S&P rates Prospect Capital notes BBB-

Standard & Poor's said it assigned a BBB- rating on Prospect Capital Corp.'s $150 million senior unsecured notes due in June 2024.

The issuer credit rating on Prospect Capital is BBB- with a stable outlook.

The securities are pari passu with the bonds that the company previously issued, S&P said.

The proceeds will be used to redeem its $150 million in aggregate principal amount of 6.25% convertible notes due on Dec. 15 and to pay down the outstanding balance on its credit facility, S&P said.

This transaction is viewed as leverage neutral, the agency said.

The company is expected to continue to operate with a debt-to-equity ratio of less than 0.85x and improve its realized return on average portfolio investments to more than 5%, S&P said.

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