John Barry, the CEO and Chairman of Prospect Capital Corporation (NASDAQ:PSEC), stated that for Q1 2018, the company’s net investment income came at $63.7 million. Executing their plan to preserve capital, lower risk and evade pursuing yield through investments, being too dicey, with poor risk/return profiles at this time, they booked originations in reported quarter at par with the prior quarter.
The details
Prospect Capital have a robust pipeline of possible investments in its target range for credit quality as well as yields. They believe their planned approach to credit will serve them in the imminent years just as it was noted in the past. In Q1 2018, they reduced to 71.6% of net debt to equity ratio, lower 200 basis points from a year earlier. Net income came at $2 million, down $0.11 from the previous quarter following unrealized depreciation within company’s structured credit investments and a reduced interest earning asset base.
Barry added that they are working to execute on a strong pipeline of new originations, enhancing cash flows in their structured credit portfolio, including via refinancing, extensions, calls and refax, enhancing NPRC’s web lending business, including through refinancing and securitizations, increasing realizations in multifamily real estate portfolio, refining controlled investment operating performance and improving yields via higher floating rate – LIBOR based rates.
Prospect Capital CEO stated that on the liability management front, they intend on reducing their weighted average cost of capital using a combination of reduced coupon new term issuance and increased revolver utilization.
The company is reporting monthly cash payments to shareholders of $0.06 per share for current month, and next two months, showcasing 114 successive shareholder distributions. They intend on reporting their next series of shareholder payouts in February. Since the company’s IPO, distribution at prevailing current share count, Prospect Capital has disbursed $16.26/share to original shareholders surpassing $2.4 billion in cumulative distributions to its shareholders.
