FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
 
Skip Navigation LinksHome / Press Releases / Read Press Release

Print

Prospect Capital Reduces Pricing on $1.5B Revolving Credit Facility

September 02, 2014, 07:46 AM
Filed Under: Facility Amendments


Prospect Capital Corporation announced it has completed the extension of the revolving credit facility (the "Facility") for Prospect Capital Funding LLC ("PCF"), a consolidated subsidiary of Prospect, extending the term 5.5 years from today, increasing the size to $1.5 billion, and reducing pricing to one-month Libor plus 2.25%.

The new Facility, for which $800 million of commitments have been closed to date, includes an accordion feature that allows the Facility, at Prospect's discretion, to accept up to a total of $1.5 billion of commitments. The Facility matures in March 2020. It includes a revolving period that extends through March 2019, followed by an additional one-year amortization period, with distributions allowed to Prospect after the completion of the revolving period.

Pricing for the Facility is one-month Libor plus 2.25%, which achieves a 50 basis point reduction in pricing from the previous facility pricing of Libor plus 2.75%. The new Facility has an investment grade Moody's rating of Aa3. The Facility has no payment guarantee from Prospect to PCF, demonstrating the favorable risk-mitigating balance sheet structure of Prospect's capitalization compared to other companies in the business development company ("BDC") industry. Approximately 80% of Prospect's consolidated assets continue to be unencumbered as an attractive structure for both shareholders and unsecured creditors.

"We are pleased to announce the extension of our credit facility on favorable terms, with broad support from existing and new lenders, allowing us to secure longer-dated liabilities for the accretive benefit of our shareholders," said Brian H. Oswald, Chief Financial Officer of Prospect. "The reduction in pricing by 50 basis points enhances our bottom line and the extension provides continued financial flexibility."

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







Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.