Prospect Capital Prices $300M of 8.95% Senior Notes Due 2031 to Refinance 2026 Notes
PSEC is trading near its 52-week low of $1.43 (13% above the low).
Summary
Prospect Capital priced $300 million of 8.95% senior notes due 2031, smaller than the $500 million marketed and above the initial target yield near 8%, expecting about $283.4 million of net proceeds to repay its 3.364% 2026 Notes and/or revolver borrowings. It extends maturities but swaps cheap debt for notably more expensive debt, with no equity dilution.
Updated with a Seeking Alpha report · What changed
Updates
· Seeking Alpha — Prospect Capital priced $300 million of 8.95% senior unsecured notes due 2031, smaller than the $500 million marketed and above the initial target yield near 8%.
Key Events · Financing and Capital Events · PSEC
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Updated · · Seeking Alpha
Prices $300M of 8.95% Notes Due 2031
Registered direct offering of $300,000,000 aggregate principal amount of 8.95% Notes due October 31, 2031, sold at 100.000% of principal to one or more institutional investors with no underwriter, dealer or agent; the offering was smaller than the $500 million marketed and priced above the initial target yield near 8%.
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Net Proceeds of About $283.4M
Estimated offering expenses of approximately $16.6 million, including a $15.6 million commitment fee to the investor, leave net proceeds of approximately $283.4 million.
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Proceeds to Refinance 2026 Notes
Proceeds are earmarked primarily to repay the $263.2 million of 3.364% 2026 Notes being redeemed on or about November 13, 2026 and/or the $742.9 million outstanding under the revolving credit facility, which bears one-month SOFR plus 205 basis points.
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Higher Coupon Raises Interest Cost
The 8.95% coupon is well above the 3.364% rate on the notes being retired, so the refinancing extends maturity to 2031 at a materially higher cost of debt.
Analysis · PSEC · Unknown
Prospect Capital has locked in $300 million of new five-year senior unsecured debt at an 8.95% coupon, replacing cheaper debt: the 3.364% 2026 Notes it is redeeming on or about November 13, 2026 and/or revolving credit borrowings that price at one-month SOFR plus 205 basis points. The deal came in smaller than the $500 million marketed and priced above the initial target yield near 8%. Net proceeds of roughly $283.4 million come after about $16.6 million of expenses, including a $15.6 million commitment fee to the single institutional buyer. The trade-off is straightforward: the refinancing pushes out maturity to October 31, 2031 and removes near-term repayment risk, but the roughly 8.95% cost is well above the 3.364% it retires, so interest expense rises against a portfolio that yielded 11.9% on performing interest-bearing investments at December 31, 2025. This is debt, not equity, so there is no share dilution; the notes rank pari passu with existing senior unsecured debt and behind roughly $0.6 billion of secured borrowings. The preliminary September 30, 2026 figures in the same document put total principal debt at about $1.5 billion against about $6.0 billion of assets, roughly 25% debt-to-assets.
How filings like this one have moved
In the 30 days to Oct 29, 2026, 30.9% of the 1649 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.02%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, PSEC was trading at $1.62 on NASDAQ in the Unknown sector, with a market capitalization of approximately $864.8M. The 52-week trading range was $1.43 to $3.13. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.