Prospect Capital starts new ongoing preferred offering with InspereX

Chicago, March 11 – Prospect Capital Corp. entered into an agreement for an ongoing offering of up to $250 million of 5.5% series AA1 preferred stock and 5.5% series MM1 preferred stock (BB), according to a 424B2 filing with the Securities and Exchange Commission.

The 10 million shares will be sold at $25.00 per share.

The dealer manager of this offering is InspereX LLC.

The shares are perpetual.

Shareholders can elect early conversion, but there will be a penalty that starts at 9% before the first anniversary of issuance and steps down 1% per year until on or after the fifth anniversary when the penalty disappears.

The issuer may redeem the shares early at par after the fifth anniversary. If less than the full amount is redeemed early, the redemption would be conducted on a pro rata basis.

Proceeds will be used to maintain and enhance balance sheet liquidity, including repayment of debt under the company’s credit facility.

Prospect Capital is a New York City-based financial services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.