Prospect Capital (NASDAQ: PSEC) and an affiliate provided a $26 million financing package to Security Fire Systems (SFS) on May 4, 2026, alongside Blackford Capital. The package includes a first lien senior secured term loan plus a preferred equity investment to fund SFS growth and acquisitions.
SFS, founded 1993, offers fire sprinkler design, installation, testing, maintenance, remodels, fire alarms and emergency response across multiple states and end markets, including hospitality, healthcare, education, retail, aviation, government, residential and religious properties.
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Positive
- $26 million combined term loan and preferred equity financing
- First lien senior secured loan provides creditor priority
- Strategic partnership with Blackford Capital to support acquisitive growth
Investment amount
$26 million
First lien term loan and preferred equity in Security Fire Systems
SFS founding year
1993
Year Security Fire Systems was founded
$2.81
Last Close
Volume
Volume 6,444,580 is 1.34x the 20-day average of 4,816,980, indicating elevated interest ahead of this news.
normal
Technical
Price at $2.81 is trading above the 200-day MA of $2.76, suggesting a modestly constructive longer-term trend.
PSEC gained 3.69% while peers were mixed: GSBD +1.92%, OCSL +1.18%, PX +0.57%, MFIC +0.08%, and CSWC -0.89%, pointing to a stock-specific move tied to this investment announcement.
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 22 | Positive | +1.3% |
Ubique Group expanded Martha Stewart Lily Pond Patio Collection product line. |
|
| Feb 09 | Positive | +10.3% |
Reported net investment income, distributions, and strong liquidity and asset base. |
|
| Feb 06 | Neutral | +0.4% |
Announced timing for Form 10-Q, earnings release, and investor conference call. |
|
| Jan 08 | Neutral | +0.4% |
Adjourned annual meeting to solicit more votes, outlining share counts and series. |
|
| Dec 16 | Neutral | -2.0% |
Adjourned stockholder meeting to extend vote solicitation on a proxy proposal. |
Recent news, including product expansion and earnings, has generally been followed by modestly positive share reactions, with only one notable negative move on governance-related updates.
Over the past several months, PSEC’s news flow has centered on portfolio activity, earnings, and shareholder governance. An April 2026 product expansion at Ubique Group and February 2026 earnings showing net investment income of $90.9M and NAV of $6.21 per share both saw positive price reactions. Annual meeting adjournments in December 2025 and January 2026 produced only modest moves. Today’s $26 million investment in Security Fire Systems continues the theme of incremental portfolio developments rather than transformational events.
This announcement highlights PSEC’s continued deployment of capital into middle-market companies via a first lien senior secured term loan and preferred equity totaling $26 million in Security Fire Systems. It follows recent activity in InterNotes® offerings and prior portfolio updates, reinforcing a pattern of incremental portfolio-building transactions. Investors may focus on how this deal affects credit quality, yield, and diversification alongside metrics like net investment income, NAV per share of $6.21, and total assets of approximately $6.5 billion cited in recent filings.
first lien
financial
“provided a first lien senior secured term loan and a preferred equity”
A first lien is a legal claim that gives a lender the top priority to be repaid from specific collateral if a borrower defaults or liquidates assets. Think of it as being first in line for the proceeds from a sale—investors who hold a first lien are more likely to recover their money than holders of later claims, so these loans generally carry lower risk and different pricing compared with unsecured or subordinated debt.
senior secured term loan
financial
“provided a first lien senior secured term loan and a preferred equity”
A senior secured term loan is a type of borrowing where a company borrows money and promises to pay it back over a fixed period, with the loan secured by the company’s assets as collateral. Because it is “senior,” it has priority over other debts if the company faces financial trouble, and being “secured” means lenders have a claim on specific assets. For investors, this makes the loan a safer and more predictable investment compared to unsecured or subordinate debts.
preferred equity
financial
“senior secured term loan and a preferred equity investment in Security”
Preferred equity is a type of investment that sits between common stock and debt in a company’s financial structure. It typically offers investors priority in receiving dividends and getting their money back if the company runs into trouble, making it somewhat safer than regular shares. Investors value preferred equity because it provides a steady income stream while still allowing some participation in the company’s success.
AI-generated analysis. Not financial advice.
NEW YORK, May 04, 2026 (GLOBE NEWSWIRE) — Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) and an affiliate have provided a first lien senior secured term loan and a preferred equity investment in Security Fire Systems (“SFS”), aggregating approximately
Founded in 1993, SFS is an industry leader for fire security and protection, offering a comprehensive line of products and services, including automatic fire sprinkler design services, fire sprinkler system installation, system testing, system maintenance and servicing, remodel & retrofits, fire alarms and emergency response. SFS is certified to provide services in Texas, California, Arkansas, Colorado, and Oklahoma to multiple customer bases and end markets, consisting of hospitality, healthcare, education, retail, aviation, government, residential and religious properties.
“Prospect is pleased to provide growth capital to enable SFS to pursue compelling organic and acquisitive growth opportunities,” said Angel Solis, Managing Director at Prospect. “We are excited to support Blackford Capital on their mission to make SFS a high-performing market leader in the fire suppression space.”
“We were pleased to work with Prospect, which was responsive, diligent, and creative on this transaction,” said Martin Stein, Founder and Managing Director of Blackford Capital. “Having Prospect as an investor strengthens SFS’s position as a compelling acquirer of more growing and profitable businesses in the fire suppression space.”
About Prospect Capital Corporation
Prospect is a business development company that primarily lends to and invests in middle market privately-held companies. Prospect’s investment objective is to generate both current income and long-term capital appreciation.
Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.
About Blackford Capital
Founded in 2010, Blackford Capital is a private equity investment firm headquartered in Grand Rapids, Michigan. Blackford acquires, manages, and builds founder and family-owned, lower middle-market companies, with a focus on the manufacturing, industrial and distribution industries. Blackford has a track record of exceptional returns, a disciplined and relentless approach to value creation, and a focus on operational excellence and a compelling culture. In 2023 and 2024, Blackford Capital was named to Inc’s list of Founder-Friendly Investors, was recognized by ACG Detroit with the 2023 M&A Dealmaker of the Year Award and awarded the 2023 Small Markets Deal of the Year award by both Buyouts Magazine and the Global M&A Network Atlas Awards. For more information, visit www.blackfordcapital.com.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.
For additional information, contact:
Grier Eliasek, President and Chief Operating Officer
grier@prospectcap.com
Telephone (212) 448-0702
FAQ
What financing did Prospect Capital (PSEC) provide to Security Fire Systems on May 4, 2026?
Prospect provided a $26 million package consisting of a first lien senior secured term loan and preferred equity. According to the company, the financing was made alongside Blackford Capital to support SFS’s growth and acquisition plans.
How will the PSEC investment support Security Fire Systems’ growth strategy?
The investment supplies capital for organic expansion and acquisitions to pursue growth opportunities. According to the company, the financing is intended to enable SFS to pursue compelling organic and acquisitive growth initiatives.
What types of services does Security Fire Systems provide and in which states does it operate?
SFS provides fire sprinkler design, installation, testing, maintenance, remodels, fire alarms and emergency response. According to the company, it is certified to operate in Texas, California, Arkansas, Colorado, and Oklahoma.
What is the structure of Prospect’s financing to SFS and what does “first lien senior secured” mean here?
The financing combines a first lien senior secured term loan and preferred equity, giving loan priority over other claims. According to the company, the loan is senior secured, indicating creditor priority on collateral.
Who are the parties involved in the transaction between Prospect Capital and Security Fire Systems?
The transaction involves Prospect Capital (PSEC), an affiliate investor, Security Fire Systems, and Blackford Capital as a partner. According to the company, Prospect and Blackford collaborated to provide the financing package.