Prospect Capital Prices Baby Bonds

As written about earlier today Prospect Capital has priced a new issue of baby bonds with a coupon of 6.25%,

The issue is a fairly small issue of 2 million shares (bonds) with an extra 300,000 shares available for over allotment.

There will be an early optional redemption period beginning on 6/15/2021 with the issue maturing 6/15/2028.

The baby bonds will trade under the permanent ticker of PBY and likely will begin trading next week some time–there will be no OTC Grey market trading prior to big board trading.

The pricing term sheet can be found here.

As noted by some readers this coupon is equal to the coupon of the currently outstanding Prospect Capital baby bonds (NYSE:PBB) and which mature in 2024.  The PBB shares are trading as shown below.  PBB fell today as the new baby bond issue was announced.