update, the company is no longer offering its Floating Rate Series A4 and Floating Rate Series M4 preferred stocks to all investors. The floating rate shares are no longer offered under the prospectus supplement and no purchase orders will be accepted. For existing shareholders in the floating rate shares, business will continue to be conducted, except that existing shareholders do not have the option of purchasing additional shares. Existing shareholders may continue, however, to receive floating rate shares pursuant to the dividend reinvestment plan.

The company amended its dealer manager agreement and dividend reinvestment plan to reflect the expanded offering and changes to the floating rate shares’ availability. Preferred Capital Securities is a securities broker-dealer and the dealer manager for the ongoing offering. PCS has raised $5 billion of capital since its formation in 2011.

Regarding stockholder fees associated with the Series A5 and Series M5 shares: the sales load (as a percentage of the offering price) is 10% for A5 and 3% for M5; the offering expenses borne by the company (as a percentage of the offering price) is 1.5% for both A5 and M5; and the total stockholder transaction expenses (as a percentage of the offering price) are 11.5% for A5 and 4.5% for M5.

Highlights of the annual expenses as a percentage of net assets attributable to common stock for both series are: 5.5% management fees; 1.82% incentive fees payable under the investment advisory agreement; 7.37% total advisory fees; 6.82% total interest expenses;

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