Large business development company Prospect Capital (NASDAQ:PSEC) has priced a new $25 baby bond offering with a fixed coupon of 6.875%. This is a strong coupon for an investment grade company. The baby bonds are rated BBB- by Standard & Poors
This is a fairly small issue with 2 million shares with another 300,000 available for over allotment so the issue will sell fairly quickly once it hits the market.
The issue will have a maturity date in 2029 with an optional early redemption date starting in 12/15/2021.
There will be no OTC Grey market trading on the baby bonds and the ticker symbol has not been yet been announced.
PSEC has 2 additional baby bonds outstanding both of which have coupons of 6.25%.