PLAN OVERVIEW
We have adopted a dividend reinvestment plan (also known as a “DRIP”) that provides for reinvestment of our distributions on behalf of our stockholders, unless a stockholder elects to receive cash. Effective May 21, 2020, we made a change to our long-standing DRIP started in 2004: stockholders may now receive a number of newly-issued shares based on 95% of the market price of our common stock (providing a 5% pricing discount), a benefit to shareholders enrolled in our DRIP (provided their brokers participate), as described in further detail in the 8-K filed April 17, 2020.
HOW TO PARTICIPATE
Shares held with a broker or financial institution
Many shareholders have been automatically “opted out” of our DRIP by their brokers. Even if you have elected to automatically reinvest your PSEC stock with your broker, your broker may have “opted out” of our DRIP (which utilizes DTC’s dividend reinvestment service), and you may therefore not be receiving the 5% pricing discount. We encourage any shareholder interested in participating in our DRIP to contact his or her broker to make sure such DRIP participation election has been made for the benefit of such shareholder through DTC. In making such DRIP election, be sure to specify to your broker the desire to participate in the "Prospect Capital Corporation DRIP through DTC" that issues shares based on 95% of the market price (a 5% discount to the market price), and not the broker's own "synthetic DRIP” (if any) with no such discount.
Do not assume your broker will automatically place you in our DRIP through DTC; you will need to make this election proactively with your broker.
Shares registered directly with our transfer agent
If you hold shares registered in your own name with our transfer agent (only a small number of our shareholders hold their shares this way) and want to make a change to how you receive your dividends, please contact our plan administrator, Equiniti Trust Company, LLC by mail or by telephone.
Equiniti Trust Company, LLC
PO Box 500,Newark, NJ 07101
1-888-888-0313.
For monthly information on our dividends, including the historic Prospect Capital Corporation DRIP price, please see Dividends.