Prospect Capital completes $115 million acquisition of QC Holdings

NEW YORK - Prospect Capital Corporation (NASDAQ:PSEC), a business development company with a market capitalization of $1.43 billion and a notable 16.98% dividend yield, has completed its acquisition of consumer credit provider QC Holdings, Inc. for approximately $115 million in an all-cash transaction, the company announced Tuesday. According to InvestingPro data, PSEC has maintained dividend payments for 22 consecutive years, making it a significant player in the income-focused investment space.

The acquisition, which closed on Monday, was executed in accordance with the previously announced definitive merger agreement between the two companies. Following the transaction, QC Holdings’ common stock has been delisted from public trading. The deal comes as PSEC trades near its 52-week low of $3.10, significantly below its 52-week high of $5.63. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.

QC Holdings will maintain its headquarters in Lenexa, Kansas, and continue to operate under its current management team led by President and Chief Executive Officer Darrin Andersen.

The acquired company specializes in alternative financial services and credit solutions for consumers underserved by traditional banking institutions. QC Holdings operates through more than 325 retail locations across 12 U.S. states under the LendNation brand and maintains 19 retail locations in Canada, along with online services.

Stockholders of record as of June 30, 2025, will receive payment of the merger price per share within 3-5 business days, according to the announcement. Those with certificated shares will receive instructions for submitting stock certificates, while investors holding shares through brokerage accounts should contact their brokers regarding payment timing.

Blank Rome LLP served as legal advisor to Prospect Capital, while Stinson LLP advised QC Holdings on the transaction.

Prospect Capital Corporation is a business development company that provides loans and investments to private businesses, with objectives focused on generating current income and long-term capital appreciation through debt and equity investments. Recent InvestingPro data indicates the company faces some financial challenges, with a current ratio of 0.83 and negative earnings in the last twelve months. InvestingPro subscribers have access to over 30 additional financial metrics and analysis tools to evaluate PSEC’s investment potential.

This information is based on a press release statement from Prospect Capital Corporation.

In other recent news, Prospect Capital Corporation reported its first quarter 2025 earnings, which showed a notable performance in terms of earnings per share (EPS). The company achieved an EPS of $0.19, surpassing the analysts’ forecast of $0.14. However, its revenue for the quarter was $170.72 million, falling short of the expected $184.63 million. This mixed outcome highlights Prospect Capital’s ability to manage costs effectively, despite challenges in meeting revenue forecasts. The company’s net asset value per share stands at $7.25. Analysts from Wells Fargo discussed the company’s strategy, noting the slowdown in other income from National Property REIT Corp and questioned future dividend coverage. Prospect Capital’s management emphasized their focus on middle market loans and flexibility in financing strategies. The company’s net investment income was reported at $83.5 million, with interest income comprising 93% of total investment income. Prospect Capital continues to maintain a conservative leverage approach with a net debt to total assets ratio of 28.7%.

Prospect Capital completes $115 million acquisition of QC Holdings

Prospect Capital Corporation (NASDAQ:PSEC) completed an $115 million all-cash acquisition of QC Holdings, Inc., a consumer credit provider, in an agreement that delisted QC Holdings' stock from public trading. The deal follows Prospect Capital's recent financial challenges, including a current ratio of 0.83 and negative earnings, while QC Holdings continues operations under its leadership in Kansas and Canada.