Prospect Capital Corporation repaid its March 2025 convertible bond, highlighting its successful debt management and commitment to investors.
Quiver AI Summary
Prospect Capital Corporation announced the successful repayment of its convertible bond due in March 2025, highlighting its commitment to responsible debt management. This repayment is part of Prospect's over 20-year history in which it has repaid approximately $4.7 billion in principal bonds across 874 different debt tranches. The company, known for its diverse funding strategy, has issued various types of bonds including non-convertible, convertible, and medium-term notes. Grier Eliasek, President and COO of Prospect, emphasized the firm's focus on building relationships with credit providers while maintaining low leverage and flexible funding sources.
Potential Positives
- Announcement of the full and timely repayment of the convertible bond due March 2025, showcasing strong financial management.
- Successful repayment contributes to a track record of approximately $4.7 billion in principal bond obligations repaid over more than 20 years, enhancing the company's reputation in capital markets.
- Reinforces Prospect's disciplined, low debt leverage strategy, highlighting their commitment to responsible financial practices.
- Emphasizes strong relationships with credit providers and institutional banks, ensuring access to flexible and cost-effective funding sources.
Potential Negatives
- Despite highlighting its successful repayment of a convertible bond, the press release fails to provide specific details about how much debt the company currently holds, leaving investors unclear about its overall debt leverage position.
- The cautionary note regarding forward-looking statements indicates potential risks in future performance, which may raise concerns among investors about the company's ability to sustain current financial practices.
- The emphasis on past achievements without detailing current financial metrics may suggest a lack of strong ongoing performance, which could lead to skepticism from stakeholders.
FAQ
What recent repayment has Prospect Capital Corporation completed?
Prospect Capital Corporation announced the full repayment of its convertible bond due March 2025, adding to its history of responsible debt management.
How much in principal bond obligations has Prospect repaid?
Over its 20-year history, Prospect has repaid approximately $4.7 billion in principal bond obligations across 874 debt tranches.
What types of bonds has Prospect repaid?
Prospect's repaid bond obligations include institutional non-convertible bonds, institutional convertible bonds, baby bonds, and medium-term notes.
Who commented on Prospect's debt management strategy?
Grier Eliasek, President and Chief Operating Officer, highlighted Prospect's strong track record in debt management and funding relationships.
What is Prospect Capital Corporation's primary investment objective?
Prospect's investment objective is to generate current income and long-term capital appreciation through various debt and equity investments.
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.
$PSEC Insider Trading Activity
$PSEC insiders have traded $PSEC stock on the open market 33 times in the past 6 months. Of those trades, 33 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $PSEC stock by insiders over the last 6 months:
- JOHN F BARRY (CHIEF EXECUTIVE OFFICER) has made 16 purchases buying 10,835,173 shares for an estimated $48,248,717 and 0 sales.
- M GRIER ELIASEK (Chief Operating Officer) has made 12 purchases buying 465,000 shares for an estimated $2,221,808 and 0 sales.
- WILLIAM GREMP has made 3 purchases buying 20,000 shares for an estimated $85,799 and 0 sales.
- DASK KRISTIN LEA VAN (CFO, TREASURER, SECRETARY, CCO) has made 2 purchases buying 15,200 shares for an estimated $65,208 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$PSEC Hedge Fund Activity
We have seen 123 institutional investors add shares of $PSEC stock to their portfolio, and 113 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- Y.D. MORE INVESTMENTS LTD removed 5,062,879 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $27,086,402
- INVESCO LTD. removed 2,734,322 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $11,784,927
- BALYASNY ASSET MANAGEMENT L.P. added 2,439,426 shares (+6177.6%) to their portfolio in Q4 2024, for an estimated $10,513,926
- THOMAS J. HERZFELD ADVISORS, INC. added 1,828,411 shares (+inf%) to their portfolio in Q4 2024, for an estimated $7,880,451
- XML FINANCIAL, LLC removed 1,098,442 shares (-53.7%) from their portfolio in Q4 2024, for an estimated $4,734,285
- UBS GROUP AG added 925,806 shares (+265.8%) to their portfolio in Q4 2024, for an estimated $3,990,223
- ENVESTNET ASSET MANAGEMENT INC added 924,428 shares (+4160.3%) to their portfolio in Q4 2024, for an estimated $3,984,284
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
NEW YORK, March 25, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) today announced the full and timely repayment of our convertible bond due March 2025, marking another milestone in Prospect’s long-standing track record of responsible and low debt leverage balance sheet management.
With this latest repayment, Prospect has now over our more than 20-year history repaid approximately $4.7 billion in principal bond obligations across 874 debt tranches spanning diversified funding sources, reinforcing Prospect's reputation as a reliable and disciplined issuer in the capital markets. Prospect’s repaid bond obligations include institutional non-convertible bonds, institutional convertible bonds, baby bonds, and programmatic medium-term notes.
“Our multi-decade track record of meeting obligations across a wide array of funding instruments, including in multiple capital markets that Prospect helped to pioneer in the industry, demonstrates the strength of our diversified and low leverage capital strategy,” said Grier Eliasek, President and Chief Operating Officer at Prospect. “We continue to prioritize building strong relationships with credit providers and institutional banks, delivering on our commitments, and maintaining access to a broad range of flexible, cost-effective funding sources.”
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. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.
For further information, contact:
Grier Eliasek, President and Chief Operating Officer
[email protected]
Telephone (212) 448-0702
