Prospect Capital Corporation Initiates Tender Offer for Notes
Announcement of the Tender Offer
Prospect Capital Corporation, a prominent player in the financial market, has initiated a cash tender offer aimed at purchasing any and all of its 3.706% Notes due 2026. This notable announcement, made recently, has generated considerable interest among investors.
Details of the Tender Offer
The company's tender offer aims to provide investors with the opportunity to sell back their outstanding notes. The tender offer is set to conclude at 5:00 p.m., with New York City time as the reference. Investors interested in participating need to pay attention to the final date, as the offer may be extended by the company. The details regarding this tender offer are laid out in the Offer to Purchase document dated today, which outlines the terms and conditions related to the offer.
Key Information Regarding the Notes
The specific notes being targeted are the 3.706% Notes due 2026. The CUSIP number for these notes is 74348TAU6 / US74348TAU60. The total outstanding principal amount for these notes is currently at $342,947,000. Under the current offer, the total consideration for each $1,000 principal amount of notes validly tendered is set at $990.00, supplemented by any accrued and unpaid interest from the last payment date up until the settlement date.
Process for Tendering Notes
For holders of the notes, the process for tendering is straightforward. Any notes that are denominated at $1,000 principal amounts and are tendered validly prior to the expiration time will be accepted for purchase. The company has indicated that it expects to settle the tender offer and make necessary payments shortly after the expiration, estimating that this will occur around the anticipated settlement date.
Withdrawal Rights
It’s important for investors to be aware that they retain the right to withdraw their tendered notes at any point before the expiration time. However, if the company decides to amend the tender offer, the withdrawal rights could be extended as necessary to comply with legal requirements. The offer is designed not to set a minimum acceptance threshold, which may encourage broader participation.
Company's Strategy and Financing
Prospect Capital Corporation has strategically planned to fund the purchase through a combination of cash reserves and borrowing against its revolving credit facility. This approach showcases the company’s forward-thinking strategy aimed at maintaining liquidity while enabling favorable investment return opportunities.
Role of Financial Advisors
To facilitate this tender offer process, the company has appointed RBC Capital Markets, LLC as the Dealer Manager. Interested parties with inquiries about the tender offer are encouraged to reach out to the dealer manager for assistance. Additionally, D.F. King & Co., Inc. has been appointed as the Information and Tender Agent. They are available to assist holders with questions about their tender offers.
About Prospect Capital Corporation
Prospect Capital Corporation is more than just a financial entity; it serves as a critical business development firm focusing on lending and investment in private businesses. The company's investment strategy is centered around generating both immediate income and substantial long-term capital growth through various debt and equity investments.
Compliance with regulatory standards is vital for Prospect Capital as it has chosen to be treated under the Investment Company Act of 1940, thereby ensuring adherence to a set framework of legal regulations. As a regulated investment company, it functions under the Internal Revenue Code of 1986, positioning itself to utilize the best financial strategies available.
Frequently Asked Questions
What is the significance of the Tender Offer for investors?
The Tender Offer provides an opportunity for investors to sell their notes back to the company, potentially at a premium compared to market prices.
How will the company finance the Tender Offer?
The company plans to finance the Tender Offer using cash on hand and borrowings from its revolving credit facility.
What rights do note holders have in this Tender Offer?
Note holders can withdraw their tendered notes at any point prior to the expiration time, ensuring they maintain control over their investments.
Who can investors contact for more details on the Tender Offer?
Investors can contact RBC Capital Markets, LLC or D.F. King & Co., Inc. for any queries related to the process or for assistance.
What types of investments does Prospect Capital Corporation focus on?
Prospect Capital focuses on lending to and investing in private businesses, with the aim of achieving both immediate income and long-term capital growth.
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