United Sporting Companies: Prospect Capital Partly Repaid

Details are sparse but in an SEC filing Prospect Capital (PSEC) revealed receipt of “$19.5 million of our Second Lien Term Loan investment in USC [United Sporting Companies] using proceeds relating to their June Chapter 11 bankruptcy filing and ongoing asset liquidation“. That’s good news for the BDC, which is in the hook for a massive $127mn at cost invested in the debt of the bankrupt sports supply business. (We wrote about United Sporting – and PSEC’s predicament- back in June 2019 ). This is a sliver of good news (one seventh) for the BDC about to take a very big realized loss on what used to be one of its largest portfolio companies.