Prospect Capital Stock Price, News & Analysis

Prospect Capital (NASDAQ: PSEC) closed $764 million of new investments during its fiscal year ended June 30, 2024, investing in 38 new and existing portfolio companies. Notably, 91% of PSEC's originations were first lien, senior secured loans. Key investments included:

• $56 million in clinical trial services
• $60 million in business process outsourcing
• $26 million in healthcare services
• $30 million in direct-to-consumer marketing
• $37 million in logistics services
• $13 million in furniture provision
• $10 million in home-based infusion pharmacy services
• $20 million in branded jewelry design

As of October 14, 2024, Prospect is processing an investment pipeline of over $350 million, with transactions still under due diligence and analysis.

Prospect Capital (NASDAQ: PSEC) has successfully extended and increased its revolving credit facility for Prospect Capital Funding , a GAAP consolidated subsidiary. The facility's total commitments now stand at $2.1215 billion, with participation from 48 banks boasting a combined asset base exceeding $7.5 trillion. This marks the largest number of lenders for any business development company's credit facility.

Key features of the facility include:
- An accordion feature allowing commitments to increase up to $2.25 billion
- A five-year term with maturity on June 28, 2029
- A four-year revolving period through June 28, 2028
- An additional one-year amortization period

Grier Eliasek, President and COO of Prospect, expressed satisfaction with the longstanding support from relationship banks, some dating back to 2009. He emphasized that this industry-leading facility provides Prospect with efficient capital to meet investment and financing needs for their business and portfolio companies.

Prospect Capital (NASDAQ: PSEC) celebrates its 20th anniversary as a leading provider of private debt and equity to U.S. middle-market companies. With over $20 billion invested and more than 300 portfolio company exits, Prospect has established itself as one of the largest and longest-running publicly traded business development companies (BDCs).

Founded in 2004, Prospect has $7.9 billion in total assets as of the recent fiscal year-end. The company is managed by Prospect Capital Management, which has a nearly 37-year history spanning three major business cycles. Prospect has been a BDC industry innovator, achieving several firsts, including:

• First BDC to achieve an investment grade rating post-Global Financial Crisis
• First BDC to acquire another BDC
• First BDC to complete at-market issuance programs for common stock and listed senior unsecured notes
• First BDC to issue convertible bonds, medium-term program notes, and non-traded perpetual preferred stock

Prospect Capital (NASDAQ: PSEC) announced financial results for the fiscal quarter and year ended June 30, 2024. Key highlights include:

• Net Investment Income (NII) of $102.9 million ($0.25 per share) for Q4 2024
• Declared 86th consecutive $0.06 monthly dividend
• Total assets of $7.86 billion as of June 30, 2024
• NAV per common share of $8.74 as of June 30, 2024
• Successful completion of amended and extended $2.1 billion credit facility
• 81% of portfolio in first lien, secured, or underlying secured assets
• Annualized current yield on all investments of 9.8%
• Non-accrual loans at 0.3% of total assets

Prospect continues to focus on downside protection and maintaining a diversified investment portfolio across multiple strategies. The company has distributed $21.12 per share since inception, representing 2.4 times June 2024 NAV.

Prospect Capital (NASDAQ: PSEC) has announced its schedule for releasing fiscal year earnings and hosting a conference call. The company expects to file its Form 10-K report and issue an earnings press release on August 28, 2024, after market close. A conference call is scheduled for August 29, 2024, at 9:00 a.m. Eastern Time.

Investors can dial 888-338-7333 to join the call. A replay will be available for approximately 30 days by calling 877-344-7529 with passcode 2929037. Additionally, a live listen-only webcast will be accessible on the company's website at www.prospectstreet.com.

NewStar Exchange, a subsidiary of NEWSTAR, has fully subscribed its NewStar 6 Tranquil Gardens BTR, DST offering, raising $19.1 million from Section 1031 exchange investors. This marks the company's third successful 1031 exchange Delaware Statutory Trust offering, bringing their total equity raised to approximately $50 million since launching two years ago.

The Tranquil Gardens project comprises 73 newly constructed three-bedroom and four-bedroom homes for rent in northwest Atlanta, Georgia. The community has been performing well, meeting investment projections and achieving a 6% annualized increase in in-place rents. Notably, it's commanding a 25% rent premium compared to its competitive set.

Preferred Capital Securities (PCS) served as the managing broker-dealer for this offering. PCS has a strong track record, having raised over $3 billion in retail capital across 8 offerings since 2011.

Prospect Capital (NASDAQ: PSEC) announced its financial results for the quarter ended March 31, 2024, including NII of $94.4 million and a net loss per common share of $0.27. The company declared its 84th consecutive $0.06 dividend to common shareholders, with total assets of $7.9 billion and total liabilities of $2.6 billion. Prospect's strategic focus includes growing NII and NAV through various investment initiatives.

Prospect Capital (NASDAQ: PSEC) announced its upcoming earnings release for the fiscal quarter ended March 31, 2024, scheduled for May 8, 2024. The company will host a conference call on May 9, 2024, providing investors with an opportunity to learn more about the financial results.