Prospect Capital Corp. on Jan. 14 completed the sale of certain of its 5.750% senior unsecured internotes due Jan. 15, 2024, and its 6.000% senior unsecured internotes due Jan. 15, 2026.
The principal amount for the 2024 notes is $902,000 and net proceeds from the offering will be $890,725. For the 2026 notes, the principal amount is $1.2 million and the net proceeds will be $1.1 million.
The company plans to use the net proceeds from the sale of the notes initially to maintain balance sheet liquidity, involving repayment of debt under its credit facility, if any, and redemption of outstanding Prospect Capital InterNotes and other debt, investments in high quality short-term debt instruments, and thereafter to make long-term investments.
The company also filed a preliminary pricing supplement for the sale of an undisclosed amount of its 5.750% senior unsecured internotes due Jan. 15, 2024, 6.000% senior unsecured internotes due Jan. 15, 2026, and 6.250% senior unsecured internotes due Jan. 15, 2029.
The debt offerings are part of the company's plan to issue up to $1.5 billion in notes. As of Nov. 8, 2018, Prospect had issued about $1.3 billion in notes.
Incapital LLC is the purchasing agent, and Citigroup Global Markets Inc. and RBC Capital Markets LLC are acting as agents for all the offerings.