Published on 9/23/2021 in the Prospect News Investment Grade Daily.
New Issue: Prospect Capital sells $300 million 3.437% seven-year notes with 250 bps spread
By Devika Patel and Cristal Cody
Knoxville, Tenn., Sept. 23 – Prospect Capital Corp. priced $300 million of 3.437% seven-year notes at a spread of 250 basis points over Treasuries on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 98.266 to yield 3.719%.
The notes (Baa3/BBB-//Kroll: BBB-/Egan-Jones: BBB/DBRS: BBBL) were initially talked to price with a spread in the Treasuries plus 255 bps area.
RBC Capital Markets LLC, Goldman Sachs & Co. LLC and BNP Paribas Securities Corp. were the bookrunners. Lead managers were KeyBanc Capital Markets Inc., Barclays, CIBC World Markets Corp., Mizuho Securities USA LLC and R. Seelaus & Co., LLC.
The New York-based asset management company plans to use the proceeds to repay borrowings under its revolving credit facility and to refinance debt.
| Issuer: | Prospect Capital Corp.
|
| Amount: | $300 million
|
| Description: | Senior notes
|
| Maturity: | Oct. 15, 2028
|
| Bookrunners: | RBC Capital Markets LLC, Goldman Sachs & Co. LLC and BNP Paribas Securities Corp.
|
| Lead managers: | KeyBanc Capital Markets Inc., Barclays, CIBC World Markets Corp., Mizuho Securities USA LLC and R. Seelaus & Co., LLC
|
| Senior co-managers: | WauBank Securities LLC, Comerica Securities, Inc., R. Seelaus & Co., LLC, M&T Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and InspereX LLC
|
| Coupon: | 3.437%
|
| Price: | 98.266
|
| Yield: | 3.719%
|
| Spread: | Treasuries plus 250 bps
|
| Call: | Make-whole call at Treasuries plus 40 bps until Aug. 15, 2028, then a par call
|
| Trade date: | Sept. 23
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| Settlement date: | Sept. 30
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| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Kroll: BBB-
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| Egan-Jones: BBB
|
| DBRS: BBBL
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 255 bps area
|
| Cusip: | 74348TAW2
|
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