Prospect Capital Eyes $500M Junk-Bond Sale at 8% Yield
PSEC is trading near its 52-week low of $2.11 (3.8% above the low).
Summary
Prospect Capital is marketing a $500 million junk-bond offering with a target yield of about 8%, according to Bloomberg. The company has been under pressure: NAV fell to $5.71 in FY2026, the dividend was cut 22%, and shareholders recently approved selling stock below NAV. This debt raise adds leverage at a time when the stock trades near its 52-week low of $2.11. The 8% coupon reflects the market's risk assessment of the company's credit. Watch for final pricing and use of proceeds.
At the time of this announcement, PSEC was trading at $2.19 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $2.11 to $3.13. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.