Prospect Capital to pay down revolver debt via new notes due 2024

By Susanna Moon

Chicago, Sept. 27 – Prospect Capital Corp. plans to repay its revolving credit facility debt using proceeds of a new issue of notes due Jan. 15, 2024, according to a 497 filing with the Securities and Exchange Commission.

As of Wednesday, the company had $382 million of borrowings under its credit facility and, based on the assets currently pledged as collateral on the facility, a total of about $334.2 million was available for borrowing.

Interest on the loans is one-month Libor plus 220 basis points, with no Libor floor. The unused fee is 50 bps to 150 bps based on the amount drawn.

Proceeds will also be used to maintain balance sheet liquidity, including investments in high quality short-term debt instruments, and after that to make long-term investments under the company’s investment objective.

Prospect Capital is a New York-based asset management company.

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