Prospect Capital Corporation (NASDAQ:PSEC) announced that Prospect has provided Capstone Logistics, LLC (“Capstone”), an existing portfolio company of Prospect, with an incremental $37.5 million of floating rate secured term debt to support Capstone’s acquisition of Pinnacle Workforce Logistics LLC (“Pinnacle”). Prospect holds Capstone’s entire senior second lien facility, which totals approximately $100 million.
Headquartered in Atlanta, Capstone services over 50 customers at more than 240 facilities across 45 states. Capstone is an outsourced supply-chain-solutions provider offering freight handling services, supply-chain consulting, and management of distribution centers. Capstone’s workforce solutions allow distribution center operators to outsource non-core labor-intensive elements of their supply chains. The Jordan Company, L.P. purchased Capstone in August 2014.
Pinnacle provides fully managed workforce solutions with a North American platform of over 80 client-owned sites across multiple end markets. Services include freight handling, order selection, warehouse maintenance, and co-packing and kitting. Capstone and Pinnacle together expect to share complementary end markets and services, offer a strengthened platform to better serve customers, and experience immediate cost synergies.
“Prospect is pleased to provide financing to support the combination of two supply chain logistics market leaders under the capable ownership of a strong financial sponsor,” said Jason Wilson, a Managing Director of Prospect Capital Management.
Prospect has closed approximately $2.0 billion of new originations in the twelve months ended March 31, 2015. (Original Source)
Shares of Prospect Capital Corp. closed yesterday at $7.61 . PSEC has a 1-year high of $11.05 and a 1-year low of $7.18. The stock’s 50-day moving average is $7.89 and its 200-day moving average is $8.11.
On the ratings front, MLV & Co. analyst Christopher Nolan maintained a Buy rating on PSEC, with a price target of $9, in a report issued on May 7. The current price target implies an upside of 18.3% from current levels.
According to TipRanks.com, Nolan has a total average return of -1.2%, a 45.5% success rate, and is ranked #2913 out of 3629 analysts.
Prospect Capital Corporation is a closed-end investment company. It invests in senior and subordinated debt and equity of companies in need of capital for acquisitions, divestitures, growth, development, recapitalizations and other purposes.