On February 11, 2013, we entered into an equity distribution agreement relating to at-the-market offerings from time to time of our common stock. During the period from February 11, 2013 to May 6, 2013, we sold approximately 17.2 million shares of our common stock at an average price of $11.14 per share, and raised $191.9 million of gross proceeds, with all issuance at prices above net asset value per share.
We currently have no borrowings under our Facility. Assuming sufficient assets are pledged to the Facility and that we are in compliance with all Facility terms, and taking into account our cash balances on hand, we have over $740 million of new investment capacity. Any principal repayments, other monetizations of our assets, debt and other capital issuances, or increase in our Facility size would also further increase our investment capacity.
CONFERENCE CALL
The Company will host a conference call on Tuesday, May 7, 2013 at 11:00 a.m. Eastern Time. The conference call dial-in number will be 888-317-6016. A recording of the conference call will be available for approximately 30 days. To hear a replay, call 877-344-7529 and use passcode 10028354.
PROSPECT CAPITAL CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES March 31, 2013 and June 30, 2013 (in thousands, except share and per share data) March 31, June 30, 2013 2012 --------------- ---------------Assets (Unaudited) (Audited)Investments at fair value: Control investments (amortized cost of $715,301 and $518,015, respectively) $ 675,305 $ 564,489 Affiliate investments (amortized cost of $48,949 and $44,229, respectively) 41,745 46,116 Non-control/Non-affiliate investments (amortized cost of $3,030,863 and $1,537,069, respectively) 2,990,672 1,483,616 --------------- --------------- Total investments at fair value (amortized cost of $3,795,113 and $2,099,313, respectively) 3,707,722 2,094,221 Investments in money market funds 253,332 118,369 --------------- ---------------Total investments 3,961,054 2,212,590 --------------- ---------------Cash 24,726 2,825Receivables for: Interest, net 18,435 14,219 Dividends 2 1 Other 462 783Prepaid expenses 210 421Deferred financing costs 42,128 24,415 --------------- --------------- Total Assets 4,047,017 2,255,254 --------------- ---------------LiabilitiesCredit facility payable -- 96,000Senior convertible notes 847,500 447,500Senior unsecured notes 347,682 100,000Prospect Capital InterNotes® 199,401 20,638Due to broker 42,961 44,533Dividends payable 26,267 14,180Due to Prospect Administration 1,332 658Due to Prospect Capital Management 873 7,913Accrued expenses 2,559 2,925Interest payable 15,268 6,723Other liabilities 7,586 2,210 --------------- --------------- Total Liabilities 1,491,429 743,280 --------------- ---------------Net Assets $ 2,555,588 $ 1,511,974 =============== ===============Components of Net AssetsCommon stock, par value $0.001 per share (500,000,000 common shares authorized; 238,628,037 and 139,633,870 issued and outstanding, respectively) $ 239 $ 140Paid-in capital in excess of par 2,640,457 1,544,801Undistributed net investment income 66,187 23,667Accumulated realized losses on investments (63,904) (51,542)Unrealized depreciation on investments (87,391) (5,092) --------------- ---------------Net Assets $ 2,555,588 $ 1,511,974 =============== ===============Net Asset Value Per Share $ 10.71 $ 10.83 =============== =============== PROSPECT CAPITAL CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS For the Three and Nine Months Ended March 31, 2013 and 2012 (in thousands, except share and per share data) (Unaudited) For The Three Months For The Nine Months Ended Ended March 31, March 31, ------------------------ ------------------------ 2013 2012 2013 2012 ----------- ----------- ----------- -----------Investment IncomeInterest Income: Control investments $ 26,598 $ 32,966 $ 77,756 $ 45,546 Affiliate investments 1,599 2,378 4,944 7,179 Non-control/Non-affiliate investments other than CLO securities 58,187 37,044 161,727 107,078 CLO fund securities 23,228 2,560 60,361 3,668 ----------- ----------- ----------- ----------- Total interest income 109,612 74,948 304,788 163,471 ----------- ----------- ----------- -----------Dividend income: Control investments 75 5,474 65,042 29,819 Non-control/Non-affiliate investments -- -- 3,185 1,733 Money market funds 8 1 19 2 ----------- ----------- ----------- ----------- Total dividend income 83 5,475 68,246 31,554 ----------- ----------- ----------- -----------Other income: Control investments 2,656 13,768 7,753 14,386 Affiliate investments 5 11 618 85 Non-control/Non-affiliate investments 7,839 1,421 28,461 8,732 ----------- ----------- ----------- ----------- Total other income 10,500 15,200 36,832 23,203 ----------- ----------- ----------- ----------- Total Investment Income 120,195 95,623 409,866 218,228 ----------- ----------- ----------- -----------Operating ExpensesInvestment advisory fees: Base management fee 18,966 8,949 48,500 25,985 Income incentive fee 14,896 14,518 58,207 30,614 ----------- ----------- ----------- ----------- Total investment advisory fees 33,862 23,467 106,707 56,599Interest and credit facility expenses 20,854 9,655 50,779 28,374Legal fees 395 256 1,652 1,198Valuation services 420 308 1,167 916Audit, compliance and tax related fees 200 276 1,010 1,141Allocation of overhead from Prospect Administration 2,957 2,910 7,280 5,143Insurance expense 88 69 259 168Directors' fees 75 68 225 195Excise Tax 1,000 -- 5,500 --Other general and administrative expenses 759 542 2,459 2,037 ----------- ----------- ----------- ----------- Total Operating Expenses 60,610 37,551 177,038 95,771 ----------- ----------- ----------- ----------- Net Investment Income 59,585 58,072 232,828 122,457 ----------- ----------- ----------- -----------Net realized (loss) gain on investments (6,014) 24,812 (12,362) 23,703Net change in unrealized (depreciation) appreciation on investments (9,142) (32,675) (82,299) 8,441 ----------- ----------- ----------- ----------- Net Increase in Net Assets Resulting from Operations $ 44,429 $ 50,209 $ 138,167 $ 154,601 =========== =========== =========== ===========Net increase in net assets resulting from operations per share: $ 0.20 $ 0.44 $ 0.71 $ 1.39 =========== =========== =========== ===========Dividends declared per share $ 0.33 $ 0.30 $ 0.95 $ 0.91 =========== =========== =========== =========== PROSPECT CAPITAL CORPORATION AND SUBSIDIARY ROLLFORWARD OF NET ASSET VALUE PER SHARE For the Three and Nine Months March 31, 2013 and 2012 (in actual dollars) (Unaudited) For The Three Months For The Nine Months Ended Ended --------------------- --------------------- March 31, March 31, March 31, March 31, 2013 2012 2013 2012 ---------- ---------- ---------- ----------Per Share Data:Net asset value at beginning of period $ 10.81 $ 10.69 $ 10.83 $ 10.36Net investment income 0.26 0.51 1.20 1.10Net realized (loss) gain (0.03) 0.22 (0.06) 0.21Net unrealized (depreciation) appreciation (0.04) (0.29) (0.42) 0.08Net increase in net assets as a result of public offerings 0.04 - 0.14 --Dividends declared and paid (0.33) (0.31) (0.98) (0.93) --------- --------- --------- ---------Net asset value at end of period $ 10.71 $ 10.82 $ 10.71 $ 10.82 ========= ========= ========= =========
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com) is a closed-end investment company that lends to and invests in private and microcap public businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
We have elected to be treated as a business development company under the Investment Company Act of 1940 ("1940 Act"). We are 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. Failure to comply with any of the laws and regulations that apply to us could have an adverse effect on us and our shareholders.
This 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.
