Prospect Capital prices stock offering at $14.90

The firm, which invests in private and microcap public businesses, priced the offering of 3.25 million shares of common stock at $14.90 per share, 6 percent less than Tuesday's closing price of $15.92.

Shares of Prospect Capital fell $1.20, or 7.5 percent, to $14.72 Wednesday morning.

Prospect Capital plans to use the new cash to repay debt, fund investments in portfolio companies and for general corporate purposes.

Underwriters have the option to purchase an additional 487,500 shares to cover over-allotments.

Prospect Capital had 26.3 million shares outstanding as of May 6.

The offering is expected to close June 2.