Prospect Capital Corp has announced the pricing of a $300 million institutional offering of senior unsecured notes, which carry an interest rate of 8.95% and are due in 2031. This strategic move is significant for the company as it looks to strengthen its financing sources while laddering its maturity schedule.

The notes will bear interest payable semi-annually, starting April 30, 2027. They will rank equally with Prospect's existing and future senior unsecured debt. The offering is expected to close on November 5, 2026, pending customary closing conditions.

Grier Eliasek, President of Prospect, expressed appreciation for the support received for this bond offering. He stated, "This leverage neutral bond offering further strengthens our already diversified financing sources as we continue to ladder our maturity schedule." The company plans to use the net proceeds from this offering to refinance existing indebtedness, including its 3.364% unsecured notes due 2026, and for general corporate purposes, including investments and maintaining balance sheet liquidity.

About Prospect Capital Corp

Prospect Capital Corp, traded on NASDAQ under the ticker PSEC, is a business development company that primarily lends to and invests in middle-market privately-held companies. The company's investment objective is to generate both current income and long-term capital appreciation. It 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.

The filing, accession number 0001287032-26-000302, provides detailed insights into the offering and its implications for the company's financial strategy.

What's Next?

The offering is set to close on November 5, 2026, subject to customary closing conditions. Further details regarding the use of proceeds and any additional filings may follow.