Today, Prospect Capital (NASDAQ:) Corporation (NASDAQ:PSEC), a $1.86 billion market cap company based in New York, announced the re-election of two Class II directors during its Annual Meeting of Stockholders, which was held virtually on Tuesday. M. Grier Eliasek and Andrew C. Cooper have been re-elected to serve until the annual meeting in 2027 or until their successors are duly elected and qualified, or in the case of an earlier resignation, removal, death, or incapacity.
The company, formerly known as Prospect Energy Corp and Prospect Street Energy Corp, is incorporated in Maryland and has a fiscal year-end of June 30. As of September 18, 2024, Prospect Capital had a diverse range of outstanding shares, including common stock and multiple series of preferred stocks, all of which were entitled to one vote per share at the Annual Meeting. According to InvestingPro, the company has maintained dividend payments for 21 consecutive years, currently offering a substantial 12.36% dividend yield.
The voting results showed a strong preference for the incumbent directors, with M. Grier Eliasek receiving 257,232,737 votes for, 21,661,772 against, and 7,180,119 abstentions. Andrew C. Cooper received 255,504,967 votes for, 23,235,681 against, and 7,333,980 abstentions. There were no broker non-votes reported for either candidate.
Prospect Capital’s stock is traded on the under the symbol PSEC, and its 5.35% Series A Fixed Rate Cumulative Perpetual Preferred Stock is listed on the New York Stock Exchange under the symbol PSEC PRA. The stock currently trades near its 52-week low of $4.15, with a six-month decline of approximately 17%. InvestingPro subscribers can access detailed analysis and additional insights through the comprehensive Pro Research Report, available for over 1,400 US stocks.
The details of the proposal and the voting results are described in the company’s definitive proxy statement filed with the Securities and Exchange Commission (SEC) on September 19, 2024. This re-election of directors is part of the company’s governance process and reflects the shareholders’ support for the board’s current composition.
This report is based on information contained in a press release statement and the company’s SEC filing.
In other recent news, Prospect Capital Corporation has increased its preferred stock offering to $2.25 billion, indicating strong market demand. The expansion involves reclassifying 20 million shares from common to preferred stock.
Furthermore, Prospect Capital reported robust earnings for the fourth quarter of fiscal year 2024, with a net investment income of $102.9 million and a net asset value of $3.71 billion. The firm also highlighted its strong balance sheet and diversified funding sources.
In relation to this, Wells Fargo (NYSE:) has revised its price target for Prospect Capital from $5.00 to $4.50, citing a lower Secured Overnight Financing Rate (SOFR) curve and an anticipated increase in shares due to the conversion of preferred stocks. Wells Fargo also adjusted its net operating income (NOI) forecasts for Prospect Capital for fiscal years 2025 and 2026.
These recent developments underscore Prospect Capital’s strategic decisions to maintain shareholder distributions and strengthen its investment portfolio. The company is strategically shifting its investment portfolio towards first lien debt over second lien debt. Analysts have noted Prospect Capital’s ability to tap into the unsecured term debt market to extend liability duration and reduce counterparty risk.
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