Nicholas Financial sale nixed

CLEARWATER — A deal for Prospect Capital Corp. to buy Nicholas Financial Inc. for $326 million has been terminated.

The board of directors for the Clearwater-based consumer loan company held a special meeting June 11 to cancel the sale. The move came after it was clear the agreement would not close before the June 12 termination deadline, according to a release.

Prospect Capital announced in a quarterly filing in May that a Securities and Exchange Commission decision had required it to consolidate some of its subsidiaries, which would delay the closing past the June 12 deadline. Prospect Capital also stated it was in discussions with Nicholas Financial to give its staff time to appeal the SEC's position before the purchase.

The agreement called for Prospect Capital to buy all of the Nicholas Financial stock for $16 in cash per share, or $16 worth of Prospect Capital stock for the prior 20 trading days.

Nicholas Financial officials weren't immediately available for comment.