Prospect Capital Corporation Acquires QC Holdings, Inc.

Rhea-AI Summary

Prospect Capital Corporation (NASDAQ: PSEC) has completed the acquisition of QC Holdings, Inc., a consumer credit provider, in an all-cash transaction valued at $115 million. The acquisition closed on June 30, 2025.

Following the acquisition, QC Holdings will continue to operate from its Lenexa, Kansas headquarters as a portfolio company of Prospect. The current management team, including President and CEO Darrin Andersen, will retain their positions. QC Holdings' common stock has been delisted from stock exchanges.

The company has outlined the payment process for stockholders: certificated shareholders will receive transmittal letters within 3-5 business days, while those holding shares through Computershare will receive merger price payments in the same timeframe. Brokerage account holders are advised to contact their brokers regarding payment timing.

Positive

• Strategic acquisition of QC Holdings for $115 million expands Prospect's portfolio in consumer credit sector
• Retention of existing QC Holdings management team ensures operational continuity
• All-cash transaction structure provides immediate liquidity to QC Holdings shareholders

Negative

• Delisting of QC Holdings stock reduces public investment options in the consumer credit sector

NEW YORK, July 01, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (“Prospect”) (NASDAQ: PSEC) has announced the closing of the acquisition of QC Holdings, Inc. (“QC Holdings”), a provider of consumer credit, by Prospect on June 30, 2025. In accordance with the previously announced definitive merger agreement, Prospect has acquired QC Holdings in an all-cash transaction for a total enterprise value of approximately $115 million.

The common stock for QC Holdings is no longer listed on a stock exchange. QC Holdings, as a portfolio company of Prospect, will remain headquartered in Lenexa, Kansas. The QC Holdings management team members, led by Darrin Andersen, President and Chief Executive Officer, will continue to lead QC Holdings post-acquisition in their current roles.

QC Holdings has been advised that stockholders of record on June 30, 2025 (i) with certificated shares will be mailed a letter of transmittal for submission of stock certificates within 3-5 business days and (ii) holding shares through direct registration with Computershare, the stock transfer agent for QC Holdings, should receive payment of the merger price per share held by each such stockholder from Computershare, as Paying Agent, within 3-5 business days. Investors holding shares through brokerage accounts should contact their broker regarding timing of receipt of payment.

Blank Rome LLP served as legal advisor to Prospect. Stinson LLP served as legal advisor to QC Holdings.

About Prospect Capital Corporation
Prospect is a business development company lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

About QC Holdings, Inc.
QC Holdings specializes in consumer-focused alternative financial services and credit solutions and, for more than 40 years, has been providing credit options for people underserved by traditional banking institutions. Its core products include a variety of short-term loans and financial services. In the United States, QC Holdings operates as “LendNation” through more than 325 retail locations in 12 states. In Canada, QC Holdings offers loans through 19 retail locations and online.

For further information, contact:

Grier Eliasek, President and Chief Operating Officer, Prospect Capital Corporation
grier@prospectcap.com
(212) 448-0702

Darrin J. Andersen, President / Chief Executive Officer, QC Holdings, Inc.
Darrin.andersen@qcholdings.com
(913) 234-5122

Joshua C. Ditmore, General Counsel, QC Holdings, Inc.
Joshua.ditmore@qcholdings.com
(913) 234-5174

FAQ

What is the value of Prospect Capital's acquisition of QC Holdings?

Prospect Capital acquired QC Holdings in an all-cash transaction valued at $115 million.

When did Prospect Capital (PSEC) complete the acquisition of QC Holdings?

The acquisition was completed on June 30, 2025.

Will QC Holdings management team change after the Prospect Capital acquisition?

No, the current management team, led by President and CEO Darrin Andersen, will continue to lead QC Holdings in their existing roles.

How will QC Holdings shareholders receive their payment from the Prospect Capital acquisition?

Shareholders will receive payment within 3-5 business days, with certificated shares holders receiving transmittal letters and direct registration holders receiving payment through Computershare.

Where will QC Holdings be headquartered after the Prospect Capital acquisition?

QC Holdings will remain headquartered in Lenexa, Kansas as a portfolio company of Prospect Capital.