Prospect Capital Corporation (PSEC) - NASDAQ
  • 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 | 24 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
  • Thu, Feb. 11, 8:35 AM
    • Prospect Capital (NASDAQ:PSEC) is lower by 3.95% after yesterday's post-earnings double-digit gain. At work is a general selloff in equity markets around the globe and a downgrade to Underperform at Raymond James.
    • On yesterday's earnings call (transcript), CEO John Barry addressed chatter of an SEC investigation, and said the company knows of  no current or pending inquiries. He castigated those who should know better for repeating lies without a shred of evidence.
    • Previously: Prospect Capital beats by $0.03, beats on total investment income (Feb. 9)
    | Thu, Feb. 11, 8:35 AM | 53 Comments
  • Wed, Feb. 10, 9:15 AM
    | Wed, Feb. 10, 9:15 AM | 18 Comments
  • Tue, Feb. 9, 5:51 PM
    • With shares having fallen to new 52-week lows today ahead of earnings, Prospect Capital (NASDAQ:PSEC) has risen to $5.70 after beating Q4 NII and total investment income estimates.
    • The closed-end investment firm reports a Q4-ending NAV of $9.65/share ($3.43B), down from $10.17 ($3.61B) at the end of Q3 due mostly to "unrealized depreciation based on volatility in the capital markets." Quarter-ending portfolio value was $6.18B (130 long-term investments), down from $6.43B at the end of Q3 (131 long-term investments).
    • Prospect: "We estimate approximately 74% of the unrealized write-down we experienced this quarter related to macro changes in the capital markets as opposed to specific portfolio credit issues, approximately 18% related to energy-related companies in the portfolio and the remaining 8% related to specific non-energy individual credit matters." The firm's energy asset concentration was only 3.2% at the end of December.
    • Debt to equity ratio was 77.9% as of Dec. 31, up from 76% as of Sep. 30 and 77.6% as of June 30. The annualized current yield of Prospect's portfolio rose 30 bps Q/Q to 13.3%. At fair value, the portfolio "consisted of 51.9% first lien, 18.8% second lien, 17.5% structured credit (with underlying first lien), 0.5% small business whole loan, 1.1% unsecured debt, and 10.2% equity investments." Prospect's structured credit equity portfolio had a 27.8% cash yield in the 12 months ending Dec. 31.
    • Portfolio net leverage stood at 4.19x EBITDA as of December, down from 4.36 as of September. Prospect: "We are pleased with the overall credit quality of our portfolio, with many of our companies generating [Y/Y and Q/Q] growth in top-line revenues and bottom-line profits ... The majority of our portfolio consists of sole agented middle-market loans that we have originated, selected, negotiated, structured, and closed."
    • Prospect's Q4 results, earnings release
    | Tue, Feb. 9, 5:51 PM | 57 Comments
  • Tue, Feb. 9, 5:34 PM
    | Tue, Feb. 9, 5:34 PM | 1 Comment
  • Tue, Feb. 9, 4:50 PM
    • Prospect Capital (NASDAQ:PSEC): FQ2 NII of $0.28 beats by $0.03.
    • Total investment income of $209.19M (+5.2% Y/Y) beats by $13.78M.
    • Shares +4.6%.
    • Press Release
    | Tue, Feb. 9, 4:50 PM | 63 Comments
  • Tue, Feb. 9, 4:49 PM
    • Prospect Capital (NASDAQ:PSEC) declares $0.0833/share monthly dividend, in line with previous.
    • Forward yield 19.01%
    • Payable March 24; for shareholders of record Feb. 29; ex-div Feb. 25.
    • Payable April 21; for shareholders of record March 31; ex-div March 29.
    • Payable May 19; for shareholders of record April 29; ex-div April 27.
    | Tue, Feb. 9, 4:49 PM | 29 Comments
  • Mon, Feb. 8, 5:35 PM
  • Mon, Feb. 8, 11:44 AM
    • A notable asset-backed publication has reported that an ongoing SEC investigation of Prospect Capital (PSEC -5.1%) may be underway, although the report has not yet been confirmed, according to Wells Fargo analyst Jonathan Bock, who maintains an Underperform rating on the stock.
    • Bock says the potential SEC inquiry involves whether PSEC and the company that values its CLOs had "conspired with Prospect to set improper marks for its CLO investments.”
    • The article says that "another question ties to whether or not PSEC rebuffed advances from other valuation firms to value the CLO portfolio out of fear this would lead to CLO markdowns of 20% or greater," Bock writes.
    • The article also says PSEC’s auditor could be under scrutiny, according to Bock.
    | Mon, Feb. 8, 11:44 AM | 143 Comments
Company Description
Prospect Capital Corp. is a business development company, which invests in middle-market companies primarily located in the U.S. and Canada. The company was founded by M. Grier Eliasek on April 13, 2004 and is headquartered in New York, NY.
Sector: Financial
Industry: Asset Management
Country: United States