Small Gains for Financial Stocks; Prospect Capital Slips After Pricing Convertible Note Offering

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Top Financial Stocks

JPM -0.25%

BAC +0.41%

WFC +0.51%

C +0.45%

USB -0.33%

Financial stocks were posting narrow gains with the NYSE Financial Sector Index rising about 0.2% and the S&P Financial 100 Index adding just 0.1%.

In company news, Prospect Capital ( PSEC ) shares declined Tuesday after the commercial lender priced a $400 million private placement of its 4.75% senior unsecured convertible notes due 2020.

The Notes will be convertible into shares of PSEC common stock at a rate of 80.6647 shares for each $1,000 in face value of the notes, or about $12.40 a share - a 15% premium to the stock's closing price Monday.

Proceeds from the offering will be used to pay down the outstanding balance on its credit facility and maintaining balance-sheet liquidity, including high-quality short-term debt as well as longer-term securities matching the company's investment criteria.

PSEC shares were down 0.1% at $10.77 apiece in mid-day trade, just 1 cent off its intra-day high. The stock has a 52-week range of $10.05 to $11.62 a share, rising 11.6% over the past 12 months.

In other sector news,

(+) BK, (+0.4%) Raises quarterly dividend by 13% to $0.17 per share, payable May 7 to shareholders of record on April 25. The Federal Reserve last month approved BK's capital plan, which includes the $0.02 per share dividend increase and a $1.74 bln stock buyback program.

(-) STWD, (-2.9%) Sells 22 mln shares of its common stock for $496.1 mln in gross proceeds, or $22.55 each - a 2.8% discount to Monday's closing price. The new money, after paying offering expenses, will be used to buy commercial mortgage loans.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: PSEC

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