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

Prospect Capital Corporation (NASDAQ:PSEC) Q2 2024 Earnings Conference Call November 9, 2024 9:00 AM ET Company Participants John Barry - Chairman & Chief Executive Officer Kristin Van Dask - Chief Financial Officer Grier Eliasek - President & Chief Operating Officer Conference Call Participants Finian O'Shea - Wells Fargo Robert J. Dodd - Raymond James. Operator Good day, and welcome to the Prospect Capital Second Quarter Fiscal Year 2024 Earnings Release and Conference Call. All participants will be in li ...

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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 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 organization) 10 East ...