As Prospects largest shareholder, I want to increase our NAV, NII, and share price. Sheepadoodle Rescue Los Angeles, Your important proxy voting instructions are needed on . Prospect Capital Corporation ("Prospect") (NASDAQ: PSEC) announced today that Prospect's CEO issued a letter to shareholders. Is this happening to you frequently? In today's bloated stock market, a discount as big as this is worth taking a look. Prospect Capital is not worth the risk it poses to long-term shareholders. I look for high-risk, high-reward situations. Some business development companies dont deal with real estate, but most do have some form of sector focus. 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. IMPORTANT NOTICE REGARDING YOUR INVESTMENT. I feel honored, but am oh so curious as . Since 1988, when Prospect Capital Management launched our first public fund, we have weathered stock market crashes, credit market dislocations, liquidity crunches, SARS, MERS, H1N1, and now the Wuhan virus. We hope to cover a wide range of stocks, asset classes, and investment strategies with a primary emphasis on what we perceive to be hidden gems scattered across the financial markets. The full text of the letter follows: Fellow Owners: "I've missed more than 9,000 shots in my career. 2. An established private debt and equity manager with $8.6 billion of capital under management as of 9/30/2022 across multiple strategies. Short term, rising loan defaults and renewed shutdowns are risks. . Prospect Capital Corporation is a mid-sized American business development firm, operating within the North American mid-markets. Primary investment strategies include middle-market direct lending, real estate private equity, structured credit, and middle-market buyouts. PSEC also has a forward PE ratio of just 10.59, suggesting that in the near term the stock may be on a slightly more value-oriented path. Prospect Capital is a publicly traded closed-end investment company founded in 2004. 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. developments and results may vary materially. accordingly, such statements cannot be guarantees or assurances of Certain information discussed in this presentation (including information relating to De-risking Prospect protected our NII and distribution. 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". It does say it is regarding a very important matter, and they MUST speak with me. With Prospect Capital, it declined and it declined over a long period of time just like the dividend and the net asset value. I've lost almost 300 games. The company holds assets that are valued far above what the stock is currently trading at in the market. For the 3/31/20 quarter, we earned $68.5 million of NII and paid $66.2 million in distributions. In addition, BDCs, unlike banks, are limited to 1:1 leverage, meaning they can borrow up to $1 for every $1 in shareholder's equity. Primary investment strategies include middle-market direct lending, real estate private equity, structured credit, and middle-market buyouts. 4. In its most recent earnings report for Q4 2021, the company once again managed to beat estimates put out by analysts, regarding its performance. Prospect Capital Corporation is a mid-sized American business development firm, operating within the North American mid-markets. A more detailed discussion of risks and uncertainties is We trade on NASDAQ under the ticker symbol PSEC. Prospect Capital Corporation 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. This is significantly beneath the average of similarly sized capital management companies as demonstrated in the graph below: This is particularly concerning, as it indicates that despite its financially attractive features, PSEC still remains to win the confidence of institutional investors that seek financially sustainable stocks to include within their broader portfolios. As in 2009 when we purchased Patriot Capital, Prospect Capital EPS beats by $0.03, beats on revenue Seeking Alpha - 11/8/2021 7:31:41 AM: Prospect Capital Announces September 2021 Net Investment Income of $0.21 and 3.2% Increase in Net Asset Value per Common Share, and Declares Stable Monthly Cash Common and Preferred Share Distributions GlobeNewswire Inc. - 11/8/2021 7:02:40 AM It's always free to join the largest online horse racing community in the world! The total asset holding of Prospect Capital exceeds the $7 billion figure and has funded over 375 investments as of April 2022. A typical loan to its portfolio companies might have an annual interest rate of 10% or more. Prospect Capital Corporation, et al. I received a very important letter from Barry today. All rights reserved. Prospect Bank's business banking services and loans are here to help your business grow, with capital improvements, working capital financing, and more. I wrote this article myself, and it expresses my own opinions. 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: . | Source: IMPORTANT NOTICE REGARDING YOUR INVESTMENT. Additionally, a solid work history with your current and/or previous employers is a must. Priority currently pays a 9.9% annualized distribution paid monthly. 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. Powered By strategy that has served us well since 1988, managing portfolio 2. One Manhattan West. Very exciting. 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. The company encourages this by offering a 5% discount on its shares that are acquired through the DRIP program. Consistent income to shareholders Priority has a 6+ year track record of paying a fully covered dividend. *Average returns of all recommendations since inception. D. Dan. To sum up the portfolio is large and spread out, it performed quite well even during COVID-19 and the leverage ratio has decreased. 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. 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. FALL 2022. investments. The political expediency of short-term economic gains at the expense of low-carbon transformations was evident less than a week after COP 26, when the United States leased 1.7 million acres for . Over the medium term, the leverage ratio will rise again and fall into the stated target range. We are among the leading providers of than almost any other large seasoned BDC. under our control, and that we may or may not have considered; If its underwriting record holds, the company's book value will slowly decline over time, and its ability to pay dividends should decline, too. 82 times its net asset value. Even when there's an offer letter or employee manual that requests an employee to give two weeks' notice before leaving, this doesn't change the at-will status of the employee. distribution. View Full In the economy, relative to a year earlier, the CPI rose 6.2% in October, the largest increase since November 1990. Prospect Capital Corporation is among the oldest and largest BDCs. in respect of this information. 26 times, I've been trusted to take the game winning shot and missed. This is further indication that the business strategy for Prospect Capital is translating into quantifiable value for the company. In their letter to the state air pollution division, county staff accused Prospect of "recurring negligence" and encouraged the state to invoke serious penalties against the operator,. 1/14/2023. Set forth below is the full text of the letter: January 20, 2010 Board of Directors c/o John M. Scheurer Chief Executive Officer and . market dislocations are presenting investment opportunities. The company specializes in a range of financial areas, through. buy nor will there be any sale of the shares referred to in this information page in any As Prospects largest shareholder, I want to Ive lost almost 300 games. Your important proxy voting instructions are needed on proposals affecting Prospect. The full text of the letter follows: Fellow Owners: "I've missed more than 9,000 shots in my career. The PSEC stock holds several attractive features that enhance its secondary market value and make it a sound opportunity for consideration by investors. low correlation strategies in order to generate high returns. In the latest trading session, Prospect Capital (PSEC) closed at $7.09, marking a -0.98% move from the previous day. Taking a closer look into the competitive standing for PSEC amongst similarly sized capital management companies, we see that in comparison, the stock is significantly undervalued. kenneth.burdon@skadden.com. Our articles integrate both top-down and bottom-up research methodologies, drawing upon detailed company-specific financials and macroeconomic analysis. With this flexible arrangement, short-term falls in PSEC price result in a higher return in terms of the number of shares acquired through dividend reinvestment. We have elected to be treated as a business development company under the Investment Company Act of 1940 (1940 Act). CLOs. Over time, you want to see that a BDC can generate investment income to pay a regular dividendand generate capital gains from its winners to cover losses from its losers. to de-risk, the virus caused our NAV per share to decline 7.9% Copyright 2022 Prospect Capital Corporation. This is especially true from onwards of September 2020. I received a very important letter from Barry today | PSEC Something to Look Forward To. It shows you that Prospect Capital has a much lower valuation, based on its net asset value, then all the other business development companies in the industry group Prospect Capital has a P-NAV ratio of 0.89 which is much less than the average BDC in the industry group, 1.05. Prospect Capital (PSEC) has received quite a bit of attention from Zacks.com users lately. Downloadable Forms. Capital Market Indicators for November 22. A Notice by the Securities and Exchange Commission on 12/20/2019 Document Details Printed version: PDF Publication Date: 12/20/2019 Agency: Securities and Exchange Commission Dates: The application was filed on November 16, 2018, and amended on May 31, 2019, August 26, 2019, and December 2, 2019. This is the first step to write an investment commitment letter. PSEC is likely to see long-term growth in demand given the nature of the investment. And that is why I succeed.". Mr. | Ms. It further aims at diversifying its exposure, by including a wide array of industries within its investment portfolio. conditions, including elements of the future that are or are not Nuveen AMT-Free Municipal Credit Income Fund. The portfolio overview in the next slide shows that Prospect Capital has few investments in the energy, hotel and retail sectors which are considered to be risky and dont really fit into a portfolio of investments that are required to create stable interest income to fund a stable dividend. Development Company (BDC). statements. To get you started, we've included 2 amazing bonuses: The HRN Guide to Using Long Shots to Find Big Prices. Learning something from each challenge has made us better stewards of your savings. The Motley Fool recommends Apple and Bank of America. What it doesProspect Capital is a business development company, required by law to pay out virtually all of its income as dividends. 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. Our proven track record through multiple economic cycles demonstrates our deep commitment to capital preservation, current cash returns, and total returns. higher than the performance contained herein. The problem is that these metrics are short term in nature and dont give you the full picture . The risk is reduced somewhat by broad diversification between many different companies and industries. The investment company is regulated as a business development company under the Investment Company Act of. Prospect employs more than 100 professionals and is a SEC-registered investment adviser. Acrobat comes on most computers and is a free download for computers, tablets, or smart phones. 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. Prospect Capital is a business development company, required by law to pay out virtually all of its income as dividends. If you have an ad-blocker enabled you may be blocked from proceeding. We Any expenses of PSEC before investing. Prospect Capital currently has a net asset value -- book value -- of $10.35 per share, substantially below its net asset value per share of $13.67 at the end of its first ever reporting quarter in . Mr. Kenneth E. Burdon, Esq. Act). Step 1: Details of Lender and Borrower. A December Letter to Clients: Checklist for Year-End Planning Primary investment strategies include middle-market direct lending, real estate private equity, structured credit, and middle-market buyouts. But before you dive in head first, there are a few things you should know. It does say it is regarding a very important matter, and they MUST speak with me. Dividend . Prospect continues to hold investment grade ratings from Standard & Poors, Moodys, Kroll, and Egan Jones. 2Includes underlying collateral in securitizations, represented by Prospect's investments in Based on Prospect Capitals statement of assets and liabilities, its liabilities amounted to $2.2b in December and were practically unchanged last year. For this reason, it would be prudent to expect that its shares will likely never trade at a substantial premium to book value, as it has a history of issuing new shares when its share price exceeds book value, capping its share price appreciation. Very exciting. 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. 26 times, Ive been trusted to take the game winning shot and missed. It is important that you be represented at the Annual Meeting. New York, NY 10001. michael.hoffman@skadden.com. risk to protect capital entrusted to us and generate shareholder Prospect CEO Writes Letter to Shareholders but it doesn't say what it is about. Prospect Capital Management. I received a very important letter from Barry today | PSEC Allied Capital Responds to Prospect Capital Corporation Letter, nova southeastern university dean of students. This press release contains forward-looking Today, we are declaring distributions for the next four months at the same rate as the past 32 months. 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. Should investors see a steadily increasing NAV and NII, we may see our stock price respond. 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,. WASHINGTON--(BUSINESS WIRE)--Allied Capital Corporation (NYSE: ALD) announced today that it has issued the following letter in response to Prospect Capital Corporation's letter dated January 26 . The long-term trend since inception showcases the stocks consistency in dividend payout over the years, every month, the management typically increases by one cent in each payout. undertake no obligation to update any such statement now or in the Prospect Capitals leverage ratio has, however, decreased over time and it has fallen below its 0.70x-0.80x target range in 2020. Reform Act of 1995, whose safe harbor for forward-looking In comparison to similar-sized capital management stocks, the price shows clear signs of being heavily undervalued. Established private debt and equity manager with $ 8.6 billion of Capital under management as April. Us well since 1988, managing portfolio 2 the leverage ratio has decreased 've included 2 bonuses. 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prospect capital important notice letter