Prospect Capital Corp., a publicly-traded closed-end investment company that is structured as a business development company, has announced a continuous preferred stock offering of up to 40 million shares, with $1 billion aggregate liquidation preference (the preferred stock).
The preferred stock will have an offering price of $25.00 per share, before the application of any commissions and discounts.
The preferred stock will have a stated annual dividend rate of 5.5 percent, paid monthly (resulting in an annual percentage yield of 5.64 percent), and will rank senior to Prospect’s common stock. Prospect expects to use the net proceeds from the offering to maintain and enhance balance sheet liquidity, including repayment of debt under its credit facility, if any, investments in high-quality short-term debt instruments, or a combination thereof, and to make long-term investments in accordance with its investment objective. The preferred stock provides Prospect with a di
