Prospect Capital (NASDAQ:PSEC) reported results after the market closed today with net investment income ("NII") of $0.256 for the quarter that was largely supported by the sale of Harbortouch Payments ("Harbortouch"):
"On May 31, 2016, we sold our investment in Harbortouch Payments, LLC ("Harbortouch") for total consideration of $328,032, including fees and escrowed amounts. Prior to the sale, $154,382 of Senior Secured Term Loan B loan outstanding was converted to preferred equity. We received a repayment of $146,989 loans receivable to us and $157,639 of proceeds related to the equity investment. We recorded a realized loss of $5,419 related to the sale. We also received a $5,145 prepayment premium for early repayment of the outstanding loans, which was recorded as interest income in the year ended June 30, 2016 and a $12,909 advisory fee for the transaction, which was recorded as other income in the year ended June 30, 2016. In addition, there is $5,350 being held in escrow which will be recognized as additional realized gain if and when it is received. Concurrent with the sale, we made a $27,500 second lien secured investment in Harbortouch."
It is important to point out that there was $18.1 million of one-time income recorded in fiscal Q4 related to the sale of Harbortouch. The following table shows the most recent quarter's results with and without the non-recurring income from Harbortouch that added around $0.04 per share of dividend coverage.
