Prospect Capital (PSEC) $6.30, -2.6% after portfolio company files Chapter 11 (SeekingAlpha)

un. 13, 2019 11:45 AM ET|About: Prospect Capital Corporation (PSEC)|By: Liz Kiesche, SA News Editor 

Prospect Capital (NASDAQ:PSEC) slumps 2.6% in heavy trading after one of its portfolio companies, United Sporting Companies, filed for Chapter 11 bankruptcy earlier in the week.

Yesterday, SA contributor BDC Buzz pointed out that the  filing will drive at least $100M of upcoming realized losses at Prospect, among other recent credit issues.

In its Form 10-Q, Prospect listed amortized cost of the United Sporting investment at $127.1M as of March 31, 2019.

United Sporting partly blamed its liquidity problems on Donald Trump winning the 2016 presidential election; anticipating a Democratic win, the company had built up its firearms inventory before the election because sales of firearms usually rise when a Democrat wins the White House.