Prospect Capital Corporation (NASDAQ: PSEC) ( "Prospect") announced today that Prospect has declared monthly cash distributions to shareholders in the following amounts and with the following record and payment dates:
11.0400 cents per share for April 2014 (record date of April 30, 2014 and payment date of May 22, 2014);
11.0425 cents per share for May 2014 (record date of May 30, 2014 and payment date of June 19, 2014); and
11.0450 cents per share for June 2014 (record date of June 30, 2014 and payment date of July 24, 2014).
If you've done your due diligence, you know this is nothing new. They've also been courting analysts and investors to overcome what even mgt. says is a curious (to them) failure of the market to price their shares commensurate with their story. So in a sense, you are correct, but that's so obcious as to be banal. If you've been paying attention, you would know that mgt. has been trying to reassure investors for a very long time that the dividend is solid, and their business model deserves a lower yield.
It's no different than a borrower giving a security interest in assets to get a better price for his loan. You offer security to get the advantage gained by removing risk for your counterparty.