Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
NEW YORK - Prospect Capital Corporation (NASDAQ:PSEC), currently trading at $3.49 with a market capitalization of $1.55 billion, and QC Holdings, Inc. (OTCPK:QCCO) announced today a definitive merger agreement in which Prospect will acquire QC Holdings for $2.00 per share in an all-cash transaction valued at approximately $115 million. According to InvestingPro data, PSEC maintains a significant 15.47% dividend yield and has maintained dividend payments for 22 consecutive years. The merger has received unanimous approval from QC Holdings' board of directors and majority shareholder consent.
The transaction, subject to regulatory approvals and customary closing conditions, is expected to close within 40 to 60 days. Following the merger, QC Holdings' common stock will be delisted from the OTC Pink Market. InvestingPro analysis reveals that PSEC currently trades near its 52-week low of $3.39, with 8 additional key insights available to subscribers.
QC Holdings, a consumer finance business with a history spanning four decades, will maintain its headquarters in Lenexa, Kansas. President and CEO Darrin Andersen will continue to lead the company post-merger. Andersen remarked that the merger would provide a significant premium to shareholders and position the company for future growth and innovation.
Prospect Capital, a business development company, views the acquisition as an opportunity to support the growth of QC Holdings, which specializes in alternative financial services and credit solutions. Prospect's Grier Eliasek expressed enthusiasm for adding the consumer finance firm to their portfolio.
The legal advisors for the transaction were Blank Rome LLP for Prospect and Stinson LLP for QC Holdings. This merger is anticipated to enhance QC Holdings' capacity to provide credit options to customers underserved by traditional banking institutions.
The information in this article is based on a press release statement.
In other recent news, Prospect Capital Corporation reported its fourth-quarter 2024 earnings, revealing a notable miss on both earnings and revenue forecasts. The company posted an earnings per share (EPS) of -$0.07, falling short of the anticipated $0.14, while revenue reached $185.5 million, below the expected $197.7 million. Despite these results, Prospect Capital's net investment income was $86.4 million, or $0.20 per share, indicating a strong income stream. The company maintains a strategic focus on first lien debt, which now comprises 64.9% of its portfolio. Prospect Capital's net asset value stands at $3.4 billion, with a net debt to total assets ratio of 28.1%. Analysts have not recently provided upgrades or downgrades for the company, but the firm's strategy continues to emphasize rotating assets into first lien senior secured middle market loans. The company has also announced monthly common shareholder distributions of $0.045 per share for February, March, and April. Prospect Capital remains committed to maintaining a diversified funding strategy, which includes a substantial majority of unencumbered assets and a focus on unsecured fixed-rate debt.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.