# EDGAR Filing Document

**Accession Number:** 0001287032
**File Stem:** 0001287032-23-000037
**Filing Date:** 2023-2
**Character Count:** 48050
**Document Hash:** e255e9fe8a91dc5aca24c21a36e59588
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001287032-23-000037.hdr.sgml**: 20230208

**ACCESSION NUMBER**: 0001287032-23-000037

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230208

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230208

**DATE AS OF CHANGE**: 20230208

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PROSPECT CAPITAL CORP
- **CENTRAL INDEX KEY:** 0001287032
- **IRS NUMBER:** 432048643
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 814-00659
- **FILM NUMBER:** 23600108

**BUSINESS ADDRESS:**
- **STREET 1:** 10 EAST 40TH STREET 44TH FL
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10016
- **BUSINESS PHONE:** 212-448-0702

**MAIL ADDRESS:**
- **STREET 1:** 10 EAST 40TH STREET 44TH FL
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10016

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PROSPECT ENERGY CORP
- **DATE OF NAME CHANGE:** 20040623

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PROSPECT STREET ENERGY CORP
- **DATE OF NAME CHANGE:** 20040414

?xml version="1.0" ? psec-20230208

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM 8-K** 

**CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** 

**Date of Report (Date of Earliest Event Reported): February 8, 2023**

**Prospect Capital Corporation**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Maryland** | **814-00659** | **43-2048643** |
| (State or other jurisdiction | (Commission File Number) | (IRS Employer |
| of incorporation) | | Identification No.) |

---

**10 East 40th Street, 42nd Floor, New York, New York 10016**

(Address of principal executive offices, including zip code)

**(212) 448-0702**

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading symbol</u>** | **<u>Name of each exchange on which registered</u>** |
| Common Stock, $0.001 par value | PSEC | NASDAQ Global Select Market |
| 5.35% Series A Fixed Rate Cumulative Perpetual Preferred Stock, par value $0.001 | PSEC PRA | New York Stock Exchange |

---

------

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company □

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

------

**Item 2.02. Results of Operations and Financial Condition.**

On February 8, 2023, the registrant issued a press release announcing its financial results for its fiscal quarter ended December 31, 2022. The text of the press release is included as Exhibit 99.1 to this Form 8-K.

The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

**Item 7.01. Regulation FD Disclosure.**

On February 8, 2023, the registrant issued a press release, included herewith as Exhibit 99.1, and by this reference incorporated herein, announcing the declaration of monthly cash distributions to common shareholders in the following amounts and with the following record and payment dates:

---

| | | | |
|:---|:---|:---|:---|
| **Monthly Cash Common Shareholder Distribution** | **Record Date** | **Payment Date** | **Amount ($ per share)** |
| February 2023 | 2/24/2023 | 3/22/2023 | $0.0600 |
| March 2023 | 3/29/2023 | 4/19/2023 | $0.0600 |
| April 2023 | 4/26/2023 | 5/18/2023 | $0.0600 |

---

On February 8, 2023, the registrant issued a press release, included herewith as Exhibit 99.1, and by this reference incorporated herein, announcing distributions to 5.50% preferred shareholders based on an annual rate equal to 5.50% of the stated value of $25 per share, from the date of issuance or, if later, from the most recent dividend payment date, as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Monthly Cash 5.50% Preferred Shareholder Distribution** | **Record Date** | **Payment Date** | **Monthly Amount ($ per share), before pro ration for partial periods** |
| March 2023 | 3/22/2023 | 4/3/2023 | $0.114583 |
| April 2023 | 4/19/2023 | 5/1/2023 | $0.114583 |
| May 2023 | 5/17/2023 | 6/1/2023 | $0.114583 |

---

On February 8, 2023, the registrant issued a press release, included herewith as Exhibit 99.1, and by this reference incorporated herein, announcing distributions to 6.50% preferred shareholders based on an annual rate equal to 6.50% of the stated value of $25 per share, from the date of issuance or, if later, from the most recent dividend payment date, as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Monthly Cash 6.50% Preferred Shareholder Distribution** | **Record Date** | **Payment Date** | **Monthly Amount (per share), before pro ration for partial periods** |
| March 2023 | 3/22/2023 | 4/3/2023 | $0.135417 |
| April 2023 | 4/19/2023 | 5/1/2023 | $0.135417 |
| May 2023 | 5/17/2023 | 6/1/2023 | $0.135417 |

---

------

On February 8, 2023, the registrant issue a press release, included herewith as Exhibit 99.1, and by this reference incorporated herein, announcing distribution to Series A preferred shareholders at an annual rate of 5.35% of the stated value of $25.00 per share, from the date of issuance as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Quarterly Cash 5.35% Preferred Shareholder Distribution** | **Record Date** | **Payment Date** | **Amount ($ per share)** |
| February 2023 - April 2023 | 4/19/2023 | 5/1/2023 | $0.334375 |

---

The information disclosed under this Item 7.01, including Exhibit 99.1 hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

------

**Item 9.01. Financial Statements and Exhibits**

(d) Exhibits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.1&nbsp;&nbsp;&nbsp;&nbsp;Press Release, dated February 8, 2023

------

**SIGNATURE**

&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

Prospect Capital Corporation

By:&nbsp;&nbsp;&nbsp;&nbsp; <u>/s/ M. Grier Eliasek</u> 

Name: M. Grier Eliasek

Title: Chief Operating Officer

Date: February 8, 2023

------

**Index to Exhibits**

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Description** |
| <u>[99.1](a2022-12x31xpsecearningsre.htm)</u> | <u>[Press Release, dated February 8, 2023](a2022-12x31xpsecearningsre.htm)</u> |

---

## Exhibit 99.1

&nbsp;&nbsp;&nbsp;&nbsp;

**Prospect Capital Announces December 2022 Results: $0.23 per Common Share Basic Net Investment Income and Stable Monthly $0.06 per Common Share Distributions**

NEW YORK, February 8, 2023 (GLOBE NEWSWIRE) – Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect", "our", or "we") today announced financial results for our fiscal quarter ended December 31, 2022.

**FINANCIAL RESULTS**

---

| | | | |
|:---|:---|:---|:---|
| <br>*All amounts in $000's except<br> per share amounts (on weighted average*<br>&nbsp;&nbsp;&nbsp;&nbsp;*basis for period numbers)* | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| <br>*All amounts in $000's except<br> per share amounts (on weighted average*<br>&nbsp;&nbsp;&nbsp;&nbsp;*basis for period numbers)* | **December 31, 2022** | **September 30, 2022** | **December 31, 2021** |
| Net Investment Income ("NII") | $106704 | $99266 | $85557 |
| Basic NII per Common Share<sup>(1)</sup> | $0.23 | $0.22 | $0.20 |
| Interest as % of Total Investment Income | 89.6% | 86.0% | 81.1% |
| Basic NII Coverage of Distributions to Common Shareholders | 128% | 122% | 111% |
| Annualized Basic NII Return on Common NAV | 9.3% | 8.8% | 7.5% |
| Net Income (Loss) Applicable to Common Stockholders | $55623 | $(105199) | $246411 |
| Basic Net Income (Loss) per Common Share<sup>(2)</sup> | $0.14 | $(0.27) | $0.63 |
| Distributions to Common Shareholders | $71670 | $71072 | $70240 |
| Distributions per Common Share | $0.18 | $0.18 | $0.18 |
| Since Oct 2017 Basic NII per Common Share<sup>(1)</sup> | $4.20 | $3.97 | $3.37 |
| Since Oct 2017 Distributions per Common Share | $3.78 | $3.60 | $3.09 |
| Since Oct 2017 Basic NII Less Distributions per Common Share | $0.42 | $0.37 | $0.28 |
| Since Oct 2017 Basic NII Coverage of Distributions to Common Shareholders | 111% | 110% | 109% |
| Net Asset Value ("NAV") to Common Shareholders | $3966391 | $3964422 | $4140128 |
| NAV per Common Share | $9.94 | $10.01 | $10.60 |
| Net of Cash Debt to Equity Ratio<sup>(3)</sup> | 49.4% | 53.5% | 51.3% |
| Net of Cash Asset Coverage of Debt Ratio<sup>(3)</sup> | 301% | 286% | 293% |
| Unsecured Debt as % of Total Debt | 71.3% | 70.0% | 80.3% |
| Unsecured or Non-Recourse Debt as % of Total Debt | 100.0% | 100.0% | 100.0% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup>Basic NII is calculated by dividing NII, less preferred dividends, by the weighted average number of common shares outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup>Basic Net Income (Loss) is calculated by dividing Net Income (Loss) by the weighted average number of common shares outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(3)</sup>Including our preferred stock as equity.

------

**CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION**

Prospect is declaring distributions to common shareholders as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Monthly Cash Common Shareholder Distribution** | **Record Date** | **Payment Date** | **Amount (per share)** |
| February 2023 | 2/24/2023 | 3/22/2023 | $0.0600 |
| March 2023 | 3/29/2023 | 4/19/2023 | $0.0600 |
| April 2023 | 4/26/2023 | 5/18/2023 | $0.0600 |

---

These monthly cash distributions are the 66<sup>th</sup>, 67<sup>th</sup>, and 68<sup>th</sup> consecutive $0.06 per share distributions to common shareholders.

Prospect expects to declare May 2023, June 2023, July 2023, and August 2023 distributions to common shareholders in May 2023.

Based on the declarations above, Prospect's closing stock price of $7.51 at February 7, 2023 delivers to our common shareholders an annualized distribution yield of 9.6% and an annualized basic NII yield of 12.3%, representing 128% basic NII coverage of common distributions.

Taking into account past distributions and our current share count for declared distributions, since inception through our April 2023 declared distribution, Prospect will have distributed $20.04 per share to original common shareholders, representing 2.0 times December 2022 common NAV, aggregating over $3.87 billion in cumulative distributions to all common shareholders.

Since inception in 2004, Prospect has invested $20 billion across 407 investments, exiting 275 of these investments.

Over the eleven quarters from the pre-pandemic December 2019 quarter to the September 2022 quarter, Prospect delivered the highest growth of net asset value per common share in the business development company industry, with NAV per common share increasing by 15.6% over that time period.

Since October 2017, our NII per common share has aggregated $4.20 while our common shareholder and preferred shareholder distributions per common share have aggregated $3.78, with our NII exceeding common and preferred distributions during this period by $0.42 per common share and representing 111% coverage.

Drivers focused on enhancing accretive NII per share growth include (1) our $1.75 billion targeted 6.50% perpetual preferred stock offerings (which could potentially be increased in capacity in an accretive fashion), (2) greater utilization of our cost efficient revolving credit facility (with an incremental cost of approximately 5.91% at today's one month SOFR), (3) increase of short-term Libor and SOFR rates based on Fed tightening to boost asset yields, and (4) increased primary and secondary originations of senior secured debt and selected equity investments targeting attractive risk-adjusted yields and total returns as we deploy dry powder from our underleveraged balance sheet.

Our senior management team and employees own approximately 28% of all common shares outstanding, approximately $1.1 billion of our common equity as measured at NAV.

---

| | | |
|:---|:---|:---|
| All amounts in $000's except<br>per share amounts | **Six Months Ended** | **Six Months Ended** |
| All amounts in $000's except<br>per share amounts | **December 31, 2022** | **December 31, 2021** |
| Net Investment Income ("NII") | $205970 | $166926 |
| Basic NII per Common Share | $0.45 | $0.40 |
| Net Income Applicable to Common Stockholders | $(49576) | $456135 |
| Basic Net Income per Common Share | $(0.13) | $1.17 |

---

------

---

| | | |
|:---|:---|:---|
| Distributions to Common Shareholders | $142742 | $140283 |
| Distributions per Common Share | $0.36 | $0.36 |

---

**CASH PREFERRED SHAREHOLDER DISTRIBUTION DECLARATION**

Prospect is declaring monthly distributions to 5.50% preferred shareholders at an annual rate of 5.50% of the stated value of $25.00 per share, from the date of issuance or, if later, from the most recent dividend payment date (the first business day of the month, with no additional dividend accruing in April as a result), as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Monthly Cash 5.50% Preferred Shareholder Distribution** | **Record Date** | **Payment Date** | **Monthly Amount (per share), before pro ration for partial periods** |
| March 2023 | 3/22/2023 | 4/3/2023 | $0.114583 |
| April 2023 | 4/19/2023 | 5/1/2023 | $0.114583 |
| May 2023 | 5/17/2023 | 6/1/2023 | $0.114583 |

---

Prospect is declaring monthly distributions to 6.50% preferred shareholders at an annual rate of 6.50% of the stated value of $25.00 per share, from the date of issuance or, if later, from the most recent dividend payment date (the first business day of the month, with no additional dividend accruing in April as a result), as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Monthly Cash 6.50% Preferred Shareholder Distribution** | **Record Date** | **Payment Date** | **Monthly Amount (per share), before pro ration for partial periods** |
| March 2023 | 3/22/2023 | 4/3/2023 | $0.135417 |
| April 2023 | 4/19/2023 | 5/1/2023 | $0.135417 |
| May 2023 | 5/17/2023 | 6/1/2023 | $0.135417 |

---

Prospect is declaring our second quarterly distribution to Series A preferred shareholders at an annual rate of 5.35% of the stated value of $25.00 per share, from the date of issuance or, if later, from the most recent dividend payment date, as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Quarterly Cash 5.35% Preferred Shareholder Distribution** | **Record Date** | **Payment Date** | **Amount (per share)** |
| February 2023 - April 2023 | 4/19/2023 | 5/1/2023 | $0.334375 |

---

------

**PORTFOLIO UPDATE AND INVESTMENT ACTIVITY**

---

| | | |
|:---|:---|:---|
| All amounts in $000's except<br> per unit amounts | **As of** | **As of** |
| All amounts in $000's except<br> per unit amounts | **December 31, 2022** | **September 30, 2022** |
| Total Investments (at fair value) | $7770336 | $7582665 |
| Number of Portfolio Companies | 130 | 128 |
| First Lien Debt | 53.0% | 51.8% |
| Second Lien Debt | 18.5% | 19.0% |
| Subordinated Structured Notes | 9.0% | 9.2% |
| Unsecured Debt | 0.2% | 0.1% |
| Equity Investments | 19.3% | 19.9% |
| Mix of Investments with Underlying Collateral Security | 80.5% | 80.0% |
| Annualized Current Yield – All Investments | 10.3% | 9.9% |
| Annualized Current Yield – Performing Interest Bearing Investments | 12.9% | 12.4% |
| Top Industry Concentration<sup>(1)</sup> | 17.7% | 18.6% |
| Retail Industry Concentration<sup>(1)</sup> | 0.4% | 0.4% |
| Energy Industry Concentration<sup>(1)</sup> | 1.6% | 1.6% |
| Hotels, Restaurants & Leisure Concentration<sup>(1)</sup> | 0.3% | 0.3% |
| Non-Accrual Loans as % of Total Assets <sup>(2)</sup> | 0.5% | 0.3% |
| Middle-Market Loan Portfolio Company Weighted Average EBITDA<sup>(3)</sup> | $111925 | $114238 |

---

As of the quarter ended December 31, 2022, our middle-market loan portfolio company weighted average net debt leverage ratio was 5.41x.<sup>(3)</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup>Excluding our underlying industry-diversified structured credit portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup>Calculated at fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(3)</sup>For additional disclosure see "Middle-Market Loan Portfolio Company Weighted Average EBITDA and Net Leverage" at the end of this release.

------

During the March 2023 (to date), December 2022, and September 2022 quarters, investment originations and repayments were as follows:

---

| | | | |
|:---|:---|:---|:---|
| All amounts in $000's | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| All amounts in $000's | **March 31, 2023 (to date)** | **December 31, 2022** | **September 30, 2022** |
| Total Originations | $25580 | $307981 | $304530 |
| Middle-Market Lending | 51.1% | 86.6% | 69.6% |
| Real Estate | 48.9% | 8.5% | 11.9% |
| Middle-Market Lending / Buyout | —% | 3.5% | 4.9% |
| Structured Notes | —% | 1.4% | 13.6% |
| Other | —% | —% | —% |
| Total Repayments | $40117 | $76732 | $150463 |
| Originations, Net of Repayments | $(14537) | $231249 | $154067 |

---

For additional disclosure see "Primary Origination Strategies" at the end of this release.

------

We have invested in subordinated structured notes benefiting from individual standalone financings non-recourse to Prospect, with our risk limited in each case to our net investment. At December 31, 2022 and September 30, 2022, our subordinated structured note portfolio at fair value consisted of the following:

---

| | | |
|:---|:---|:---|
| All amounts in $000's except<br> per unit amounts | **As of** | **As of** |
| All amounts in $000's except<br> per unit amounts | **December 31, 2022** | **September 30, 2022** |
| Total Subordinated Structured Notes | $698957 | $695292 |
| Subordinated Structured Notes as % of Portfolio | 9.0% | 9.2% |
| # of Investments<sup>(2)</sup> | 37 | 37 |
| TTM Average Cash Yield<sup>(1)(2)</sup> | 17.9% | 20.6% |
| Annualized Cash Yield<sup>(1)(2)</sup> | 11.6% | 17.2% |
| Annualized GAAP Yield on Fair Value<sup>(1)(2)</sup> | 14.9% | 13.2% |
| Annualized GAAP Yield on Amortized Cost<sup>(2)</sup> | 10.6% | 9.3% |
| Cumulative Cash Distributions on Current Portfolio | $1473278 | $1452967 |
| % of Original Investment | 108.4% | 106.9% |
| # of Underlying Collateral Loans | 1657 | 1670 |
| Total Asset Base of Underlying Portfolio | $15358286 | $15440229 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup>Calculation based on fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup>Excludes investments being redeemed.

To date we have exited 11 subordinated structured notes with an expected pooled average realized gross IRR of 15.2% and cash on cash multiple of 1.44 times.

Since December 31, 2017 through today, 32 of our subordinated structured note investments have completed multi-year extensions of their reinvestment periods (typically at reduced liability spreads and increased weighted average life asset benefits). We believe further long-term optionality upside exists in our structured credit portfolio through additional refinancings and reinvestment period extensions.

------

**CAPITAL AND LIQUIDITY** 

Our multi-year, long-term laddered and diversified historical funding profile has included a $1.70 billion revolving credit facility (with 49 lenders, an increase of 7 lenders including our prior September 2022 extension and related upsizing), program notes, institutional bonds, convertible bonds, listed preferred stock, and program preferred stock. We have retired multiple upcoming maturities and as of today we have $282,115 of debt maturing in calendar year 2023. The combined amount of our balance sheet cash and undrawn revolving credit facility commitments is currently over $1 billion.

On September 15, 2022, we completed an amendment and upsizing of our existing revolving credit facility (the "Facility") for Prospect Capital Funding, extending the term 1.5 years. The Facility includes a revolving period that extends through September 15, 2026, followed by an additional one-year amortization period. Pricing for amounts drawn under the Facility is one-month SOFR plus 2.05%.

Our total unfunded eligible commitments to non-control portfolio companies totals approximately $84 million, 1.1% of our total assets as of December 31, 2022.

---

| | | |
|:---|:---|:---|
|<br>All amounts in $000's | **As of**<br>**December 31, 2022** | **As of**<br>**September 30, 2022** |
| Net of Cash Debt to Equity Ratio<sup>(1)</sup> | 49.4% | 53.5% |
| % of Interest-Bearing Assets at Floating Rates | 82.6% | 88.2% |
| % of Liabilities at Fixed Rates | 71.3% | 70.0% |
| % of Floating Loans with Libor or SOFR Floors | 94.1% | 94.3% |
| Weighted Average Libor/SOFR Floor | 1.20% | 1.26% |
| Unencumbered Assets | $5238560 | $4965086 |
| % of Total Assets | 66.4% | 64.8% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup>Including our preferred stock as equity.

------

The below table summarizes our December 2022 quarter term debt issuance and repurchase/repayment activity:

---

| | | | |
|:---|:---|:---|:---|
| All amounts in $000's | **Principal** | **Coupon** | **Maturity** |
| **Debt Issuances** |  |  |  |
| &nbsp;&nbsp;&nbsp;Prospect Capital InterNotes® | $2852 | 5.00% - 5.95% | October 2025 – December 2032 |
| **Total Debt Issuances** | **$2852** |  |  |
| **Debt Repurchases/Repayments** |  |  |  |
| &nbsp;&nbsp;&nbsp;Prospect Capital InterNotes® | $1851 | 2.40% - 6.625% | May 2026 – December 2051 |
| &nbsp;&nbsp;&nbsp;2023 Notes | $1757 | 5.875% | March 2023 |
| **Total Debt Repurchases/Repayments** | **$3608** |  |  |
| **Net Debt Repurchases/Repayments** | **$(756)** |  |  |

---

We currently have six separate unsecured debt issuances aggregating over $1.5 billion outstanding, not including our program notes, with laddered maturities extending through October 2028. At December 31, 2022, $350.0 million of program notes were outstanding with laddered maturities through March 2052.

At December 31, 2022, our weighted average cost of unsecured debt financing was 4.33%, remaining constant from September 30, 2022, and a decrease of 0.06% from December 31, 2021.

On August 3, 2020 and October 3, 2020, we launched our $1.75 billion 5.50% perpetual preferred stock offering programs. On October 7, 2022, we amended our existing $1.75 billion in perpetual preferred stock offering programs to offer new 6.50% series of shares. Prospect expects to use the net proceeds from the offering programs to maintain and enhance balance sheet liquidity, including repaying our credit facility and purchasing high quality short-term debt instruments, and to make long-term investments in accordance with our investment objective. The preferred stock provides Prospect with a diversified source of accretive fixed-rate capital without creating maturity risk due to the perpetual term. To date we have issued over $1.2 billion of our 6.50% and 5.50% perpetual preferred stock programs (including $298 million in the December 2022 quarter and, to date, $70 million in the current March 2023 quarter), with the ability potentially to upsize such programs based on significant balance sheet capacity.

On July 19, 2021, we closed a $150 million listed 5.35% perpetual preferred stock offering. Prospect used the net proceeds from the offering to maintain and enhance balance sheet liquidity, including repaying our credit facility and redeeming higher cost program notes.

In connection with the 5.50% perpetual preferred stock offering program, effective August 3, 2020 and as amended on June 9, 2022, we adopted and amended, respectively, a Preferred Stock Dividend Reinvestment Plan, pursuant to which holders of the preferred stock will have dividends on their preferred stock automatically reinvested in additional shares of such preferred stock at a price per share of $25.00, if they elect.

In connection with the 6.50% perpetual preferred stock offering program, effective October 7, 2022 we adopted a Preferred Stock Dividend Reinvestment Plan, pursuant to which holders of the preferred stock will have dividends on their preferred stock automatically reinvested in additional shares of such preferred stock at a price per share of $25.00, if they elect.

We currently have approximately $1.4 billion in preferred stock outstanding.

------

Prospect holds recently reaffirmed investment grade company ratings, all with a stable outlook, from Standard & Poor's (BBB-), Moody's (Baa3), Kroll (BBB-), Egan-Jones (BBB), and DBRS (BBB (low)). Maintaining our investment grade ratings with prudent asset, liability, and risk management is an important objective for Prospect.

**DIVIDEND REINVESTMENT PLAN**

We have adopted a dividend reinvestment plan (also known as our "DRIP") that provides for reinvestment of our distributions on behalf of our shareholders, unless a shareholder elects to receive cash. On April 17, 2020, our board of directors approved amendments to the Company's DRIP, effective May 21, 2020. These amendments principally provide for the number of newly-issued shares pursuant to the DRIP to be determined by dividing (i) the total dollar amount of the distribution payable by (ii) 95% of the closing market price per share of our stock on the valuation date of the distribution (providing a 5% discount to the market price of our common stock), a benefit to shareholders who participate.

**<u>HOW TO PARTICIPATE IN OUR DIVIDEND REINVESTMENT PLAN</u>**

<u>Shares held with a broker or financial institution</u>

Many shareholders have been automatically "opted out" of our DRIP by their brokers. Even if you have elected to automatically reinvest your PSEC stock with your broker, your broker may have "opted out" of our DRIP (which utilizes DTC's dividend reinvestment service), and you may therefore not be receiving the 5% pricing discount. Shareholders interested in participating in our DRIP to receive the 5% discount should contact their brokers to make sure each such DRIP participation election has been made through DTC. In making such DRIP election, each shareholder should specify to one's broker the desire to participate in the *"Prospect Capital Corporation DRIP through DTC"* that issues shares based on 95% of the market price (a 5% discount to the market price) and not the broker's own "synthetic DRIP" plan (if any) that offers no such discount. Each shareholder should not assume one's broker will automatically place such shareholder in our DRIP through DTC. Each shareholder will need to make this election proactively with one's broker or risk not receiving the 5% discount. Each shareholder may also consult with a representative of such shareholder's broker to request that the number of shares the shareholder wishes to enroll in our DRIP be re-registered by the broker in the shareholder's own name as record owner in order to participate directly in our DRIP.

<u>Shares registered directly with our transfer agent</u> 

If a shareholder holds shares registered in the shareholder's own name with our transfer agent (less than 0.1% of our shareholders hold shares this way) and wants to make a change to how the shareholder receives dividends, please contact our plan administrator, American Stock Transfer and Trust Company LLC by calling (888) 888-0313 or by mailing American Stock Transfer and Trust Company LLC, 6201 15<sup>th</sup> Avenue, Brooklyn, New York 11219.

**EARNINGS CONFERENCE CALL**

Prospect will host an earnings call on Thursday **February 9, 2023** at **9:30 a.m.** Eastern Time. Dial **888-338-7333**. For a replay prior to March 9, 2023 visit www.prospectstreet.com or call 877-344-7529 with passcode 3454656.

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**PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES**

**(in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **June 30, 2022** |
| | **December 31, 2022** | **June 30, 2022** |
| | (Unaudited) | |
| **Assets** |  |  |
| Investments at fair value: |  |  |
| &nbsp;&nbsp;Control investments (amortized cost of $2,821,034 and $2,732,906, respectively) | $3457698 | $3438317 |
| &nbsp;&nbsp;Affiliate investments (amortized cost of $8,996 and $242,101, respectively) | 7944 | 393264 |
| &nbsp;&nbsp;Non-control/non-affiliate investments (amortized cost of $4,753,800 and $4,221,824, respectively) | 4304694 | 3770929 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments at fair value (amortized cost of $7,583,830 and $7,196,831, respectively) | 7770336 | 7602510 |
| Cash and Cash Equivalents | 70086 | 35364 |
| Receivables for: |  |  |
| &nbsp;&nbsp;&nbsp;Interest, net | 33709 | 12925 |
| &nbsp;&nbsp;&nbsp;Other | 974 | 745 |
| Deferred financing costs on Revolving Credit Facility | 14895 | 10801 |
| Prepaid expenses | 413 | 1078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Assets**  | 7890413 | 7663423 |
| **Liabilities**  |  |  |
| Revolving Credit Facility | 754305 | 839464 |
| Public Notes (less unamortized discount and debt issuance costs of $19,589 and $22,281, respectively)  | 1343766 | 1343178 |
| Prospect Capital InterNotes® (less unamortized debt issuance costs of $6,931 and $7,122, respectively)  | 343114 | 340442 |
| Convertible Notes (less unamortized discount and debt issuance costs of $2,024 and $2,477, respectively)  | 154144 | 214192 |
| Due to Prospect Capital Management | 61393 | 58100 |
| Dividends payable | 24036 | 23657 |
| Interest payable | 26386 | 26669 |
| Accrued expenses | 5410 | 3309 |
| Due to Prospect Administration | 3765 | 2281 |
| Other liabilities | 150 | 932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities**  | 2716469 | 2852224 |
| Commitments and Contingencies |  |  |
| Preferred Stock, par value $0.001 per share (387,900,000 and 227,900,000 shares of preferred stock authorized, with 60,000,000 as Series A1, 60,000,000 as Series M1, 60,000,000 as Series M2, 20,000,000 as Series AA1, 20,000,000 as Series MM1, 1,000,000 as Series A2, 6,900,000 as Series A, 60,000,000 and 0 as Series A3, 60,000,000 and 0 as Series M3, 20,000,000 and 0 as Series AA2, and 20,000,000 and 0 as Series MM2, each as of December 31, 2022 and June 30, 2022; 31,143,878 and 20,794,645 Series A1 shares issued and outstanding; 3,996,761 and 2,626,238 Series M1 shares issued and outstanding; 0 and 0 Series M2 shares issued and outstanding; 0 and 0 Series AA1 shares issued and outstanding; 0 and 0 Series MM1 shares issued and outstanding; 187,000 and 187,000 Series A2 shares issued and outstanding; 6,000,000 and 6,000,000 Series A shares issued and outstanding; 10,184,347 and 0 Series A3 shares issued and outstanding; 1,157,019 and 0 Series M3 shares issued and outstanding; 0 and 0 Series AA2 shares issued and outstanding; and 0 and 0 Series MM2 shares issued and outstanding as of December 31, 2022 and June 30, 2022) at carrying value plus cumulative accrued and unpaid dividends | 1207553 | 692076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Assets Applicable to Common Shares** | $3966391 | $4119123 |
| **Components of Net Assets Applicable to Common Shares and Net Assets, respectively** |  |  |
| Common stock, par value $0.001 per share (1,612,100,000 and 1,772,100,000 common shares authorized; 398,852,478 and 393,164,437 issued and outstanding, respectively) | 399 | 393 |
| Paid-in capital in excess of par | 4089950 | 4050370 |
| Total distributable (loss) earnings | (123958) | 68360 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Assets Applicable to Common Shares** | $3966391 | $4119123 |
| **Net Asset Value Per Common Share** | $9.94 | $10.48 |

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**PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(in thousands, except share and per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Six Months Ended December 31,** | **Six Months Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Investment Income** |  |  |  |  |
| Interest income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Control investments | $60820 | $57110 | $123083 | $112941 |
| &nbsp;&nbsp;&nbsp;Affiliate investments | 7573 | 6675 | 15034 | 16752 |
| &nbsp;&nbsp;&nbsp;Non-control/non-affiliate investments | 96436 | 60132 | 178134 | 117661 |
| &nbsp;&nbsp;&nbsp;Structured credit securities | 26047 | 18256 | 48943 | 41090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 190876 | 142173 | 365194 | 288444 |
| Dividend income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Control investments | 1170 | 5687 | 2357 | 6937 |
| &nbsp;&nbsp;&nbsp;Affiliate investments |  |  | 1374 |  |
| &nbsp;&nbsp;&nbsp;Non-control/non-affiliate investments | 1047 | 17 | 1387 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total dividend income | 2217 | 5704 | 5118 | 6971 |
| Other income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Control investments | 15030 | 11703 | 35695 | 28735 |
| &nbsp;&nbsp;&nbsp;Affiliate investments |  | 126 | 133 | 3942 |
| &nbsp;&nbsp;&nbsp;Non-control/non-affiliate investments | 4793 | 15670 | 9450 | 16758 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income | 19823 | 27499 | 45278 | 49435 |
| &nbsp;&nbsp;&nbsp;**Total Investment Income** | 212916 | 175376 | 415590 | 344850 |
| **Operating Expenses** |  |  |  |  |
| Base management fee | 38882 | 33843 | 77196 | 66046 |
| Income incentive fee | 22505 | 19589 | 44131 | 39329 |
| Interest and credit facility expenses | 37783 | 29679 | 71653 | 57717 |
| Allocation of overhead from Prospect Administration | 3618 | 2239 | 6717 | 6765 |
| Audit, compliance and tax related fees | 236 | 329 | 2537 | 946 |
| Directors' fees | 131 | 113 | 262 | 229 |
| Other general and administrative expenses | 3057 | 4027 | 7124 | 6892 |
| &nbsp;&nbsp;&nbsp;**Total Operating Expenses** | 106212 | 89819 | 209620 | 177924 |
| &nbsp;&nbsp;&nbsp;**Net Investment Income** | 106704 | 85557 | 205970 | 166926 |
| **Net Realized and Net Change in Unrealized Gains (Losses) from Investments** |  |  |  |  |
| Net realized gains (losses) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Control investments | (619) | 3 | (1712) | 6 |
| &nbsp;&nbsp;&nbsp;Affiliate investments | 16143 |  | 16143 |  |
| &nbsp;&nbsp;&nbsp;Non-control/non-affiliate investments | 774 | (9230) | (21310) | (9834) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized gains (losses) | 16298 | (9227) | (6879) | (9828) |
| Net change in unrealized (losses) gains |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Control investments | (21458) | 134066 | (68747) | 256396 |
| &nbsp;&nbsp;&nbsp;Affiliate investments | (18248) | 31589 | (89034) | 37626 |
| &nbsp;&nbsp;&nbsp;Non-control/non-affiliate investments | (10967) | 15479 | (61392) | 23832 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (losses) gains | (50673) | 181134 | (219173) | 317854 |
| **Net Realized and Net Change in Unrealized (Losses) Gains from Investments** | (34375) | 171907 | (226052) | 308026 |
| &nbsp;&nbsp;&nbsp;Net realized losses on extinguishment of debt | (52) | (3851) | (80) | (9208) |
| **Net Increase (Decrease) in Net Assets Resulting from Operations** | 72277 | 253613 | (20162) | 465744 |
| &nbsp;&nbsp;&nbsp;Preferred stock dividend | 16654 | 7202 | 29414 | 9609 |
| **Net Increase (Decrease) in Net Assets Resulting from Operations applicable to Common Stockholders** | $55623 | $246411 | $(49576) | $456135 |

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**PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES**

**ROLLFORWARD OF NET ASSET VALUE PER COMMON SHARE**

**(in actual dollars)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** | | **Six Months Ended December 31,** | **Six Months Ended December 31,** | **Six Months Ended December 31,** |
| | **2022** | | **2021** | | **2022** | | **2021** |
| **Per Share Data** |  |  |  |  |  |  |  |
| Net asset value per common share at beginning of period | $10.01 |  | $10.12 |  | $10.48 |  | $9.81 |
| Net investment income<sup>(1)</sup> | 0.27 |  | 0.22 |  | 0.52 |  | 0.43 |
| Net realized and change in unrealized (losses) gains<sup>(1)</sup> | (0.09) |  | 0.43 |  | (0.57) |  | 0.77 |
| Net increase (decrease) from operations | 0.18 |  | 0.65 |  | (0.05) |  | 1.20 |
| Distributions of net investment income to preferred stockholders | (0.04) |  | (0.02) |  | (0.07) |  | (0.03) |
| Net increase (decrease) from operations applicable to common stockholders<sup>(4)</sup> | 0.14 |  | 0.63 |  | (0.12) |  | 1.17 |
| Distributions of net investment income to common stockholders | (0.18) | (3) | (0.18) |  | (0.36) | (3) | (0.35) |
| Return of Capital to common stockholders |  | (3) |  |  |  | (3) | (0.01) |
| Common stock transactions<sup>(2)</sup> | (0.03) |  | (0.01) |  | (0.06) |  | (0.02) |
| Offering costs from issuance of preferred stock |  |  |  |  |  |  | (0.03) |
| Reclassification of preferred stock issuance costs |  |  | 0.03 |  |  |  | 0.03 |
| Net asset value per common share at end of period | $9.94 |  | $10.60 | (5) | $9.94 |  | $10.60 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Per share data amount is based on the weighted average number of common shares outstanding for the period presented (except for dividends to stockholders which is based on actual rate per share).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Common stock transactions include the effect of our issuance of common stock in public offerings (net of underwriting and offering costs), shares issued in connection with our common stock dividend reinvestment plan, common shares issued to acquire investments and common shares repurchased below net asset value pursuant to our Repurchase Program, and common shares issued pursuant to the Holder Optional Conversion of our 5.50% and 6.50% Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Not finalized for the respective fiscal period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Diluted net increase from operations applicable to common stockholders was $0.13 for the three months ended December 31, 2022. Diluted net increase from operations applicable to common stockholders was $0.61 for the three months ended December 31, 2021. Diluted net decrease from operations applicable to common stockholders was $0.13 for the six months ended December 31, 2022. Diluted net increase from operations applicable to common stockholders was $1.13 for the six months ended December 31, 2021. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Does not foot due to rounding.

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**MIDDLE-MARKET LOAN PORTFOLIO COMPANY WEIGHTED AVERAGE EBITDA AND NET LEVERAGE**

Middle-Market Loan Portfolio Company Weighted Average Net Leverage ("Middle-Market Portfolio Net Leverage") and Middle-Market Loan Portfolio Company Weighted Average EBITDA ("Middle-Market Portfolio EBITDA") provide clarity into the underlying capital structure of PSEC's middle-market loan portfolio investments and the likelihood that PSEC's overall portfolio will make interest payments and repay principal.

Middle-Market Portfolio Net Leverage reflects the net leverage of each of PSEC's middle-market loan portfolio company debt investments, weighted based on the current fair market value of such debt investments. The net leverage for each middle-market loan portfolio company is calculated based on PSEC's investment in the capital structure of such portfolio company, with a maximum limit of 10.0x adjusted EBITDA. This calculation excludes debt subordinate to PSEC's position within the capital structure because PSEC's exposure to interest payment and principal repayment risk is limited beyond that point. Additionally, subordinated structured notes, other structured credit, real estate investments, investments for which EBITDA is not available, and equity investments, for which principal repayment is not fixed, are also not included in the calculation. The calculation does not exceed 10.0x adjusted EBITDA for any individual investment because 10.0x captures the highest level of risk to PSEC. Middle-Market Portfolio Net Leverage provides PSEC with some guidance as to PSEC's exposure to the interest payment and principal repayment risk of PSEC's overall debt portfolio. PSEC monitors its Middle-Market Portfolio Net Leverage on a quarterly basis.

Middle-Market Portfolio EBITDA is used by PSEC to supplement Middle-Market Portfolio Net Leverage and generally indicates a portfolio company's ability to make interest payments and repay principal. Middle-Market Portfolio EBITDA is calculated using the EBITDA of each of PSEC's middle-market loan portfolio companies, weighted based on the current fair market value of the related investments. The calculation provides PSEC with insight into profitability and scale of the portfolio companies within our overall debt investments.

These calculations include addbacks that are typically negotiated and documented in the applicable investment documents, including but not limited to transaction costs, share-based compensation, management fees, foreign currency translation adjustments and other nonrecurring transaction expenses.

Together, Middle-Market Portfolio Net Leverage and Middle-Market Portfolio EBITDA assist PSEC in assessing the likelihood that PSEC will timely receive interest and principal payments. However, these calculations are not meant to substitute for an analysis of PSEC's our underlying portfolio company debt investments, but to supplement such analysis.

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**PRIMARY ORIGINATION STRATEGIES**

Middle-Market Lending - We make directly-originated, agented loans to companies, including companies which are controlled by private equity sponsors and companies that are not controlled by private equity sponsors (such as companies that are controlled by the management team, the founder, a family or public shareholders). This debt can take the form of first lien, second lien, unitranche or unsecured loans. These loans typically have equity subordinate to our loan position. We may also purchase selected equity co-investments in such companies. In addition to directly-originated, agented loans, we also invest in senior and secured loans, syndicated loans and high yield bonds that have been sold to a club or syndicate of buyers, both in the primary and secondary markets. These investments are often purchased with a long term, buy-and-hold outlook, and we often look to provide significant input to the transaction by providing anchoring orders.

Middle-Market Lending / Buyout - This strategy involves purchasing senior and secured yield-producing debt and controlling equity positions in operating companies across various industries. We believe this strategy provides enhanced certainty of closing to sellers, and the opportunity for management to continue in their current roles. These investments are often structured in tax-efficient partnerships, enhancing returns.

Real Estate - We purchase debt and controlling equity positions in tax-efficient real estate investment trusts ("REIT" or "REITs"). The real estate investments of National Property REIT Corp. ("NPRC") are in various classes of developed and occupied real estate properties that generate current yields, including multi-family properties, student housing, and self-storage. NPRC seeks to identify properties that have historically attractive occupancy rates and recurring cash flow generation. NPRC generally co-invests with established and experienced property management teams that manage such properties after acquisition.

Subordinated Structured Notes - We make investments in structured credit, often taking a significant position in subordinated structured notes (equity) and rated secured structured notes (debt). The underlying portfolio of each structured credit investment is diversified across approximately 100 to 200 broadly syndicated loans and does not have direct exposure to real estate, mortgages, or consumer-based credit assets. The structured credit portfolios in which we invest are managed by established collateral management teams with many years of experience in the industry.

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**ABOUT PROSPECT CAPITAL CORPORATION**

Prospect Capital Corporation (www.prospectstreet.com) is a business development company that focuses on lending to and investing in private businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

We have elected to be treated as a business development company under the Investment Company Act of 1940 ("1940 Act"). We are required to comply with regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made. We undertake no obligation to update any such statement now or in the future.

For additional information, contact:

Grier Eliasek, President and Chief Operating Officer

grier@prospectcap.com

Telephone (212) 448-0702

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