Prospect Capital starts at-the-market offering for up to $300 million more of three note series

By James McCandless

San Antonio, May 16 – Prospect Capital Corp. has entered into an agreement to sell up to $300 million more total of its 6.25% notes due 2024, 6.25% notes due 2028 and 6.875% notes due 2029, according to a filing with the Securities and Exchange Commission.

B. Riley FBR, Inc., BB&T Capital Markets and Comerica Securities, Inc. are listed as the sales agents.

The company is offering up to $100 million of each series of notes.

The offering is an add-on to the $35 million outstanding for the 6.25% notes due 2024, the $15 million outstanding for the 6.25% notes due 2028 and the $19 million outstanding for the 6.875% notes due 2029.

Sales will be by means of ordinary brokers’ transactions at prices related to prevailing market prices or at negotiated prices.

The sales agents will receive a commission equal to 2% of the gross sale price of the notes.

The company plans to use the proceeds to maintain balance sheet liquidity, involving repayment of debt under its credit facility, if any, and redemption of its debt, investments in high quality short-term debt instruments or a combination thereof, and thereafter to make long-term investments in accordance with its investment objective.

Prospect Capital is a New York City-based middle-market investment company.

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