Prospect Capital(US:PSEC)2026-02-09 21:06Investment Activity - For the three months ended December 31, 2025, the company acquired $13,290 in new investments and completed follow-on investments totaling approximately $37,818, resulting in gross investment originations of $80,434[575]. - The company received full repayments totaling $17,200 and additional repayments of approximately $79,266 during the same period, with no sales of investments[576]. - As of December 31, 2025, the company had $6,441,536, or 217.7% of its net assets applicable to common shares, invested in 91 portfolio investments and CLOs[586]. - The company focused on secured lending, with total investments in portfolio companies for the six months ended December 31, 2025, at $172,001 million, down from $425,595 million in the same period of 2024[596]. - Total investments repaid or sold during the six months ended December 31, 2025, were $313,926 million, compared to $665,691 million in the prior year, indicating a substantial reduction[596]. Portfolio Valuation - As of December 31, 2025, the total investments amount to $6,389,615, with a fair value of $6,441,536, showing a slight decrease from $6,693,501 and $6,673,516 as of June 30, 2025[591]. - The total valuation of the company's investments was $6,441,536, determined through various valuation techniques including discounted cash flow models[607]. - The fair value of the investment in NPRC had an amortized cost of $903,670 and a fair value of $1,173,262 as of December 31, 2025[619]. - The fair value of NPRC's real estate portfolio was $1,164,472, comprising various multi-family and commercial properties[619]. - The company recorded fluctuations in valuations of controlled companies during the six months ended December 31, 2025, due to changes in operating results and market multiples[609]. Debt and Financing - The total outstanding debt as of December 31, 2025, was $1,868,140, with a net carrying value of $1,847,696[639]. - The company issued approximately $167,637 in aggregate principal amount of the 5.50% 2030 Notes, generating net proceeds of approximately $159,531[581]. - The company issued $325,000 aggregate principal amount of unsecured notes maturing on January 22, 2026, with total proceeds of $317,720[647]. - The company issued $300,000 aggregate principal amount of 3.364% 2026 Notes, with net proceeds of $293,283 after costs[651]. - The company amended several loan agreements, extending maturity dates for key loans, including the National Property REIT Corp. to March 31, 2027, and USG Intermediate, LLC to February 9, 2029[598][599]. Income and Expenses - Total investment income for the six months ended December 31, 2025 was $333,626, down from $381,774 in the same period of 2024[665]. - Total operating expenses for the three months ended December 31, 2025, were $85,114, down from $99,035 in 2024, indicating a reduction of 14.1%[676]. - Interest expense for the three months ended December 31, 2025, was $27,559, compared to $32,508 in 2024, showing a decrease of 15.1%[683]. - The weighted average interest rate earned on performing interest-bearing investments increased to 10.26% for the three months ended December 31, 2025, up from 9.40% for the same period in 2024[668]. - Non-recurring income for the three months ended December 31, 2025, was $26,896, up from $16,967 in 2024, reflecting a $9,929 increase driven by higher dividend income[673]. Preferred Stock and Equity - The company is offering up to 90,000,000 shares of preferred stock with a liquidation preference of $25.00 per share[710]. - The Series A Preferred Stock ranks senior to common stock and on parity with other series of preferred stock regarding dividend payments and liquidation rights[728]. - The company has adopted a preferred stock dividend reinvestment plan allowing holders to reinvest dividends at a price of $25.00 for certain preferred stocks[713]. - The company has covenanted to waive redemption limits for the Floating Rate Preferred Stock, allowing additional redemption capacity[720]. - The company filed a registration statement on Form N-2 to issue an indeterminate amount of securities, including common and preferred stock[709]. Changes in Net Asset Value - The net asset value applicable to common stockholders decreased by $30,017, resulting in a net asset value per common share of $6.21 as of December 31, 2025[664]. - The common stockholders' equity accounts reflect cumulative shares issued, net of shares previously repurchased, as of December 31, 2025, and June 30, 2025[754]. - Stockholders authorized the company to sell shares of common stock below net asset value per share, with conditions that sales do not exceed 25% of outstanding common stock on any given date[756]. - The company has reserved 550,000,000 shares of common stock for issuance upon conversion of the 5.50% and 6.50% Preferred Stock[757]. - The company did not exercise any option to convert other series of outstanding preferred stock to common stock while the Series A Preferred Stock is outstanding[751].