UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 11, 2010
PROSPECT CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
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Maryland
(State of jurisdiction)
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333-114552
(Commission File No.)
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43-2048643
(IRS Employer
Identification No.) |
10 East 40th Street, 44th Floor
New York, NY 10016
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code: 212-448-0702
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 1.01. Entry into a Material Definitive Agreement
On June 11, 2010, Prospect Capital Corporation (“Prospect”) completed a first closing on an
expanded three-year $300 million revolving credit facility (the “Facility”). The new Facility, for
which lenders have closed on $210 million to date, includes an accordion feature at Prospect’s
discretion, which allows the Facility to accept up to an aggregate total of $300 million of
commitments, a target Prospect expects to reach with additional lenders. The revolving period of
the Facility extends through June 2012, with an additional one year amortization period (with
distributions allowed) after the completion of the revolving period. Pricing for the Facility is
one-month Libor plus 3.25%, subject to a minimum Libor floor of 1%, a 1.75% reduction in pricing
from the previous pricing of Libor plus 4%, which was subject to a minimum Libor floor of 2%. The
Facility has an investment grade Moody’s rating of A2. Improvements in the Facility include an
increase in advance rate as well as an expansion of allowed new collateral to include subordinated
debt.
A copy of the Amended and Restated Loan and Servicing Agreement related to the events
described above is attached as Exhibit 99.1 and is incorporated in this report by reference.
Item 9.01. Financial Statements and Exhibits.
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| Exhibit |
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Description |
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99.1
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Amended and Restated Loan and Servicing Agreement, dated June 11, 2010, among Prospect Capital
Funding LLC, Prospect Capital Corporation, the lenders from time to time party thereto, the
managing agents from time to time party thereto, Coöperatieve Centrale Raiffeisen-Boerenleenbank
B.A., “Rabobank Nederland”, New York Branch and Key Equipment Finance Inc. as Syndication Agents,
U.S. Bank National Association as Calculation Agent, Paying Agent and Documentation Agent, and
Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch as
Facility Agent.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Prospect
Capital Corporation has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
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Prospect Capital Corporation
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| Dated: June 15, 2010 |
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/s/ John F. Barry III
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John F. Barry III |
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Chief Executive Officer |
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