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PSEC Prices 6.875% Bonds

|Includes: Prospect Capital Corporation (PSEC)

NEW YORK, Nov. 28, 2018 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (PSEC) announced today that it has priced an underwritten public offering of $50.0 million in aggregate principal amount of 6.875% unsecured notes due 2029. The Notes will mature on June 15, 2029 and may be redeemed in whole or in part at any time or from time to time at our option on or after December 15, 2021. The Notes will bear interest at a rate of 6.875% per year payable quarterly on March 15, June 15, September 15 and December 15 of each year, with the first interest payment occurring on March 15, 2019. (BDC notes with 4 payments per year tend to end up publicly traded - but that was not mentioned in the press release.)

RBC Capital Markets and UBS Investment Bank are acting as joint book-running managers for this offering. Ladenburg Thalmann, Oppenheimer & Co., BB&T Capital Markets, Citigroup and William Blair are acting as joint lead managers for this offering. B. Riley FBR and Incapital are acting as co-managers for this offering. The offering is expected to close on December 5, 2018, subject to customary closing conditions. Prospect has granted the underwriters a 30 day option to purchase up to an additional $7.5 million in aggregate principal amount of the Notes.

It is my best guess that it is the 2029 term of the notes that caused the rise in the yield compared to the last offering at 6.375%.

Context:

On 11/08/18 WHF priced $33,000,000 in 6.50% notes due 2025.

On 10/12/18 OFS Capital priced $43.5 million in 6.50% notes due 2025 to be sold as “OFSSB.”

On 10/02/18 TCRD sold 6.75% Notes Due 2023 to be sold as TCRW.

On 9/27/18 Prospect Capital priced $100 million in aggregate principal amount of 6.375% unsecured notes due 2024.

On 9/21/18 New Mountain priced $50.0 million in 5.75% unsecured notes due 2023.

On 9/19/18 Hercules priced $40 million in aggregate principal amount of 6.25% notes due 2033 to be sold as HCXY.

On 9/06/18 Monroe Capital priced $60.0 million in 5.75% notes due 2023 (which matches the yield of MRCCL).

On 8/16/18 New Mountain Finance Corp offered $100.0 million in aggregate principal amount of its 5.75% unsecured convertible notes due 2023 (which matches the yield of NMFX).

On 8/15/18 Gladstone Investment Corp offered 2,600,000 shares of its newly designated 6.375% Series E Cumulative Term Preferred Stock due 2025 sold as GAINL.

On 7/05/18 New Mountain Finance Corp issued a private placement of $50.0 million of 5.36% Series 2018B Notes due June 28, 2023 .

On 7/17/18 Whitehorse announced a private offering of $30.0 million aggregate principal amount of its 6.00% Senior Notes due 2023.

On 6/28/18 CM Finance Inc priced a registered public offering of $30,000,000 of its 6.125% notes due 2023 - traded as CMFNL.

On 6/27/18 Goldman Sachs BDC announced a reopening of an offering of $32.5 million aggregate principal amount of its 4.50% convertible notes due 2022.

On 5/31/18 Prospect Capital Corporation announced a public offering of $50 million in 6.25% unsecured notes due 2028 (which matches the yield of PBB).

On 4/24/18 Hercules Capital closed a registered public offering of $75 million aggregate principal amount of its 5.25% notes due 2028.

On 4/11/18 OFS Capital Corporation priced $43.75 million aggregate principal amount of its 6.375% notes due 2025 to be traded as OFSL (at Yahoo it is listed as OFSSL).

On 2/02/18 Fidus Investment Corporation closed a registered public offering of $43.5 million aggregate principal amount of its 5.875% notes due 2023- which trade as FDUSL.

On 1/18/18 TSLX announced that it has priced an offering of $150.0 million of 4.50% Notes due 2023.

On 11/22/17 PennantPark Floating Rate Capital Ltd. announced that it has priced an institutional offering in Israel of $138.7 million of its 3.83% Series A Notes.

On 11/16/17 Main Street Capital Corporation announced that it has priced an underwritten public offering of $185.0 million in aggregate principal amount of 4.50% notes due 2022.

On 11/13/2017 Solar Capital priced $75 million of a 4.50% bond that matures on 01/20/2023.

On 8/21/17 Stellus Capital priced $42.5 million of 5.75% notes due 2022 that trade as "SCA" which were used to redeem 2019 due notes @ 6.5% yield "SCQ".On 8/07/17 Ares Capital announced that it has priced an underwritten public offering of $750.0 million in aggregate principal amount of 3.500% notes due 2023.On 7/17/17 BlackRock Capital Investment Corporation announced the pricing of $125 million in aggregate principal amount of senior unsecured 5.00% Convertible Notes due 2022.On 4/06/17 Prospect Capital Corporation announced the pricing of $225 million in aggregate principal amount of senior unsecured 4.95% Convertible Notes Due 2022.On 1/26/17 TPG Specialty Lending announced that it has agreed to sell to initial purchasers in a private offering $100 million aggregate principal amount of its 4.50% Convertible Senior Notes due 2022.On 1/24/17 Ares Capital Corporation announced that it has agreed to sell to initial purchasers in a private offering $350 million aggregate principal amount of its 3.75% Convertible Notes due 2022.