Prospect Capital details $1 billion continuous preferred stock offer

By James McCandless

San Antonio, Aug. 5 – Prospect Capital Corp. offered more details on its multi-series $1 billion continuous $25-par preferred stock offering of up to 40 million shares with a dividend of 5.5%, according to a filing with the Securities and Exchange Commission.

The company is offering 5.5% series A1 preferred stock, 5.5% series M1 preferred stock and 5.5% series M2 preferred stock.

Also part of the offering, the company is reclassifying 120 million shares of common stock as convertible preferred stock.

Preferred Capital Securities, LLC is the dealer manager.

Dividends are payable monthly.

The company plans to use the proceeds to maintain and enhance balance sheet liquidity, including repayment of debt under its credit facility, if any, investments in high-quality short-term debt instruments, or a combination thereof, and to make long-term investments in accordance with its investment objective.

Prospect Capital is a New York-based middle market investment company.

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