NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (“KBRA”) assigns a rating of BBB+ to Prospect Capital Corporation’s (“Prospect” or the “Company”) Senior Unsecured Notes.

Prospect announced today an offering of a tranche of 5.25 year fixed rate senior unsecured retail notes maturing on July 15, 2019. The Notes are part of Prospect’s general unsecured obligations and will rank equal in right of payment with all of Prospect’s existing and future senior unsecured indebtedness.

Prospect intends to use the net proceeds from the offering to maintain balance sheet liquidity, including repayment of debt under credit facility and investments, and subsequently make long-term investments in accordance with the Company investment objective.

KBRA notes that Prospect’s BBB+ rating with a stable outlook is supported by the Company’s relatively low leverage of approximately 0.7x which is well below regulatory limits, as well as the Company’s portfolio credit quality which continues to demonstrate improvement over the past five years. Prospect has a diversified wholesale funding profile and has good access to both debt and equity markets. Additionally, Prospect's recent quarterly performance was strong and the Company has ample liquidity as the company recorded $25.15 million of cash as of December 31, 2013 as well as bank credit lines from 24 lenders which was upsized to $792.5 million on March 28, 2014. The ratings and supporting rationale, as well as recent earnings comment, are available at the following links: Prospect’s Rating Report and Prospect’s Earnings Comment.

Headquartered in New York, NY, Prospect is a Business Development Company and primarily provides non-control debt financing to corporate management teams or financial sponsors. As of 12/31/2013, Prospect had total assets of $5.2 billion.

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