Prospect Capital Corporation (NASDAQ: PSEC), a publicly traded business development company, announced an upsize to its preferred stock offering with Preferred Capital Securities, or PCS. According to Prospect, the offering has seen strong demand from the private wealth, institutional, and registered investment adviser channels with $1.8 billion in aggregate liquidation preference issuances since the initial closing in the quarter ending Dec. 31, 2020.
“Prospect’s non-traded preferred stock offers investors recurring cash income with a stable stated value, ongoing liquidity, management alignment, leverage caps, and over $3.7 billion of junior common equity credit support,” said Grier Eliasek, president of Prospect.
“Prospect is the number one market share issuer of non-traded preferred stock in 2023 and 2024 year-to-date, with each of institutional, registered investment adviser, wirehouse, independent private wealth, and international investor channels having invested in Prospect’s preferred stock,” said Eliasek. “With interest rates declining, we believe our A4/M4 preferred stock series, with a current 7.28% annualized floating rate dividend structure and 6.5% dividend rate floor, offers an attractive option for income-oriented investors.”
PCS is a securities broker-dealer and the dealer manager for the ongoing offering of the Series A4 and M4 preferred stock. PCS has raised $5 billion of capital since its formation in 2011.
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.
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