Prospect Capital Announces June 2024 Financial Results and Declares 86th Consecutive $0.06 Dividend

Core Insights - Prospect Capital Corporation reported financial results for the fiscal quarter and year ended June 30, 2024, marking its 20th anniversary as a leading provider of private debt and equity to U.S. middle-market companies [1][2]. Financial Performance - Total assets amounted to $7.9 billion, with a net investment income (NII) of $102.9 million for the quarter ended June 30, 2024, compared to $112.8 million for the same quarter in 2023 [6][8]. - NII per common share was $0.25 for the quarter, down from $0.28 year-over-year [6][8]. - The company reported a net income applicable to common shareholders of $147.4 million for the fiscal year, a significant recovery from a loss of $172.5 million in the previous year [8][39]. Investment Strategy - 81% of the portfolio is in first lien, secured, or underlying secured assets, with a diversified strategy including middle-market lending (52%), buyouts (19%), real estate (19%), and subordinated structured notes (7%) [2][5]. - Prospect has invested $20.9 billion across 423 investments since inception, with 303 exits [2][12]. Cash Distributions - Cumulative distributions to common shareholders since 2004 total $4.3 billion, equating to $21.12 per share, which is 2.4 times the June 2024 NAV per share [4][11]. - The company declared monthly cash distributions of $0.06 per share for September and October 2024, marking the 85th and 86th consecutive distributions at this rate [9][10]. Credit Facility and Liquidity - On June 28, 2024, Prospect completed an amended and extended credit facility with $2.1 billion in commitments from 48 commercial banks, increasing by $168 million since March 31, 2024 [3][23]. - The balance sheet cash and undrawn revolving credit facility commitments totaled approximately $1.4 billion as of August 27, 2024 [22][25]. Portfolio Update - As of June 30, 2024, total investments at fair value were $7.7 billion, with a current yield of 9.8% across all investments [15][20]. - The weighted average EBITDA of the middle-market loan portfolio companies was $107.3 million, with a weighted average net leverage ratio of 5.5x [10][45]. Market Position - Prospect has maintained higher total returns of 38.7% over five years compared to the publicly-traded BDC median of 37.0% [5]. - The company holds investment-grade ratings from multiple agencies, including S&P and Moody's, reflecting its strong asset and risk management [30].