Prospect Capital (PSEC) Prices $130M Senior Note Offerings
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Price: $2.33 +2.19%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 11.8%
Revenue Growth %: -5.0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 11.8%
Revenue Growth %: -5.0%
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Prospect Capital Corporation (Nasdaq: PSEC) has closed a private placement of 5.5-year unsecured 5.375% Senior Convertible Notes Due 2017.
A total of $130 million aggregate principal amount of the Notes were issued at the closing with net proceeds to the Company of approximately $126 million. The Company has also granted the initial purchasers of the Notes an option to purchase up to an additional $20 million in aggregate principal amount of Notes.
The Notes are convertible into shares of Prospect's common stock based on an initial conversion rate of 85.8442 shares of Prospect's common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $11.65 per share of common stock, representing an approximately 10% conversion premium over the last reported sale price of Prospect's common stock on April 10, 2012, which was $10.59 per share. The conversion price for the Notes will be reduced for monthly cash dividends paid to common shares at more than 10.15 cents per share, subject to adjustment.
A total of $130 million aggregate principal amount of the Notes were issued at the closing with net proceeds to the Company of approximately $126 million. The Company has also granted the initial purchasers of the Notes an option to purchase up to an additional $20 million in aggregate principal amount of Notes.
The Notes are convertible into shares of Prospect's common stock based on an initial conversion rate of 85.8442 shares of Prospect's common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $11.65 per share of common stock, representing an approximately 10% conversion premium over the last reported sale price of Prospect's common stock on April 10, 2012, which was $10.59 per share. The conversion price for the Notes will be reduced for monthly cash dividends paid to common shares at more than 10.15 cents per share, subject to adjustment.
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