Prospect Capital Corporation (NASDAQ:PSEC) Files An 8-K Other EventsItem 8.01. Other Events.
On March 23, 2018, the President signed into effect the Small Business Credit Availability Act which included permitted changes to the asset coverage test for business development companies and requires the SEC to revise certain registration and reporting rules within one year. On March 25, 2018, the Board of Directors of Prospect Capital Corporation (the “Company”) approved the application of Section 61(a)(2) of the Investment Company Act of 1940 to the Company, decreasing the asset coverage ratio test applicable to the Company from 200% to 150%, effective March 25, 2019.
The information disclosed under this Item 8.01 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.
About Prospect Capital Corporation (NASDAQ:PSEC)
Prospect Capital Corporation is a financial services company. The Company primarily lends to and invests in middle market privately held companies. The Company is a closed-end investment company. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. The Company invests primarily in senior and subordinated debt and equity of private companies in need of capital for acquisitions, divestitures, growth, development, recapitalizations and other purposes. The Company makes investments, including lending in private equity sponsored transactions, lending directly to companies not owned by private equity firms, control investments in corporate operating companies, control investments in financial companies, investments in structured credit, real estate investments, investments in syndicated debt, aircraft leasing and online lending. The Company is managed by its investment advisor, Prospect Capital Management L.P.