Prospect Prices $400 Mln Of 4.75% Unsecured Convertible Senior Notes Due 2020

(RTTNews) - Prospect Capital Corp. (PSEC) announced the pricing of $400 million in aggregate principal amount of unsecured 4.75% Convertible Senior Notes Due 2020.

The company said the Notes will be convertible into shares of Prospect's common stock based on an initial conversion rate of 80.6647 shares of Prospect's common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of about $12.40 per share of common stock, representing a 15% conversion premium over the last reported sale price of Prospect's common stock on April 7, 2014 which was $10.78 per share.

The conversion price for the Notes will not be reduced for monthly cash dividends paid to common shares at or below the rate of $0.110525 per share, subject to anti-dilution and other adjustments, Prospect stated.

Prospect said it intends to use the net proceeds from the sale of the Notes to paydown the outstanding balance on the credit facility, maintain balance sheet liquidity, including investments in high quality short-term debt instruments, and thereafter to make long-term investments in accordance with Prospect's investment objectives.