Business Context and Reporting Period
Company: Prospect Capital Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: January 13, 2011
Event: Entry into a Material Definitive Agreement regarding the amendment of the company's revolving credit facility.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. The primary financial data relates to debt capacity and liquidity:
- Revolving Credit Facility Accordion Limit: Increased from $300 million to $400 million.
- Current Commitments: $285 million.
- Borrowing Base: Increased through the reduction of concentration limits and the ability to pledge new assets on an expedited basis.
Material Changes
On January 13, 2011, Prospect Capital Corporation amended its revolving credit facility (the "Amended Facility"). The material changes include:
- Expansion of the accordion feature limit to allow for up to $400 million in commitments.
- Adjustment of concentration limits to increase the borrowing base for currently pledged investments.
- Provisions allowing the company to pledge new assets to the facility more quickly.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future performance, or specific risk factors beyond the context of the credit agreement amendment. The document focuses solely on the execution of the Third Amended and Restated Loan and Servicing Agreement.
Investor Verification Checklist
- Verify the full terms of the Third Amended and Restated Loan and Servicing Agreement (Exhibit 99.1) for interest rates, covenants, and maturity dates.
- Confirm the identity of the lenders and agents involved, including Rabobank Nederland and Key Equipment Finance Inc.
- Assess the impact of the increased borrowing base on the company's ability to deploy capital for new investments.
- Review subsequent filings to determine if the company utilized the additional $115 million in accordion capacity.