Once again a $1,000 note is being issued with the proceeds being used to call a $25 baby bond.
Business development company Prospect Capital (PSEC) has announced a new $1,000 note issue with the intention of calling a baby bond.
The 6.25% notes due 2024 (PBB) have been callable since 2018.
No real harm is done to investors as the PBB shares are trading around $25.38 and there is accrued interest and depending on the call date investors should be close to break even.
The new note offering with ‘use of proceed’ language can be read here.
j was right on this one.