Published on 5/20/2021 in the Prospect News Investment Grade Daily.
New Issue: Prospect Capital sells $300 million of 3.364% 5.5-year notes at 280 bps spread
By Devika Patel and Cristal Cody
Knoxville, Tenn., May 20 – Prospect Capital Corp. priced $300 million of 3.364% senior notes due Nov. 15, 2026 (Baa3/BBB-//Kroll: BBB-/Egan-Jones: BBB/DBRS: BBBL) with a spread of Treasuries plus 280 basis points on Wednesday, according to an FWP and a 497AD filed with the Securities and Exchange Commission.
The notes priced at 98.761 to yield 3.616%.
Initial price talk was in the Treasuries plus 310 bps area, a source said.
Barclays, RBC Capital Markets LLC and Goldman Sachs & Co. LLC were the bookrunners. KeyBanc Capital Markets Inc., BNP Paribas Securities Corp., CIBC World Markets Corp., Mizuho Securities USA Inc. and R. Seelaus & Co. Inc. were the lead managers.
The New York-based asset management company plans to use the proceeds to redeem its $70.8 million of 6.25% senior notes due 2028, repay borrowings under its revolving credit facility and refinance debt.
| Issuer: | Prospect Capital Corp.
|
| Description: | Senior notes
|
| Amount: | $300 million
|
| Maturity: | Nov. 15, 2026
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| Bookrunners: | Barclays, RBC Capital Markets LLC and Goldman Sachs & Co. LLC
|
| Lead managers: | KeyBanc Capital Markets Inc., BNP Paribas Securities Corp., CIBC World Markets Corp., Mizuho Securities USA Inc. and R. Seelaus & Co. Inc.
|
| Senior co-managers: | WauBank Securities, LLC, Comerica Securities, Inc., R. Seelaus & Co., LLC, M&T Securities, Inc., UBS Securities LLC and Incapital LLC
|
| Coupon: | 3.364%
|
| Price: | 98.761
|
| Yield: | 3.616%
|
| Spread: | Treasuries plus 280 bps
|
| Call: | Make-whole call at Treasuries plus 45 bps until Oct. 15, 2026, then a par call
|
| Trade date: | May 20
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| Settlement date: | May 27
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| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
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| Kroll: BBB-
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| Egan-Jones: BBB
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| DBRS: BBBL
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| Distribution: | SEC registered
|
| Guidance: | Treasuries plus 310 bps area
|
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