This press release contains forward-looking Prospect Capital Corporation. "Prospect Capital Corporation 2021 Annual Meeting . The notice of default or NOD usually is regarded as the notice of foreclosure sale. If you have an ad-blocker enabled you may be blocked from proceeding. Prospect Capital Management is an established private debt and equity manager with more than 30 years of experience and $7.1 billion of assets under management as of 6/30/21. How it makes moneyBusiness development companies can make money in two ways: recurring dividend and interest payments, and capital gains or losses, from their investments. Telephone (212) 448-0702, Prospect CEO Writes Letter to Shareholders. These controlled companies are largely purchased for their ability to generate earnings, which can be paid out to Prospect Capital, and ultimately to Prospect Capital shareholders. Prospect Capital (NASDAQ:PSEC) slumps 2.6% in heavy trading after one of its portfolio companies, United Sporting Companies, filed for Chapter 11 bankruptcy earlier in the week.Yesterday,. SPRING 2023. Notice of application for an order under sections 17(d) and 57(i) of the Investment Company Act of 1940 (the "Act") and rule 17d-1 under the Act to permit certain joint transactions otherwise prohibited by sections 17(d) and 57(a)(4) of the Act and rule 17d-1 under the Act. We are required to comply with regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We make debt and equity investments in U.S. middle market businesses across a range of industries, and seek to deliver steady, attractive returns to our shareholders. Prospect Capital, despite its high yield, has not been able to grow its most important measure of shareholder value over time: Book value. To access the board, click the blue link above or, if you are a registered member, you can check the latest message from Admin in your IV Inbox and click the link provided there as well. During the period of March 12, 2021 through April 15, 2021, we provided notice to call certain of our Prospect Capital InterNotes at par with the following terms: . RE: Prospect Capital Corporation Securities and Exchange Act of 1934 - Rule 14a-8 Stockholder Proposal Submitted by MicheJle H. Bronsted . The commitment letter is the entity between the lender and the borrower that should have in it the name and address of both the parties. We The market values BDCs based on a group of factors such as loan performance, the potential to collect interest from their loans and portfolio risk. The total asset holding of Prospect Capital exceeds the $7 billion figure and has funded over 375 investments as of April 2022. Every business development company is required by accounting regulation to report its net asset value every quarter, which is equal to a fund's total assets less its liabilities The reason why net asset values are so important for large loan factories like Prospect Capital is that they are the primary valuation benchmark to be used if companies make predominantly investments in financial assets and dont directly invest in factories and equipment. Dont be attracted to Prospect Capital's 9% yield alone as many buyers of PSEC can confirm the high yield meant capital losses for most and the red arrow in the chart below represents an approximate 56% capital loss for shareholders since 2007. Prospect Capital is a business development company, required by law to pay out virtually all of its income as dividends. Prospect Capitals net asset value showing is very depressing . I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I am not receiving compensation for it (other than from Seeking Alpha). The Motley Fool recommends Apple and Bank of America. To make the world smarter, happier, and richer. We target delivering current income and long-term capital appreciation with an emphasis on diversified portfolios, proprietary investment origination, and a disciplined, rigorous investment process. Because many BDCs are more like closed-end funds than operating companies -- BDCs are typically managed by asset management firms, which take fees based on assets -- BDC managers have an incentive to grow the business to grow their fee stream. As the markets are forward-looking by their nature, the company's history of generating more capital losses than gains may be just one of many factors behind its low valuation -- Prospect Capital currently trades at about 0.82 times its net asset value. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Officer Prospect Capital offers its investors a high degree of flexibility, which is reflected in its dividend reinvestment plan. BDCs create a special kind of conflictIn general, BDCs suffer from disconnects between a management team's incentive to grow the business and the shareholder's interest in generating a return. $6.3B+ Assets. After all, its monthly dividend of $0.083 per share amounts to an annual yield of nearly 12%. expenses of PSEC before investing. Skadden, Arps, Slate, Meagher & Flom LLP. Some of its largest controlled investments include subprime lenders, apartment communities, and a payment processing company. Any such statements The letter also outlines things like the amount provided by the lender, the duration of granting the sum . low correlation strategies in order to generate high returns. Stocks Telegraph is a dynamic team of financial market wizards with over 40 years of combined experience covering US stock markets. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. from shareholders for a one-year option to issue shares below NAV, PSEC is likely to see long-term growth in demand given the nature of the investment. Prospect Capital (NASDAQ:PSEC) slumps 2.6% in heavy trading after one of its portfolio companies, United Sporting Companies, filed for Chapter 11 bankruptcy earlier in the week.Yesterday,. Step 1: Details of Lender and Borrower. Prospect Capital (PSEC) closed at $7.37 in the latest trading session, marking a +1.8% move from the prior day. I am not receiving compensation for it (other than from Seeking Alpha). As in 2009 when we purchased Patriot Capital, market dislocations are presenting investment opportunities. Prospect Capital pays a 9% dividend yield and is a popular income stock. For the 3/31/20 quarter, we earned $68.5 million of NII and paid $66.2 million in distributions. to de-risk, the virus caused our NAV per share to decline 7.9% Prospect CEO Writes Letter to Shareholders May 12, 2020, 3:00 AM NEW YORK, May 12, 2020 (GLOBE NEWSWIRE) -- Prospect Capital Corporation ("Prospect") ( PSEC) announced today that. The figure is also concerning given that investment banks, pension funds, and mutual funds have rigorous investment appraisal methods, and on that basis, PSEC is evidently given a rather low ranking. Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) - ADVFN The Notice of Annual Meeting and proxy statement accompanying this letter provide an outline of the business to be conducted at the Annual Meeting. 4. Dividend . undertake no obligation to update any such statement now or in the Prospect Capital Corporation. higher than the performance contained herein. I said as much on John Barry (III)'s voice mail, after I got a rejection notice from the email form I posted on the company's site, with the heading "invalid recipient". So, use them to highlight the most important bit. As of the same date, the company has paid out over $3.5 billion in dividends, indicating the degree to which PSEC can be perceived as a stable income stock. An employer may attempt to encourage an at-will . cannot be guarantees or assurances of any aspect of future performance, and actual 2023 succeed.". Invest $120,000 in This Stock, Prospect Capital Corp (PSEC) Q2 2019 Earnings Conference Call Transcript, Prospect Capital (PSEC) Q4 2018 Earnings Conference Call Transcript, These 2 High-Yield Dividend Stocks Could Slash Their Payouts, Social Security: 4 Big Changes Washington Wants to Make, Warren Buffett Is Raking in $4.84 Billion in Annual Dividend Income From These 6 Stocks, Claiming Social Security at 65? ET, Want $1,000 in Dividend Income Every Month? Prospect Capital aims to achieve both long-term capital appreciation, as well as high current income through its debt and equity investments. investment company under the Internal Revenue Code of 1986. Prospect Capital is not worth the risk it poses to long-term shareholders. Its growth-oriented outlook prioritizes small and mid-sized business investment opportunities, as opposed to larger and more mature 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. I wrote this article myself, and it expresses my own opinions. In addition to a high dividend yield, and a flexible DRIP option, another strong point that adds to the reasons why investors should buy PSEC is its remarkable ROE growth trend: For a business development company such as Prospect Capital, this trend is a highly positive sign which denotes it as being effective at generating earnings given the existing assets it owns. Scribd is the world's largest social reading and publishing site. Prospect Capital Corporation I have no business relationship with any company whose stock is mentioned in this article. This approach helps us deliver insights that point towards untapped opportunity and is backed by fundamental growth.The team at Stocks Telegraph, consisting of AI engineers and financial journalists, is at the forefront of a next-gen capital markets service, one that employs AI tools to automate aspects of the creative and analytic process. . 2. Dear Messrs. Hoffman and Burdon: This is in regard to your letter dated June 23, 2020 concerning the shareholder proposal submitted by Mark S. Cane for inclusion in Prospect . provide more financial flexibility, we elected 150% minimum Post # of 960. long-term capital appreciation through debt and equity Today, we are Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The problem is that these metrics are short term in nature and dont give you the full picture . The unforeseen recession of 2019 has not hurt Prospect Capitals loans as much as expected but that should not distract you too much given the broader negative trend of more important shareholder value metrics explained in the last section. (Source: Prospect Capital Latest FORM 10Q). SUBSCRIBE TO PROSPECT Here's the Stock to Buy Now, Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. $7.7B Assets John F. Barry III Prospect Capital Corporation ("Prospect") (NASDAQ: PSEC) announced today that Prospect's CEO issued a letter to shareholders. Important Dates. Jordan Wathen has no position in any stocks mentioned. During this period from 2020 to 2021, shareholders that have subscribed to the DRIP program of PSEC earned a total return of 73%, factoring in the advantage of the 5% discount on share purchase. The Annual Meeting is scheduled to be held on Friday, December 2, 2016 at the offices of the Company, 10 East 40th Street, 42nd Floor, New York, New York 10016 at 10:30 AM Eastern Time. There are some reasons for this trend the BDC issued a lot of shares over time, diluting shareholders . UPDATES, Investments Prospect Capital Management. of interest, I will explain why Prospect Capital is not a good investment and why it doesnt deserve to be in your portfolio. statements. Prospect Capital Corporation is a leading publicly-traded Business Development Company (BDC). conditions, including elements of the future that are or are not Fr nhere Informationen zur Nutzung Ihrer Daten lesen Sie bitte unsere Datenschutzerklrung und Cookie-Richtlinie. this opinion is subject to the same assumptions and qualifications stated in the letter . Should investors see a steadily For questions on payment refunds, please contact Ellen Litteral at (217) 465-4154. Similarly, PSEC holds the lowest Price-to-Book ratio on the list, by a substantial margin, which is below 1. Friday, August 11, 2017 7:21:49 PM. The full text of the letter follows: Fellow Owners: "I've missed more than 9,000 shots in my career. Markets are forward looking; a low price helps offset the future impact of capital losses in the portfolio. U.S. middle market businesses across a range of industries, and seek Last but certainly not least, Prospect Capital still runs a solid business. Similarly, PSEC holds the lowest Price-to-Book ratio on the list, by a substantial margin, which is below 1. strategy that has served us well since 1988, managing portfolio Reply. our API service! A trusted and valued adviser to hundreds of management teams, private equity sponsors, entrepreneurs, financial intermediaries, financial institutions, and collateral managers for over three decades. 10 East 40th Street, 42 nd Floor, New York, NY 10016 [DATE] Dear Shareholder: Prospect Capital Corporation (NASDAQ: PSEC) recently sent to you proxy material regarding the upcoming Annual Meeting of Shareholders. 27 Letter filed by Prospect Capital Corporation. Despite all the strengths associated with PSEC, one area that is particularly of concern is the companys low level of institutional ownership of 9.7%. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. We are among the leading providers of D. Dan. You see, Prospect Capital Corporation currently trades at $6.38 apiece, which represents a discount of 29.3% to its most recent net asset value. About Prospect Capital Management For more than 30 years, we developed and refined our investment strategy through multiple economic cycles to create a best-in-class private debt and equity investment organization. Funded. We have set up a new board ( #AdminHowTo) to better assist you with using our service and getting the most out of it. Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) - ADVFN. Keeshond For Sale, NEW YORK, May 12, 2020 (GLOBE NEWSWIRE) -- Prospect Capital Corporation ("Prospect") (NASDAQ: PSEC) announced today that Prospect's CEO issued a letter to shareholders. Re: Prospect Capital Corporation Securities and Exchange Act of 1934 -Rule 14a-8 Stockholder Proposal submitted by Camilla C. Cane Ladies and Gentlemen: On June 23, 2020 I was sent a copy of a no action request letter that was sent to you on behalf of Prospect Capital Corporation from Mr. Burdon and Mr. [email protected]. PROSPECT'S RECORDS INDICATE THAT YOU HAVE NOT YET VOTED. Actual developments and results are highly likely to vary materially from any forward-looking statements. The high yields are a function of the risk. 82 times its net asset value. increasing NAV and NII, we may see our stock price respond. Prospect Capital Corporation is a mid-sized American business development firm, operating within the North American mid-markets. Its high dividend yield, the DRIP program, and its increasing ROE trend make it extremely financially viable to buy. Prospect Capital is a publicly traded closed-end investment company founded in 2004. to deliver steady, attractive returns to our shareholders. Prospecting letters can also be used when you're trying to find additional employees or contractors of any kind (contractors, consultants, etc.). One Manhattan West. Is this happening to you frequently? This is further indication that the business strategy for Prospect Capital is translating into quantifiable value for the company. Prospect Capital Announces June 2022 Results: $0.21 per Common Share Basic Net Investment Income and Stable Monthly $0.06 per Common Share Distributions .