Prospect Capital Corporation Closes $764 Million in New Investments Amid Fiscal Year 2024

Strategic Insights -

Prospect Capital Corporation (NASDAQ: PSEC) announced the closure of $764 million in new investments during its fiscal year ended June 30, 2024. The company's originations during the fiscal year consisted mainly of first lien, senior secured loans, accounting for 91% of the total. Prospect's investments included $56 million in first lien loans to refinance a clinical trial services provider, $60 million in primarily first lien loans for a business process outsourcing solutions provider, and $26 million in primarily first lien loans for a healthcare services provider.

Key Takeaways:

  • Prospect Capital Corporation closed $764 million in new investments during its fiscal year 2024, investing in 38 new and existing portfolio companies.
  • 91% of PSEC's originations during fiscal year 2024 were first lien, senior secured loans.
  • The company's investments during fiscal year 2024 included $56 million in first lien loans to refinance a clinical trial services provider, $60 million in primarily first lien loans for a business process outsourcing solutions provider, and $26 million in primarily first lien loans for a healthcare services provider.
  • Prospect's investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
  • The company has elected to be treated as a business development company under the Investment Company Act of 1940 and as a regulated investment company under the Internal Revenue Code of 1986.
  • Prospect's investment pipeline as of October 14, 2024, includes more than $350 million in transactions, which are still in process.

Statistics:

  • $764 million: Total new investments closed by Prospect Capital Corporation during its fiscal year 2024.
  • 91%: Percentage of PSEC's originations during fiscal year 2024 that were first lien, senior secured loans.
  • $56 million: Amount of first lien loans invested in a clinical trial services provider to refinance its debt.
  • $60 million: Amount of primarily first lien loans invested in a business process outsourcing solutions provider to finance an acquisition.
  • $26 million: Amount of primarily first lien loans invested in a healthcare services provider to finance an acquisition.
  • $350 million: Size of Prospect's investment pipeline as of October 14, 2024.

Sources:

  • Prospect Capital Corporation. (2024). Prospect Capital Corporation Closes $764 Million of New Investments During Fiscal Year 2024.
  • Prospect Capital Corporation. (2024). Prospect Capital Corporation Prospectus Supplement.
  • Private Securities Litigation Reform Act of 1995