By Rebecca Melvin
New York, Feb. 14 - Prospect Capital Corp. priced $150 million of 5.5-year convertible senior notes at par to yield 5.5% with an initial conversion premium of 10%, according to market sources.
The Rule 144A notes will be convertible into shares of Prospect's common stock at an initial conversion price of $12.76 per share.
There is a greenshoe of $22.5 million.
The deal was sold via Goldman Sachs & Co. RBC Capital Markets Corp. is also involved in the deal.
The bonds are non-callable with no puts. There is dividend protection in the form of a no-cap conversion rate adjustment and also takeover protection.
Proceeds will be used to maintain balance sheet liquidity, including repayment of debt under its credit facility, investments in high quality short-term debt instruments, and thereafter long-term investments in accordance with Prospect's investment objectives.
Prospect Capital is a New York venture capital and private equity firm.
| Issuer: | Prospect Capital Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | Aug. 15, 2016
|
| Coupon: | 5.5%
|
| Price: | Par, $1,000
|
| Yield: | 5.5%
|
| Conversion premium: | 10%
|
| Conversion price: | $12.76
|
| Conversion ratio: | 78.3699 shares per bond
|
| Call: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | Feb. 14
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: PSEC
|
| Stock reference price: | $11.60
|
| Market capitalization: | $1.02 billion
|
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