Prospect Capital Corporation acquires QC Holdings in an all-cash deal valued at $115 million, effective June 30, 2025.
Quiver AI Summary
Prospect Capital Corporation has completed its acquisition of QC Holdings, Inc., a consumer credit provider, in an all-cash deal valued at approximately $115 million. The acquisition was finalized on June 30, 2025, following a previously announced merger agreement, and QC Holdings' common stock is no longer listed on any exchange. QC Holdings will continue to operate from its headquarters in Lenexa, Kansas, with its existing management team, led by President and CEO Darrin Andersen, remaining in place. Shareholders as of the acquisition date will receive instructions for submitting their stock certificates and guidelines for payment through the relevant channels. Prospect Capital, a business development company, seeks to generate income and capital appreciation through various investments, while QC Holdings offers alternative financial services primarily to those underserved by traditional banks.
Potential Positives
- Prospect Capital Corporation successfully closed the acquisition of QC Holdings for approximately $115 million, enhancing its portfolio in the consumer credit sector.
- QC Holdings, a well-established provider of alternative financial services, will continue operating under its management team, ensuring stability and continuity in leadership.
- This acquisition potentially broadens Prospect's market reach and product offerings in the underserved consumer credit sector, aligning with its investment strategy.
Potential Negatives
- The acquisition of QC Holdings results in the latter's common stock being delisted, which may signify a loss of market confidence and limit financial transparency for its previous shareholders.
- Prospect Capital's acquisition of a provider of consumer credit could raise concerns due to the potential reputational risks associated with the alternative financial services sector, which often faces scrutiny regarding lending practices.
- By acquiring QC Holdings, Prospect Capital may expose itself to higher regulatory scrutiny given the nature of QC's business operations, potentially impacting operational flexibility.
FAQ
What is the recent acquisition by Prospect Capital Corporation?
Prospect Capital Corporation has acquired QC Holdings, Inc. for approximately $115 million in an all-cash transaction.
When did Prospect acquire QC Holdings?
The acquisition of QC Holdings by Prospect was completed on June 30, 2025.
What services does QC Holdings provide?
QC Holdings specializes in consumer-focused alternative financial services and credit solutions, including short-term loans.
How will the acquisition affect QC Holdings' management?
The current management team of QC Holdings, led by Darrin Andersen, will continue in their roles post-acquisition.
What should QC Holdings stockholders expect after the acquisition?
Stockholders will receive a letter of transmittal and payment for their shares within 3-5 business days after the acquisition.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
NEW YORK, July 01, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (“Prospect”) (NASDAQ: PSEC) has announced the closing of the acquisition of QC Holdings, Inc. (“QC Holdings”), a provider of consumer credit, by Prospect on June 30, 2025. In accordance with the previously announced definitive merger agreement, Prospect has acquired QC Holdings in an all-cash transaction for a total enterprise value of approximately $115 million.
The common stock for QC Holdings is no longer listed on a stock exchange. QC Holdings, as a portfolio company of Prospect, will remain headquartered in Lenexa, Kansas. The QC Holdings management team members, led by Darrin Andersen, President and Chief Executive Officer, will continue to lead QC Holdings post-acquisition in their current roles.
QC Holdings has been advised that stockholders of record on June 30, 2025 (i) with certificated shares will be mailed a letter of transmittal for submission of stock certificates within 3-5 business days and (ii) holding shares through direct registration with Computershare, the stock transfer agent for QC Holdings, should receive payment of the merger price per share held by each such stockholder from Computershare, as Paying Agent, within 3-5 business days. Investors holding shares through brokerage accounts should contact their broker regarding timing of receipt of payment.
Blank Rome LLP served as legal advisor to Prospect. Stinson LLP served as legal advisor to QC Holdings.
About Prospect Capital Corporation
Prospect is a business development company lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.
About QC Holdings, Inc.
QC Holdings specializes in consumer-focused alternative financial services and credit solutions and, for more than 40 years, has been providing credit options for people underserved by traditional banking institutions. Its core products include a variety of short-term loans and financial services. In the United States, QC Holdings operates as “LendNation” through more than 325 retail locations in 12 states. In Canada, QC Holdings offers loans through 19 retail locations and online.
For further information, contact:
Grier Eliasek, President and Chief Operating Officer, Prospect Capital Corporation
[email protected]
(212) 448-0702
Darrin J. Andersen, President / Chief Executive Officer, QC Holdings, Inc.
[email protected]
(913) 234-5122
Joshua C. Ditmore, General Counsel, QC Holdings, Inc.
[email protected]
(913) 234-5174
