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Prospect Capital Corporation (“Prospect”) announces $1.0 billion Convertible Preferred Stock Offering (the “Preferred Stock”)

August 31, 2020

Prospect Capital Corporation (“Prospect”) announces $1.0 billion Convertible Preferred Stock Offering (the “Preferred Stock”)

August 31, 2020

Prospect Capital Corporation:

Prospect is a publicly traded and SEC registered business development company with over $5.3 billion in total assets

• Prospect was established over 16 years ago in 2004 and has had the same senior management team since inception

• Senior management owns 26.4% of Prospect’s common stock, representing the largest insider ownership in the industry

• Prospect has 204 investments across 39 industries

• Prospect has 4 corporate investment grade ratings from S&P, Moody’s, Kroll and Egan-Jones

• Prospect has a conservative balance sheet with less than 50% loan-to-value and more than 200% asset coverage

• Prospect is far less levered than REITs that have a 90%+ loan-to-value including preferred stock

• Prospect has invested $16.1 billion across 478 investments with over 295 successful exits

• Prospect is diversified across multiple yield and total return strategies, including middle-market lending, buyouts, CLOs, and real estate

Prospect’s Convertible Preferred Stock (offering Series A and Series M):

• The Preferred Stock will have a 5.5% contractual annual cash dividend, paid monthly (5.64% annual percentage yield)

• The Preferred Stock will rank senior to Prospect’s common stock, which represented $3.1 billion of book value as of 6/30/2020

• The Preferred Stock offers immediate uncapped liquidity to investors (subject to early redemption/conversion fees that go away after one year for the Series M and which are zero in case of investor death)

• Preferred Stock investors do not pay any upfront fees

• Client account statements have zero volatility and show in a stable manner $25 per share, which is the stated value and the amount invested per share

• The Preferred Stockholders vote with common equity investors on all matters, vote on two directors as a separate class, and will control the Board if the Preferred Stock is unpaid for 2 years

• The Preferred Stock has a minimum investment amount of $5,000

• Preferred Capital Securities, LLC is the dealer manager for Prospect’s Convertible Preferred Stock offering

Please refer to the Prospectus for more details on the offering and as a basis for investment recommendations and decisions.

For more information, please refer to the following website:  http://prefcapitalsecurities.com/pc-prefseries-overview/

Data as of 6/30/2020.

Investors are advised to carefully consider the investment objective, risks, charges and expenses of Prospect before investing. A prospectus supplement dated August 3 , 2020, related to the Offering, and an accompanying prospectus dated February 13, 2020, which have been filed with the Securities and Exchange, contain this and other information about Prospect and should be read carefully before investing.

This press release is for informational purposes and is not an offer to purchase or sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

The Offering is being made only by means of the prospectus supplement and the accompanying prospectus, copies of which may be obtained by writing to Preferred Shareholder Services at 3284 Northside Parkway NW, Suite 150, Atlanta, GA 30327.

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Steve Siepak
Blue Vault session at the recent National Planning Holdings National Conference
September 13, 2017
    

The well-attended Blue Vault session at the recent National Planning Holdings National Conference was very well received. The value of their products was evidenced by the volume of questions from the attendees. Stacy Chitty, Managing Partner, did an excellent job of explaining the history, strategy and value of Blue Vault data.