Core Insights - Prospect Capital Corporation and Refuel Agency have partnered to support veteran-focused organizations, enhancing their philanthropic impact on the veteran community [1][2][3] - The John and Daria Barry Foundation has provided support to Team Red, White & Blue and Avalon Action Alliance, which are dedicated to improving the lives of veterans [1][2][4] Company Overview - Prospect Capital Corporation is a business development company that invests in private businesses, aiming for both current income and long-term capital appreciation through debt and equity investments [6][8] - Refuel Agency specializes in media and marketing services, particularly focusing on military audiences and has collaborated with many Fortune 500 companies [9] Philanthropic Initiatives - The partnership aims to strengthen programs that provide critical support and resources to veterans, including expanding the Eagle Alliance Program and enhancing Avalon’s integrative trauma care model [4][7] - Refuel Agency plays a crucial role in connecting philanthropic efforts with impactful veteran organizations, amplifying support for the veteran community [5][6] Investment Philosophy - Prospect's investment strategy emphasizes not only financial returns but also creating positive social impacts in the communities served [2][5] - The company believes in connecting investment decisions with meaningful outcomes, fostering collaboration between businesses, philanthropy, and communities [6]

Core Insights - Prospect Capital Corporation and Refuel Agency have partnered to support veteran-focused organizations, enhancing their philanthropic impact on the veteran community [1][2][3] Company Overview - Prospect Capital Corporation is a leading middle-market investment company that focuses on generating current income and long-term capital appreciation through debt and equity investments [6][8] - Refuel Agency specializes in media and marketing services, particularly for military audiences, and has collaborated with many Fortune 500 companies [9] Philanthropic Initiatives - The John and Daria Barry Foundation, through its partnership with Refuel, has provided support to Team Red, White & Blue and Avalon Action Alliance, which are dedicated to improving the lives of veterans [1][2][3] - The support will help expand Team RWB's Eagle Alliance Program and strengthen Avalon’s integrative trauma care model [4][7] Strategic Giving - Refuel has played a crucial role in connecting the Barry Foundation with impactful veteran-focused nonprofits, thereby enhancing programs that provide essential support to veterans [3][5] - The investment philosophy of Prospect emphasizes not only financial returns but also the importance of supporting the missions of the companies in which it invests [5][6]

Financial Data and Key Metrics Changes - For the December quarter, the company's net investment income (NII) was $86.4 million or $0.20 per common share, with a net asset value (NAV) of $3.4 billion or $7.84 per common share [5] - The net debt to total assets ratio stood at 28.1% as of December 31 [5] - The company announced monthly common shareholder distributions of $0.045 per share for February, March, and April [6] Business Line Data and Key Metrics Changes - The portfolio at fair value comprised 64.9% first lien debt, up 620 basis points from the prior year, while second lien debt decreased to 10.2%, down 530 basis points [9] - The company held 114 portfolio companies across 33 different industries with an aggregate fair value of $7.1 billion [9] - Investment originations in the December quarter totaled $135 million, with $120 million in first lien senior secured loans, representing close to 90% of total originations [19] Market Data and Key Metrics Changes - The weighted average EBITDA per portfolio company was $102 million [19] - Payment in kind income for the quarter was $20 million, down 39% from the prior quarter and nearly 50% from the June 2024 quarter [18] - Non-accruals as a percentage of total assets stood at approximately 0.4% in December [18] Company Strategy and Development Direction - The company continues to rotate assets into first lien senior secured middle market loans and exit from equity-linked assets, including real estate [6] - The strategy focuses on generating attractive risk-adjusted yields, with performing interest-bearing investments yielding an annualized 11.2% as of December [17] - The company plans to redeploy future asset sale proceeds primarily into property value capital expenditures and first lien senior secured middle market loans [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's diversified access to funding and strong bank relationships, which provide substantial liquidity to capitalize on attractive opportunities [21] - The company has a well-diversified set of strong bank relationships and plans to continue tapping into various bond markets [33] - Management noted that the credit spread versus treasuries is tighter than in July 2024, reflecting a strong credit profile [34] Other Important Information - The company has distributed over $4.4 billion or $21.39 per share since inception, with a focus on maintaining a strong balance sheet and liquidity [6][21] - As of December, the company had $2.12 billion of commitments from 48 banks, demonstrating strong lender support [23] Q&A Session Summary Question: Impact of rating changes on unsecured debt strategy - Management does not anticipate significant changes in financing strategy and plans to utilize a diversified array of markets for funding [32][33] Question: Participation in preferred exchange offer - Management expects strong participation in exchange offers and confirmed the coupon rate for new preferred securities [36][37]

Financial Performance - Net Investment Income (NII) for the quarter ended December 31, 2024, was $86,431,000, a decrease from $89,877,000 in the previous quarter and $96,927,000 in the same quarter last year[2]. - Net Income (Loss) applicable to common shareholders was $(30,993,000), compared to $(165,069,000) in the previous quarter and $(51,436,000) in the same quarter last year[2]. - Total investment income for the three months ended December 31, 2024, was $185.466 million, a decrease from $210.942 million in the same period of 2023, representing a decline of approximately 12%[27]. - Net investment income for the three months ended December 31, 2024, was $86.431 million, compared to $96.927 million in the same period of 2023, reflecting a decrease of about 11%[27]. - The company reported net realized losses of $46.653 million for the three months ended December 31, 2024, compared to net realized gains of $123 thousand in the same period of 2023[27]. - The company’s net increase (decrease) in net assets resulting from operations applicable to common stockholders was a loss of $30.993 million for the three months ended December 31, 2024, compared to a loss of $51.436 million in the same period of 2023[27]. Asset and Liability Management - Total assets decreased to $7,234,855,000 from $7,592,705,000 in the previous quarter and $7,781,214,000 in the same quarter last year[2]. - Total assets as of December 31, 2024, were $7,234,855,000, a decrease from $7,857,092,000 as of June 30, 2024, representing a decline of approximately 7.9%[25]. - Total investments at fair value decreased to $7,132,928,000 from $7,718,243,000, reflecting a reduction of about 7.6%[25]. - Net assets applicable to common shares were $3,440,036,000 as of December 31, 2024, down from $3,711,733,000, indicating a decrease of approximately 7.3%[25]. - Total liabilities decreased to $2,164,305,000 from $2,559,171,000, showing a reduction of approximately 15.4%[25]. Shareholder Returns - Cumulative paid and declared distributions to common shareholders reached $4,445,060,000, representing $21.39 per share, which is 2.7 times the December 2024 common NAV per share[4]. - The company reported a dividend payable of $20,076,000 as of December 31, 2024, down from $25,804,000, a decrease of about 22.4%[25]. - The company has adopted a dividend reinvestment plan (DRIP) that offers a 5% discount on shares purchased through the plan[20]. - Shareholders must proactively opt into the DRIP to receive the 5% discount, as many brokers may have automatically opted them out[21]. Investment Strategy - The company invested over $21 billion across more than 400 investments since its IPO in July 2004, exiting over 300 of these investments[5]. - Prospect Capital Corporation focuses on directly-originated, agented loans to companies, including those controlled by private equity sponsors and management teams, with various loan structures such as first lien and unsecured loans[37]. - The company invests in senior and secured yield-producing debt and controlling equity positions across various industries, enhancing certainty of closing for sellers[38]. - Prospect Capital Corporation invests in structured credit, diversifying across approximately 100 to 200 broadly syndicated loans, managed by experienced collateral management teams[40]. - The company aims to generate both current income and long-term capital appreciation through its debt and equity investments[41]. - Prospect Capital Corporation 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[41]. Market Conditions and Outlook - The portfolio's annualized current yield for all investments was 9.1%, down from 9.7% in the previous quarter and 10.1% in the same quarter last year[12]. - The weighted average cost of unsecured debt financing was 4.49%, an increase of 0.34% from December 31, 2023[19]. - The company cautions that forward-looking statements may be affected by unknowable future events and conditions, and actual results may vary materially[42]. Earnings Call - The company will host an earnings call on February 11, 2025, at 9:00 a.m. Eastern Time[23].

Investment Activity - For the three months ended December 31, 2024, the company acquired new investments totaling $45,694 and completed follow-on investments of approximately $65,554, resulting in gross investment originations of $134,956[517]. - The company received full repayments totaling $258,068 and additional repayments of approximately $125,295, leading to total repayments of approximately $383,363 during the same period[517]. - As of December 31, 2024, the company has $7,132,928, or 207.4%, of its net assets applicable to common shares invested in 114 long-term portfolio investments and CLOs[525]. - New investments in portfolio companies totaled $258,750 for the six months ended December 31, 2024, significantly higher than $49,074 for the same period in 2023[534]. - Total investments repaid or sold reached $665,691 for the six months ended December 31, 2024, compared to $224,978 in the prior year[534]. Portfolio Composition - The annualized current yield across all performing interest-bearing investments was 11.2% as of December 31, 2024, down from 12.1% as of June 30, 2024[526]. - Control investments represented 47.3% of the portfolio at a cost of $3,323,998 as of December 31, 2024, down from 52.9% at a cost of $3,772,329 on June 30, 2024[529]. - First Lien Debt accounted for 66.0% of the investment portfolio cost at $4,637,485 as of December 31, 2024, compared to 62.9% at $4,686,107 on June 30, 2024[531]. - The portfolio composition by industry shows Residential Real Estate Investment Trusts (REITs) at 12.8% of cost, valued at $902,516 as of December 31, 2024[533]. - The total cost of investments in the Consumer Finance sector was $659,046, representing 9.4% of the portfolio as of December 31, 2024[533]. Valuation and Fair Value - The total valuation of the company's investments was $7,132,928, based on various valuation techniques including discounted cash flow models[542]. - The fair value of the investment in First Tower was $665,118 as of December 31, 2024, reflecting a premium of $200,353 to its amortized cost[547]. - The fair value of the investment in InterDent was $406,593 as of December 31, 2024, showing a premium of $31,462 to its amortized cost[549]. - Controlled investments were valued at $448,331 above their amortized cost as of December 31, 2024[559]. - The fair value of NPRC's investment decreased from $1,696,462 as of June 30, 2024, representing a premium of $588,151[556]. Debt and Financing - As of December 31, 2024, the company’s debt consisted of a Revolving Credit Facility, Convertible Notes, Public Notes, and Prospect Capital InterNotes[563]. - The total outstanding debt was $2,077,796, with a net carrying value of $2,058,256[564]. - The Revolving Credit Facility had outstanding borrowings of $301,522 as of December 31, 2024, with an effective interest rate of 2.05%[570]. - The company had $1,049,788 available for borrowing under the Revolving Credit Facility as of December 31, 2024[570]. - The company may seek to cancel or purchase outstanding debt through various means, subject to market conditions and liquidity requirements[566]. Income and Expenses - Investment income for the six months ended December 31, 2024 was $381,774, a decrease of 14.6% compared to $447,187 for the same period in 2023[587]. - Net investment income for the six months ended December 31, 2024 was $176,308, down from $222,539 in the same period of 2023, representing a decline of 20.8%[587]. - Total operating expenses for the three months ended December 31, 2024, were $99,035, a decrease of 13.2% from $114,015 in 2023[599]. - Total gross base management fee for the six months ended December 31, 2024, was $75,675, down 3.6% from $78,376 in 2023, attributed to a decrease in average total assets[600]. - Net realized losses from investments for the six months ended December 31, 2024 were $147,023, compared to losses of $207,366 in the same period of 2023[587]. Preferred Stock and Share Repurchase - The company is no longer offering several series of preferred stock, focusing on the 7.50% Preferred Stock for future offerings[629]. - The company authorized the repurchase of up to 1.5 million shares of Series A Preferred Stock on June 16, 2022, and further authorized the repurchase of any and all outstanding Series A Preferred Stock on October 11, 2023[647]. - The Series A Preferred Stock Tender Offer commenced on October 30, 2023, with a total consideration of $16.00 per share, resulting in the purchase of 631,194 shares and a realized gain of $5,197[650]. - The estimated value of the company's 5.50% Preferred Stock, 6.50% Preferred Stock, Floating Rate Preferred Stock, and 7.50% Preferred Stock was determined to be $25.00 per share as of December 31, 2024[671]. - The company has established redemption limits for Floating Rate Preferred Stock, allowing no more than 2% to be redeemed per month, 5% per fiscal quarter, and 20% per Annual Redemption Period[636]. Market Risks and Interest Rates - The company is subject to financial market risks due to heightened interest rates and geopolitical uncertainties[693]. - The annual impact on net investment income from a 300 basis point increase in interest rates would result in a net increase of $119,008[698]. - A 100 basis point increase in interest rates would lead to a net increase in income of $39,262[698]. - A 100 basis point decrease in interest rates would result in a net decrease in income of $31,912[698]. - The company did not engage in hedging activities during the period ended December 31, 2024[700].

Financial Results - Prospect Capital Corporation reported a net investment income (NII) of $86,431,000 for the quarter ended December 31, 2024, down from $96,927,000 in the same quarter of the previous year, representing a decrease of 10.5% [2] - The NII per common share was $0.20, compared to $0.24 for the same quarter last year [2] - The net income applicable to common shareholders was a loss of $30,993,000, an improvement from a loss of $51,436,000 in the prior year [2] - Total assets decreased to $7,234,855,000 from $7,781,214,000 year-over-year [2] - The net asset value (NAV) per common share was $7.84, down from $8.92 a year ago [2][34] Distributions - The company declared monthly cash distributions of $0.0450 per share for February, March, and April 2025 [5] - Cumulative paid and declared distributions to common shareholders reached $4,445,060,000, equating to $21.39 per share, which is 2.7 times the NAV per share as of December 2024 [6] Investment Activity - Prospect has invested over $21 billion across more than 400 investments since its inception, with over 300 exits [7] - Recent investments include a $65 million loan to Taos Footwear Holdings, LLC, focusing on first lien senior secured loans [9] - The investment portfolio as of December 31, 2024, included 114 portfolio companies across 33 industries, with first lien debt comprising 64.9% of total investments [14] Portfolio Performance - The annualized current yield for all investments was 9.1%, while performing interest-bearing investments yielded 11.2% [14] - The remaining subordinated structured notes portfolio had a trailing twelve-month average cash yield of 24.4% [11] - The real estate property portfolio generated an income yield of 6.9% for the quarter ended December 31, 2024 [12] Capital and Liquidity - The company has a diversified funding profile, including a $2.1 billion revolving credit facility and various debt instruments [18] - As of December 31, 2024, the net of cash debt to total assets ratio was 28.1%, and the net of cash debt to equity ratio was 39.8% [21] - The weighted average cost of unsecured debt financing was 4.49%, reflecting an increase from the previous year [24] Management and Ownership - Senior management and employees own 28.7% of all common shares outstanding, valued at approximately $1.0 billion based on NAV [13]

NEW YORK, Feb. 03, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ:PSEC) (the "Company" or "Prospect") today announced it expects to file with the Securities and Exchange Commission its report on Form 10-Q containing results for the fiscal quarter ended December 31, 2024 on Monday, February 10, 2025. The Company also expects to issue its earnings press release on Monday, February 10, 2025, after the close of the markets. The Company will host a conference call on Tuesday, February 11, 2025 at ...

NEW YORK, Jan. 31, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ:PSEC) ("Prospect") has provided a first lien senior secured term loan, a first lien senior secured convertible term loan, and a preferred equity investment to Taos Footwear Holdings, LLC ("Taos Footwear" or "Company"), aggregating $65 million, in collaboration with Taos Footwear's founder and leadership team. Taos Footwear is a leading, innovative footwear brand providing customers with stylish and supportive footwear products. ...

Conservative Income Portfolio targets the best value stocks with the highest margins of safety. The volatility of these investments is further lowered using the best priced options. Our Enhanced Equity Income Solutions Portfolio is designed to reduce volatility while generating 7-9% yields.We wrote about Prospect Capital Corporation (NASDAQ: PSEC ) about 3 months back. In that article, we also opined about the preferred shares, Prospect Capital Corporation 5.35% CUM PFD A (NYSE: PSEC.PR.A ). Our key takeawa ...

Acquisition and Offering - NEWSTAR Exchange acquired Hadley Crossing, a single-family rental subdivision in Charlotte, North Carolina, developed by Stella Homes [1] - The property features 44 detached homes with 4 bedrooms, two-car attached garages, and high-end finishes such as Hardiplank facades, Quartz countertops, and stainless steel appliances [2] - NEWSTAR Exchange launched a new Delaware Statutory Trust (DST) offering for accredited investors seeking to complete like-kind exchanges under IRC Section 1031 [1] Financial and Market Performance - Hadley Crossing reached stabilization within less than 8 months, achieving the 3 highest build-to-rent rental rates in the Charlotte market [3] - The average household income in the area exceeds $200,000 [3] - The DST offering seeks to raise approximately $14 million in equity from accredited investors and is financed with a first mortgage through Fannie Mae, offering 43% leverage to investors [3] Company Background - NEWSTAR Exchange is a subsidiary of NEWSTAR, investing in and managing Class A single-family built-to-rent residential communities in the US Sun Belt [4] - The company sponsors Delaware Statutory Trusts and brings high-quality assets to market through a rigorous due diligence process [4] - NEWSTAR Exchange has successfully closed out three DST programs, raising more than $50 million in equity in partnership with Preferred Capital Securities [3] Partnership and Distribution - Preferred Capital Securities (PCS) is the managing broker-dealer for NEWSTAR Exchange’s DST offering [3] - PCS has a track record of raising over $5 billion in retail capital across 16 offerings and issuing approximately $1 billion in liquidity for investors since its inception in 2011 [5] - The offering is distributed by PCS in accordance with Rule 506(c) of Regulation D of the Securities Act [3]