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Prospect Capital Corporation Acquires QC Holdings, Inc.

1. Prospect acquired QC Holdings for $115 million in cash. 2. QC Holdings will operate as a portfolio company of Prospect. 3. QC Holdings specializes in alternative financial services. 4. Management team of QC Holdings will remain post-acquisition. 5. Transaction enhances Prospect's lending capabilities and market reach.

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Why Bullish?

The acquisition expands PSEC's portfolio and aligns with its investment strategy, potentially increasing revenues. Historical examples show acquisitions often lead to stock price increases for similar companies.

How important is it?

This acquisition signifies PSEC's growth strategy and reflects confidence in its sustainability, which likely positively influences investor sentiment and stock price.

Why Long Term?

The strategic acquisition of QC Holdings is expected to generate synergies and additional revenue streams over time, enhancing PSEC’s market presence in alternative finance.

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PSECQC Holdings
July 01, 2025 07:00 ET  | Source: Prospect Capital Corporation NEW YORK, July 01, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (“Prospect”) (NASDAQ: PSEC) has announced the closing of the acquisition of QC Holdings, Inc. (“QC Holdings”), a provider of consumer credit, by Prospect on June 30, 2025. In accordance with the previously announced definitive merger agreement, Prospect has acquired QC Holdings in an all-cash transaction for a total enterprise value of approximately $115 million. The common stock for QC Holdings is no longer listed on a stock exchange. QC Holdings, as a portfolio company of Prospect, will remain headquartered in Lenexa, Kansas. The QC Holdings management team members, led by Darrin Andersen, President and Chief Executive Officer, will continue to lead QC Holdings post-acquisition in their current roles. QC Holdings has been advised that stockholders of record on June 30, 2025 (i) with certificated shares will be mailed a letter of transmittal for submission of stock certificates within 3-5 business days and (ii) holding shares through direct registration with Computershare, the stock transfer agent for QC Holdings, should receive payment of the merger price per share held by each such stockholder from Computershare, as Paying Agent, within 3-5 business days. Investors holding shares through brokerage accounts should contact their broker regarding timing of receipt of payment. Blank Rome LLP served as legal advisor to Prospect. Stinson LLP served as legal advisor to QC Holdings. About Prospect Capital CorporationProspect is a business development company lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. About QC Holdings, Inc.QC Holdings specializes in consumer-focused alternative financial services and credit solutions and, for more than 40 years, has been providing credit options for people underserved by traditional banking institutions. Its core products include a variety of short-term loans and financial services. In the United States, QC Holdings operates as “LendNation” through more than 325 retail locations in 12 states. In Canada, QC Holdings offers loans through 19 retail locations and online. For further information, contact: Grier Eliasek, President and Chief Operating Officer, Prospect Capital Corporationgrier@prospectcap.com(212) 448-0702 Darrin J. Andersen, President / Chief Executive Officer, QC Holdings, Inc.Darrin.andersen@qcholdings.com(913) 234-5122 Joshua C. Ditmore, General Counsel, QC Holdings, Inc.Joshua.ditmore@qcholdings.com(913) 234-5174

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