Prospect Capital Redeemable Preferred Stock

Opportunity to invest in a redeemable preferred stock currently paying a 7.28% dividend* intended to be paid monthly issued by one of the largest investment-grade rated business development companies on NASDAQ.

* Dividends are not guaranteed and paid as authorized by the board of directors.

0Years
publicly traded
0B
in assets
0B
of common equity
0B
invested since 2004

Investment Grade Corporate Ratings

THE SERIES A1/A3/M1/M3 PREFERRED STOCK IS RATED BBB- BY EGAN-JONES AND BB BY S&P
THE SERIES A4/M4 PREFERRED STOCK IS RATED BBB- BY EGAN-JONES AND NOT RATED BY S&P

Ratings current as of 8/28/2024. A credit rating is not a recommendation to buy, sell, or hold securities and is subject to revision or withdrawal at any time and without notice by the assigning agency. Each rating should be evaluated independently of any other rating, and investors should conduct thorough due diligence before investing. Moody’s investment-grade credit ratings range from Aaa to Baa, and its high-yield credit ratings range from Ba to C. For S&P, Egan-Jones, Kroll, and DBRS, investment-grade credit ratings range from AAA to BBB, while high-yield credit ratings range from BB to C. High-yield is another name for non-investment-grade or junk.

A Fixed Income Solution

Consistent monthly income

$25 Stated Value

Liquidity from day one1

Improve portfolio
diversification

De-risk investment allocation
by moving higher up the
capital stack

Investment exposure with flexibility
to meet liquidity needs

1 Redemptions are permitted once per month with settlement up to two months later and are subject to limitations of i) 2% per month of the outstanding Series A4 Shares and Series M4 Shares, in aggregate, as of the end of the most recent fiscal quarter, ii) 5% per quarter of the outstanding Series A4 Shares and Series M4 Shares, in aggregate, as of the end of the most recent fiscal quarter, and iii) 20% per annual redemption period (the then current fiscal quarter and the three fiscal quarters immediately preceding the then current fiscal quarter) of the outstanding Series A4 Shares and Series M4 Shares, in aggregate, as of the end of the most recent fiscal quarter, and that such capacity limitations are applied on an aggregated basis with redemptions following the death of a holder (whether of Series A4 or M4) as described in the prospectus supplement. Redemption capacity will be allocated on a pro rata basis based on the number of Series A4 Shares and Series M4 Shares submitted in the event that a redemption is oversubscribed. Right of holders to redeem Preferred Stock terminates upon listing of such Preferred Stock.

RISK FACTORS & DISCLOSURES

An investment in Prospect Capital Preferred Stock involves certain risks, including the risk of a substantial loss of investment. You should carefully consider the information set forth in the “Risk Factors” section of the prospectus supplement and the prospectus for a discussion of material risk factors relevant to an investment in Prospect Capital Preferred Stock, including but not limited to the following:

  • The Preferred Stock will be subject to a risk of early redemption at our option and holders may not be able to reinvest their funds.
  • Holders of the Preferred Stock will bear dividend risk. We may be unable to pay dividends on the Preferred Stock under some circumstances. In addition, the terms of any future indebtedness we may incur could preclude the payment of dividends in respect of equity securities, including the Preferred Stock, under certain conditions.
  • There is limited liquidity and no public trading market for the PSEC Preferred Stock and there is no guarantee that the Preferred Stock will be listed on a national securities exchange.

These and other risks may impact the company’s financial condition, operating results, returns to its investors, and ability to make distributions as stated in the company’s prospectus.

Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus supplement and the prospectus contain this and other relevant information. Investors should read the prospectus supplement and prospectus carefully before investing.

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED ANY OFFERING OF PROSPECT CAPITAL CORPORATION. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY THE PROSPECTUS. THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS. ALL INFORMATION CONTAINED IN THIS MATERIAL IS QUALIFIED IN ITS ENTIRETY BY THE TERMS OF THE PROSPECTUS. THE ACHIEVEMENT OF ANY GOALS IS NOT GUARANTEED.

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