Prospect Capital Boosts Credit Facility to $2.1 Billion in Commitments
Prospect Capital Corporation Increases Credit Facility
Prospect Capital Corporation (NASDAQ: PSEC) has recently announced a significant enhancement to its financial capabilities by extending and increasing its revolving credit facility. This extension positions the total commitments for the facility at an impressive $2.1215 billion. The company ensures it remains well-equipped to support its investment strategies and operational needs.
The Facility at a Glance
The revolving credit facility supports Prospect Capital Funding LLC, a subsidiary that is fully consolidated under GAAP. The latest adjustments to the facility stem from a recent upsize that occurred in the quarter ending September 30, 2024. Notably, this facility comprises contributions from a diverse group of 48 banks, boasting a collective asset base exceeding $7.5 trillion, marking it as one of the largest credit arrangements in the business development sector.
Key Features of the Credit Facility
One of the standout features of this credit facility is its accordion capability, permitting total commitments to be further amplified, reaching as much as $2.25 billion if necessitated by business growth. The loan terms span five years, with the original maturity date set for June 28, 2029. Additionally, during a four-year revolving period, which extends until June 28, 2028, companies like Prospect can access liquidity to meet their financial strategies.
Leadership Insight on the Facility
Grier Eliasek, the President and Chief Operating Officer of Prospect Capital, shared insights regarding the partnership with venerable banks that have consistently backed the company since 2009. Eliasek expressed gratitude for their extensive support, which has been crucial in fostering lasting relationships. He emphasized that the company is optimistic about utilizing this robust facility to address the investment and financing needs of both Prospect and its portfolio companies.
Prospect’s Investment Focus
Prospect Capital has carved a niche in the business development landscape by focusing on lending and investing in private companies. Its dual investment objective aims at generating immediate revenue alongside long-term capital gains through strategic debt and equity investments. Operating under the Investment Company Act of 1940, Prospect adheres to strict regulatory mandates necessary for business development companies.
Compliance and Financial Structure
Beyond these investments, the company has positioned itself as a regulated investment company, aligning with provisions laid out in the Internal Revenue Code of 1986. Such regulatory compliance underpins its operational structure, ensuring sound governance while pursuing viable investment avenues.
Frequently Asked Questions
What is the primary goal of Prospect Capital Corporation?
Prospect Capital Corporation aims to provide financial support to private businesses while generating income and capital appreciation through investments.
How much has Prospect Capital increased its credit facility to?
The company has increased its credit facility commitments to $2.1215 billion, with potential to rise to $2.25 billion.
Who supports Prospect's revolving credit facility?
A consortium of 48 banks, with a combined asset base exceeding $7.5 trillion, contributes to Prospect's revolving credit facility.
What is the duration of the credit facility?
The facility has a duration of five years, with its maturity scheduled for June 28, 2029.
Who can be contacted for additional inquiries?
For further information, you can reach out to Grier Eliasek, President and COO, via email or telephone.
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