GlobeNewswire Inc | Apr 23, 2021 07:00AM EDT

April 23, 2021

NEW YORK, April 23, 2021 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (Prospect, our, or we), announced today that our continuous preferred stock offering of up to 40,000,000 shares of Series A1, M1, and M2 with a $1 billion aggregate liquidation preference (the Preferred Stock) has issued $80.6 million in aggregate preference amount since the initial closing in the quarter ending December 31, 2020. Prospect issued $19.7 million in aggregate preference amount of the Preferred Stock since March 15, 2021.

Prospects Preferred Stock delivers a consistent, attractive risk-adjusted return to investors and is accretive to Prospects common stock, said Grier Eliasek, President and Chief Operating Officer of Prospect Capital Corporation.

The Preferred Stock has a stated annual dividend rate of 5.5%, paid monthly (resulting in an annual percentage yield of 5.64%) and ranks senior to over $3.4 billion of Prospects common stock. The Preferred Stock is perpetual and convertible into our publicly traded common stock at the preferred investors discretion (with conversions occurring twice per month, subject to certain conditions and fees that decline to zero over time, if applicable).

This press release is for informational purposes and is not an offer to purchase or sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The Offering is being made only by means of the prospectus supplement and the accompanying prospectus, copies of which may be obtained by writing to Preferred Capital Securities LLC at 3284 Northside Parkway NW, Suite 150, Atlanta, GA 30327.

About Prospect Capital CorporationProspect Capital Corporation is a business development company that focuses on lending to and investing in private businesses. Prospects investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940 (1940 Act). Prospect is required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

Caution Concerning Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.

For further information, contact:Grier Eliasek, President and Chief Operating Officergrier@prospectcap.comTelephone (212) 448-0702