Prospect Capital Stock Price, News & Analysis

Prospect Capital Corporation (NASDAQ: PSEC) has announced the redemption of all outstanding 3.706% Notes due 2026. The redemption will take place on June 18, 2025, with noteholders receiving 100% of the principal amount plus any accrued but unpaid interest up to the redemption date. The Notes are currently held through The Depository Trust Company and will be redeemed following applicable procedures.

Prospect Capital Corporation (PSEC) reported financial results for Q1 2025 showing mixed performance. Net Investment Income (NII) decreased to $83.5M ($0.19 per share) from $94.4M ($0.23 per share) year-over-year. The company reported a significant net loss of $171.3M (-$0.39 per share) compared to net income of $113.9M ($0.27 per share) in Q1 2024. The NAV per share declined to $7.25 from $8.99 year-over-year. Key portfolio metrics include: 65.5% first lien debt (increased 650 basis points YoY), 10.5% second lien debt, and 19.7% equity investments. The company maintains strong liquidity with $1.72B in cash and undrawn credit facility commitments. PSEC declared monthly cash distributions of $0.045 per share for May through August 2025. The company successfully retired $156.2M convertible bonds in March 2025 and completed a tender offer for $135.7M of 2026 Notes in April 2025.

Prospect Capital Corporation (NASDAQ: PSEC) has announced its schedule for third fiscal quarter earnings release and conference call. The company plans to file its Form 10-Q report with the SEC containing results for the quarter ended March 31, 2025, on Thursday, May 8, 2025. The earnings press release will be issued after market close on the same day.

A conference call is scheduled for Friday, May 9, 2025, at 9:00 a.m. Eastern Time, accessible via dial-in number 888-338-7333. A replay will be available for approximately 30 days at 877-344-7529 using passcode 7141044. Additionally, a live webcast will be available on the company's website at www.prospectstreet.com.

Prospect Capital (PSEC) has announced the results of its cash tender offer for its outstanding 3.706% Notes due 2026. As of the expiration time on April 17, 2025, a total of $142,961,000 aggregate principal amount of Notes had been validly tendered, including $8,732,000 tendered through guaranteed delivery procedures.

The company will pay $990.00 for each $1,000 principal amount of eligible Notes, plus accrued and unpaid interest. The settlement date is expected to be April 22, 2025. The tender offer targeted Notes with an outstanding principal amount of $342,947,000.

RBC Capital Markets, is serving as the Dealer Manager, while D.F. King & Co., Inc. is acting as the Information and Tender Agent for the tender offer.

Prospect Capital (NASDAQ: PSEC) has announced a definitive merger agreement to acquire QC Holdings in an all-cash transaction valued at approximately $115 million, offering $2.00 per share. The merger has received unanimous approval from QC Holdings' board of directors and majority shareholders.

The transaction is expected to close within 40 to 60 days, subject to regulatory approvals and customary closing conditions. Post-merger, QC Holdings will delist from the OTC Pink Market but maintain its headquarters in Lenexa, Kansas, with current CEO Darrin Andersen and the management team continuing their roles.

The merger aims to provide QC Holdings, a consumer finance business with a 40-year history, access to greater capital through Prospect for future growth and innovation.

Prospect Capital (PSEC) has launched a cash tender offer to purchase any and all of its outstanding 3.706% Notes due 2026. The tender offer will expire on April 17, 2025 at 5:00 p.m., New York City time.

The company is offering to pay $990.00 per $1,000 principal amount of Notes, plus accrued and unpaid interest. The total outstanding principal amount of the Notes is $342,947,000. The expected settlement date is April 22, 2025.

PSEC plans to fund the purchase using cash on hand and borrowings under its revolving credit facility. The company has retained RBC Capital Markets as Dealer Manager and D.F. King & Co. as Information and Tender Agent for the offer. A retail processing fee of $1.00 per $1,000 principal amount will be paid for qualifying retail broker tenders of $100,000 or less.

Prospect Capital (NASDAQ: PSEC) has announced an upcoming webinar titled 'Medium Term Notes – Senior Position and Attractive Income' scheduled for April 14, 2025, at 1:00pm ET. The educational session, which is the third in their investor education series, will focus on senior unsecured bonds and medium term notes.

The webinar will cover how portfolios can benefit from programmatic bonds through:

• Attractive contractual cash income streams
• Optionality across sizes and maturities
• Laddered approach to building a bond portfolio

The event, hosted in collaboration with RIA Channel, offers 1 CFP®/IWI/CFA CE Credit for financial professionals.

Prospect Capital (NASDAQ: PSEC) has received a reaffirmation of its investment grade credit ratings from Egan-Jones Ratings Company. The company maintained its BBB rating for issuer and institutional notes, while its preferred stock retained a BBB- rating.

The ratings reflect Prospect's strong franchise, consistent long-term performance, and conservative leverage strategy. The company's President and COO, Grier Eliasek, highlighted their ongoing portfolio rotation strategy, noting that over 95% of originations in the first two quarters of fiscal 2025 were focused on first lien senior secured loans.

Prospect Capital (NASDAQ: PSEC) has received a reaffirmation of its investment grade issuer and long-term senior debt credit ratings at BBB(low) from Morningstar DBRS, with a revised trend of Stable.

The company highlights its strong business profile, including:

• Over $21 billion invested across 400+ investments
• $4.7 billion in cumulative principal bond repayments
• $2.1 billion credit facility with 48 institutional banks
• 0.40x debt to equity leverage
• 0.4% nonaccruals
• 13% unlevered investment level gross cash internal rate of return for exited investments
• Less than 1% book to look ratio from over 3,000 annual origination opportunities

The company maintains a majority senior secured loan book and reports strong counterparty relationships and high employee ownership.