Business Context and Reporting Period
Company: Prospect Capital Corporation
Filing Type: Form 8-K (Current Report)
Report Date: January 2, 2019
Event Date: December 27, 2018
Context: The filing reports a material update to the company's revolving credit facility for its consolidated subsidiary, Prospect Capital Funding LLC.
Key Financial Metrics
This filing does not provide revenue, profit, cash flow, margin, or liquidity ratios. It focuses exclusively on debt facility capacity.
- Revolving Credit Facility Commitments: Increased to $1.02 billion (up $20 million).
- Maximum Capacity (Accordion Feature): Up to $1.5 billion.
- Number of Lenders: 29 (increased by one new lender).
- Facility Maturity Date: March 27, 2024.
- Interest Rate on Drawn Amounts: One-month Libor plus 2.20%.
Material Changes
On December 27, 2018, the company increased total commitments to its revolving credit facility by $20 million. This expansion was achieved by adding one new lender to the existing syndicate. The filing notes that the facility terms were previously updated on August 1, 2018, extending the maturity to 2024 and reducing the interest rate spread.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard disclosure of the credit facility terms. The increase in commitments suggests a strategic move to enhance liquidity capacity, though no specific deployment plans are detailed in this document.
Investor Verification Checklist
- Verify the total amount currently drawn against the new $1.02 billion commitment limit.
- Confirm the identity of the new lender added to the syndicate.
- Review the latest quarterly report to assess the impact of the reduced interest rate (Libor + 2.20%) on interest expense.
- Check for any covenants associated with the accordion feature that may limit future expansions to the $1.5 billion cap.