Prospect Capital(US:PSEC)2025-11-06 21:18Investment Activity - For the three months ended September 30, 2025, the company acquired $20,048 in new investments and completed follow-on investments totaling approximately $50,170, resulting in gross investment originations of $91,567[515]. - The company received full repayments totaling $82,219 and recorded repayments of approximately $234,660 during the same period[515]. - Total investments in portfolio companies decreased to $91,567 in Q3 2025 from $290,639 in Q3 2024, representing a decline of 68.5%[530]. - Investments in new portfolio companies significantly dropped to $20,048 in Q3 2025 compared to $213,056 in Q3 2024, a decrease of 90.6%[530]. - Total investments repaid or sold increased to $234,660 in Q3 2025 from $282,328 in Q3 2024, marking a rise of 18.5%[530]. Portfolio Composition - As of September 30, 2025, the company has $6,513,456, or 216.8% of its net assets applicable to common shares, invested in 92 portfolio investments and CLOs[522]. - As of September 30, 2025, total investments amounted to $6,532,842, with a portfolio fair value of $6,513,456, showing a slight increase from $6,693,501 and $6,673,516 as of June 30, 2025[526]. - Control investments represented 52.3% of the portfolio fair value at $3,710,632, while non-control/non-affiliate investments accounted for 47.5% at $2,772,003 as of September 30, 2025[526]. - The consumer finance sector represented 11.4% of the total investments with a fair value of $1,047,551, an increase from 16.1% as of June 30, 2025[528]. - Residential real estate investment trusts (REITs) accounted for 14.2% of the portfolio fair value at $1,245,263, down from 19.1% in the previous quarter[528]. Investment Performance - The annualized current yield across all performing interest-bearing investments was 11.8% as of September 30, 2025, compared to 12.2% as of June 30, 2025[523]. - The total interest-bearing investments reached $5,554,987, with a fair value of $5,068,460 as of September 30, 2025[527]. - Investment income for the three months ended September 30, 2025, was $157,624, a decrease of 19.7% from $196,308 in 2024[584]. - Net investment income decreased to $79,350 for the three months ended September 30, 2025, down 11.4% from $89,877 in 2024[584]. - The net change in unrealized gains for the portfolio was $599 for the three months ended September 30, 2025, a significant improvement from a loss of $123,767 in the same period of 2024[604]. Debt and Financing - As of September 30, 2025, the company's debt consists of a Revolving Credit Facility, Public Notes, and Prospect Capital InterNotes®[564]. - As of September 30, 2025, the total outstanding debt was $1,935,415, with a net carrying value of $1,921,191[565]. - The Revolving Credit Facility has commitments of $2,121,500, with an accordion feature allowing increases up to $2,250,000, maturing on June 28, 2029[569]. - The company borrowed $215,000 and made repayments totaling $387,743 under the Revolving Credit Facility during the three months ended September 30, 2025[610]. - The company has $678,827 available for borrowing under the Revolving Credit Facility as of September 30, 2025[570]. Preferred Stock and Dividends - The company is no longer offering several series of preferred stock, focusing on the 7.50% Preferred Stock for future offerings[613]. - The preferred stock dividend reinvestment plan allows holders to reinvest dividends at a price of $25.00 for certain series and $23.75 for others if they elect to do so[616]. - The company declared monthly dividends for its 7.50% Preferred Stock at $0.156250 per share for December 2025, January 2026, and February 2026[657]. - The company announced monthly dividends for its Floating Rate Preferred Stock at $0.135417 per share for December 2025, January 2026, and February 2026[657]. - The company’s common stock dividends are set at $0.0450 per share for November 2025, December 2025, and January 2026[658]. Risk and Compliance - The company is subject to financial market risks, including changes in interest rates and equity price risk, due to geopolitical uncertainties[678]. - Interest rate sensitivity may materially affect the company's net investment income due to floating interest rates on loans[679]. - The company is in compliance with the financial covenants of the Deed of Trust as of September 30, 2025[661]. - Legal and other restrictions on resale may affect the liquidity of the company's investments[675]. - Changes in the market environment may cause realized gains or losses on investments to differ from unrealized gains or losses[676].