Prospect Capital to price $75 million add-on to 4.95% convertible notes due 2022

By Abigail W. Adams

Portland, Me., May 15 – Prospect Capital Corp. plans to price a $75 million add-on to its 4.95% convertible notes due 2022 prior to the market open Wednesday, a market source said.

Goldman Sachs & Co. is the sole bookrunner for the registered offering. The add-on will form a single series with the existing 4.95% convertible notes and will have the same terms.

Prospect Capital priced $225 million of the 4.95% convertible notes with an issue price of 98 in April 2017. The notes were priced with an initial conversion premium of 10%. The conversion price is $9.98 and the conversion rate 100.2305, according to the Prospect News database.

The notes are non-callable until April 15, 2022 when they become freely callable. The notes mature on July 15,2022.

Proceeds will be used to repay debt under the company’s credit facility with the remaining amount used for short-term debt investments or long-term investments in line with the company’s investment objective.

Prospect Capital is a New York-based business development company focused on lending and investing in private businesses.

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