Prospect Capital books $328 million exit, gives PSEC stock a new driver
Prospect Capital Corp. shares moved up in early Friday trading in New York, with investors looking at a new portfolio-company sale that may return cash to one of the more watched income stocks around. The Nasdaq-listed BDC was recently quoted at $2.37, gaining 5 cents, or roughly 2.1%. Prospect said May 27 it will sell Valley Electric to MYR Group Inc. for gross proceeds of about $328 million. Prospect expects net exit proceeds of around $280 million, with a realized gross annualized IRR of 20.4% over the deal’s life. Robert Melman, Prospect’s managing director, said the transaction is an example of Prospect’s “multi decade track record” backing middle-market companies.
