Core Insights - Prospect Capital Corporation's President and COO, Grier Eliasek, emphasizes attractive opportunities in the lower and core middle-market for lenders seeking favorable deal terms and higher risk-adjusted returns [1][2] - The company focuses on underwriting strategies that target less cyclical industries and companies with resilient cash flows, while negotiating lower leverage multiples and tighter covenants to manage credit risk [2][3] Market Position - Prospect Capital is recognized as a market leader in the lower and core middle-market direct lending space, with a notable trend of significant capital being raised for direct lending at the upper end of the market [2][3] - The company has maintained financial ratio maintenance covenants in the lower and core middle-market, which have largely disappeared in the upper middle-market due to intense competition [3] Performance Metrics - Prospect Capital Corporation has achieved a realized gross annualized internal rate of return (IRR) of approximately 13%, based on total capital invested of about $11.8 billion and total proceeds from exited investments of approximately $14.9 billion [4]

Group 1 - Prospect Capital Corporation announced the redemption of all outstanding 3.706% Notes due 2026 at a price of 100% of the principal amount plus accrued but unpaid interest, with the redemption date set for June 18, 2025 [1][2] - The Notes are held through The Depository Trust Company and will be redeemed in accordance with applicable procedures [2] - Prospect Capital Corporation is a business development company focused on lending to and investing in private businesses, aiming to generate current income and long-term capital appreciation through debt and equity investments [3]

Core Viewpoint - Priority Income Fund, Inc. will redeem all outstanding shares of its 6.625% Series F Term Preferred Stock due 2027 at a price of $25 per share, plus accrued but unpaid dividends, with the redemption date set for June 11, 2025 [1][2]. Group 1: Redemption Details - The redemption price will be $25 per Series F Preferred Share, plus accrued but unpaid dividends from March 31, 2025, to the redemption date [1]. - On the redemption date, dividends will cease to accumulate on the redeemed shares, and holders will only have the right to receive the redemption price [2]. - The Series F Preferred Shares are held through The Depository Trust Company and will be redeemed according to applicable procedures [3]. Group 2: Remaining Preferred Shares - After the redemption of the Series F Preferred Shares, the Fund will have outstanding shares of several other preferred stocks, including 7.00% Series D Term Preferred Stock due 2029, 6.125% Series I Term Preferred Stock due 2028, 6.000% Series J Term Preferred Stock due 2028, 7.000% Series K Cumulative Preferred Stock, and 6.375% Series L Term Preferred Stock due 2029 [4]. Group 3: Company Overview - Priority Income Fund, Inc. is a registered closed-end fund focused on acquiring and growing an investment portfolio primarily consisting of senior secured loans or collateralized loan obligations (CLOs) [5]. - The Fund is managed by Priority Senior Secured Income Management, LLC, which is led by a team from Prospect Capital Management L.P. [5]. - Prospect Capital Management L.P. has over 37 years of experience in managing high-yielding debt and equity investments, with $8.3 billion in assets under management as of December 31, 2024 [6].

Exhibit 99.1 Prospect Capital Announces Financial Results for Fiscal March 2025 Quarter NEW YORK, May 8, 2025 (GLOBE NEWSWIRE) – Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect", "our", or "we") today announced financial results for our fiscal quarter ended March 31, 2025. FINANCIAL RESULTS | All amounts in $000's except | Quarter | Ended | Quarter Ended | Quarter | | Ended | | --- | --- | --- | --- | --- | --- | --- | | per share amounts (on weighted average basis for period numbers) | March 31, | 2 ...

Financial Data and Key Metrics Changes - For the quarter ending March, the company's net investment income (NII) was $83.5 million, or $0.19 per common share, with a net asset value (NAV) of $3.2 billion, or $7.25 per common share [5] - The net debt to total assets ratio stood at 28.7%, with unsecured debt plus unsecured preferred accounting for 87.5% of total debt plus preferred [5] Business Line Data and Key Metrics Changes - The portfolio at fair value comprised 65.5% first lien debt, up 650 basis points from the prior year, while senior secured second lien debt decreased to 10.5%, down 410 basis points [7] - The company originated $196 million in investments during the quarter, with $149 million (76%) in first lien loans [12] - The real estate property portfolio yielded an income of 4.5% for the quarter, with an unrealized gain of $460 million as of March [10] Market Data and Key Metrics Changes - The weighted average EBITDA per portfolio company was just under $100 million, with non-accruals as a percentage of total assets at approximately 0.6% [11] - The company experienced $192 million in repayments and exits, resulting in net originations of $4.5 million for the quarter [12] Company Strategy and Development Direction - The company focuses on lower middle market lending, prioritizing first lien senior secured loans, and aims to rotate its portfolio to enhance yields [24][26] - The strategy includes a gradual reduction of the National Property REIT Corp (NPRC) portfolio while exploring additional asset sales [21] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is affected by macroeconomic factors, including interest rate hikes, which have slowed the pacing of exits from the real estate portfolio [21] - The company is under-levered compared to peers, with a debt to total capital ratio around 30%, allowing for potential leverage to enhance net investment income [27] Other Important Information - The company has a strong liquidity position with $1.7 billion in combined balance sheet cash and undrawn revolving credit facility commitments [13] - The weighted average cost of unsecured debt financing was 4.33% as of March [16] Q&A Session Summary Question: Regarding low other income from NPRC this quarter - Management explained that the slowdown in other income is due to the pacing of exits being affected by macroeconomic conditions, but they expect normalization in the future [20][22] Question: On dividend coverage and potential levers to pull - Management indicated that they are prioritizing lower middle market lending and are exploring portfolio rotation to boost yields, while also considering leverage options [24][27] Question: Anticipation of preferreds ramping up - Management confirmed that they will prioritize both unsecured debt and preferred financing, emphasizing their diverse financing sources [29][30]

Financial Data and Key Metrics Changes - For the third fiscal quarter, the company's net investment income (NII) was $83.5 million, equating to $0.19 per common share, with a net asset value (NAV) of $3.2 billion or $7.25 per common share [4] - The net debt to total assets ratio stood at 28.7%, with unsecured debt plus unsecured preferred making up 87.5% of total debt plus preferred [4] - The company has distributed over $4.5 billion or $21.57 per share since inception, with monthly common shareholder distributions of $0.45 per share announced for May, June, July, and August [5] Business Line Data and Key Metrics Changes - The portfolio at fair value comprised 65.5% first lien debt, up 650 basis points from the prior year, while senior secured second lien debt decreased to 10.5%, down 410 basis points [6] - The company originated $196 million in investments during the quarter, with $149 million (76%) in first lien loans [11] - The real estate property portfolio yielded an income of 4.5% for the quarter, with an unrealized gain of $460 million as of March [9] Market Data and Key Metrics Changes - The company held 114 portfolio companies across 33 different industries, with an aggregate fair value of $6.9 billion [6] - The weighted average EBITDA per portfolio company was just under $100 million [10] - Non-accruals as a percentage of total assets were approximately 0.6% [10] Company Strategy and Development Direction - The company focuses on first lien senior secured loans, with a strategy to continue investing primarily in this area [8] - The management aims to achieve a value-maximizing orderly reduction in the size of the real estate portfolio, which has historically provided strong returns [20] - The company is under-levered compared to peers, with a debt to total capital ratio around 30%, reflecting a conservative approach [27] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is affected by macroeconomic factors, including interest rate hikes, which have slowed the pacing of exits from real estate investments [20] - The company is optimistic about future opportunities to enhance net investment income through portfolio rotation and leveraging its diversified funding sources [28] - Management emphasized the importance of maintaining a strong balance sheet and liquidity to capitalize on attractive investment opportunities [12] Other Important Information - The company has a combined balance sheet cash and undrawn revolving credit facility commitments of $1.7 billion, with $4.4 billion of unencumbered assets [12] - The weighted average cost of unsecured debt financing was 4.33% as of March [15] Q&A Session Summary Question: Other income from NP REIT was low this quarter; should this bounce back? - Management indicated that the low other income reflects a slowdown in exits due to macroeconomic conditions, but they expect normalization over time [20] Question: How does the company plan to manage dividend coverage with SOFR trends? - Management highlighted a focus on lower middle market lending and portfolio rotation to enhance yields, while also considering leverage options [27][28] Question: Will the company prioritize preferred financing over traditional unsecured debt? - Management stated that both unsecured debt and preferred financing will be prioritized, with a focus on maintaining a diverse funding strategy [30]

NEW YORK, May 09, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Management L.P. ("Prospect"), investment adviser to Prospect Capital Corporation (NASDAQ: PSEC) and other funds, announced today that Prospect has received an Honorable Mention in Mergers & Acquisitions' 2025 Middle-Market Deals of the Year Awards for Prospect's role in providing value-added capital to Druid City Infusion ("Druid City"). The recognition highlights Prospect's role as a significant capital provider and lender in the transaction, whic ...

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 March 31, 2025 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 organization) ...

Core Insights - Prospect Capital Corporation reported financial results for the fiscal quarter ended March 31, 2025, showing a decline in net investment income and a significant net loss applicable to common shareholders [1][2]. Financial Results - Net Investment Income (NII) for the quarter was $83,489,000, down from $86,431,000 in the previous quarter and $94,375,000 in the same quarter last year [2]. - NII per Common Share decreased to $0.19 from $0.20 in the previous quarter and $0.23 year-over-year [2]. - The company reported a net loss applicable to common shareholders of $(171,331,000), compared to a loss of $(30,993,000) in the previous quarter and a profit of $113,891,000 in the same quarter last year [2]. - Total assets decreased to $6,996,312,000 from $7,234,855,000 in the previous quarter and $7,905,794,000 year-over-year [2]. - Net Asset Value (NAV) per Common Share was $7.25, down from $7.84 in the previous quarter and $8.99 a year ago [2]. Distribution Information - The company declared monthly cash distributions of $0.0450 per share for May, June, July, and August 2025 [3][4]. - Cumulative paid and declared distributions to common shareholders reached $4,527,079,000, with a cumulative distribution per common share of $21.57 [5]. Investment Activity - Since its IPO in July 2004, Prospect has invested over $21 billion across more than 450 investments, with an internal rate of return (IRR) of approximately 13% on exited investments [6][7]. - The company focused on first lien senior secured middle market loans, with such investments totaling $149 million of $196 million in originations during the quarter [9]. - The subordinated structured notes portfolio represented 4.2% of total assets, down from 7.3% a year ago [10]. Portfolio Update - As of March 31, 2025, total investments at fair value were $6,901,364,000, with 114 portfolio companies across 33 industries [14]. - The mix of first lien debt increased to 65.5%, while subordinated structured notes decreased to 4.2% [14]. - The annualized current yield for all investments was 9.2%, with performing interest-bearing investments yielding 11.5% [14]. Capital and Liquidity - The company has a diversified funding profile, including a $2.1 billion revolving credit facility and significant capital raised from preferred stock offerings [18][24]. - As of March 31, 2025, the net of cash debt to total assets ratio was 28.7%, and the net of cash debt to equity ratio was 40.8% [21]. Management Ownership - Senior management and employees own 28.8% of all common shares outstanding, valued at approximately $0.9 billion based on NAV [12].

Core Points - Prospect Capital Corporation is set to file its Form 10-Q report for the fiscal quarter ending March 31, 2025, on May 8, 2025, and will issue an earnings press release after market close on the same day [1] - A conference call is scheduled for May 9, 2025, at 9:00 a.m. Eastern Time, with a dial-in number provided for participants [2] - The conference call will also be accessible via a live listen-only webcast on the company's website [3] Company Overview - Prospect Capital Corporation is a business development company that focuses on lending to and investing in private businesses, aiming to generate current income and long-term capital appreciation through debt and equity investments [4] - The company has elected to be treated as a business development company under the Investment Company Act of 1940 and as a regulated investment company under the Internal Revenue Code of 1986 [4]