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Prospect Capital Corporation (PSEC)

  • Fri, Apr. 17, 7:24 AM
    • USG Intermediate is a direct marketing company, and Prospect Capital (NASDAQ:PSEC) provided it with $48.5M of first lien, floating-rate debt commitments comprised of term loans and a revolver.
    • Source: Press Release
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  • Wed, Apr. 1, 7:35 AM
    • IWCO Direct - a provider of marketing solutions to direct markets for acquisition and loyalty programs - is an existing portfolio company of Prospect Capital (NASDAQ:PSEC). Prospect is committing another $74.7M of first-lien floating-rate debt to support the business' recapitalization.
    • "After witnessing budget-beating performance by IWCO Direct, Prospect and Court Square developed a win-win structure that rewards shareholders for the results to date and for continued growth," says Prospect's Jason Wilson.
    • Source: Press Release
  • Mon, Feb. 23, 8:16 AM
    • The first lien seniro secured floating rate loan facility supports the purchase of PrimeSport Holdings by investment funds led by The Carlyle Group.
    • "Prospect (NASDAQ:PSEC) demonstrated creativity by parallel processing a dividend recapitalization, which closed in September 2014, with a possible change of control process, and we were pleased to strongly recommend Prospect as a leading provider of staple financing in this transaction," says a Clearlake (one of the investment funds in the deal) partner.
    • Source: Press Release
  • Mon, Feb. 9, 3:24 PM
  • Thu, Feb. 5, 11:47 AM
  • Wed, Feb. 4, 4:28 PM
    • Q4 net investment income of $91.3M or $0.26 per share vs. $92.2M and $0.32 one year ago.
    • Net increase in net assets from operations of $86M or $0.24 per share vs. $85.4M and $0.30 one year ago.
    • Net asset value per share of $10.35 down $0.12 from Q3.
    • "The investment performance of our CLO business has significantly exceeded our underwriting expectations," says the company, noting a trailing 12-month default rate of 0.06% vs. the broadly syndicated market's rate of 3.24%. Four CLOs were sold in Q4, for an average cash realized IRR of 15.3%. Company doesn't anticipate any significant sales in the near future, and is more likely a buyer at these prices.
    • Asset concentration in energy stands at 4.5%.
    • Previously: Prospect Capital misses by $0.01, misses on total investment income (Feb. 4)
    • Conference call tomorrow at 11 ET
    • PSEC +0.5% after hours
  • Wed, Feb. 4, 4:12 PM
    • Prospect Capital (NASDAQ:PSEC): Q4 NII of $0.26 misses by $0.01.
    • Total investment income of $198.88M (+11.7% Y/Y) misses by $2.18M.
    • Press Release
  • Tue, Feb. 3, 3:44 PM
    • Lower interest rates hadn't really helped one of income players' favorite sectors as they were accompanied by the plunge in oil prices, and worry about what blowups were lurking in BDC portfolios.
    • So even with the 10-year Treasury yield higher by 11 basis points to 1.78% today, oil's now more than 20% run higher in the past few sessions looks to be easing some of those credit concerns, and alongside the rally in BDCs is a nice move higher in junk bonds (HYG +0.6%), (JNK +0.6%).
    • Individual names: Prospect Capital (PSEC +2.3%), Fifth Street Finance (FSC +3%), FS Investment (FSIC +1.6%), Main Street Capital (MAIN +2.4%), Apollo Investment (AINV +3%), Triangle Capital (TCAP +2.7%), TICC Capital (TICC +3%), PennantPark Investment (PNNT +3.8%), THL Credit (TCRD +3.5%), Golub Capital (GBDC +1.9%).
  • Dec. 23, 2014, 7:31 AM
    • Based in San Ramon, CA, Security Alarm Financing Enterprises will use the money to support growth - both organic and by acquisition.
    • Source: Press Release
  • Dec. 18, 2014, 10:25 AM
    • Barclays is buying the dip in Ares Capital - upgrading to Overweight from Equal Weight - but the also-beaten-up shares of Prospect Capital (PSEC +2.8%) don't prove as enticing to the team, which downgrades to Equal Weight from Overweight.
    • Prospect is making a nice move higher in line with the rest of the market, and Ares is up a full 4.7%.
  • Dec. 17, 2014, 3:41 PM
    • Popular high-yield ETFs HYG and JNK are each ahead by 2% in today's session as the energy sector - which makes up a sizable portion of the high-yield universe posts a strong rally, with the XLE higher by 4.1%.
    • BDCs can sort of be considered the equity equivalents of junk bonds, and they're putting in a big rally today as well.
    • Prospect Capital (PSEC +1.5%), Main Street (MAIN +4.1%), Blackrock Kelso (BKCC +2.4%), Triangle Capital (TCAP +6.4%), KCAP Financial (KCAP +2.6%), THL Credit (TCRD +3.5%), Medley Capital (MCC +2.2%), Fifth Street Finance (FSC +1.5%)
  • Dec. 15, 2014, 10:02 AM
    • The company will hold a live webinar on December 18 at 3 ET to talk about its business and recent developments, of which there have been many, including a cut in the dividend, a suspension of its stock issuance program, and a plan to spin off certain units.
    • Source: Press Release
    • PSEC +2.1% amid a broad rally in the BDC names this morning.
  • Dec. 11, 2014, 4:42 PM
  • Dec. 9, 2014, 12:57 PM
    • Unable to catch a bid for a few sessions, mortgage REITs (REM +1%) have turned higher in afternoon action, led by Annaly (NLY +0.7%) and American Capital Agency (AGNC +1.5%).
    • Helping are jitters in the stock market (though U.S. averages are well off the lows), and a 10-year Treasury yield that's retreated all the way to 2.21% after hitting the mid-2.30s on the back of Friday's strong jobs number.
    • Armour (ARR +1.1%), Two Harbors (TWO +0.9%), CYS Investments (CYS +1.4%), Invesco (IVR +1.8%), American Capital Mortgage (MTGE +1%), Hatteras Financial (HTS +2%), Capstead (CMO +2%).
    • Other ETFs: MORT, MORL
    • Also showing some green are the recently beaten-up BDCs, including Prospect Capital (PSEC +0.2%), Fifth Street Finance (FSC +0.2%), Ares Capital (ARCC +0.5%), FS Investment (FSIC), Triangle Capital (TCAP +1.7%).
    • Previously: Money flows back into fixed income (Dec. 9, 2014)
  • Dec. 8, 2014, 11:30 AM
    • A bellwether of sorts in the BDC sector, Prospect Capital (PSEC -6.2%) earlier announced a big dividend cut, and the suspension of its stock issuance program so long as the share price is so far south of book value.
    • Prospect has some of its own issues to deal with, but common across the sector is too much money chasing too few deals, and the resultant lower yields for lower quality lending.
    • Fifth Street Capital (FSC -2.9%), Triangle Capital (TCAP -6.1%), TICC Capital (TICC -2.2%), KCAP Financial (KCAP -1.7%), Medley Capital (MCC -2.3%) Gladstone (GLAD -3.6%), OHA Investment (OHAI -5%), Blackrock Kelso (BKCC -1.1%), Main Street Capital (MAIN -0.2%), PennantPark (PNNT -1.3%).
    • Previously: Prospect Capital suspends ATM stock issuance program as dividend is cut (Dec. 8, 2014)
  • Dec. 8, 2014, 7:36 AM
    • In light of the current stock price (Friday's close of $8.99 is well south of Sept. 30 book value of $10.47), Prospect Capital (NASDAQ:PSEC) won't be issuing any stock for the indefinite future.
    • Updating on the portfolio, Prospect says its asset concentration in the energy industry is 5.1%. The company non-accrual rate of 0.03% as of September 30 is 29 basis points lower than at the start of the  year.
    • Commenting on the big dividend cut, CEO John Barry: "We have elected in the past year to take on less risk and focus on higher earnings quality by increasing our percentage of first lien loans and accepting lower interest rates in this yield compressed environment ... We have not chased higher yields that we believe do not compensate for risk."
    • Source: Press Release
    • Previously: Prospect Capital slashes dividend (Dec. 8, 2014)
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Company Description
Prospect Capital Corporation is a closed-end investment company. It invests in senior and subordinated debt and equity of companies in need of capital for acquisitions, divestitures, growth, development, recapitalizations and other purposes.
Sector: Financial
Country: United States