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Prospect Capital Corporation Announces Redemption of its 3.706% Notes due 2026

1. PSEC will redeem all 3.706% Notes due 2026. 2. Redemption price is 100% of principal plus accrued interest. 3. Redemption date set for June 18, 2025. 4. Prospect focuses on income and capital appreciation investments. 5. Forward-looking statements caution against future performance guarantees.

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FAQ

Why Bullish?

Redeeming debt can improve cash flow and reduce interest expenses, potentially enhancing stock value. Historical precedent shows similar moves typically lead to positive market reactions, as seen with other BDCs like Ares Capital Corp after they improved their debt profile.

How important is it?

The note redemption represents a significant financial maneuver, reducing liabilities which can positively influence investor perception and stock price.

Why Short Term?

Immediate investor sentiment may improve due to lower liability and enhanced cash position. Short-term gains are likely as the redemption date approaches.

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May 19, 2025 12:00 ET  | Source: Prospect Capital Corporation NEW YORK, May 19, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect,” “our” or “we”) announced today that it will redeem all outstanding 3.706% Notes due 2026 (the “Notes”) at a price of 100% of the principal amount of the Notes to be redeemed, plus accrued but unpaid interest, to but excluding the Redemption Date (the “Redemption Price”). The redemption date will be June 18, 2025 (the “Redemption Date”). The Notes are held through The Depository Trust Company and will be redeemed in accordance with the applicable procedures. This press release does not constitute a notice of redemption under the indenture governing the Notes. About Prospect Capital Corporation Prospect 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 elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. Caution Concerning Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future. For additional information, contact: Grier Eliasek, President and Chief Operating Officergrier@prospectcap.comTelephone (212) 448-0702

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