Prospect Capital Corporation(PSEC)- NASDAQ
  • Mon, Sep. 12, 10:04 AM
    • The sector has been a big beneficiary of the rates lower-for-longer thesis, the bounce in oil and the related major move higher in high-yield.
    • All three of those themes have been called into question since Labor Day. SA author BDC Buzz reminds not all BDCs are created equal, and says the higher risk ones will likely be underperformers in a correction ... Think Prospect Capital (PSEC -4%), TICC Capital (TICC -1%) and KCAP Financial (KCAP -2.7%). Fifth Street Finance (FSC -2%), Medley Capital (MCC -2.6%) and Full Circle Capital (FULL -0.4%) also fit the bill, and PennantPark (PNNT -1.5%), Gladstone (GLAD -3.4%), and Apollo Investment (AINV -1.2%) have the highest amount of oil exposure.
    • Those BDCs with "true" first-lien assets and stable NAV will be the outperformers: New Mountain Finance (NMFC -1.8%), Solar Senior (SUNS -0.1%), Goldman Sachs BDC (GSBD -0.7%), Golub Capital (GBDC -0.5%), FS Investment (FSIC -1.7%), Monroe Capital (MRCC -0.1%), TPG (TSLX -0.6%), Main Street (MAIN -0.1%), PennatPark Floating Rate (PFLT -0.1%), Hercules (HTGC -1.4%), Horizon (HRZN -1.8%), and TCP Capital (TCPC -0.7%) are worth a look.
    • ETFs: BDCL, BDCS, BIZD, FGB, LBDC
    | Mon, Sep. 12, 10:04 AM | 76 Comments
  • Wed, Aug. 31, 2:40 PM
    • While Prospect (PSEC -0.6%) reported net investment income of $0.26 per share topped estimates, the $328M sale of Harbortouch added advisory fees and prepayment income of about $18M, or $0.04 per share to that figure, says analyst Mark DeVries. Without it, NII of $0.22 would have lagged Street consensus by a full $0.03.
    • While the company has dry powder to redeploy into new earning assets, those new investments would need to yield about 12.3% to meet the required return, and most assets originated this past quarter were below that mark, says DeVries.
    • He retains his Equal-Weight rating on the stock.
    | Wed, Aug. 31, 2:40 PM | 55 Comments
  • Tue, Aug. 30, 7:32 AM
    • FQ4 NII of $91.4M or $0.26 per share vs. $89.5M and $0.25 earned one year ago. FQ4 distributable income of $0.27 per share. Dividend quarterly run rate is $0.25.
    • Full-year NII of $371.1M or $1.04 per share vs. $362.7M and $1.03 in fiscal 2015. Distributable income of $1.07 per share vs. dividends of $1.00.
    • June 30 NAV per share of $9.62 is up one penny for the quarter. Last night's close was $8.47.
    • Portfolio investments of $294M for the quarter. Total portfolio investments at FMV of $5.898B across 125 companies. FMV of non-accrual assets as a percentage of loans of 1.4%, up from 0.4% a quarter earlier - about 0.5% in from the energy industry.
    • CC at 10 ET
    • Previously: Prospect Capital beats by $0.01, beats on total investment income (Aug. 30)
    • PSEC +2% in light premarket trading
    | Tue, Aug. 30, 7:32 AM | 28 Comments
  • Tue, Aug. 30, 12:29 AM
    • Prospect Capital (NASDAQ:PSEC) declares $0.08333/share monthly dividend, in line with previous.
    • Forward yield 11.81%
    • Payable Oct. 20; for shareholders of record Sept. 30; ex-div Sept. 28.
    • Payable Nov. 17; for shareholders of record Oct. 31; ex-div Oct. 27.
    | Tue, Aug. 30, 12:29 AM | 32 Comments
  • Tue, Aug. 30, 12:08 AM
    • Prospect Capital (NASDAQ:PSEC): FQ4 NII of $0.26 beats by $0.01.
    • Total investment income of $193.04M (-2.9% Y/Y) beats by $4.95M.
    • Press Release
    | Tue, Aug. 30, 12:08 AM | 16 Comments
  • Sun, Aug. 28, 5:35 PM
    | Sun, Aug. 28, 5:35 PM | 7 Comments
  • Mon, Jun. 13, 7:27 AM
    • Prospect (NASDAQ:PSEC) invested $17M in first lien senior secured floating rate debt issued by Inpatient Care Management Company. Founded in 2007, Inpatient Care and its affiliates provide general surgery services to hospitals with a focus on emergency care.
    | Mon, Jun. 13, 7:27 AM | 27 Comments
  • Wed, Jun. 1, 7:19 AM
    • The company sold its debt and equity investments in Harbortouch Payments to Searchlight Capital Partners, and expects $328M in proceeds. The total transaction size was not disclosed. As part of the deal, Prospect (NASDAQ:PSEC) invested $27.5M in newly-issued senior secured second-lien debt in Harbortouch.
    • Prospect realized a gross IRR of 14% over the holding period of under three years. The cash-on-cash return was 1.3x.
    • Source: Press Release
    | Wed, Jun. 1, 7:19 AM | 94 Comments
  • Wed, May 18, 2:37 PM
    • Encouraged by narrowing credit spreads, and an oil price about to crack $50 (on the way up, not down), business development companies are nevertheless giving up session gains, with most turning negative following the FOMC's hawkish shocker.
    • Prospect Capital (PSEC -1.3%), Ares Capital (ARCC -0.8%), Main Street (MAIN -1.9%), Apollo Investment (AINV -1.7%), Triangle (TCAP -1.1%), PennantPark Investment (PNNT -1.5%), KCAP Financial (KCAP -1.2%), FS Investment (FSIC -0.3%)
    • ETFs: BDCL, BDCS, BIZD, FGB, LBDC
    | Wed, May 18, 2:37 PM | 25 Comments
  • Tue, May 17, 4:31 PM
    • Moody's stress-tested the energy portfolios of four of the six largest BDCs - Ares Capital (NASDAQ:ARCC), Apollo Investment (NASDAQ:AINV), FS Investment (NYSE:FSIC), and Prospect Capital (NASDAQ:PSEC).
    • In moderate and severe scenarios, Moody's found lower values for the group's energy investments than what the BDCs are disclosing, suggesting the potential for further write-downs which would cause the companies to breach their asset coverage ratio requirements.
    • Of the four tested, FSIC and AINV have the most exposure to the oil & gas sector, and are thus at greater risk of ACR breach.
    • An observer might wonder whether this is old news. After all, oil has already crashed and then nearly doubled. Where were these tests when oil was $80 and rising?
    • ETFs: BDCL, BDCS, BIZD, FGB, LBDC
    | Tue, May 17, 4:31 PM | 32 Comments
  • Tue, May 10, 5:09 PM
    • Prospect Capital (NASDAQ:PSEC) declares $0.08333/share monthly dividend, in line with previous.
    • Forward yield 13.51%
    • Payable June 23; for shareholders of record May 31; ex-div May 26.
    • Payable July 21; for shareholders of record June 30; ex-div June 28.
    • Payable Aug. 18; for shareholders of record July 29; ex-div July 27.
    • Payable Sept. 22; for shareholders of record Aug. 31; ex-div Aug 29.
    | Tue, May 10, 5:09 PM | 14 Comments
  • Tue, May 10, 4:37 PM
    • FQ3 net investment income of $87.6M or $0.25 per share vs. $100.9M and $0.28 a quarter earlier. Dividend is $0.25 quarterly.
    • Net asset value per share of $9.61 slips four cents from three months earlier.
    • Portfolio investments during quarter of $23.2M. Total portfolio investments at fair value of $6B, across 125 companies.
    • Asset concentration in energy of 2.9%. FMV of loan assets on non-accrual as a percentage of total assets of 0.5%, with about 0.2% thanks to energy. Level is consistent with last quarter.
    • Annualized current yield of 13.4% up 10 basis points from FQ2, up 100 bps from a year ago.
    • Earnings call tomorrow at 10 ET
    • Previously: Prospect Capital misses by $0.01, misses on total investment income (May 10)
    • PSEC +0.3% in thin after hours action.
    | Tue, May 10, 4:37 PM | 6 Comments
  • Tue, May 10, 4:25 PM
    • Prospect Capital (NASDAQ:PSEC): Q1 NII of $0.25 misses by $0.01.
    • Total investment income of $189.49M (-1.0% Y/Y) misses by $6.53M.
    • Press Release
    | Tue, May 10, 4:25 PM | 22 Comments
  • Mon, May 9, 5:35 PM
  • Thu, Mar. 17, 10:58 AM
    • It's a big session for commodities following the Fed's dovish meeting results yesterday, particularly for oil - up 2.7% today to $41.08 per barrel, and now nicely into the green for the year.
    • Sold hard alongside the crash in energy prices, BDCs are catching a bid today.
    • Prospect Capital (PSEC +3.4%), Ares Capital (ARCC +1.7%), Apollo Investment (AINV +3%), Triangle Capital (TCAP +1.9%), THL Credit (TCRD +3%), OHA Investment (OHAI +2.6%).
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Thu, Mar. 17, 10:58 AM | 38 Comments
  • Thu, Feb. 11, 10:37 AM
    • "Prospect’s (PSEC -2.2%) CLO equity marks are still above its peers at 93 percent of cost, with others averaging large discounts to cost," says Raymond James' Robert Dodd. “We doubt that any BDC has materially marked up the value of its CLO investments in the fourth quarter as market conditions were deteriorating and appropriate discount rates were swelling.”
    • He cuts his 2017 net investment income per share forecast to $1.01 from $1.03 to reflect lower recurring dividend income forecasts. This estimate, he notes, doesn't include the impact from any asset spinoffs, whose timing, size, and effect on earnings are not yet known.
    • PSEC is lower by 18.5% YTD and 33% Y/Y.
    • Previously: Raymond James sells the rip in Prospect Capital (Feb. 11)
    | Thu, Feb. 11, 10:37 AM | 106 Comments