Prospect Capital Corporation (NASDAQ:PSEC) announced that Prospect in the June 2015 quarter provided a commitment to support the acquisition of Bay Area Addiction Research and Treatment (“BAART”) by an investment fund affiliated with Webster Capital Management, L.L.C. (“Webster”). Prospect’s secured financing is comprised of an initial term loan and additional commitments in the form of a delayed draw term loan and revolving credit facility.
Based in San Francisco and founded in 1977, BAART operates 22 outpatient opioid treatment service clinics in California, Arizona, Nebraska, North Carolina, and Vermont. BAART’s clinics provide methadone treatment and counseling services to assist patients with opioid addictions.
“Webster selected Prospect based on Prospect’s willingness and ability to provide committed capital both to finance the initial acquisition of BAART and to provide incremental capital support for quality enhancement and future growth of the company,” said David Malm, a Co-Managing Partner of Webster.
“Prospect provided a creative multi-stage financing solution to assist Webster and BAART with accretive acquisition growth,” said David Belzer, a Managing Director of Prospect Capital Management L.P. “We look forward to continued strong performance at BAART, a company that provides a valuable service to people in need and addresses a growing opioid addiction epidemic in our country.”
Prospect closed approximately $2.0 billion of new originations for the twelve months ended June 30, 2015. (Original Source)
Shares of Prospect Capital closed yesterday at $7.42. 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 $7.67 and its 200-day moving average is $7.98.
On the ratings front, Prospect Capital has been the subject of a number of recent research reports. In a report released yesterday, Cantor Fitzgerald analyst David Chiaverini initiated coverage with a Hold rating on PSEC and a price target of $8, which represents a potential upside of 7.8% from where the stock is currently trading. Separately, on May 7, MLV & Co.’s Christopher Nolan maintained a Buy rating on the stock and has a price target of $9.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, David Chiaverini and Christopher Nolan have a total average return of 10.6% and -2.5% respectively. Chiaverini has a success rate of 57.6% and is ranked #903 out of 3688 analysts, while Nolan has a success rate of 43.2% and is ranked #3121.
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.