Prospect Capital Corporation (NASDAQ: PSEC), a publicly traded business development company, reported that its continuous preferred stock offering of up to 40 million shares of Series A1, M1, and M2 with a $1 billion aggregate liquidation preference has raised $80.6 million in aggregate preference amount since the initial closing in the quarter ending December 31, 2020.
Prospect issued $19.7 million in aggregate preference amount of the preferred stock since March 15, 2021.
Preferred Capital Securities LLC, a broker dealer and wholesale distributor, serves as the dealer manager for the offering.
The preferred stock has a stated annual dividend rate of 5.5 percent, paid monthly (resulting in an annual percentage yield of 5.64 percent) and ranks senior to more than $3.4 billion of Prospect’s common stock. The preferred stock is perpetual and convertible into our publicly traded common stock at the preferred investor’s discretion (with conversions occurring twice per month, subject to certain conditions and fees that decline to zero over time, if applicable).
Prospect Capital Corporation 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.