See notes to consolidated financial statements. 20 See notes to consolidated financial statements. 21 See notes to consolidated financial statements. 22 PROSPECT CAPITAL CORPORATION CONSOLIDATED SCHEDULES OF INVESTMENTS AS OF JUNE 30, 2023 (Continued) (in thousands, except share data) | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------|----------------------------------------|----------------------------------------------------------- ...

Financial Data and Key Metrics Changes - For the December quarter, the company's net investment income (NII) was $96.9 million, or $0.24 per common share, with a net asset value (NAV) of $3.68 billion, down $0.33 from the prior quarter [4] - The net debt equity ratio was 46.2%, down 27.9 percentage points from March 2020 and down 0.3 percentage points from September 2023, indicating an under-leveraged balance sheet [4] Business Line Data and Key Metrics Changes - The company's originations in the December quarter comprised 53.8% middle-market lending, 30.2% real estate, 10.5% middle-market lending and buyouts, and 5.5% subordinated structured notes investments [8] - The portfolio at fair value included 58.7% first-lien debt, up 1.4% from the prior quarter, while second-lien debt decreased to 15.5% [20] Market Data and Key Metrics Changes - The company has invested $3.8 billion in 108 properties, focusing on multifamily workforce housing and stabilized yield acquisitions [8] - Non-accruals as a percentage of total assets stood at approximately 0.2%, unchanged from the prior quarter [21] Company Strategy and Development Direction - The company aims to maintain significant dry powder and balance sheet flexibility to capitalize on attractive opportunities during market downturns [6] - The investment strategy focuses on secured lending and senior loans, with a preference for avoiding cyclicality and maintaining a diversified portfolio [20] Management's Comments on Operating Environment and Future Outlook - Management noted that the current higher financing cost environment is starting to abate, and the new investment focus includes preferred equity structures with significant third-party capital support [38] - The company expects to continue generating attractive risk-adjusted yields, with performing interest-bearing investments yielding an annualized 12.3% as of December 2023 [7] Other Important Information - The company announced monthly cash common shareholder distributions of $0.06 per share for February, March, and April, marking the 78th to 80th consecutive distributions at this rate [18] - As of December 2023, the company held approximately $4.7 billion in unencumbered assets, representing about 60% of its portfolio [25] Q&A Session Summary Question: On the preferred stock and issuer optional conversion feature - Management clarified that there are no plans to exercise the optional conversion feature for the Series A preferreds and mentioned a new series that is not convertible into common stock [46] Question: Regarding the sale of a property in the REIT - Management confirmed the sale of a student housing asset close to its mark, with a well-performing portfolio and significant buyer interest in that segment [47][49] Question: On the CLO book strategy - Management stated that the CLO book is actively managed, with options including calling investments, refinancing, and selling positions, while expecting the CLO book to decline as other strategies grow [50]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00659 PROSPECT CAPITAL CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer ...

Financial Data and Key Metrics Changes - The annualized basic net investment income (NII) yield is reported at 10.8% on a book basis and 18.7% based on the stock price close on November 7 [4] - The net investment income for the September quarter was $125.6 million, translating to a basic NII of $0.25 per common share, exceeding the distribution rate by $0.07, with a coverage ratio of 139% [20][55] - The net asset value (NAV) per common share stood at $9.25, reflecting a slight increase of $0.01 or 0.1% from the prior quarter [4] Business Line Data and Key Metrics Changes - The portfolio as of September 2023 comprised 57.3% first-lien debt, up 0.8% from the prior quarter, while second-lien debt decreased by 0.5% to 15.9% [25] - Originations in the September quarter were 48.5% real estate, 40.6% middle market lending, and 10.9% middle market buyouts [10] - The structured credit portfolio generated a GAAP yield of 10.7% and a cash yield of 17.5% [62] Market Data and Key Metrics Changes - The company has deployed significant capital in real estate, focusing on multifamily workforce housing and senior living, with a total of $3.8 billion invested across 105 properties [11] - The non-accruals as a percentage of total assets stood at approximately 0.2%, down 0.9% from the prior quarter, indicating improved asset quality [26] Company Strategy and Development Direction - The company emphasizes a diversified investment strategy, focusing on secured lending and senior loans to mitigate downside risk while achieving above-market yields [8] - The management plans to capitalize on secondary opportunities during economic downturns, maintaining significant dry powder and balance sheet flexibility [24] - The company has a strong focus on maintaining an under-leveraged balance sheet, with a net debt-to-equity ratio of 46.5%, down 27.6 percentage points since March 2020 [55] Management's Comments on Operating Environment and Future Outlook - Management noted that the current high financing costs are a challenge across the corporate world, not just in real estate [1] - The company has outperformed peers during macro volatility due to prior derisking and risk management controls [21] - Management expressed confidence in the ability to generate earnings for shareholders while controlling portfolio and balance sheet risk [21] Other Important Information - The company has raised nearly $1.7 billion in aggregate issuance of perpetual preferred stock, demonstrating strong support from the lender community [17] - The weighted average cost of unsecured debt financing was reported at 4.08%, reflecting a slight increase from the previous quarter [46] Q&A Session Summary Question: Inquiry about NP REIT's mortgage liability profile - Management explained that investments enhance net operating income through value-add renovation programs, benefiting from strong rent growth and occupancy [36][37] Question: Discussion on refinancing needs and capital expenditures - Management clarified that they have not needed to inject capital for refinancing and emphasized the use of fixed-rate funding to mitigate risks [49][50] Question: Valuation of Series A fixed-rate preferred stock - Management described the tender offer as a balancing act, aiming for net investment income and net asset value accretiveness [74][75] Question: Anticipation of changes in terminal cap rates - Management stated that they operate in private markets and do not predict cap rates, relying on independent valuations [76][79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00659 PROSPECT CAPITAL CORPORATION (Exact name of registrant as specified in its charter) Maryland 43-2048643 (State or other jurisdiction of incorporation or organizat ...

Management and Operations - The company currently has no employees and relies on Prospect Capital Management for its investment activities[60]. - The portfolio managers, John F. Barry III and M. Grier Eliasek, have each served for 19 years and own over $1,000,000 in common stock[62][65]. - The company bears all operational costs, including investment advisory fees and expenses related to monitoring investments[66]. - The company has a license agreement with Prospect Capital Management to use the "Prospect Capital" name as long as the advisory agreement is in effect[67]. - The company has adopted compliance policies to prevent violations of U.S. federal securities laws and conducts annual reviews of these policies[162]. - The company has established a proxy voting committee to evaluate and vote on proxy matters, ensuring alignment with stockholder interests[178]. Financial Performance and Valuation - The net asset value per share is calculated quarterly by subtracting liabilities and preferred stock from total assets, divided by the number of common shares outstanding[68]. - Fair value determinations for investments without readily available market quotations involve subjective judgments and may differ significantly from actual market values[71][73]. - The independent valuation firms assist in determining fair values for investments, which are reviewed by the Audit Committee and the Board of Directors[72]. - As of June 30, 2023, the company's asset coverage ratio stood at 297.0%, with senior securities representing indebtedness of $2.6 billion[160]. - The company has received stockholder approval to reduce the asset coverage requirement from 200% to 150%, allowing for a 2:1 debt to equity ratio[160]. - A 300 basis point increase in interest rates could lead to an increase in net investment income by approximately $106,362,000[708]. Dividend and Distribution Policies - The company has adopted a dividend reinvestment plan (DRIP) that allows stockholders to reinvest dividends at a 5% discount to the market price[74][79]. - There are no brokerage charges for stockholders participating in the DRIP, and the plan administrator's fees are covered by the company[80]. - The company reserves the right to purchase shares in the open market for the DRIP implementation, depending on market conditions[79]. - Cash dividends and distributions payable on all shares credited to the Plan account will be automatically reinvested in additional shares[83]. - The first dividend payable with respect to newly-issued shares of 5.50% Preferred Stock and 6.50% Preferred Stock will be paid in cash, with subsequent dividends reinvested[94]. - The Plan may be terminated by the company upon notice in writing mailed to each participant at least 30 days prior to any payable date for the payment of any dividend[85]. Taxation and Regulatory Compliance - The company has elected to be treated as a RIC under Subchapter M of the Code, which allows it to avoid corporate-level U.S. federal income taxes on ordinary income or capital gains distributed to stockholders as dividends[113]. - To qualify as a RIC, the company must distribute at least 90% of its investment company taxable income each taxable year, which includes ordinary income and excess realized net short-term capital gains over realized net long-term capital losses[113]. - The company is subject to a 4% non-deductible U.S. federal excise tax on certain undistributed income unless it distributes at least 98% of ordinary income and 98.2% of capital gain net income recognized during the calendar year[118]. - If the company fails to meet the Annual Distribution Requirement, it would be subject to tax on all taxable income at regular corporate rates and would not be able to deduct distributions to stockholders[124]. - Non-U.S. stockholders may face a 30% withholding tax on distributions that are not effectively connected with a U.S. trade or business[140]. - The company must provide written notice to stockholders regarding deemed distributions within 60 days after the close of the relevant taxable year[131]. Investment Strategy and Risk Management - The company may invest in partnerships, and income derived from such partnerships will be treated as qualifying income for the 90% Income Test only if it is attributable to items of income that would be qualifying income if realized directly by the company[115]. - The company must ensure that at least 50% of the value of its assets consists of cash, U.S. government securities, and other qualifying securities, and no more than 25% of its assets can be invested in the securities of any one issuer[121]. - The company may be required to recognize taxable income even if it does not receive cash, such as in the case of original issue discount on debt obligations[119]. - The company monitors its transactions to mitigate the effects of complex U.S. federal income tax provisions that may limit losses or deductions[125]. - The company is subject to financial market risks, including changes in interest rates and equity price risk[705]. - The company is restricted from acquiring more than 3% of the voting stock of any regulated investment company under the 1940 Act[154]. Shareholder Information and Rights - Payments of dividends are subject to information reporting unless the stockholder is an exempt recipient[138]. - Clients can request information on how the company voted proxies on their behalf[183]. - Non-U.S. stockholders should consult tax advisors regarding the implications of U.S. federal income tax and withholding tax on their investments[148]. - A U.S. stockholder will recognize taxable gain or loss upon the sale or disposition of shares, treated as long-term capital gain if held for more than one year[133].

Prospect Capital Corporation (NASDAQ:PSEC) Q4 2023 Results Conference Call August 30, 2023 11:00 AM ET Company Participants John Barry - Chairman and CEO Grier Eliasek - President and COO Kristin Van Dask - CFO Conference Call Participants Finian O’Shea - Wells Fargo Robert Dodd - Raymond James Operator Hello and welcome to Prospect Capital’s Fourth Quarter Fiscal Year 2023 Earnings Release and Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00659 PROSPECT CAPITAL CORPORATION (Exact name of registrant as specified in its charter) FORM 10-Q Maryland 43-2048643 (State or other jurisdiction of incorporation or organization) ...

Prospect Capital Corporation (NASDAQ:PSEC) Q2 2023 Earnings Conference Call February 9, 2023 9:30 AM ET Company Participants John Barry - Chairman and CEO Grier Eliasek - President and COO Kristin Van Dask - CFO Conference Call Participants Operator Welcome to the Prospect Capital Second Fiscal Quarter Earnings Release and Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. John Barry, Chairman and CEO. Please go ahead. Joh ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Maryland 43-2048643 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 10 East 40th Street, 42nd Floor New York, New York 10016 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (212) 448-0702 For the quarterly period ended December 31, ...