Prospect Capital Corporation (NASDAQ:PSEC) announced that Prospect provided Intelius Holdings, Inc. (“Intelius”), a portfolio company of H.I.G. Capital (“H.I.G.”), with incremental first lien senior secured floating rate debt to support its strategic investment in Classmates, Inc. (“CI”).
Founded in 2003 and headquartered in Bellevue, Washington, Intelius provides information about people, their histories, and their connections to people, places, and organizations. Services offered include people search (e.g., finding contact information, residence history, employment, education, and other background information on people of interest), reverse people lookup (by phone number, e-mail, and social network), background checks, and identity theft protection services. Customers can access information through one-time purchases or ongoing subscriptions. Intelius has a robust and proprietary technology platform that gathers over 20 billion public records from a large network of publicly and commercially-available sources and assigns such records to more than 250 million unique profiles in the United States.
Founded in 1995 and headquartered in Seattle, Washington, CI operates the leading online social network service in the United States for bringing high school alumni together. CI serves over 70 million members and enables its users to find and reconnect with high school friends. In addition to facilitating connections with high school friends, CI also features the largest library of digitized yearbooks available anywhere on the Internet, with over 300,000 yearbooks available online to help members reconnect, reminisce, engage, and plan reunions with their classmates. CI will operate as a separate division of Intelius.
“The strategic investment in Classmates represents a one-of-a-kind social network with an excellent fit with Intelius and with proprietary content available to its members,” said Jason Wilson, a Managing Director of Prospect Capital Management. “This add-on financing, which closed only one month after the initial acquisition of Intelius, demonstrates Prospect’s execution agility and track record of supporting the growth plans of platform businesses backed by high-quality sponsors.”
“Prospect provides flexible and creative debt financing solutions, demonstrating why we often select Prospect to finance our platform acquisitions and provide subsequent financings for growth,” said Elliot Maluth, a Managing Director of H.I.G. “We are pleased to work with Prospect once again on an add-on financing transaction.”
Prospect closed approximately $2.0 billion of new originations in the twelve months ended June 30, 2015. (Original Source)
Shares of Prospect Capital Corp. closed yesterday at $7.38 . PSEC has a 1-year high of $10.98 and a 1-year low of $7.01. The stock’s 50-day moving average is $7.27 and its 200-day moving average is $7.77.
On the ratings front, Prospect Capital has been the subject of a number of recent research reports. In a report issued on July 1, 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 8.4% 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 7.2% and -8.0% respectively. Chiaverini has a success rate of 59.6% and is ranked #963 out of 3734 analysts, while Nolan has a success rate of 25.5% and is ranked #3544.
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.