Prospect Capital prices convertible offering

The $400M in 6-year notes come with a coupon of 4.75% and an initial conversion rate of 80.6647 shares of Prospect Capital (PSEC) for $1K principal amount of notes, equating to an initial conversion price of about $12.40 per share, or 15% conversion premium to the $10.78 close on Monday.

In other news, Prospect closes a $54M senior credit facility to support the recap of Ark-La-Tex Wireline Services.

Press release

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Comments (3)
  • Just Ducky
    , contributor
    Comments (1015) | Send Message
    So I can pay a 15% premium to get 80% less return than just buying the stock outright today?
    9 Apr 2014, 08:53 AM Reply Like
  • just a user
    , contributor
    Comments (72) | Send Message
    and less in coupon than the dividend of the stock as well. i may be a newbie, but i'm not seeing a value add here.
    9 Apr 2014, 12:02 PM Reply Like
  • John041348
    , contributor
    Comment (1) | Send Message
    What does this mean to the current share price?
    9 Apr 2014, 08:53 AM Reply Like
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