Prospect Capital Corporation (NASDAQ:PSEC) announced that Prospect has provided $17.5 million of first lien senior secured floating rate debt to support the recapitalization of Easy Gardener Products, Inc. (“Easy Gardener”), a portfolio company of Centre Lane Partners, LLC (“Centre Lane”).
Founded in 1983 and headquartered in Waco, Texas, Easy Gardener distributes over 1,000 SKUs through a network of over 50 lawn and garden retailers in North America. The company distributes a wide array of products in the landscape fabric, fertilizer, chemical-free weed control, and consumer shade categories. Easy Gardener’s portfolio of brands, including Easy Gardener, Jobe’s, Weedblock, Landmaster, Sunscreen, and Ross, is well recognized in the Lawn & Garden industry.
“We are excited to team up with Prospect on our third transaction together,” said Nathan Richey, a Managing Director of Centre Lane. “Prospect’s speed and agility in execution, together with its understanding of the consumer products industry, were integral to the success of this recapitalization.”
“We are pleased with Easy Gardener’s leading market position and strong customer relationships,” said Richard Carratu, a Managing Director of Prospect Capital Management L.P. “We welcome the opportunity to support Centre Lane and the Easy Gardener management team as they continue to grow the business.” (Original Source)
Shares of Prospect Capital closed last Friday at $7.34. PSEC has a 1-year high of $9.85 and a 1-year low of $5.30. The stock’s 50-day moving average is $7.49 and its 200-day moving average is $7.48.
On the ratings front, Prospect has been the subject of a number of recent research reports. In a report issued on August 28, Wunderlich Securities analyst Merrill Ross maintained a Buy rating on PSEC, with a price target of $10.50, which implies an upside of 43.1% from current levels. Separately, on August 27, Cantor Fitzgerald’s David Chiaverini maintained a Hold rating on the stock and has a price target of $8.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Merrill Ross and David Chiaverini have a total average return of -2.1% and 4.7% respectively. Ross has a success rate of 44.3% and is ranked #3022 out of 3764 analysts, while Chiaverini has a success rate of 41.2% and is ranked #1161.
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.