Prospect Capital Sells Portfolio Company for $328M, Realizing 4.8x Return
PSEC is trading near its 52-week low of $2.11 (12% above the low).
Summary
Prospect Capital is selling its portfolio company, Valley Electric, to MYR Group for an expected $328 million. This is a highly successful exit for Prospect, realizing a 4.8x multiple of invested capital and a 20.4% annualized IRR over the investment's lifetime. The significant proceeds, representing roughly 28% of Prospect Capital's market value, provide a much-needed positive development following recent reports of declining Net Investment Income, a dividend cut, and an ATM offering. The transaction is expected to close around July 1, 2026.
At the time of this announcement, PSEC was trading at $2.36 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $2.11 to $3.50. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.