Business Context and Reporting Period
Company: Prospect Capital Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: June 12, 2023
Subject: Material Modification to Rights of Security Holders regarding the Preferred Stock Dividend Reinvestment Plan.
Key Financial Metrics
This filing does not contain revenue, profit, cash flow, margin, debt, or liquidity metrics. It focuses exclusively on the terms of a dividend reinvestment plan amendment.
Material Changes
The Company amended its Preferred Stock Dividend Reinvestment Plan effective July 19, 2023. Key changes include:
- Applicability: Applies to the dividend declared on May 9, 2023 (record date July 19, 2023; payment date August 1, 2023) and all subsequent dividends.
- Discount Mechanism: Additional shares of specified Preferred Stock series will be issued at a 5% discount from the stated value of $25.00 per share.
- Calculation: The number of shares is determined by dividing the dollar amount of the distribution by $23.75.
- Affected Series: 5.50% Series A1, 5.50% Series M1, 5.50% Series M2, 6.50% Series A3, and 6.50% Series M3 Preferred Stock.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on financial outlook, or discussion of general business risks. The primary contingency noted is the effective date of the plan amendments (July 19, 2023) and the specific dividend payment schedule.
Investor Verification Checklist
- Verify the effective date of the plan amendments (July 19, 2023) against the dividend record date.
- Confirm the specific Preferred Stock series held are eligible for the 5% discount reinvestment.
- Review the full text of the Amended and Restated Preferred Stock Dividend Reinvestment Plan (Exhibit 99.1) for detailed terms.
- Check the calculation basis ($23.75 per share) for reinvestment share issuance.