Key Developments For Prospect Capital Corporation
Prospect Capital Corporation (PSEC.O) (Nasdaq)
Prospect Capital Corporation Announces Increase in Revolving Credit Facility
Prospect Capital Corporation announced that Prospect has increased total commitments to Prospect's revolving credit facility (the Facility) to $195 million in the aggregate, up from $175 million previously. The Facility includes an accordion feature which allows Prospect to accept up to an aggregate of $250 million of revolving commitments, a target Prospect expects to reach with additional lenders. Prospect has now diversified its lender base from one bank to five banks over the past three months.
Prospect Capital Corporation Declares Quarterly Cash Distribution Increase
Prospect Capital Corporation announced that it has declared a first fiscal quarter (for the fiscal year ending June 30, 2010) cash distribution of $0.4075 per share. The ex-dividend date is October 6, 2009. The record date is October 8, 2009. The payment date is October 19, 2009.
Prospect Capital Corporation Agrees to Acquire Patriot Capital Funding Inc. for $197 Million
Prospect Capital Corporation announced that it has entered into a definitive agreement to acquire Patriot Capital Funding Inc. Prospect is acquiring Patriot for $197 million, comprised of (a) cash to repay all Patriot debt, anticipated to be $110.5 million when the acquisition closes, plus (b) Prospect shares exchanged at a ratio of approximately 0.3992 Prospect shares for each Patriot share, or 8,616,467 Prospect shares for 21,584,251 Patriot shares, with such exchange ratio decreased by any tax distributions Patriot may declare before closing. The acquisition, unanimously approved by both of Prospect's and Patriot's Board of Directors, is expected to close in the next 60 days. Patriot's shareholders will own 15% of Prospect's outstanding shares pro forma for the acquisition, so Prospect shareholder approval is not required.
Prospect Capital Corporation Closes Public Offering of Common Stock Including Over-Allotment Option
Prospect Capital Corporation announced that it has completed a public offering of 5,175,000 shares of common stock (including 675,000 shares pursuant to the exercise by the underwriters of their over-allotment option) at $9.00 per share, raising $46.58 million in gross proceeds. Prospect expects to use the net proceeds of this offering to maintain balance sheet liquidity, possibly including repayment of a portion of the amounts outstanding under its credit facility, investments in high quality short-term debt instruments or a combination thereof, and to make long-term investments in accordance with its investment objectives. Fox-Pitt Kelton Cochran Caronia Waller, Oppenheimer & Co., and RBC Capital Markets were joint bookrunning managers for the offering.
Prospect Capital Corporation Prices Upsized Public Offering of Common Stock
Prospect Capital Corporation announced that it has priced its public offering of 4,500,000 shares of common stock at $9.00 per share, raising $40.5 million in gross proceeds. The offering was upsized from its announced offering size of 4,000,000 shares. Prospect has granted the underwriters a 30-day option to purchase up to an additional 675,000 shares to cover over-allotments, if any. The offering is subject to customary closing conditions and is expected to close on July 7, 2009. Prospect expects to use the net proceeds of this offering to maintain balance sheet liquidity, possibly including repayment of a portion of the amounts outstanding under its credit facility, investments in high quality short-term debt instruments or a combination thereof, and to make long-term investments in accordance with its investment objectives. Fox-Pitt Kelton Cochran Caronia Waller, Oppenheimer & Co., and RBC Capital Markets are joint bookrunning managers for the offering. BB&T Capital Markets, a division of Scott & Stringfellow, LLC, is joint lead manager. Ladenburg Thalmann & Co. Inc. and Maxim Group LLC are co-managers.
