By Abigail W. Adams
Portland, Me., Feb. 27 – Prospect Capital Corp. priced $175 million of six-year convertible notes prior to the market open on Wednesday at 98 with a coupon of 6.375% to yield 6.89% and an initial conversion premium of 30.68%, according to a market source.
Goldman Sachs & Co. LLC, Barclays and RBC Capital Markets LLC are joint bookrunners for the registered offering, which carries an upsized greenshoe of $26.25 million.
The initial size of the deal was $150 million with a greenshoe of $22.5 million.
The notes are non-callable until Dec. 1, 2024. There are no investor puts.
There is takeover protection and dividend protection above a monthly threshold of 6 cents.
Proceeds will be used to repurchase a portion of the company’s 4.75% convertible notes due 2020 from time to time, for the repayment of debt under its credit facility and to make short-term and long-term investments.
Prospect Capital is a New York-based business development company.
| Issuer: | Prospect Capital Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $175 million
|
| Greenshoe: | $26.25 million
|
| Maturity: | March 1, 2025
|
| Bookrunners: | Goldman Sachs & Co. LLC, Barclays and RBC Capital Markets LLC
|
| Coupon: | 6.375%
|
| Price: | 98
|
| Yield: | 6.89%
|
| Conversion premium: | 30.68%
|
| Conversion price: | $9.03
|
| Conversion rate: | 110.7420
|
| Call options: | Non-callable until Dec. 1, 2024
|
| Put options: | None
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 1
|
| Talk: | Reoffer price of 98, a coupon of 6.25% to 6.375%, a yield of 6.76% to 6.89%
|
| Stock symbol: | Nasdaq: PSEC
|
| Stock price: | $6.91 at market close Feb. 26
|
| Market capitalization: | $2.53 billion
|
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