Midday Commentary: New Prospect Capital edges up from reoffered price; existing Prospect down a bit

By Rebecca Melvin

New York, April 8 - Prospect Capital Corp. priced $400 million of 4.75% six-year convertible senior notes ahead of the market open on Tuesday, and the bonds were trading in the aftermarket up a bit from their discounted reoffered price of 97.75.

The bonds were quoted at 98 bid, 98.25 offered or 98.25 bid, 98.5 offered, market sources said.

Shares of the New York-based venture capital and private equity firm were off slightly.

Prospect Capital's latest deal came at the fixed price points that were talked when the deal launched late Monday, including a 15% initial conversion premium.

Prospect Capital has a handful of existing convertible issues, including its 5.875% convertible senior notes due 2019, which priced initially in December 2012. Those notes were reoffered at 97.25. Last week, they changed hands at 105.75, according to Trace data, and on early Tuesday they traded at 104.625 to 104.75, sources said.

The Prospect Capital 5.875% convertibles looked to have traded on an outright basis and were called down a point by one New York-based sellsider.

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