Prospect Capital Corporation has announced the adoption of a Preferred Stock Dividend Reinvestment Plan, effective from December 27, 2024. The plan applies to dividends declared on various series of its preferred stock. Stockholders have the option to enroll in the plan and direct the reinvestment of all, but not less than all, dividends to purchase additional shares of preferred stock. The price for purchases of shares of preferred stock directly from the corporation varies depending on the series, ranging from $25.00 for certain series to $23.75 per share for others.
The plan also outlines the procedures for enrollment, termination, and re-enrollment, as well as the rights and obligations of participants, including the treatment of fractional shares and the payment of fees. Additionally, it addresses the inclusion of reinvested dividends in the Form 1099-DIV information return sent annually to stockholders and the potential tax implications for stockholders.
Furthermore, the plan specifies the Corporation's right to interpret and regulate the Preferred Stock Dividend Reinvestment Plan, as well as the right to suspend, modify, or terminate the plan at any time, with participants being notified of any such changes. It also covers the voting rights and pledge restrictions related to shares held in the plan, along with the limitations of liability for the Plan Administrator.
The terms and conditions of the plan may be amended or supplemented by the Corporation at any time, with appropriate notice provided to participants. The plan is governed by the laws of the State of New York.
Prospect Capital Corporation aims to provide stockholders with a long-term investment service through the Preferred Stock Dividend Reinvestment Plan while ensuring compliance with applicable regulations and investor protections. Today the company's shares have moved 0.5% to a price of $4.28. For more information, read the company's full 8-K submission here.
