Prospect Capital Corporation (NASDAQ:PSEC) announced that Prospect has committed up to $31 million to support the acquisition of Intelius Holdings, Inc. (“Intelius”), an information commerce company, by an affiliate of H.I.G. Capital (“H.I.G.”).
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.
“Prospect is pleased to support H.I.G.’s acquisition of one of the leading providers of online consumer information services,” said Jason Wilson, a Managing Director of Prospect Capital Management. “We are excited about the company’s growth profile, given the efficient, cost-effective, and technology agnostic platform Intelius has built to afford consumers one-stop access to valuable information that could otherwise take such customers significant time to gather on their own.”
“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 our acquisition of Intelius.”
Prospect closed approximately $2.0 billion of new originations in the twelve months ended June 30, 2015. (Original Source)
Shares of Prospect Capital closed yesterday at $7.33. 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 $7.62 and its 200-day moving average is $7.98.
On the ratings front, Prospect 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 implies an upside of 9.1% from current levels. 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 9.4% and -3.1% respectively. Chiaverini has a success rate of 67.6% and is ranked #854 out of 3691 analysts, while Nolan has a success rate of 43.2% and is ranked #3169.
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.