Prospect Capital Buys $142 Million in Outstanding Notes

Prospect Capital Corporation recently disclosed the results of its cash tender offer, acquiring $142.961 million of outstanding notes as of April 17, 2025.

Summary of the Tender Offer

On April 17, 2025, Prospect Capital Corporation completed its cash tender offer aimed at purchasing 3.706% notes due in 2026. The offer, which successfully solicited a total of $142,961,000 in principal amount of notes, included $8,732,000 tendered through guaranteed delivery. Eligible notes will be redeemed at a price of $990 for each $1,000 principal amount, plus accrued interest, with the settlement scheduled for April 22, 2025. RBC Capital Markets is the Dealer Manager for this operation, and D.F. King & Co., Inc. serves as the Information and Tender Agent. The announcement clarifies that it is solely for informational purposes and does not solicit offers beyond the specified terms.

Analysis of Results

Positive Elements

• The valid tender of $142,961,000 reflects robust investor interest and trust in Prospect Capital’s debt offerings.
• The tender offer enables the company to streamline its capital structure, potentially enhancing its financial position by lowering its debt obligations.
• Engaging a reputable financial institution like RBC Capital Markets as Dealer Manager positively impacts their strategy in managing the tender offer.

Concerns Raised

• Despite the total tendered amount, only a portion ($142,961,000 out of $342,947,000) of the outstanding notes were validly tendered, which may signal lower investor confidence or weaker demand.
• The necessity of a cash tender offer could imply existing liquidity challenges or financial instability, indicating that the company is actively managing its debt.
• The lack of recommendations to tender the notes might create uncertainty about the company’s future and its financial health.

Frequently Asked Questions

What was the purpose of the Prospect Capital Corporation Tender Offer?

The Tender Offer’s primary goal was to acquire all outstanding notes from investors, as outlined in the Offer to Purchase.

How much principal amount was tendered in the Offer?

A total of $142,961,000 in aggregate principal of notes was validly tendered in the Tender Offer.

What is the consideration for Eligible Notes in the Tender Offer?

The tender offer consideration is $990.00 for each $1,000 principal amount of eligible notes, plus accrued interest.

Who can I contact for questions about the Tender Offer?

For inquiries, please contact RBC Capital Markets, LLC at +1 (212) 618-7843 or +1 (877) 381-2099.

When will the settlement date for the Tender Offer occur?

The expected settlement date for the tender offer is April 22, 2025.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

Insider Trading Activity for $PSEC

In the past six months, $PSEC insiders reported 35 trading events, all of which were purchases with no sales recorded.

Here’s a summary of recent insider trading activities involving $PSEC:

• JOHN F BARRY (CEO) made 18 purchases totaling 10,883,173 shares for about $48,452,647.
• M GRIER ELIASEK (COO) purchased 465,000 shares in 12 transactions valued at approximately $2,221,808.
• WILLIAM GREMP purchased 20,000 shares in 3 transactions valued at around $85,799.
• DASK KRISTIN LEA VAN (CFO) bought 15,200 shares in 2 transactions for about $65,208.

To keep track of insider transactions, visit Quiver Quantitative’s insider trading dashboard.

Hedge Fund Activity Related to $PSEC

In the most recent quarter, 125 institutional investors added shares of $PSEC to their portfolios, while 85 reduced their holdings.

Highlighted below are some significant recent trading moves:

• INVESCO LTD. removed 2,734,322 shares (-100.0%) from their portfolio in Q4 2024, totaling an estimated $11,784,927.
• BALYASNY ASSET MANAGEMENT L.P. increased their stake by adding 2,439,426 shares (+6177.6%), amounting to an estimated $10,513,926.
• THOMAS J. HERZFELD ADVISORS, INC. also added 1,828,411 shares, reflecting a significant increase for an estimated $7,880,451.
• XML FINANCIAL, LLC cut holdings by 1,098,442 shares (-53.7%), valued at about $4,734,285.
• UBS GROUP AG boosted its stake by 925,806 shares (+265.8%), representing an estimated $3,990,223.
• ENVESTNET ASSET MANAGEMENT INC added 924,428 shares (+4160.3%), totaling roughly $3,984,284.
• VAN ECK ASSOCIATES CORP decreased their holdings by 811,246 shares (-9.1%), valued at an estimated $3,496,470.

To follow hedge fund activities further, check out Quiver Quantitative’s institutional holdings dashboard.

Full Release

NEW YORK, April 18, 2025 (GLOBE NEWSWIRE) — Prospect Capital Corporation (the “Company”) has announced the completion of its cash tender offer (the “Tender Offer”) to purchase any and all outstanding notes as outlined in the Offer to Purchase dated April 9, 2025 (the “Offer to Purchase”). This document included the details and conditions of the Tender Offer, along with the accompanying notice of guaranteed delivery (the “Notice of Guaranteed Delivery”).

At the expiration time of 5:00 p.m., New York City time, on April 17, 2025 (the “Expiration Time”), a total of $142,961,000 aggregate principal amount of notes had been validly tendered and not validly withdrawn, according to D.F. King & Co., Inc., the Information and Tender Agent. This figure includes $8,732,000 tendered under guaranteed delivery procedures noted in the Offer to Purchase and the Notice of Guaranteed Delivery. The withdrawal rights expired simultaneously at 5:00 p.m. on April 17, 2025. Below is a table summarizing the total principal amount and percentage of the validly tendered notes accepted for purchase by the Company (the “Eligible Notes”).

Prospect Capital Announces Tender Offer for Outstanding Notes

Security	CUSIP / ISIN Nos.	Outstanding Principal Amount	Principal Amount Tendered
3.706% Notes due 2026 (the “Notes”)	74348TAU6 / US74348TAU60	$342,947,000	$142,961,000

The consideration for the Eligible Notes will be $990.00 for each $1,000 principal amount, plus accrued and unpaid interest from the last interest payment date up to the expected settlement date of April 22, 2025.

The Company has appointed RBC Capital Markets, LLC as the Dealer Manager for the Tender Offer. For inquiries or assistance related to the Tender Offer, contact RBC Capital Markets, LLC at +1 (212) 618-7843 or +1 (877) 381-2099 (toll free).

D.F. King & Co., Inc. serves as the Information and Tender Agent for the Notes in the Tender Offer. The Tender Offer follows the specifications set in the Offer to Purchase document, which can be obtained from D.F. King & Co., Inc. at (212) 269-5550 for Banks and Brokers or (800) 967-5068 (toll free), or via [email protected].

Additionally, copies of the Offer to Purchase and the Retail Processing Fee Form are available online at: https://www.dfking.com/psec/.

This announcement serves informational purposes only; it does not constitute an offer or solicitation to purchase any securities. The solicitation to buy the Notes is exclusively under the terms laid out in the Offer to Purchase, which may be amended. The Tender Offer is not valid in any jurisdiction where such an offer would be unlawful prior to registration or qualifications under local securities laws. The Company, Dealer Manager, and Tender Agent make no recommendations regarding whether holders should tender their Notes in the Tender Offer.

About Prospect Capital Corporation

Prospect Capital Corporation is a business development company aimed at lending to and investing in private enterprises. Its investment goal is to achieve both current income and long-term capital appreciation through its debt and equity investments.

Prospect Capital has opted to operate as a business development company under the Investment Company Act of 1940 (“1940 Act”) and adheres to associated regulatory requirements as well as relevant NASDAQ, federal, and state regulations. It has also chosen to be regarded as a regulated investment company under the Internal Revenue Code of 1986.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve future expectations about the completion of transactions related to the Tender Offer. It is important to note that these predictions may be influenced by unforeseen future events and circumstances, which are often beyond the Company’s control. Therefore, actual results could differ significantly. The Company is under no obligation to update these statements in the future.

For further inquiries, please contact:
Grier Eliasek, President and Chief Operating Officer
Email: [email protected]
Telephone: (212) 448-0702

This article was originally published by Quiver News. For the full story, visit their website.

The views expressed here are those of the author and do not reflect the opinions of Nasdaq, Inc.