Business Context and Reporting Period
Company: Prospect Capital Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: November 28, 2018
Event: Increase in commitments to the revolving credit facility for Prospect Capital Funding LLC, a consolidated subsidiary.
Key Financial Metrics
This filing reports specific liquidity and debt facility metrics rather than operational financial results (revenue, profit, or cash flow).
- Total Facility Commitments: Increased to $965 million.
- Commitment Increase: $55 million.
- Maximum Capacity (Accordion Feature): Up to $1.5 billion.
- Number of Lenders: 26 (increased by 2 new lenders).
- Facility Maturity Date: March 27, 2024 (extended from a prior date).
- Interest Rate on Drawn Amounts: One-month Libor plus 2.20%.
Material Changes
On November 28, 2018, the company increased the total commitments to its revolving credit facility by $55 million. This expansion was achieved by adding two new lenders to the existing syndicate. The filing notes that the facility had previously been extended to March 27, 2024, and the interest rate was reduced to one-month Libor plus 2.20% on August 1, 2018.
Guidance, Outlook, and Risks
The filing does not provide forward-looking guidance, management commentary on future performance, or specific risk factors beyond the structural details of the credit facility. The primary focus is the successful expansion of liquidity capacity and the retention of favorable interest rate terms established in August 2018.
Investor Verification Checklist
- Verify the utilization rate of the $965 million facility to assess actual liquidity needs versus available capacity.
- Confirm the identity of the two new lenders added to the syndicate.
- Review the terms of the accordion feature to understand the conditions required to expand commitments to the $1.5 billion maximum.
- Monitor the one-month Libor rate to calculate the current effective interest cost on drawn amounts.