Prospect Capital (NASDAQ:PSEC) Corporation (NASDAQ:PSEC), currently trading at $4.33 with a market capitalization of $1.88 billion, has announced the authorization of monthly distributions for its preferred shareholders, specifically for the 7.50% Series A5 Preferred Stock and 7.50% Series M5 Preferred Stock. The distributions are based on an annual rate of 7.50% of the $25 stated value per share, starting from the date of issuance or the most recent dividend payment date, whichever is later. The company maintains a notable 12.5% dividend yield on its common stock.
The company has set the record and payment dates for the upcoming distributions. Shareholders of record as of January 22, 2025, will receive a distribution of $0.156250 per share on February 3, 2025. Similarly, for the next month, shareholders on record by February 19, 2025, will also receive a distribution of $0.156250 per share, with the payment date scheduled for March 3, 2025.
This financial move by Prospect Capital is in line with the company's commitment to providing returns to its preferred shareholders. The distributions are a part of the company's regular financial operations and are not to be considered filed under Section 18 of the Securities Exchange Act of 1934. Furthermore, they will not be incorporated by reference into any filing under the Securities Act of 1933, except as explicitly stated in such filings.
The announcement, made today, is based on the company's latest filing with the Securities and Exchange Commission (SEC). Prospect Capital, headquartered in New York, is a business development company that primarily lends to and invests in middle-market privately held companies. The company's preferred stock is listed on the NASDAQ Global Select Market and the New York Stock Exchange under the tickers PSEC and PSEC PR A, respectively.
In other recent news, Prospect Capital Corporation has reported significant earnings for the fourth quarter of fiscal year 2024, with a net investment income of $102.9 million and a net asset value of $3.71 billion. The company has increased its preferred stock offering to $2.25 billion, involving the reclassification of 20 million shares from common to preferred stock. This strategic move is part of the company's initiatives to manage its capital structure.
In response to these developments, Wells Fargo (NYSE:WFC) has revised its price target for Prospect Capital from $5.00 to $4.50 and adjusted its net operating income forecasts for the company for fiscal years 2025 and 2026. This adjustment is attributed to a lower Secured Overnight Financing Rate curve and an anticipated increase in shares due to the conversion of preferred stocks.
Prospect Capital has also announced the re-election of two directors, M. Grier Eliasek and Andrew C. Cooper, at its Annual Meeting of Stockholders. These recent developments highlight Prospect Capital's strategic decisions to maintain shareholder distributions and strengthen its investment portfolio.
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