Prospect Capital Corporation Announces Pricing of $300 Million Institutional Offering of 8.95% Unsecured Notes due 2031

Proceeds are expected to refinance existing debt, including 3.364% notes due 2026 and/or revolving credit facility borrowings.

Rhea-AI Summary

Prospect Capital (NASDAQ: PSEC) priced an institutional offering of $300 million in senior unsecured notes to refinance existing debt. The notes carry 8.95% annual interest, payable semi-annually starting April 30, 2027, and mature on October 31, 2031. Closing is expected on November 5, 2026, subject to customary closing conditions.

Prospect expects to use net proceeds to refinance existing indebtedness, including its 3.364% unsecured notes due 2026 and/or revolving credit facility borrowings. Any remaining proceeds would support general corporate purposes. The notes will rank equally in payment priority with existing and future senior unsecured debt. Prospect describes the offering as leverage neutral.

2 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.$300 million offering is expected to fund refinancing of existing notes and/or revolving credit facility borrowings. 35% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Leverage-neutral financing further diversifies funding sources and staggers maturities, in Prospect’s assessment.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.8.95% annual interest adds a debt obligation; potential refinancing includes existing 3.364% notes due 2026.

News Explained

The new notes carry an 8.95% coupon versus 3.364% on the 2026 notes, so refinancing those notes would replace lower-coupon debt with higher-coupon debt; the release does not establish that this specific refinancing will occur, since proceeds may instead repay revolving-credit borrowings.

Key Figures

Principal amount: $300 million Interest rate: 8.95% per annum Interest payment schedule: Semi-annually beginning April 30, 2027 +3 more

Principal amount

$300 million

Institutional offering of senior unsecured notes

Interest rate

8.95% per annum

Notes payable semi-annually

Interest payment schedule

Semi-annually beginning April 30, 2027

Payments due April 30 and October 31

Maturity

October 31, 2031

Notes may be redeemed earlier at specified prices

Expected offering close

November 5, 2026

Subject to customary closing conditions

Existing notes for refinancing

3.364% notes due 2026

One potential use of net proceeds

Previous Debt offering,offering Reports

1 past event · Latest: Oct 28

Same Type 1 event

1. Oct 28

   Unsecured notes pricing

   24h Move

   +0.4%

   Priced $167 million of 5.5% unsecured notes due 2030; offering was oversubscribed.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior unsecured, revolving credit facility, prospectus supplement, business development company, +1 more

5 terms

senior unsecured financial

"general senior unsecured obligations of Prospect"

Senior unsecured is a type of loan or bond that has priority over other unsecured obligations for repayment if a company runs into financial trouble, but it is not backed by specific assets as collateral. Think of it as being near the front of a line to get paid, but without a pledged item to seize if the borrower defaults; that higher repayment priority typically makes it less risky than subordinated debt but more risky than secured debt, which influences the interest rate investors demand.

revolving credit facility financial

"borrowings under its revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

prospectus supplement regulatory

"by means of a prospectus supplement"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

business development company financial

"is a business development company"

A business development company is a publicly traded investment vehicle that lends to and buys stakes in smaller or privately held companies, acting like a combination of a lender, investor, and business partner. It matters to investors because BDCs offer the potential for higher regular income through dividends and diversified exposure to growing businesses, but they can also carry greater credit and liquidity risk than typical stocks or bonds—think higher-yielding but riskier income instruments.

regulated investment company regulatory

"treated as a regulated investment company"

A regulated investment company is a type of pooled investment (like a mutual fund or ETF) that meets specific tax-law rules allowing it to pass most income, gains and losses directly to shareholders instead of being taxed at the company level. For investors this matters because it affects how distributions are taxed, how often income is paid, and the overall net return—think of it like a collective account that funnels earnings straight to owners rather than keeping profits inside a separate corporate layer.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) announced today that Prospect priced an institutional offering of $300 million in aggregate principal amount of senior unsecured 8.95% Notes due 2031 (the “Notes”).

“We appreciate the support we received for this unsecured bond offering,” said Grier Eliasek, President of Prospect. “This leverage neutral bond offering further strengthens our already diversified financing sources as we continue to ladder our maturity schedule.”

The Notes will bear interest at a rate of 8.95% per annum payable semi-annually in arrears on April 30 and October 31 of each year, commencing on April 30, 2027.

The Notes will be general senior unsecured obligations of Prospect and will rank equally in right of payment with Prospect’s existing and future senior unsecured debt.

The Notes will mature on October 31, 2031 and may be redeemed, at our option, in whole or in part at any time or from time to time, at certain specified redemption prices. The offering is expected to close on November 5, 2026, subject to customary closing conditions.

Prospect expects to use the net proceeds of this offering for the refinancing of existing indebtedness, including its existing 3.364% unsecured notes due 2026 and/or borrowings under its revolving credit facility, and, if there are any remaining net proceeds, for general corporate purposes, including investments and balance sheet liquidity.

The offering of the Notes was made only by means of a prospectus supplement and the accompanying prospectus. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any of the Notes, nor shall there be any offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

About Prospect Capital Corporation

Prospect is a business development company that primarily lends to and invests in middle market privately-held companies. Prospect’s investment objective is to generate both current income and long-term capital appreciation.

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.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.

For additional information, contact:

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the terms of Prospect Capital’s $300 million note offering?

Prospect priced $300 million of senior unsecured notes bearing 8.95% annual interest and maturing October 31, 2031. Interest is payable semi-annually in arrears on April 30 and October 31, beginning April 30, 2027. The notes rank equally in payment priority with existing and future senior unsecured debt.

When is Prospect Capital’s note offering expected to close?

The offering is expected to close on November 5, 2026, subject to customary closing conditions.

Can Prospect Capital redeem its 8.95% notes before maturity?

Prospect may redeem the notes at its option, in whole or in part, at any time or from time to time at specified redemption prices.