Prospect Capital Corporation (NASDAQ:PSEC) reported that it has priced a financed public offering worth $150 million in collective principal amount of ‘6.25% unsecured notes’ due 2024. These notes will mature in June 2024 and may be converted in part or in whole either time to time or at a one single time at company’s option in December 2018. The notes will have interest rate of 6.25% annually payable periodical on every fifteen of March, June, September and December each year, with thefirst interest payment starting in March 2016.
BofA Merrill Lynch, RBC Capital Markets,Morgan Stanley and UBS Investment Bank will be joint book-running managers for Prospect’s new offering. Deutsche Bank Securities, BB&T Capital Markets, Maxim Group LLC, FBR, MLV& Co., Ladenburg Thalmann, Wunderlich and Oppenheimer & Co. will be the co-managers for the offering. This offering is projected to close in December 2015, subject to accustomed closing conditions. Also, the underwriters have an option to buy additional notes upside limited to $22.5 million.
Prospect Capital Corporation (NASDAQ:PSEC) expects to utilize the net proceeds of the proposed offering to convert its $150 million in aggregate principal of 6.25% Convertible Notes to be paid on December 15, 2015 and to compensate own the outstanding amount on its credit facility.
Prospect Capital stock price has not recorded a lot of action in the last quarter. The stock was in twelve hedge funds’ portfolios in last quarter, with all of them bullish on PSEC stock. With hedge funds’ positions experiencing usual ebb and flow, there prevails an upper-tier of significant hedge fund managers who were growing their holdings considerably.
When considering the institutional investors, Scopia Capital, managed by Jeremy Mindich and Matt Sirovich, holds the top position in Prospect Capital Corporation (NASDAQ:PSEC). Next comes Mangrove Partners, headed by Nathaniel August, having a bullish stance on the stock.