# EDGAR Filing Document

**Accession Number:** 0001521945
**File Stem:** 0001521945-25-000051
**Filing Date:** 2025-7
**Character Count:** 18685
**Document Hash:** 9b3c35d54a55a48f5dedfd4ce2ad8164
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001521945-25-000051.hdr.sgml**: 20250725

**ACCESSION NUMBER**: 0001521945-25-000051

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250725

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250725

**DATE AS OF CHANGE**: 20250725

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Prospect Floating Rate & Alternative Income Fund, Inc.
- **CENTRAL INDEX KEY:** 0001521945

**ORGANIZATION NAME:**
- **EIN:** 452460782
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 814-00908
- **FILM NUMBER:** 251150280

**BUSINESS ADDRESS:**
- **STREET 1:** 10 EAST 40TH STREET, 42ND FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10016
- **BUSINESS PHONE:** 212-448-0702

**MAIL ADDRESS:**
- **STREET 1:** 10 EAST 40TH STREET, 42ND FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10016

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Prospect Sustainable Income Fund, Inc.
- **DATE OF NAME CHANGE:** 20220112

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Prospect Flexible Income Fund, Inc.
- **DATE OF NAME CHANGE:** 20200806

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TP Flexible Income Fund, Inc.
- **DATE OF NAME CHANGE:** 20190401

?xml version='1.0' encoding='ASCII'? pfloat-20250725

**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): July 25, 2025 (July 24, 2025)**

**Prospect Floating Rate and Alternative Income Fund, Inc.**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Maryland** | **814-00908** | **45-2460782** |
| (State or other jurisdiction | (Commission File Number) | (IRS Employer |
| of incorporation) | | Identification No.) |

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**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:

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| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading symbol</u>** | **<u>Name of each exchange on which registered</u>** |

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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.□

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**Item 1.01. Entry into a Material Definitive Agreement.**

On July 25, 2025, the Company entered into a Sixth Amended and Restated Expense Limitation Agreement (the "Amended ELA") with the Adviser. The Amended ELA extends the period during which the Adviser has agreed to waive its investment advisory fees and also requires the Adviser to reimburse the Company for certain other expenses in order to limit the Company's operating expenses to an annual rate, expressed as a percentage of the Company's average quarterly net assets, equal to 0.00%. The Amended ELA is in effect until the quarter ending December 31, 2026. The Amended ELA permits for expenses waived or reimbursed by the Adviser to be recouped by the Adviser in accordance with the terms of the Amended ELA. However, pursuant to the terms of the Amended ELA, given the 0.00% annual rate, the expenses waived or reimbursed by the Adviser under the Amended ELA will effectively not be subject to recoupment.

The foregoing description of the Amended ELA is a summary only and does not purport to be complete and is qualified in its entirety by reference to the full text of the Amended ELA, which is filed herewith as Exhibit 10.1 and incorporated herein by reference.

**Item 8.01. Other Events.**

**Declaration of Monthly Cash Distributions**

On July 24, 2025, the Board of Directors of Prospect Floating Rate and Alternative Income Fund, Inc. (the "Company") declared a distribution for the months of July 2025 and August 2025, which reflects a targeted annualized distribution rate of 10.0% based on the net asset value per share for the third fiscal quarter ended March 31, 2025. The distributions have a record date as of the close of business of the last Friday of July 2025 and August 2025. The distributions will be payable to stockholders of record as of the monthly record dates set forth below.

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| | | | |
|:---|:---|:---|:---|
| **Record Date** | **Payment Date** | **PFLOAT Class A Common Shares, per share** | **PFLOAT Class I Common Shares, per share** |
| July 25, 2025 | August 1, 2025 | $0.03428 | $0.03428 |
| August 29, 2025 | September 8, 2025 | $0.04285 | $0.04285 |

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**Certain Information About Distributions**

The determination of the tax attributes of the Company's distributions is made annually as of the end of the Company's fiscal year based upon its taxable income and distributions paid, in each case, for the full year. Therefore, a determination as to the tax attributes of the distributions made on a weekly, monthly or quarterly basis may not be representative of the actual tax attributes for a full year. The Company intends to update shareholders quarterly with an estimated percentage of its distributions that resulted from taxable ordinary income. The actual tax characteristics of distributions to shareholders will be reported to shareholders annually on a Form 1099-DIV. The payment of future distributions on the Company's common stock is subject to the discretion of the Board of Directors and applicable legal restrictions, and therefore, there can be no assurance as to the amount or timing of any such future distributions.

The Company may fund its cash distributions to shareholders from any sources of funds available to it, including offering proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies and expense reimbursements from Prospect Capital Management, L.P. ("PCM"), which are subject to recoupment. If distributions exceed the Company's net investment income or earnings, a portion of the distributions made by the Company may represent a return of capital for tax purposes. PCM has no obligation to provide expense reimbursements to the Company in future periods. There can be no assurance that the Company will be able to pay distributions at a specific rate or at all.

The information disclosed under this Item 8.01 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.

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**Item 9.01. Financial Statements and Exhibits**

(d) Exhibits

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| | |
|:---|:---|
| <u>Exhibit No.</u> | <u>Description</u> |
| <u>[10.1](pfloat-sixthamendedandrest.htm)</u> | Sixth Amended and Restated Expense Limitation Agreement, by and between Prospect Floating Rate and Alternative Income Fund, Inc. and Prospect Capital Management L.P. |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | |
|:---|:---|:---|
| Dated: July 25, 2025 | Prospect Floating Rate and Alternative Income Fund, Inc. | Prospect Floating Rate and Alternative Income Fund, Inc. |
| | By | /s/ M. Grier Eliasek |
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M. Grier Eliasek<br>Chief Executive Officer<br>(Principal Executive Officer) |

---

## Exhibit 10.1

**Sixth Amended and Restated Expense Limitation Agreement**

This Amended and Restated Expense Limitation Agreement (the "***Agreement***") is entered into this 25<sup>th</sup> day of July 2025, by and between Prospect Floating Rate and Alternative Income Fund, Inc. (the "***Fund***") and Prospect Capital Management L.P. (the "***Adviser***").

**WHEREAS**, the Fund is an externally managed, non-diversified, closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended (the "***1940 Act***");

**WHEREAS**, the Adviser serves as the Fund's investment advisor pursuant to that certain Investment Advisory Agreement, dated as of April 20, 2021 (the "***Investment Advisory Agreement***");

**WHEREAS**, the Adviser and the Fund entered into an expense limitation agreement on April 20, 2021 that was amended on July 7, 2021, August 23, 2022, April 24, 2023, May 13, 2024 and on February 26, 2025;

**WHEREAS**, the Adviser and the Fund have determined that it is appropriate and in the best interests of the Fund to further amend the expense limitation agreement to maintain the expenses of the Fund below the levels to which the Fund might otherwise be subject; and

**WHEREAS**, the Fund and the Adviser have determined that it is appropriate and in the best interest of the Fund for the Fund to reimburse the Adviser for any previously waived advisory fees and any expenses the Adviser pays on behalf of the Fund in accordance with the terms of this Agreement.

**NOW, THEREFORE**, in consideration of the foregoing premises and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

In the event that the current Operating Expenses of the Fund, as accrued each quarter, exceed the Annual Limit, as defined below, (the amount of such excess, the "***Excess Amount***"), the Advisor will, waive the investment advisory fees to which it is entitled pursuant to the Investment Advisory Agreement (an "***Excess Amount Waiver***"), up to the Excess Amount. Additionally, in the event that, after an Excess Amount Waiver, there remains an Excess Amount, the Adviser will reimburse the Fund for its Operative Expenses (an "***Excess Amount Reimbursement***"), up to the remaining Excess Amount.

For purposes of this Agreement, the term "***Operating Expenses***" with respect to the Fund, is defined to include all expenses necessary or appropriate for the operation of the Fund, including but not limited to the Advisor's base management fees detailed in Section 3(a) the Investment Advisory Agreement, any and all costs and expenses that qualify as line item "operating" expenses in the financial statements of the Fund as the same are filed with the U.S. Securities and Exchange Commission and other expenses described in the Investment Advisory Agreement, but does not include any portfolio transaction or other investment-related costs (including brokerage commissions, dealer and underwriter spreads, prime broker fees and expenses and dividend expenses related to short sales), shareholder servicing and/or distribution

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fees, interest expenses and other financing costs, extraordinary expenses and acquired fund fees and expenses. Upfront shareholder transaction expenses (such as sales commissions, dealer manager fees, and similar items) are not Operating Expenses.

For purposes of this Agreement, the "***Annual Limit,***" expressed as a percentage of the Fund's average quarterly net assets, is 0.00%.

Each Excess Amount Waiver and Excess Amount Reimbursement made by the Adviser is subject to repayment (a "***Reimbursement***") by the Fund within three years of the date on which the Excess Amount Waiver or Excess Amount Reimbursement was made by the Adviser. If this Agreement is terminated or expires pursuant to its terms, the Adviser shall maintain its right to repayment for any Excess Amount Waiver or Excess Amount Reimbursement it has made under this Agreement, subject to the Repayment Limitations.

Any Reimbursement shall be made solely in the event that that the Fund has sufficient excess cash on hand at the time of any proposed Reimbursement and shall be limited to the lesser of (i) the excess of the Applicable Annual Limit, as defined below, applicable to such quarter over the Fund's actual Operating Expenses for such quarter and (ii) the amount of Reimbursement which, when added to the Fund's expenses for such quarter, permits the Fund to pay the then-current aggregate quarterly distribution to its shareholders, at a minimum annualized rate of at least 6.00% (based on the gross offering prices of Fund shares) (the "***Distribution***") from the sum of (x) the Fund's net investment income (loss) for such quarter plus (y) the Fund's net realized gains (losses) for such quarter (collectively, the "***Repayment Limitations***"). For the purposes of the calculations pursuant to (i) and (ii) of the preceding sentence, any Reimbursement will be treated as an expense of the Fund for such quarter, without regard to the GAAP treatment of such expense. In the event that the Fund is unable to make a full payment of any Reimbursements due for any applicable quarter because the Fund does not have sufficient excess cash on hand, any such unpaid amount shall become a payable of the Fund for accounting purposes and shall be paid when the Fund has sufficient excess cash on hand (subject to the Repayment Limitations); provided, that in the case of any Reimbursements, such payment shall be made no later than the date that is three years after the date on which the applicable Excess Amount Waiver or Excess Amount Reimbursement was made by the Adviser.

For purposes of Reimbursements under this Agreement, the "Applicable Annual Limit" is the lesser of (i) the Annual Limit in place at the time the Excess Amount Waiver or Excess Amount Reimbursement was made or (ii) an annual limit in place at the time of such Reimbursement.

This Agreement shall be effective as of the quarter commencing on July 1, 2025, and continue until the quarter ending December 31, 2026 (the "***Initial Term***"). Following the Initial Term of this Agreement, the Adviser may elect, in its sole and absolute discretion, to offer to continue this Agreement for successive quarterly or annual periods. Any such continuance must be approved by a majority of the Board of Directors of the Fund (the "***Board***"), including a majority of the directors that are not "interested persons" of the Fund, as such term is defined under the 1940 Act.

This Agreement may be terminated at any time, without the payment of any penalty and without notice, by the Fund. This Agreement will automatically terminate if (i) the Fund

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provides the Adviser with notice of the Fund's intent to terminate the Investment Advisory Agreement, and such termination of this Agreement will be effective upon the date that the Adviser receives such notice or (ii) the Investment Advisory Agreement is terminated for any reason.

**Miscellaneous**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be governed by and construed in accordance with the laws of the State of New York (without reference to its conflicts of laws provisions) and the applicable provisions of the 1940 Act and the Investment Advisers Act of 1940, as amended (the "***Advisers Act***"). To the extent that the applicable laws of the State of New York, or any of the provisions herein, conflict with the applicable provisions of the 1940 Act or the Advisers Act, the latter two, as applicable, shall control. Further, nothing herein contained shall be deemed to require the Fund to take any action contrary to the Fund's Articles of Incorporation or Bylaws, as each may be amended or restated from time to time, or to relieve or deprive the Board of its responsibility for and control of the conduct of the affairs of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;If any provision of this Agreement shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of this Agreement shall not be affected thereby and, to this extent, the provisions of this Agreement shall be deemed to be severable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Fund shall not assign this Agreement or any right, interest or benefit under this Agreement without the prior written consent of the Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may only be amended in writing, and by mutual consent of the parties. This Agreement may be executed by the parties on any number of counterparts, delivery of which may occur by facsimile or as an attachment to an electronic communication, each of which shall be deemed an original, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

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**IN WITNESS WHEREOF**, the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.

**PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.**

By: <u>/s/ M. Grier Eliasek</u>

Name: M. Grier Eliasek

Title: Chief Executive Officer & President

**PROSPECT CAPITAL MANAGEMENT L.P.**

By: <u>/s/ John F. Barry III</u>

Name: John F. Barry III

Title: Managing Member

<br>