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Prospect Capital: Harbortouch To The Rescue


PSEC recently reported higher-than-expected NII per share and covered its dividend due to one-time income.

The sale of its investment Harbortouch Payments contributed around $0.04 per share of NII related to one-time income.

The amount of GAAP income from CLOs declined by 9% from the previous quarter.

There could be pressure on upcoming dividend coverage due to less one-time income and declining CLO GAAP/distributable income.

Prospect Capital (NASDAQ:PSEC) reported results after the market closed today with net investment income ("NII") of $0.256 for the quarter that was largely supported by the sale of Harbortouch Payments ("Harbortouch"):

"On May 31, 2016, we sold our investment in Harbortouch Payments, LLC ("Harbortouch") for total consideration of $328,032, including fees and escrowed amounts. Prior to the sale, $154,382 of Senior Secured Term Loan B loan outstanding was converted to preferred equity. We received a repayment of $146,989 loans receivable to us and $157,639 of proceeds related to the equity investment. We...