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Financial Data and Key Metrics Changes - For the June quarter, the company's net investment income (NII) was $102.9 million, equating to $0.25 per common share, with a net asset value (NAV) of $3.71 billion or $8.74 per common share [3] - The net debt to total assets ratio stood at 30.5%, with unsecured debt plus preferred making up 80.3% of total debt plus preferred [3][4] - The company announced monthly common shareholder distributions of $0.06 per share for September and October, marking the 86th consecutive distribution [4] Business Line Data and Key Metrics Changes - As of June 30, the portfolio at fair value comprised 60.3% first lien debt (up 3.8% from the prior year), 13.6% second lien debt (down 2.8%), 6.9% subordinated structured notes (down 1.7%), and 19.2% unsecured debt and equity investments (up 0.7%) [5] - The company exited $198 million of second lien debt in the current September quarter, resulting in a further decline to 11.3% [6] - The annualized yield as of June was 12.1%, with interest income making up 89.2% of total investment income [6] Market Data and Key Metrics Changes - The company held 117 portfolio companies as of June, a decrease of five from the prior quarter, with a fair value of $7.7 billion [7] - Non-accruals as a percentage of total assets were approximately 0.3%, reflecting a 0.1% decrease from the prior quarter [8] - The weighted average middle-market portfolio net leverage was 5.5 times EBITDA, consistent with the prior quarter [8] Company Strategy and Development Direction - The company is focused on increasing first lien exposure while reducing second lien and subordinated structured notes to mitigate portfolio risk [6] - The investment strategy includes significant capital deployment in the real estate sector, particularly in multifamily properties, with a focus on value-added acquisitions [9][10] - The company has a strong balance sheet with substantial liquidity, having locked in liabilities extending 28 years into the future [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet obligations, citing five investment-grade ratings and strong lender support [16] - The company is not contemplating any drastic measures regarding preferred stock conversions, emphasizing stability and ongoing performance [18][20] - Management highlighted the successful performance of the REIT segment, with a 21% IRR on exited properties, indicating a robust investment strategy [11][32] Other Important Information - The company has successfully completed an amended credit facility with a new five-year maturity, increasing commitments to $2.12 billion [15] - The weighted average cost of unsecured debt financing was 4.25%, reflecting slight increases from previous periods [16] Q&A Session All Questions and Answers Question: Trends in preferred to convertible preferred conversions - Management indicated that the recent conversions were driven by a specific large holder needing liquidity, and such conversions are not anticipated to be a recurring trend [30] Question: Circumstances under which the Board might force conversion - Management clarified that there has been no discussion or contemplation of invoking such measures, emphasizing the company's strong financial position [19][20] Question: Impact of CLO reclassifications on earnings trajectory - Management stated that the reclassification did not affect NAV and is a standard accounting practice, indicating it is not a significant concern [24][31] Question: Details on the $20 million investment in the REIT - Management explained that the investment was for value-added capital expenditures and ongoing upgrades, which are typical for multifamily properties [28][32]

NEW YORK, Aug. 28, 2024 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect", "our", or "we") today announced financial results for our fiscal quarter and fiscal year ended June 30, 2024. All amounts in $000's except per share amounts (on weighted average basis for period numbers) Prospect Capital Corporation celebrates its 20th anniversary as a leading provider of private debt and equity to U.S. middle-market companies Long History and Large Scale: Prospect is one of the largest ($7. ...

AntonioSolano/iStock via Getty Images I previously covered Prosect Capital (NASDAQ:PSEC) back in March and downgraded my rating to a hold due to the BDC's growing vulnerabilities surrounded the prolonged period of elevated interest rates. I wanted to revisit the business development company after its most recent earnings and reassess valuation based on the performance and growth of its net assets. I also wanted to provide some thoughts as I believe that the possibility of interest rate cuts are higher now. ...

PM Images The loan quality profile of Prospect Capital Corporation (NASDAQ:PSEC) continued to look very healthy in the last quarter, as did the business development company's dividend coverage setup. The BDC is also originating a healthy amount of new loans which will add to Prospect Capital's net investment income moving forward and that therefore could further improve the BDC's dividend coverage. I think that Prospect Capital's 37% discount to net asset value is not appropriate and when taking into accoun ...

mrPliskin/E+ via Getty Images Introduction Prospect Capital (NASDAQ:PSEC) is a popular BDC amongst dividend investors and retirees as a result of its steady, monthly dividend. But while many of its peers have enjoyed strong price appreciation over the past year, the BDC has seen its share price decline double-digits over the same period, a result of its portfolio quality and weaker fundamentals. BDCs with superior underwriting quality share prices have risen while those with weaker fundamentals have lagged, ...

Financial Data and Key Metrics Changes - As of March 2024, the company's net investment income (NII) was $94.4 million, equating to $0.23 per common share, with a net asset value (NAV) of $3.74 billion or $8.99 per common share, reflecting an increase of $0.07 from the prior quarter [20] - The net debt-to-equity ratio stood at 46.2% as of March 31, 2024 [20] - The weighted average cost of unsecured debt financing was 4.14%, a slight decrease of 0.01% from the previous quarter [6] Business Line Data and Key Metrics Changes - The portfolio at fair value comprised 59% first lien debt (up 0.3%), 14.6% second lien debt (down 0.9%), 7.3% subordinated structured notes (down 0.6%), and 19.1% unsecured debt and equity investments (up 1.2%) [21] - Originations in the March quarter totaled $219 million, with net originations exceeding $105 million after accounting for $114 million in repayments, sales, and exits [24] - The structured notes portfolio generated a GAAP yield of 3.3% and a cash yield of 22.1% in the March quarter [10] Market Data and Key Metrics Changes - The company held 122 portfolio companies with a fair value of $7.8 billion, an increase of approximately $175 million from the prior quarter [22] - Asset concentration in the energy industry was 1.4%, with minimal exposure in the hotel, restaurant, leisure, and retail sectors at 0.3% each [23] Company Strategy and Development Direction - The company is focusing on distressed sellers to capitalize on opportunities for recapitalization and liquidity generation [26] - The investment strategy includes a significant focus on preferred equity structures with third-party capital support [25] - The company has locked in a ladder of liabilities extending 28 years into the future, demonstrating balance sheet strength and liquidity [12] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of prudent leverage and diversified access to funding, which positions the company well to capitalize on attractive opportunities [12] - The company noted that its structured credit business has delivered attractive cash yields, highlighting the benefits of strong collateral underwriting and favorable risk-adjusted opportunities [28] Other Important Information - The company has raised $1.8 billion in aggregate issuance of perpetual preferred stock, including $69.4 million in the March 2024 quarter [6] - The company has five investment-grade ratings, more than any other company in its industry, which has helped reduce counterparty risk [5] Q&A Session Summary Question: What is the company's outlook on future distributions? - The company plans to announce monthly common shareholder distributions of $0.06 per share for May, June, July, and August, with the next set of distributions to be announced in August [20]

Exhibit 99.1 Prospect Capital Announces March 2024 Financial Results and Declares 84 Consecutive $0.06 Dividend th NEW YORK, May 8, 2024 (GLOBE NEWSWIRE) – Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect", "our", or "we") today announced financial results for our fiscal quarter ended March 31, 2024. FINANCIAL RESULTS | All amounts in $000's except | Quarter Ended | | Quarter Ended | Quarter | | | Ended | | --- | --- | --- | --- | --- | --- | --- | --- | | per share amounts (on weighted average basis ...

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, 2024 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 Id ...

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) | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------|----------------------------------------|----------------------------------------------------------- ...