Prospect Capital Plans to Raise Capital through Spin-Offs
Prospect Capital (PSEC) is targeting spin-offs in order to raise capital to be redeployed in asset classes yielding higher returns.
Prospect Capital’s (PSEC) stock has declined by ~13% over the past six months and ~27% over the past 12 months.
Prospect Capital (PSEC) continues to make use of leverage to generate higher returns. The company’s 4Q15 debt-to-equity ratio increased to 77.6%.
Ares Capital Stock: High Dividend Yields and Nominal Growth
As of June 2015, Ares Capital’s (ARCC) stock declined by ~5% over the past 12 months. The company paid a dividend of $0.38 per share—at par with the year before.
Ares Capital’s (ARCC) net DE ratio improved to 0.63x as of March 31, 2015. The improvement was mainly due to net debt repayments during the first quarter.
Ares Capital (ARCC) has consistently increased its exposure in second lien senior secured debt. It formed 26% of its total portfolio in 1Q15.