BDC Prospect Capital (PSEC) has priced their previously announced preferred stock issue.
The issue prices at 5.35% and as expected is a couple notches below investment grade At BB/Ba2.
This issue will trade immediately on the OTC grey market under ticker PSECV (although these have been changing many times lately after the initial ticker announcement).
The pricing term sheet is here.
Is this one worthy buying ?
I owned there common, but people urged me to sell it .
Is the preferred safer ?
Leo–I just bought a part position–but don’t plan to hold long term–hoping for a 1-2% gain and then out.
PSEC has a reputation for being poorly run, but I have held there baby bonds and now this preferred and from a senior security perspective they work well.
Thanks Tim, bought some shares at$24.90
24.76 7/29 @ 10:36. I am seriously tempted to “jump” 5.3% at $25.00. Math process escapes but a guess suggests around 5.5 or so. Good enough at issue says even better now???
Not sure if a BDC has ever issued a perpetual before?
At the rate PSEC puts out new issues including InterNotes, it’s a wonder they alone haven’t done 40 perpetuals by now….. ha. They’ve got 6 going on right now including a 4% note with 7/15/2051 maturity.