Track market-moving stories before they get noisy

Three BDCs are flashing yields as high as 28%, but each one carries a hidden fault line that could wipe out income and principal in the same move. Before you chase the payout, find out what the earnings numbers actually…

Shares of Prospect Capital (NASDAQ:PSEC) have fallen 33.11% this year to $1.50. That drop has pushed the forward distribution yield to roughly 28%. For a retiree living on monthly checks, that number looks like a windfall. A high yield is only as good as the company’s ability to keep paying it, and several of the market’s biggest payouts are flashing warning signs.

The test is simple: a dividend becomes unsustainable when the earnings base behind it (net investment income for business development companies, or BDCs, and cash flow for most other companies) falls short of the payout, when debt or asset sales cover the gap, or when the yield is high mainly because the stock collapsed.

Prospect Capital (PSEC) Faces Shrinking NAV and a Looming Bond Maturity
Prospect Capital pays a monthly distribution of $0.035 per share. The next ex-dividend date is October 28, 2026, with payment on November 18. At the current price, the $0.42 annualized payout works out to about 28%.

That yield comes from a falling stock price. Shares dropped 30.06% in the past month and 64.9% over five years. The payout has already been cut more than once: from $0.06 through October 2024, to $0.045, and then to $0.035 starting in May 2026. For a BDC, the right coverage metric is net investment income (NII) measured against the share count, and Prospect’s has fallen from $0.19 to $0.16 to $0.15 over three straight quarters.

Three monthly payments total $0.105 per quarter, so NII still covers the reduced payout on paper. The company itself lists “distributions to common shareholders exceed net investment income” as a risk and says distributions may include return of capital. Net asset value (NAV) per share fell to $5.71 from $6.56 a year earlier. Net realized losses were $223.7 million for fiscal 2026, and a $264.5 million institutional bond matures in November 2026.

To keep the payout going, Prospect needs the Valley Electric sale to deliver. That deal closed with about $281 million in expected net proceeds, which would help cover the maturity. Its shift into first-lien loans, now 72.5% of the portfolio at cost, also needs to stop the NAV erosion. Net debt sits at a modest 28.6% of the asset base. The August call did not explain the latest distribution reduction, which leaves readers of PSEC’s earlier dividend cut with the same open question.

FS KKR Capital (FSK) Leans on a Fee Waiver That Expires Soon
FS KKR Capital (NYSE:FSK | FSK Price Prediction) trades at $10.13, and its $1.76 annualized forward payout implies a yield of about 17.4%. The board has declared a $0.44 regular distribution with a December 16 ex-date, plus an extra $0.20 payment going ex on December 1.

This payout is already shrinking. FSK paid $0.70 per share per quarter through December 2025, then $0.48, $0.42, and $0.44. Second-quarter NII of $0.44 per share matched the distribution exactly, and that figure was propped up by a 50% incentive fee waiver from KKR that runs only four quarters. Coverage looks thin once the waiver ends.

Non-accruals stand at 7.1% of the portfolio at amortized cost, and NAV fell to $18.30 from $20.89 at year-end. The stock is down 22.56% this year and trades at roughly 55% of NAV. The company says it may fund distributions from sources other than NII, and securities class actions claim it overstated dividend durability.

Debt-to-equity dropped to 127% from 138%, and KKR added a $150 million preferred investment alongside a $300 million buyback. We covered FSK’s earlier dividend cut revision.

Ares Capital (ARCC) Earnings Now Trail Its Dividend
Ares Capital (NASDAQ:ARCC), the largest publicly traded BDC, pays $0.48 a quarter for a yield near 10.4%. Its yield comes from little to no share-price weakness: shares are down just 1.23% this year and up 4.35% over 12 months.

Coverage, though, has fallen. Core EPS came in at $0.47 in both of the first two quarters of 2026, below the $0.48 dividend, after $0.50 in each of the two quarters before. Non-accruals rose to 2.4% from 1.8% at year-end, NAV fell to $19.35 from $20.01, and leverage climbed to 1.15x from 1.09x. Holding a flat payout while earnings run below it is a yellow flag.

The shortfall is just one cent, and Ares has about $6.0 billion of liquidity, no meaningful near-term maturities, and 17 years of stable or increasing regular dividends. Among these three, it has the most room for error, and our look at Ares Capital’s stalled $0.48 dividend tracks that tension.

Yield Alone Is Never a Buy Thesis
When a dividend gets cut, the share price usually falls with it so that investors can lose income and principal in the same move. Before you rely on a double-digit yield, check NII coverage, NAV trends, and why the stock fell (we outlined key signs a big yield is about to be cut in a free report, here). Treat yield as the place your research starts.

Contact [email protected] for any questions or corrections.

Six high-yield securities, one Roth IRA, and a tax bill that drops to zero sounds appealing until you look closely at what each holding actually costs you when it sits in the wrong kind of account.

In the 24% federal bracket, a $500,000 income portfolio that pays about $39,870 a year sends roughly $9,569 to the IRS when the shares sit in a taxable account. Hold the same shares in a Roth IRA and the full amount stays with you.

Six High-Yielders Built for a Roth This model portfolio puts a bigger share of capital in the steadier anchors and less in the riskiest payers. It combines two agency mortgage REITs, a business development company (BDC), a covered-call crude oil ETN, a midstream general partner, and an exploration and production company. Yields below are based on each security’s annualized forward distribution, using the share price as of October 8, 2026. The ETN is the exception and uses its trailing 12-month total because its payout changes every month.

Holding Allocation Current Yield Annual Income AGNC Investment (NASDAQ:AGNC) $40,000 16.6% $6,651 Annaly Capital Management (NYSE:NLY) $40,000 16.4% $6,561 Prospect Capital (NASDAQ:PSEC) $20,000 23.3% $4,667 ETRACS Crude Oil Shares Covered Call ETNs (NASDAQ:USOI) $10,000 52.7% $5,272 Plains GP Holdings (NASDAQ:PAGP | PAGP Price Prediction) $200,000 6.3% $12,556 APA Corporation (NASDAQ:APA) $190,000 2.2% $4,162 Total $500,000 8.0% $39,870 AGNC has paid $0.12 per share every month for 75 consecutive months. Since REIT dividends count as ordinary, non-qualified income, this is precisely the kind of payout a Roth IRA is designed to shelter.

Annaly raised its quarterly dividend to $0.75 from $0.70. Earnings available for distribution of $0.79 per share covered the dividend for the ninth consecutive quarter. Like AGNC, it pays ordinary REIT income.

Prospect is a textbook example of BDC income, which is taxed largely at ordinary rates. It also carries the most risk here. The monthly payout fell to $0.035 from $0.045 in May 2026, and NAV per share slid to $5.71 from $6.56 year over year. It gets a small allocation for that reason.

USOI pays variable monthly distributions that are generally taxed as ordinary income. In 2026, those payments ranged from $0.4265 to $7.4743 per share. The yield is the highest in the portfolio, and so is the risk of NAV decay, which is why the position is capped at $10,000.

Plains GP pays $0.4175 per quarter, up from $0.38 in 2025. It gives the portfolio midstream exposure via a 1099-DIV rather than a K-1, simplifying tax reporting. Its distributions skew toward ordinary income and return of capital, and holding it in a Roth removes the need to track either.

APA pays $0.25 per quarter and is targeting at least 60% of free cash flow returned to shareholders in 2026. Most U.S. holders receive its dividend as qualified income, taxed at 0%, 15%, or 20%. That makes APA the least urgent of the six to hold in a Roth.

Roth Versus Taxable: $9,600 a Year in Your Pocket The comparison below follows the series’ core formula: gross income times the bracket rate equals the tax cost. AGNC, Annaly, Prospect, and USOI pay ordinary income and produce $23,151 of the total. Because APA’s slice is taxed at lower qualified rates, the true drag on that piece is somewhat smaller than shown.

24% Bracket Taxable Account Roth IRA Gross income $39,870 $39,870 Federal tax $9,569 $0 Net income $30,301 $39,870 Yearly Roth advantage About $9,600 10-year advantage (no growth) About $95,700 The IRS says the investment income rules in Publication 550 do not apply to investments held in IRAs. Inside a qualified Roth, every one of these monthly and quarterly checks lands untaxed.

Your Bracket Sets the Size of the Gap The same $500,000 portfolio loses a very different share of its income depending on the bracket. Under the 2025 IRS schedule, the 24% bracket covered joint filers with taxable income from $206,701 to $394,600, and the 37% rate started at $751,601.

Bracket Taxable Income Yearly Yearly Roth advantage 10-Year Advantage 22% $31,099 $8,771 $87,714 24% $30,301 $9,569 $95,688 32% $27,112 $12,758 $127,584 37% $25,118 $14,752 $147,519 On this portfolio, a taxpayer in the 37% bracket gives up about $5,981 more each year than one in the 22% bracket. The higher your bracket, the more holding these stocks costs you each year.

Compounding Quietly Widens the Gap The tables above treat the yearly tax saving as cash that piles up. In practice, money left inside a Roth gets reinvested tax-free. Assume the roughly $9,600 annual saving at the 24% bracket is reinvested at a conservative 4% a year, assuming flat share prices and no additional contributions:

10 years: about $114,900, compared with $95,700 uncompounded 20 years: about $284,900, compared with $191,400 uncompounded At the 37% bracket, the 20-year figure rises to about $439,300. These numbers exclude any stock forecast and measure the cost of this income stream outside a Roth: income paid out, taxed, and gone before it can compound.

The income itself can change. AGNC’s monthly dividend was $0.20 in 2015, Prospect has cut its payout more than once, and USOI distributions move with crude oil volatility. If payouts shrink, the tax benefit shrinks with them. Investors should measure the delta against today’s dividends and avoid treating today’s yields as permanent.

Three Calculations to Run Before Your Next Filing Price your current tax cost. If you hold a BDC or mortgage REIT in a taxable account, multiply last year’s ordinary dividends from your 1099-DIV by your marginal rate when you prepare your return. For a position sized like the AGNC and NLY slices here, the bracket table shows how quickly that cost adds up at 24%. Work out the conversion math on these specific names. Compare the one-time tax cost of converting a position with its annual tax cost from the bracket table. Then decide whether the conversion bill outweighs a recurring delta. Phase conversions by tax character. If you model a phased Roth conversion, start with the holdings that pay ordinary income (AGNC, Annaly, Prospect, and USOI) and leave qualified payers like APA for last, since they already get preferential rates. Upcoming dates to watch include AGNC’s third-quarter earnings release and Prospect’s next monthly declaration. Both will indicate whether the income underpinning these calculations remains steady.

Contact [email protected] for any questions or corrections.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

We have a long position in the PSEC bonds.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

 | Source: Priority Income Fund, Inc.

NEW YORK, Sept. 29, 2026 (GLOBE NEWSWIRE) -- Priority Income Fund, Inc. (“Priority Income Fund” or the “Fund”) announced today that the Fund’s Board of Directors has declared monthly cash common shareholder distributions for September 2026.

The annualized total cash distribution is $0.40000 per share (12.4% annualized rate based on the August 31, 2026 net asset value), for distributions with record date on September 23, 2026 based on the August 31, 2026 net asset value of $3.23 per common share.

The cash distribution will be payable to common stockholders of record at the close of business. This declared distribution equals a monthly cash amount of $0.03333 per share of common stock (or $0.10000 on a quarterly basis) as follows:

Monthly Cash Shareholder DistributionRecord DatePayment DateTotal Amount
($ per share)September 2026September 23, 2026September 30, 2026$0.03333     This distribution represents the 153rd consecutive monthly distribution paid by the Fund. The Fund has paid or declared cumulative cash distributions totaling $17.296544 per common share since inception in January 2014 through September 2026.

Distributions shall first be treated as a distribution of taxable investment company income undistributed from the prior year, and then treated as a distribution of taxable investment company income for the current year. This treatment will not affect tax reporting to shareholders.

About Priority Income Fund
Priority Income Fund, Inc. is a registered closed-end fund that was created to acquire and grow an investment portfolio primarily consisting of senior secured loans or pools of senior secured loans known as collateralized loan obligations ("CLOs"). Such loans will generally have a floating interest rate and include a first lien on the assets of the respective borrowers, which typically are private and public companies based in the United States. The Fund is managed by Priority Senior Secured Income Management, LLC, which is led by a team of investment professionals from the investment and operations team of Prospect Capital Management L.P.  For more information, visit https://www.priorityincomefund.com.

About Prospect Capital Management L.P.
Prospect Capital Management L.P. (“Prospect”), headquartered in New York City, is an SEC-registered investment adviser that, along with its predecessors and affiliates, has more than 30-years of investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of over 150 professionals who focus on credit-oriented investments yielding attractive current income. Prospect, together with its affiliates, has $7.0 billion of regulatory assets under management as of June 30, 2026. Prospect is the investment adviser to Prospect Capital Corporation (NASDAQ: PSEC). For more information, call (212) 448-0702 or visit https://www.prospectcap.com.

Additional Information

Past performance is not indicative of future performance. Our distributions may exceed our earnings, and therefore, portions of the distributions that we make may be a return of the money that you originally invested and represent a return of capital to you for tax purposes. Such a return of capital is not immediately taxable, but reduces your tax basis in our shares, which may result in higher taxes for you even if your shares are sold at a price below your original investment.

Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future performance of Priority Income Fund, Inc. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. Any such statements, other than statements of historical fact, are highly likely to be affected by unknowable future events and conditions, including elements of the future that are or are not under the control of Priority Income Fund, Inc. and that Priority Income Fund, Inc. 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, and Priority Income Fund, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

NEW YORK, Sept. 25, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Management L.P. (“Prospect”), investment adviser to Prospect Capital Corporation (NASDAQ: PSEC) and other funds, announced today that Prospect Capital Corporation’s President and Chief Operating Officer, Grier Eliasek, was recently featured in a Q&A published by PEI Private Credit, appearing in its September 2026 U.S. Report.

The interview, titled “Finding Untapped Opportunities in the Lower Mid-Market,” discusses Prospect’s focus on direct lending to companies with $50 million or less of EBITDA, its approach to credit discipline and downside protection, and its perspective on the bifurcation of the direct lending market and the impact of artificial intelligence on borrowers.

The full Q&A is available here: Prospect Capital on Finding Untapped Opportunities in the Lower Mid-Market - PEI Private Credit.

About Prospect Capital Management L.P.:

Prospect is an SEC registered investment adviser, along with its predecessors and affiliates, has 38 years of experience investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of approximately 100 professionals who focus on credit oriented investments yielding attractive current income. Prospect, together with its affiliates, has $7.0 billion of regulatory assets under management as of June 30, 2026.

For more information, call (212) 448-0702 or visit https://www.prospectcap.com.

Six stocks are paying yields as high as 23% right now, but behind those numbers sit eroding asset values, razor-thin coverage ratios, and balance sheets that leave almost no room for error if rates or charter markets move the wrong…

Income investors are being paid extraordinary yields right now for owning a specific slice of the market: mortgage REITs, business development companies, and cyclical shippers. Prospect Capital’s trailing yield sits at 23.6%, a figure that would be irresistible if it were durable. The problem is that a payout is only as good as the cash flow behind it, and several high-yielders in this cohort are showing coverage strain, shrinking net asset values, or a stock chart that has done the yield-inflating work all by itself.

A dividend becomes unsustainable when the correct earnings base (net investment income for BDCs, net spread and dollar-roll income for mortgage REITs, free cash flow for cyclical shippers) stops covering the payout, leverage rises to fill the gap, and the balance sheet loses room to maneuver. Here are six names where those warning lights are blinking.

AGNC Investment (AGNC) AGNC Investment (NASDAQ:AGNC | AGNC Price Prediction) pays $0.12 per share monthly, or $1.44 annualized, translating to a 14.2% yield on a stock that has drifted for years. The shares are down 7.58% over the past month, and the elevated yield is largely a function of a lower price rather than payout growth.

The right coverage metric here is net spread and dollar-roll income against the dividend. Q2 2026 delivered an economic return on tangible common equity of 6.7% and a net interest spread of 2.00%, which covered the payout for the quarter. But Q1 2026 GAAP EPS was negative $0.17, the company issued 16.2 million common shares via its ATM program for $167 million, and the dividend has been reduced multiple times historically, most recently from $0.16 to $0.12 in April 2020. Book-value stability through the next rate cycle is the swing factor.

Prospect Capital (PSEC) Prospect Capital (NASDAQ:PSEC) is the textbook case. The stock is off 45.27% over five years, and management has already trimmed the monthly distribution twice in recent history, from $0.06 to $0.045, then to $0.035 beginning with the May 2026 ex-date.

For BDCs, the correct metric is net investment income. NII per share fell from $0.17 to $0.15 year over year, and PSEC’s own filing flags that distributions to common shareholders exceed net investment income. NAV per share eroded from $6.56 to $5.71 over the past year, non-accruals rose to 0.7% of total assets from 0.3%, and a $264.5 million institutional bond matures in November 2026. Coverage looks stretched even after the two prior cuts.

Carlyle Secured Lending (CGBD) Carlyle Secured Lending (NASDAQ:CGBD) yields roughly 13.6% after already stepping the quarterly base down from $0.45 to $0.40, then to $0.35. Q2 2026 adjusted NII of $0.35 per share exactly covered the $0.35 base dividend, a 1.00x ratio with no cushion.

NAV per share slipped to $15.61 from $15.89, six borrowers sit on non-accrual, and net financial leverage rose to 1.20x from 1.06x. With a 100% floating-rate book, further short-rate compression pressures interest income directly. Management has $0.73 per share of spillover income and a fee-free JV complex ramping, which gives some near-term buffer. But coverage of exactly 1.00x is thin.

Crescent Capital BDC (CCAP) Crescent Capital BDC (NASDAQ:CCAP) already cut. The board reduced the regular quarterly dividend from $0.42 to $0.34, explicitly citing reduced earnings power. The stock has fallen 27.9% over the past year, keeping the yield near 16.1%.

Q2 2026 adjusted NII of $0.36 missed the $0.37 estimate, NAV per share fell to $17.82 from $19.55 year over year, and the weighted average yield on income-producing securities compressed to 9.6% from 10.4%. With 98.4% of debt at floating rates and net debt-to-equity at 1.37x, another leg down in base rates would test the reduced payout again.

Chicago Atlantic BDC (LIEN) Chicago Atlantic BDC (NASDAQ:LIEN) is the healthiest name on this list today. Q1 2026 NII of $0.44 covered the $0.34 dividend at 1.29x, the portfolio has zero non-accruals and a 15.8% weighted average yield, and the payout has held at $0.34 for every recorded quarter from March 2025 through September 2026.

The fragility is structural. 76% of the portfolio is concentrated in cannabis, PIK interest represents 8.3% of total annual interest (non-cash income inflating reported NII), and a $500 million shelf registration introduces dilution risk. Coverage is strong now, but a single-sector shock could move this fast.

Seanergy Maritime Holdings (SHIP) Seanergy Maritime Holdings (NASDAQ:SHIP) just raised its quarterly to $0.35 from $0.20, and the stock is up 120.1% over the past year. For a pure-play Capesize operator, the right coverage frame is free cash flow tied to spot charter rates. Those swing violently.

Q2 TCE rates hit $32,355 per day, but H2 2026 is only 55% fixed at $30,800 per day, and Capesize rates historically travel from above $40,000 to below $10,000. Working capital was in deficit by $8.6 million at June 30, and $395.3 million of contractual newbuild payments remain. The dividend is set by a variable policy that management can adjust. A cycle turn changes the math quickly.

What to Watch From Here A dividend cut in this cohort typically takes the share price with it, because these are securities owned almost exclusively for yield. Coverage that runs at exactly 1.00x, NAV that erodes quarter after quarter, or a payout funded through ATM issuance and floating-rate income are all warning signs that a headline yield may not survive intact (we broke down the seven signs that a big yield is about to be cut in a free report on dividend traps). The cash flow behind a yield is what makes it a thesis.

Contact [email protected] for any questions or corrections.

The new collection extends Lenox’s timeless design and inviting warmth into the bath.  | Source: Town & Country Living

NEW YORK, Sept. 09, 2026 (GLOBE NEWSWIRE) -- Town & Country Living, a leader in home textiles, today announced a licensing partnership with Lenox, the iconic American home and tableware brand known for more than 135 years of timeless design and craftsmanship. The partnership will introduce a fully coordinated Lenox bath collection, debuting during the New York Home Textiles Market.

Inspired by Lenox’s signature expression of Bring Beauty to Every Home - timeless elegance with an inviting spirit - the collection brings considered design, quality, and everyday livability into one of the home’s most personal spaces. The assortment will include bath towels, shower curtains, countertop accessories, bath rugs, and mats, as well as essential bath items such as liners and rings. Designed to coordinate seamlessly, the collection will give consumers an approachable way to create a more polished and welcoming bath environment.

“Lenox has helped define American elegance for generations, and its distinctive design sensibility translates beautifully into the bath,” said Susan Wojewoda, Chief Revenue Officer of Town & Country Living. “Together, we are creating a comprehensive collection that combines Lenox’s rich design heritage with Town & Country Living’s expertise in home textiles and coordinated product development.”

“At Lenox, we believe thoughtful design can make everyday moments feel more meaningful,” said Raul Ruiz, Chief Brand and Portfolio Officer of Lenox Corporation. “This partnership with Town & Country Living allows us to bring Lenox’s distinctive combination of timeless design, heritage, and inviting warmth into the bath category, giving consumers a new way to create a beautifully coordinated and elevated home.”

Featuring refined details, versatile color palettes and thoughtful coordination across categories, the collection will reinterpret Lenox’s signature design language for the bath while introducing fresh expressions created for today’s home.

The Lenox Coordinated Bath Collection will debut at the New York Home Textiles Market beginning September 14, 2026, with retail availability planned for the first quarter of 2027.

For media inquiries, interviews, or high-resolution images, please contact:

Judi Alvarez
[email protected]
(551) 580-0363

Jennifer DiBenedetti - Vice President, Brand Marketing
[email protected]
(800) 223-4311

About Town & Country Living
Founded in 1954 and headquartered in New York City, Town & Country Living is a leading home-textiles company specializing in table linens, kitchen textiles, rugs, window treatments, pillows, throws, bath products, and pet accessories. As a trusted partner to national brands and private-label programs, Town & Country Living serves major retailers worldwide through a commitment to design, quality, and innovation.

Town and Country Living is a portfolio company of Prospect Capital Corporation (NASDAQ: PSEC), a publicly traded business development company with $6.4 billion of total assets as of June 30, 2026.

About Lenox
Founded in 1889 by Walter Scott Lenox, Lenox has been part of America’s homes and celebrations for more than 135 years. Known for its enduring craftsmanship and distinctive American design, Lenox brings timeless elegance and an inviting spirit to the table and throughout the home. Its portfolio includes dinnerware, flatware, drinkware, giftware, home décor, and products for seasonal celebrations. Lenox has also played a notable role in American history, including creating official White House table services used by multiple presidential administrations. For more information, visit lenox.com.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of PSEC, OBDC, ARCC, TRIN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Prospect Capital Corporation (PSEC) Q4 2026 Earnings Call August 21, 2026 9:00 AM EDT

Company Participants

John Barry - Chairman of the Board & CEO
Kristin Van Dask - CFO, Treasurer, Secretary & Chief Compliance Officer
Michael Eliasek - President & COO

Presentation

Operator

Good day, and welcome to the Prospect Capital Fourth Quarter 2026 Earnings Release and Conference Call. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to John Barry, Chairman and CEO. Please go ahead.

John Barry
Chairman of the Board & CEO

Thank you, Cale. Joining me on the call today are Grier Eliasek, our President and Chief Operating Officer; and Kristin Van Dask, our Chief Financial Officer. Kristin?

Kristin Van Dask
CFO, Treasurer, Secretary & Chief Compliance Officer

Thanks, John. This call contains forward-looking statements intended to be subject to safe harbor protection. Future results are highly likely to vary materially. We do not undertake to update our forward-looking statements. For additional disclosure, see our earnings press release and 10-K filed previously and available on our website, prospectstreet.com. John?

John Barry
Chairman of the Board & CEO

Thank you, Kristin. In the June quarter, our net investment income, or NII, was $78 million, consistent with the prior quarter or $0.15 per common share. Our NAV was approximately $2.9 billion or $5.71 per common share. At June 30, our net debt to total assets ratio was 28.6%. Unsecured debt plus unsecured perpetual preferred was 83.7% of total debt plus preferred. We are announcing monthly common shareholder distributions of $0.035 per share for each of September and October.

Since our IPO 22 years ago through our October 2026 declared distribution, we will have distributed over $4.8 billion or $22.14 per share. Our preferred shareholder cash distributions continue at their contractual rates. On July

NEW YORK, Aug. 20, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our fiscal quarter and fiscal year ended June 30, 2026.

FINANCIAL RESULTS

All amounts in $000’s except
per share amounts (on weighted average
basis for period numbers)
Quarter EndedQuarter EndedQuarter EndedJune 30, 2026March 31, 2026June 30, 2025    Net Investment Income (“NII”)$77,692$78,457$79,043NII per Common Share$0.15$0.16$0.17Interest as % of Total Investment Income90.1%93.4%94.9%    Net Income (Loss) Applicable to Common Shareholders$(38,091)$26,408$(226,369)Net Income (Loss) per Common Share$(0.08)$0.05$(0.50)    Distributions to Common Shareholders$57,988$65,421$61,181Distributions per Common Share$0.115$0.135$0.135Cumulative Paid and Declared Distributions to Common Shareholders(1)$4,809,658$4,770,919$4,569,727Cumulative Paid and Declared Distributions per Common Share(1)$22.14$22.07$21.66    Total Assets$6,448,627$6,383,972$6,804,938Total Liabilities$1,945,331$1,816,573$2,186,266Perpetual Preferred Stock$1,574,450$1,613,772$1,629,900Net Asset Value (“NAV”) to Common Shareholders$2,928,846$2,953,627$2,988,772NAV per Common Share$5.71$6.05$6.56    Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments$1,602,744$1,752,375$1,315,967    Net of Cash Debt to Total Assets28.6%27.0%30.4%Net of Cash Debt to Total Equity Ratio(2)40.7%37.6%44.4%Net of Cash Asset Coverage of Debt Ratio(2)345%366%325%Interest Coverage(3)366%356%351%    Unsecured Debt + Perpetual Preferred Equity as % of Total Debt + Perpetual Preferred Equity83.7%88.0%77.1%Unsecured and Non-Recourse Debt as % of Total Debt100.0%100.0%100.0% (1)Declared dividends are through the October 2026 distribution. August 2026 through October 2026 distributions are estimated based on shares outstanding as of 8/19/2026.(2)Including our perpetual preferred stock as equity.(3)Calculated as (Net Investment Income + Interest Expense + Incentive Fees) / Interest Expense.     CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION

Prospect is declaring distributions to common shareholders as follows:

Monthly Cash Common Shareholder DistributionRecord DatePayment DateAmount ($ per share)September 20269/28/202610/21/2026$0.0350October 202610/28/202611/18/2026$0.0350
Taking into account past distributions and our current share count for declared distributions, since inception through our October 2026 declared distribution, Prospect will have distributed $22.14 per share to original common shareholders, aggregating over $4.8 billion in cumulative distributions to all common shareholders.

Since Prospect’s initial public offering in July 2004 through June 30, 2026, Prospect has invested approximately $23 billion in more than 450 investments, exiting over 350 of these investments.

Since Prospect's initial public offering in July 2004 through June 30, 2026, Prospect's exited investments resulted in an investment level exited gross internal rate of return ("IRR") of approximately 12% (based on total capital invested of approximately $13.4 billion and total proceeds from such exited investments of approximately $17.2 billion).

In Prospect’s primary business of middle market lending since 2004, Prospect’s exited investments resulted in an investment level exited gross IRR of approximately 14.4% (based on total capital invested of approximately $11.5 billion and total proceeds from such exited investments of approximately $14.7 billion), with an annualized realized loss rate of 0.2%.

Middle-Market Lending Track RecordOverallExitedInvestments365293Total Capital Invested$17.5 billion$11.5 billionTotal Proceeds$19.2 billion$14.7 billionAmount Remaining(1)$5.3 billion$0 billionTotal$24.5 billion$14.7 billion   Exited Gross IRR 14.4%   Credit StatisticsReference(2)PSEC AverageMiddle-Market Net Leverage6.1x4.9xMiddle-Market Cash Interest Coverage160%223%Annualized Net Realized Loss Rate1.0%0.2%(3) (1)Amount remaining represents the fair value of investments and any additional net interest receivable.(2)Reference Middle-Market Net Leverage and Middle-Market Cash Interest Coverage from KBRA Private Credit: Q2 2026 Middle Market Compendium. Such quarterly report includes median statistics for 2,785 unique global middle-market sponsored borrowers assessed over the last twelve months ended June 30, 2026. Reference Loss Rate is calculated by taking the default rate * (1 – the recovery rate). The default rate is calculated by taking the PitchBook average monthly reported LTM default rate for leveraged loans from September 2004 through June 2026. The recovery rate reflects Moody’s average assumption from its loss given default framework used for speculative-grade issuers.(3)PSEC annualized net realized loss rate defined as realized gains/(losses) on investments as a percentage of total invested capital since inception, divided by the number of years since inception for the respective investments.     Drivers focused on optimizing our business include:

(1) rotation of assets into and increased focus on our core business of first lien senior secured middle market loans (with our first lien mix increasing 840 basis points to 72.5% (based on cost) from June 2024), including investments in companies with smaller funded private equity sponsors, independent sponsors, and no third party financial sponsors;

(2) reduction in our second lien senior secured middle market loans (with our second lien mix decreasing 454 basis points to 11.9% (based on cost) from June 2024);

(3) exit of our subordinated structured notes portfolio (with our subordinated structured notes mix decreasing 837 basis points to 0.0% (based on cost) from June 2024);

(4) exit of targeted lower yielding equity linked assets, including real estate properties (with six additional properties sold in the fiscal year ended June 2026) and certain corporate investments (such as the exit of Echelon Transportation, LLC in February 2026 and Valley Electric Company, Inc. in July 2026), with other potential exits targeted and in process;

(5) enhancement of portfolio company operating performance and profitability, including through adoption of AI and automation initiatives focused on enhancing revenues and producing cost efficiencies; and

(6) utilization of our cost effective floating rate revolver (which significantly matches our majority floating rate assets) while continuing to operate with one of the lowest debt leverage levels in the industry (28.6% net of cash debt to total assets as of June 30, 2026, which did not reflect the immediately deleveraging impact of the Valley Electric Company, Inc. (“Valley Electric”) sale that closed on July 1, 2026).

On July 1, 2026, Prospect closed the successful sale of its portfolio company Valley Electric, with total consideration of approximately $328 million (subject to post-closing adjustments and payments). Over the life of the Valley Electric investment since 2012 and including expected net exit proceeds of approximately $281 million (including potential post-closing adjustments and payments), together with prior interest on debt, equity distributions, and other cash flow streams, Prospect achieved a 20.5% realized gross annualized internal rate of return (“IRR”) and 4.8 times multiple of invested capital.

On June 30, 2026, $562.3 million was drawn under our current $2.1 billion revolver. Such drawn amount would have been $322.7 million on a pro forma basis assuming that the cash received on July 1, 2026, from the sale of Valley Electric had been received previously and repaid borrowings under our revolver.

In our middle market lending strategy, which represented 85% of our investments at cost as of June 30, 2026, we continued our focus on first lien senior secured loans during the quarter. Middle market investments comprised 91% of our $166.3 million of originations during the June 2026 quarter. Investments during the quarter included new first lien senior and secured loan investments in Safety Solutions Financing, LLC (a provider of fire security products and services), Abacus Dermatology Management, LLC (a management services organization), and Eyefive, LLC (d/b/a Shipoffers, a provider of on-demand product and order fulfillment services), as well as follow-on investments in existing portfolio companies to support acquisitions, working capital needs, organic growth initiatives, and other objectives.

As of June 30, 2026, our portfolio included 2.3% (based on fair market value) of investments in software companies, significantly lower than the 22% average across business development companies included in a June 9, 2026 Oppenheimer equity research report.

Our real estate property portfolio at National Property REIT Corp. (“NPRC”) totaled 14.2% of our investments at cost as of June 30, 2026 and continued its focus on already developed and occupied cash flow multifamily investments. Since the inception of this strategy in 2012 and through June 30, 2026, we have exited 58 property investments that have earned an unlevered investment-level gross cash IRR of 24% and cash on cash multiple of 2.4 times. We exited six property investments in the current fiscal year through June 30, 2026 that earned an unlevered investment-level gross cash IRR of 18% and cash on cash multiple of 2.3 times. The remaining real estate property portfolio as of June 30, 2026 included 52 properties and paid us an income yield of 5.3% for the quarter ended June 30, 2026. These properties provide from time to time opportunities for Prospect to exit certain such investments and recycle into more and higher yielding corporate first lien senior secured loans with selected equity linked investments outside of NPRC. Our aggregate investment in NPRC included a $185 million unrealized gain as of June 30, 2026.

Our senior management team and employees own 26.7% of all common shares outstanding or approximately $0.8 billion of our common equity as measured at NAV.

PORTFOLIO UPDATE AND INVESTMENT ACTIVITY

All amounts in $000’s except
per unit amounts
As ofAs ofAs ofJune 30, 2026March 31, 2026June 30, 2025    Total Investments (1)$6,315,369$6,192,901$6,693,501Total Investments (2)$6,342,558$6,302,465$6,673,516Number of Portfolio Companies918997Number of Industries313133    First Lien Debt72.5%72.0%70.5%Second Lien Debt11.9%12.4%14.4%Total Senior and Secured Debt84.4%84.4%84.9%Unsecured Debt0.1%0.1%0.1%Subordinated Structured Notes—%—%0.6%Equity Investments15.5%15.5%14.4%Total Investments (1)100.0%100.0%100.0%    First Lien Debt67.6%66.9%66.9%Second Lien Debt9.1%9.4%11.5%Total Senior and Secured Debt76.7%76.3%78.4%Unsecured Debt0.1%0.1%0.1%Subordinated Structured Notes—%0.1%0.5%Equity Investments23.2%23.5%21.0%Total Investments (2)100.0%100.0%100.0%    Non-Accrual Loans as % of Total Assets (2)0.7%0.7%0.3% (1)Calculated at cost.(2)Calculated at fair value.     During the March 2026 and June 2026 quarters, investment originations (including follow on investments in existing portfolio companies) and repayments were as follows:

All amounts in $000’s
Quarter EndedQuarter EndedJune 30, 2026March 31, 2026   Total Originations$166,321$115,276   Middle-Market90.5%94.2%Real Estate9.5%5.4%Other—%0.4%   Total Repayments and Sales$45,827$222,242   Originations, Net of Repayments and Sales$120,494$(106,966)   
For additional disclosure see “Primary Origination Strategies” at the end of this release.

ARTIFICIAL INTELLIGENCE AND AUTOMATION INITIATIVES

Prospect, together with affiliates, and including portfolio company executives and external advisors, has a broad and deep cross-functional team that includes software and information technology engineers, portfolio company operations professionals, and other individuals focused on bringing best practice artificial intelligence (“AI”) and automation initiatives to both Prospect’s operations and that of its portfolio companies, especially those companies where Prospect holds not just senior secured debt but also equity, whereby Prospect can capture economic upside from profit enhancements (including both revenue increase projects as well as cost efficiency projects) in such businesses. Examples of portfolio company use cases include:

First Tower using AI and machine learning to improve credit scoring and decisioning (further reducing loss rates and expanding approvals to additional creditworthy borrowers) and to target pre-qualified prospects (with cross-sell and re-borrow opportunities), in addition to various ongoing AI projects designed to deploy customer service agents, automate collections communications, and detect fraud;Town & Country continuing to prioritize AI to optimize operations and support growth initiatives, including investing in a dedicated AI team and equipping all employees with AI tools. For example, the team has deployed an AI agent that generates design concepts based on retailer, brand, packaging, and product guidelines;InterDent executing on AI initiatives for diagnostic imaging patient treatment plans, clinician automatic credentialling, revenue cycle management collection improvement, recruiting (reducing time to fill), call center efficiency/effectiveness boosting, and other projects;Pacific World using AI for consumer insight testing for new product development, optimizing accounts receivable collections review and dispute processes, and building an enterprise data warehouse unifying finance, marketing, and sales data that makes siloed data accessible to the entire organization;Ubique utilizing AI to benchmark competitor products across competitor websites against its own product portfolio, informing each of product development and sales strategy;Mity hiring a new head of technology who is deploying AI to certain business processes, with an initial focus on sales-related activities, including lead generation, customer outreach, account executive handoffs, and data integration;Refuel deploying an AI-driven lead generation engine to identify, qualify, and convert sales opportunities;National Property REIT Corp rolling out AI across its multifamily platform, including dynamic pricing and revenue management to maximize revenue per available unit; AI-driven applicant screening that evaluates credit, rental history, and employment for consistent and unbiased risk scoring; LLM-based leasing communication and call analytics to improve prospect-to-lease conversion, automated renewals pricing, and outreach to reduce tenant turnover; and AI-assisted preventative maintenance that flags equipment degradation and property risks; andProspect applying AI tools to specific processes within its own operations. First-pass review of investor due diligence questionnaires, which frequently run to several hundred questions, are drafted from the firm's own prior submissions rather than assembled manually. Portions of quarter-end reporting and reconciliation for Prospect's finance vehicles have been automated. These are process-level efficiencies in back-office and administrative work, while investment decisions continue to be made by Prospect's investment professionals and investment committee. “Prospect is actively assessing and implementing the best use cases for artificial intelligence and automation within our critical business processes, including both within our investment processes as well as at the portfolio company operational level,” said John Barry, Prospect Chairman and Chief Executive Officer. “We view AI as the most transformational game changer to come along in a generation, and we expect profit enhancing results within our businesses. Prospect has a long history of innovation and first to market accomplishments in the business development company industry, and our embracing of AI and automation is consistent with that innovative culture.”

CAPITAL AND LIQUIDITY

Our multi-year, long-term laddered and diversified historical funding profile over our more than 22 year history has included our current $2.1 billion revolver (aggregate commitments with 48 current lenders), program notes, institutional bonds, convertible bonds, listed preferred stock, and program preferred stock. As of today, we have retired multiple upcoming maturities, including repurchasing $36 million of our next institutional bond maturity, leaving $264.5 million due in November 2026.

On October 30, 2025, we successfully completed the institutional issuance of approximately $167.6 million in aggregate principal amount of senior unsecured 5.5% Series A Notes due 2030 (the "Notes"), which mature on December 31, 2030.

Our unfunded eligible commitments to portfolio companies aggregate approximately $64.6 million, of which $52.4 million is considered at our sole discretion, representing 1.0% and 0.8% of our total assets as of June 30, 2026, respectively.

 As ofAs ofAll amounts in $000’sJune 30, 2026March 31, 2026Net of Cash Debt to Total Assets Ratio28.6%27.0%Net of Cash Debt to Total Equity Ratio(1)40.7%37.6%% of Interest-Bearing Assets at Floating Rates76.0%74.3%Unsecured Debt + Perpetual Preferred Equity as % of Total Debt + Perpetual Preferred Equity83.7%88.0%   Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments$1,602,744$1,752,375   Unencumbered Assets$4,242,977$4,177,553% of Total Assets65.8%65.4% (1)Including our perpetual preferred stock as equity.     We currently have three separate unsecured debt issuances aggregating approximately $701.4 million outstanding, not including our program notes, with laddered maturities extending through December 2030. At June 30, 2026, $614.9 million of program notes were outstanding with laddered maturities through March 2052.

At June 30, 2026 our weighted average cost of unsecured debt financing was 4.78%.

We have raised significant capital from our existing perpetual preferred stock offering programs. The perpetual preferred stock provides Prospect with a diversified source of programmatic capital without creating scheduled amortization or maturity risk as we benefit from multiple perpetual preferred tranches.

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.

HOW TO PARTICIPATE IN OUR DIVIDEND REINVESTMENT PLAN

Shares held with a broker or financial institution

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.

Shares registered directly with our transfer agent

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, Equiniti Trust Company, LLC by calling (888) 888-0313 or by mailing Equiniti Trust Company LLC, PO Box 10027, Newark, New Jersey 07101.

EARNINGS CONFERENCE CALL

Prospect will host an earnings call on August 21, 2026 at 9:00 a.m. Eastern Time. Dial 888-338-7333. For a replay after August 21, 2026 visit www.prospectstreet.com or call 855-669-9658 with passcode 3651062.

      PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except share and per share data)
       June 30, 2026  June 30, 2025       Assets     Investments at fair value:     Control investments (amortized cost of $3,367,618 and $3,416,244, respectively)$3,644,274  $3,696,367 Affiliate investments (amortized cost of $12,835 and $11,735, respectively)30,447  27,057 Non-control/non-affiliate investments (amortized cost of $2,934,916 and $3,265,522, respectively)2,667,837  2,950,092 Total investments at fair value (amortized cost of $6,315,369 and $6,693,501, respectively)6,342,558  6,673,516 Cash and cash equivalents (restricted cash of $2,812 and $4,282, respectively)43,572  50,788 Receivables for:     Interest, net17,350  25,144 Other9,228  1,642 Derivative Assets, at fair value18,900  — Deferred financing costs on Revolving Credit Facility14,128  18,842 Prepaid expenses1,419  1,488 Due from Prospect Administration1,351  — Due from Affiliate61  125 Due from broker60  33,393 Total Assets6,448,627  6,804,938 Liabilities     Public Notes (less unamortized discount and debt issuance costs of $10,547 and $6,556, respectively)690,841  593,444 Prospect Capital InterNotes® (less unamortized debt issuance costs of $7,399 and $8,687, respectively)607,480  638,545 Revolving Credit Facility562,328  856,322 Due to Prospect Capital Management38,946  41,757 Dividends payable18,252  28,836 Interest payable13,968  15,116 Due to broker9,156  5,639 Accrued expenses3,675  3,490 Due to Prospect Administration—  2,602 Other liabilities685  515 Total Liabilities1,945,331  2,186,266 Commitments and Contingencies     Preferred Stock, par value $0.001 per share (766,678,529 and 836,490,792 shares of preferred stock authorized; 68,468,200 and 70,915,937 issued and outstanding, respectively)1,574,450  1,629,900 Net Assets Applicable to Common Shares$2,928,846  $2,988,772 Components of Net Assets Applicable to Common Shares and Net Assets, respectively     Common stock, par value $0.001 per share (1,233,321,471 and 1,163,509,208 common shares authorized; 512,746,556 and 455,902,826 issued and outstanding, respectively)513  456 Paid-in capital in excess of par4,310,026  4,182,453 Accumulated other comprehensive income (loss)5,801  — Distributions in excess of earnings(1,387,494) (1,194,137)Net Assets Applicable to Common Shares$2,928,846  $2,988,772 Net Asset Value Per Common Share$5.71  $6.56        PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)         Three Months Ended June 30,
 Year Ended June 30,
 2026  2025  2026  2025 Investment Income           Interest income (excluding payment-in-kind (“PIK”) interest income):           Control investments$        56,932  $        55,725  $        230,683  $        226,077 Non-control/non-affiliate investments65,229  82,819  285,157  340,762 Structured credit securities—  2,512  —  14,017 Total interest income (excluding PIK interest income)122,161  141,056  515,840  580,856 PIK interest income:           Control investments13,084  12,721  50,226  55,230 Non-control/non-affiliate investments5,118  4,663  15,866  35,023 Total PIK Interest Income18,202  17,384  66,092  90,253 Total interest income140,363  158,440  581,932  671,109 Dividend income:           Control investments8,239  —  32,503  8,774 Affiliate investments627  540  1,612  681 Non-control/non-affiliate investments2,450  1,714  12,852  9,923 Total dividend income11,316  2,254  46,967  19,378 Other income:           Control investments591  3,158  1,659  18,957 Non-control/non-affiliate investments3,491  3,094  8,896  9,992 Total other income4,082  6,252  10,555  28,949 Total Investment Income155,761  166,946  639,454  719,436 Operating Expenses           Base management fee32,081  34,503  130,934  145,756 Income incentive fee6,939  7,253  26,508  40,772 Interest and credit facility expenses31,872  34,385  129,885  148,275 Allocation of overhead from Prospect Administration5,525  5,523  22,095  22,257 Audit, compliance and tax related fees543  1,754  1,701  4,137 Directors’ fees150  150  600  600 Other general and administrative expenses4,715  4,335  18,469  18,799 Total Operating Expenses81,825  87,903  330,192  380,596 Reimbursement of Administration Expenses(3,756) —  (17,125) — Total Net Operating Expenses78,069  87,903  313,067  380,596 Net Investment Income77,692  79,043  326,387  338,840 Net Realized and Net Change in Unrealized Gains (Losses) from Investments           Net realized gains (losses)           Control investments(1,615) 4  (116,426) 6,378 Non-control/non-affiliate investments203  (308,483) (107,293) (525,060)Net realized gains (losses)(1,412) (308,479) (223,719) (518,682)Net change in unrealized gains (losses)           Control investments(91,822) (83,010) (3,466) (300,131)Affiliate investments(5,990) 4,364  2,291  8,847 Non-control/non-affiliate investments15,438  112,308  48,349  230 Net change in unrealized gains (losses)(82,374) 33,662  47,174  (291,054)Net Realized and Net Change in Unrealized Gains (Losses) from Investments(83,786) (274,817) (176,545) (809,736)Net realized gains (losses) on extinguishment of debt1,486  (156) 4,219  972 Net realized gains (losses) from derivative instruments and foreign currency transactions(344) —  (1,042) — Net change in unrealized gains (losses) from derivative instruments and foreign currency transactions435  —  643  — Net Increase (Decrease) in Net Assets Resulting from Operations(4,517) (195,930) 153,662  (469,924)Preferred Stock dividends(26,436) (26,739) (106,645) (106,822)Net gain (loss) on redemptions of Preferred Stock(5,263) (1,749) (9,592) (1,937)Gain (loss) on Accretion to Redemption Value of Preferred Stock(1,875) (1,951) (7,597) (15,079)Net Increase (Decrease) in Net Assets Resulting from Operations applicable to Common Stockholders$        (38,091) $        (226,369) $        29,828  $        (593,762)              PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
ROLLFORWARD OF NET ASSET VALUE PER COMMON SHARE
(in actual dollars)  Three Months Ended June 30,
 Year Ended June 30,
  2026   2025   2026   2025  Per Share Data(9)               Net asset value per common share at beginning of period$6.05   $7.25   $6.56   $8.74  Net investment income0.15   0.17   0.68   0.77  Net realized and change in unrealized gains (losses)(1)(0.18)  (0.62)  (0.40)  (1.87) Net increase (decrease) from operations(0.02)(6) (0.44)(6) 0.28   (1.11)(6)Distributions of net investment income to preferred stockholders(0.05)(3) (0.06)  (0.22)(3) (0.24) Total distributions to preferred stockholders(0.05)  (0.06)  (0.22)  (0.24) Net increase (decrease) from operations applicable to common stockholders(0.08)  (0.50)  0.06   (1.35) Distributions of net investment income to common stockholders(0.12)(3) (0.14)  (0.50)(3) (0.44)(5)Return of capital to common stockholders— (3) —   (0.02)(3) (0.16)(5)Total distributions to common stockholders(0.12)  (0.14)  (0.52)  (0.60) Effect of other comprehensive income(7)0.02   —   0.01   —  Common stock transactions(2)(0.17)  (0.06)  (0.41)  (0.25) Net asset value per common share at end of period$5.71 (6) $6.56 (6) $5.71 (6) $6.56 (6) (1)Realized gains (losses) is inclusive of net realized losses (gains) on investments, net realized losses (gains) from extinguishment of debt, net realized gains (losses) on derivative instruments and foreign currency transactions, and net realized gains (losses) from the repurchases and redemptions of preferred stock.  (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, 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% Preferred Stock and 6.50% Preferred Stock.  (3)Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2026.  (4)For all periods presented above, all shares of our issued and outstanding Convertible Preferred Stock had an anti-dilutive effect.  (5)The amounts reflected for the respective fiscal periods were updated based on tax information received subsequent to our Form 10-K filing for June 30, 2025. Certain reclassifications have been made in the presentation of prior period amounts.  (6)Does not foot due to rounding.  (7)Effect of other comprehensive income is related to income/(loss) deemed attributable to instrument specific credit risk derived from changes in fair value associated with liabilities valued under the fair value option (ASC 825.)  (8)Effect is less than $0.01 per share.  (9)Per share data amount is based on the basic weighted average number of common shares outstanding for the year/period presented (except for dividends to stockholders which is based on actual rate per share).     INTERNAL RATE OF RETURN

Internal Rate of Return (“IRR”) is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. IRR is gross of general expenses not related to specific investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized. Prospect’s gross IRR calculations are unaudited. Information regarding internal rates of return are historical results relating to Prospect’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.

All track record data herein is as of 6/30/2026, unless otherwise noted. Middle-market lending track record segmentation by EBITDA represents EBITDA at the date of initial investment.

ANNUALIZED NET REALIZED LOSS RATE

Annualized net realized loss rate defined as realized gains/(losses) on investments as a percentage of total invested capital since inception, divided by the number of years since inception for the respective investments. Numbers may not add up to precise totals due to rounding.

PRIMARY ORIGINATION STRATEGIES

Our primary investment strategy is investing in private, middle-market companies in the U.S. in need of capital for refinancings, acquisitions, capital expenditures, growth initiatives, recapitalizations and other purposes. Typically, we focus on making investments in middle-market companies with annual revenues of less than $750 million and enterprise values of less than $1 billion. These private, middle-market companies are primarily owned by private equity funded and independent sponsors or us, as well as by a portfolio company’s management team, founder(s), or other investors. Our typical investment involves a senior and secured loan of less than $250 million.

Our investments in senior and secured loans are generally senior debt instruments that rank ahead of unsecured debt and equity of a given portfolio company. These loans also have the benefit of security interests on assets of the applicable portfolio company, which often rank ahead of any other security interests. We also make equity and equity-linked investments with capital-appreciation potential (such as senior and secured convertible debt, preferred equity, common equity and warrants).

We also invest a lesser amount of our assets in senior and secured debt and controlling equity positions in 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 and other tenant-diversified properties; historically, NPRC made investments in structured credit (primarily debt tranches). We historically invested in structured credit (primarily equity tranches).

We may also invest in other strategies and opportunities from time to time that the Investment Adviser views as attractive. The Investment Adviser may continue to evaluate other origination strategies in the ordinary course of business with no specific top-down allocation to any single origination strategy.

We directly originate the significant majority of our investments through our long-term relationships with private equity funded and independent sponsors, financial intermediaries, and management teams, as well as other sources. We seek to maximize returns, including both current yield and capital-appreciation potential, and minimize risk for our investors by applying rigorous credit and other analyses and cash-flow and asset-based lending techniques to originate, close, and monitor our investments.

We are consistently pursuing multiple investment opportunities. There can be no assurance that we will successfully consummate any investment opportunity we pursue. If any of these opportunities are consummated, there can be no assurance that investors will share our view of valuation or that any assets acquired will not be subject to future write downs, each of which could have an adverse effect on our stock price.

MIDDLE MARKET LENDING PORTFOLIO COMPANY EBITDA, NET LEVERAGE AND CASH INTEREST COVERAGE

Middle-Market Lending Portfolio Company Net Leverage (“Middle-Market Portfolio Net Leverage”) and Middle-Market Lending Portfolio Company Cash Interest Coverage (“Middle-Market Portfolio Cash Interest Coverage”) provide clarity into the underlying capital structure of PSEC’s middle-market loan portfolio investments and the likelihood that such portfolio will make interest payments and repay principal. Investments in real estate, subordinated structured notes, and equity (for which principal repayment is not fixed) and for which EBITDA is not available, negative or de minimis are not included in the calculations.

Middle-Market Portfolio Net Leverage reflects the simple average net leverage of each of PSEC’s middle-market loan portfolio investments. The net leverage for each such investment is calculated based on PSEC’s loan investment in the capital structure of the portfolio company, with a maximum limit of 10.0x, and 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. 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 Cash Interest Coverage reflects the simple average cash interest coverage of each of PSEC’s middle-market loan portfolio investments. The cash interest coverage for each middle-market loan portfolio investment is calculated based on the portfolio company’s cash interest and adjusted EBITDA.

Middle-Market Portfolio Net Leverage and Middle-Market Portfolio Cash Interest Coverage generally indicates a portfolio company’s ability to make interest payments and repay principal. Adjusted EBITDA provides PSEC with insight into profitability and scale of the portfolio companies within PSEC's middle-market loan portfolio.

These calculations include addbacks and adjustments that are often 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 nonrecurring transaction expenses. Consumer finance companies are adjusted to treat third-party receivables financing as a cost of goods sold (rather than financing) because consumer finance companies typically rely on such financing to fund their lending activities.

Middle-Market Portfolio Net Leverage and Middle-Market Portfolio Cash Interest Coverage 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 underlying portfolio company debt investments, but to supplement such analysis.

About Prospect Capital Corporation

Prospect is a business development company that primarily lends to and invests in middle market privately-held companies. Prospect’s investment objective is to generate both current income and long-term capital appreciation.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

Caution Concerning Forward-Looking Statements

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, and 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
[email protected]
Telephone (212) 448-0702

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

August is a natural moment to reset dividend portfolios. Rate-cut expectations have shifted, credit spreads are tight, and income investors are hunting for names where the yield is real, the payout is covered, and the entry point is affordable. The three names below all trade near or under $30, all pay above-average yields, and all just delivered results that speak to payout durability. One caveat up front: Kinder Morgan closed at $31.73 on August 12, so it currently sits just above the $30 line after a strong run. We are keeping it on the list as a pullback candidate to watch.

Pfizer (PFE) Pfizer (NYSE:PFE | PFE Price Prediction) is the cleanest name on this list for income buyers: a mega-cap pharma trading below $30 with a covered, growing dividend and a pipeline turning the page from the COVID cliff. Shares closed at $26.31 on August 12, up 9.36% over the past month and 11.15% year to date. That momentum tracks a genuinely strong first quarter.

In Q1 2026, Pfizer posted revenue of $14.45B, beating expectations and rising 5.4% year over year, with adjusted EPS of $0.75 marking a fifth consecutive beat. Management reaffirmed 2026 guidance of $59.5B to $62.5B in revenue and $2.80 to $3.00 in adjusted EPS. CEO Albert Bourla said the company is "off to a strong start in 2026", calling out oncology and obesity as the standout areas.

The dividend is the anchor. Pfizer pays $0.43 quarterly, or $1.72 annualized, and bumped the payout from $0.42 to $0.43 in 2026. That works out to a yield near 6.36%, which qualifies as ultra-high-yield by our threshold. Growth drivers back it up: Padcev grew 39%, Nurtec ODT/Vydura grew 41%, and the Vyndamax patent settlement extends U.S. exclusivity to June 2031.

The risk is the tail on legacy COVID franchises. Comirnaty revenue fell 59% and Paxlovid fell 63% operationally, and Pfizer expects a $1.5B unfavorable revenue impact from generic and biosimilar competition in 2026. The dividend looks safe; the growth rate will not.

Kinder Morgan (KMI) Kinder Morgan (NYSE:KMI) is the natural-gas infrastructure play. It is technically outside our $30 ceiling right now, but shares started 2026 at $26.72 and have gained 18.75% year to date, so any give-back into the high $20s would put it squarely back on the shopping list. The one-year return is 24.28%.

The fundamentals justify the re-rating. Q2 2026 revenue came in at $4.48B, a 6.76% beat and up 10.8% year over year, with EPS of $0.37 beating expectations. GAAP net income rose 21% to $867M. Management raised the 2026 outlook and now expects results more than 5% above the $8.6B Adjusted EBITDA budget and more than 12% above the $1.36 Adjusted EPS target. CEO Kim Dang described it as a "record second quarter."

The dividend was raised to $0.2975 quarterly, or $1.19 annualized, yielding roughly 3.76%. Growth is real: a $9.6B project backlog, 92% natural gas, with over 60% tied to power generation and LDC demand, plus natural gas transport volumes up 7% and gathering up 26% year over year. Moody’s upgraded the credit to Baa1. Note that Kinder Morgan is a C-corp, not an MLP, so no K-1 headaches for holders.

Risks: refined products volumes fell 5% and crude/condensate volumes fell 16%, and any major pipeline expansion carries permitting risk. Price discipline is warranted given the recent run.

Prospect Capital (PSEC) Prospect Capital (NASDAQ:PSEC) is the ultra-high-yield entry, and it comes with the standard BDC warning label: business development companies are required to distribute roughly 90% of taxable income, so payout ratios look extreme by design and dividends can flex with earnings. Shares closed at $2.29 on August 12, and the reported yield is around 23.6%.

The setup is contentious but improving. PSEC recently cut the monthly dividend from $0.045 to $0.035 effective May 2026, taking the annualized run rate to $0.42. Fiscal Q3 2026 returned to profitability with $26.4M in net income, or $0.05 per share, and NII of $78.5M ($0.16/share). Portfolio quality has shifted meaningfully: first lien senior secured middle-market loans now represent 72.0% of the portfolio at cost, up 790 basis points since June 2024, and interest coverage improved to 426%. The COO also bought roughly $2.75M of common stock in the open market, which is a real vote of confidence.

The risk case is equally direct. NAV per share slipped to $6.05 in March 2026 from $7.84 a year earlier, and net realized losses were $141.3M in Q2 and $79.1M in Q3. A $265.2M institutional bond maturity is due November 2026. The upcoming ex-dividend date of August 27, 2026, with a September 17 payment is a near-term catalyst for income buyers, but this is a name where position size matters.

What to watch next: Pfizer’s next payment lands on September 1, Kinder Morgan’s on August 17, and refinancing progress at Prospect Capital ahead of that November maturity will determine whether the current $0.035 monthly rate holds.

Contact [email protected] for any questions or corrections.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

The “million dollars to retire” figure survives because it is simple, not because it is precise. It assumes one spending target, one withdrawal rate, and one risk tolerance for every household. A better retirement question is narrower: how much annual income must your portfolio produce after Social Security, and how much yield risk are you willing to take to get it?

Once you frame it that way, the million-dollar threshold becomes less useful. The average U.S. consumer unit spent $78,535 in 2024, according to the Bureau of Labor Statistics. Social Security can replace a meaningful slice of that for many retirees. If your portfolio needs to cover roughly $50,000 a year, the capital required ranges from about $1.43 million down to roughly $417,000, depending entirely on the yield you target.

The Only Equation That Matters Income target divided by yield equals capital required. For a $50,000 annual income:

At 3.5%: $50,000 / 0.035 = $1,428,571 At 5%: $50,000 / 0.05 = $1,000,000 At 7%: $50,000 / 0.07 = $714,286 At 10%: $50,000 / 0.10 = $500,000 At 12%: $50,000 / 0.12 = $416,667 For context, the 10-year Treasury recently yielded about 4.4% to 4.5%, which is a useful baseline every dividend strategy below has to justify. It is not risk-free in the sense that market prices can move, but it is the closest widely used benchmark for default-free long-term dollar income.

Tier One: Sleep-At-Night Dividend Growth (3% to 4%) This tier is built on dividend growth equities and broad dividend ETFs. PepsiCo (NASDAQ:PEP | PEP Price Prediction) yields 4.1% and just paid its $1.48 quarterly dividend on June 30. NextEra Energy (NYSE:NEE) yields a lower 2.7% but the dividend has climbed from $0.425 quarterly in 2022 to $0.6232 today, and the stock returned 29% over the past year.

Trade-off: highest capital requirement, but income and principal both grow.

Tier Two: The Monthly Paycheck (5% to 7%) Net-lease REITs, preferred shares, and high-dividend equity funds live here. Realty Income (NYSE:O) yields 5.2%, pays monthly, and is on its 114th consecutive quarterly increase. The most recent monthly dividend ticked up to $0.271 from $0.2705. At a 5% blended yield, $1 million covers the $50,000 target on the nose.

Trade-off: income growth slows to low single digits, and the share price moves more with interest rates than with earnings.

Tier Three: Maximum Yield, Maximum Caution (8% to 14%) Business development companies, mortgage REITs, and leveraged covered-call funds can push portfolio yields into double digits. Ares Capital (NASDAQ:ARCC) yields 10.7% and has held its $0.48 quarterly distribution stable for six consecutive quarters. At that rate, roughly $470,000 produces $50,000 a year.

But yield this high carries real risk. Prospect Capital (NASDAQ:PSEC) cut its monthly distribution from $0.045 to $0.035 in May 2026, a 22% reduction. NAV per share fell to $6.05 from $7.84 a year earlier, and shares are down 11% over the past year and 47% over five years.

Where Conventional Wisdom Breaks Down The standard counterargument to high-yield portfolios is “dividend cuts.” The deeper problem is compounding. PepsiCo’s quarterly dividend has grown from $0.135 in 1999 to $1.48 in 2026. A retiree who bought PEP shares for income years ago is now collecting far more income on the same share count, even before considering any change in the stock price.

A PSEC retiree from the same period may have collected high distributions along the way, but the per-share distribution is lower today than it was several years ago, and the stock price has suffered. The headline yield looked higher. The outcome depended heavily on whether distributions were enough to offset the loss of principal.

With CPI-U at 335.123 in May 2026 and up 4.2% over the prior 12 months, an income stream that does not grow is an income stream that quietly loses purchasing power.

A Better Way to Size Retirement Income Calculate the gap, not the goal. Subtract expected Social Security from your actual annual spending. That residual is the number your portfolio has to cover. Stress-test the yield. For any holding above 8%, model what happens if the distribution is cut 25% and the share price falls 20%. If that scenario breaks your income plan or forces sales at depressed prices, the position is too large.

Blend the tiers. A barbell of a 3.5% dividend grower and a 9% BDC produces a 6.25% blended yield if the two sides are equally weighted, with built-in growth potential on half the portfolio. That structure can beat a pure 6% holding over a 20-year retirement, but only if the high-yield side avoids severe dividend cuts and principal erosion. The Number Is Less Important Than the Engine A million dollars can be too little, more than enough, or exactly on target depending on the income gap it has to fill. Yield changes the required capital, but risk changes whether that income lasts. The strongest retirement portfolios do not simply reach for the biggest payout. They match the paycheck to the household’s spending need, then make sure that paycheck can survive inflation, dividend cuts, and a long retirement.

Contact [email protected] for any questions or corrections.

July 06, 2026 07:01 ET  | Source: Prospect Capital Corporation

NEW YORK, July 06, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) and an affiliate have provided a first lien senior secured term loan and an equity-linked investment in ShipOffers (“ShipOffers” or the “Company”), in collaboration with the company’s founders and leadership team.

Founded in 2001 with a 25-year history, ShipOffers is a leading provider of on-demand product and order fulfillment services, offering sourcing, order processing, warehousing, pick-pack-and-ship, real-time tracking, and platform integrations for e-commerce and direct-to-consumer brands. ShipOffers operates fulfillment facilities in Colorado and Tennessee, as well as a facility in the Netherlands, enabling clients to scale distribution across the United States and Europe. The Company serves customers across the health and beauty, nutraceutical, and consumer products industries, and is led by co-founders Tony Grebmeier, Chief Executive Officer, and Doug Roberts, Chief Financial Officer.

“Prospect is pleased to provide strategic growth capital that supports continued evolution by the ShipOffers team in people, technology, and facilities,” said Angel Solis, Managing Director at Prospect. “ShipOffers has built a differentiated fulfillment platform over more than two decades, and we look forward to supporting the Company’s next phase of growth.”

The ShipOffers team was impressed with how quickly and thoughtfully Prospect worked to understand our business,” said Tony Grebmeier, Co-Founder and CEO of ShipOffers. “This investment allows our team to keep driving growth in the business we launched 25 years ago in 2001, while providing us the capital to expand our footprint and continue delivering for our clients.”

About Prospect Capital Corporation

Prospect is a business development company that primarily lends to and invests in middle market privately-held companies. Prospect’s investment objective is to generate both current income and long-term capital appreciation.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

About ShipOffers

Founded in 2001, ShipOffers is a globally recognized logistics and fulfillment company serving businesses across a range of industries. With facilities in Colorado, Tennessee, and the Netherlands, ShipOffers provides sourcing, order fulfillment, shipping, and strategic guidance, backed by a team of more than 150 professionals worldwide. For more information, visit www.shipoffers.com.

Caution Concerning Forward-Looking Statements

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, and 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
[email protected]
Telephone (212) 448-0702

NEW YORK, June 24, 2026 (GLOBE NEWSWIRE) -- Prospect Floating Rate and Alternative Income Fund, Inc. (“Prospect Floating Rate and Alternative Income Fund” or the “Fund”), announced today that the Fund’s Board of Directors has declared the monthly “base” cash common shareholder distribution and its quarterly cash “bonus” common shareholder distribution for June 2026.

The annualized total “base” cash distribution is $0.3810 per share (10.00% annualized percentage rate based on the net asset value as of March 31, 2026), for distribution with a record date of June 26, 2026 and a payment date of July 2, 2026.

Monthly Base Cash
Shareholder
DistributionRecord DatePayment DateTotal Amount
($ per share)June 2026June 26, 2026July 2, 2026$0.02924
The Fund’s Board of Directors has also declared a quarterly cash “bonus” distribution, as follows:

Quarterly Bonus
Cash Shareholder
DistributionRecord DatePayment DateTotal Amount
($ per share)June 2026June 26, 2026July 2, 2026$0.04723
The total annualized cash distribution is $0.56992 (14.96% annualized percentage rate based on the net asset value as of March 31, 2026 of $3.81), for a distribution with a record date of June 26, 2026.

Distributions shall first be treated as a distribution of taxable investment company income undistributed from the prior year and then treated as a distribution of taxable investment company income for the current year. This treatment will not affect tax reporting to shareholders.

About Prospect Floating Rate and Alternative Income Fund
Prospect Floating Rate and Alternative Income Fund is an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company. The Fund invests primarily in the floating rate loans of privately-owned U.S. middle market companies. These investments are generally sourced by Prospect Capital Management L.P, our investment adviser. For more information, visit pfloat.com.

About Prospect Capital Management L.P.
Prospect Capital Management L.P. (“Prospect”), headquartered in New York City, is an SEC-registered investment adviser that, along with its predecessors and affiliates, has more than 30-years of investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of over 100 professionals who focus on credit-oriented investments yielding attractive current income. Prospect, together with its affiliates, has $6.9 billion of assets under management as of March 31, 2026. Prospect is the investment adviser to Prospect Capital Corporation (NASDAQ: PSEC). For more information, call (212) 448-0702 or visit https://www.prospectcap.com.

Additional Information

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Past performance is not indicative of future performance. Our distributions may exceed our earnings, and therefore, portions of the distributions that we make may be a return of the money that you originally invested and represent a return of capital to you for tax purposes. The Fund will ordinarily pay distributions from its net investment income, if any, on a monthly basis. Distributions are not guaranteed. Based on current estimates, June 2026 distributions reflect a return of income, and the Fund does not expect any portion of the distributions to be a return of capital. Such a return of capital is not immediately taxable, but reduces your tax basis in our shares, which may result in higher taxes for you even if your shares are sold at a price below your original investment.

Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future performance of Prospect Floating Rate and Alternative Income Fund Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. Any such statements, other than statements of historical fact, are highly likely to be affected by unknowable future events and conditions, including elements of the future that are or are not under the control of Priority Income Fund, Inc. and that Prospect Floating Rate and Alternative Income Fund 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, and Prospect Floating Rate and Alternative Income Fund undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Prospect Capital Corporation offers perpetual, cumulative preferred shares with a 5.35% coupon and 7.9% current yield. PSEC common equity trades at a >50% discount to NAV, reflecting market skepticism about balance sheet quality and portfolio marks. PSEC.PR.A's yield is lower than PSEC's long-dated bonds, despite greater risk in bankruptcy, making the preferred equity unattractive on a risk/reward basis.

Prospect Capital Corporation continues to underperform, with NAV declining and a persistent negative investment activity trend. PSEC trades at a deep 61.82% discount to NAV and offers an 18.2% yield, but downside risks outweigh income potential. Net investment income and total investment income both declined year-over-year, while dividend payouts have been reduced again.

GraniteShares Advisors LLC bought a new stake in Prospect Capital Corporation (NASDAQ: PSEC) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 1,059,980 shares of the financial services provider's stock, valued at approximately $2,745,000. Prospect Capital makes up

New modular seating, dining and coordinated sets bring elevated coastal style to outdoor entertaining CANTON, Ga., April 22, 2026 /PRNewswire/ -- Ubique Group, a leading provider of commercial and residential furniture, today announced the expansion of the Martha Stewart Lily Pond Patio Collection, introducing a wicker series of patio furniture thoughtfully crafted to embody Martha's effortless outdoor style.

NEW YORK, May 04, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") and an affiliate have provided a first lien senior secured term loan and a preferred equity investment in Security Fire Systems ("SFS"), aggregating approximately $26 million, in collaboration with Blackford Capital.

May 06, 2026 09:00 ET  | Source: Prospect Capital Corporation

NEW YORK, May 06, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (the “Company” or “Prospect”) today announced it expects to file with the Securities and Exchange Commission its report on Form 10-Q containing results for the fiscal quarter ended March 31, 2026 and to issue its earnings press release on Thursday, May 7, 2026, after the close of the markets.

The Company will host a conference call on Friday, May 8, 2026 at 9:00 a.m. Eastern Time. The conference call dial-in number will be 888-338-7333. A recording of the conference call will be available for approximately 30 days. To hear a replay, call 855-669-9658 and use passcode 1182378.

The conference call will also be available via a live listen-only webcast on the Company’s website, www.prospectstreet.com. Please allow extra time prior to the call to visit the site and download any necessary software that may be needed to listen to the Internet broadcast.

About Prospect Capital Corporation

Prospect is a business development company that primarily lends to and invests in middle market privately-held companies. Prospect’s investment objective is to generate both current income and long-term capital appreciation.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

Caution Concerning Forward-Looking Statements

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, and 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
[email protected]
Telephone (212) 448-0702

Prospect Capital Corporation (PSEC) Q3 2026 Earnings Call Transcript

Prospect Capital Corporation is reiterated as a sell due to ongoing financial deterioration despite a 59% discount to NAV and double-digit yield. PSEC's Q3 saw net investment income and total investment income decline, with NAV dropping sequentially and year-over-year, underperforming peers. Management's portfolio shift to first-lien loans and reduced real estate exposure are positive but not expected to offset near-term financial weakness.

NEW YORK, June 09, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, "Company", “our”, or “we”) today announced that it held its special meeting of stockholders (the “Special Meeting”) on June 9, 2026. The proposals that were considered at the Special Meeting are described in detail in the Company's definitive proxy statement for the Special Meeting as filed with the Securities and Exchange Commission on March 11, 2026 (the “Proxy”). As of March 11, 2026, there were 486,484,945 shares of the Company's common stock outstanding, 25,394,532 shares of the Company's 5.50% Series A1 Preferred Stock outstanding (the “Series A1 Preferred Stock”), 163,000 shares of the Company's 5.50% Series A2 Preferred Stock outstanding (the “Series A2 Preferred Stock”), 5,251,157 shares of the Company's 5.35% Series A Fixed Rate Cumulative Perpetual Preferred Stock outstanding (the “5.35% Series A Preferred Stock”), 908,259 shares of the Company's 5.50% Series M1 Preferred Stock outstanding (the “Series M1 Preferred Stock”), 23,376,070 shares of the Company's 6.50% Series A3 Preferred Stock outstanding (the “Series A3 Preferred Stock”), 1,794,312 shares of the Company's 6.50% Series M3 Preferred Stock outstanding (the “Series M3 Preferred Stock”), 6,920,261 shares of the Company's Floating Rate Series A4 Preferred Stock outstanding (the “Series A4 Preferred Stock”), 1,995,546 shares of the Company's Floating Rate Series M4 Preferred Stock outstanding (the “Series M4 Preferred Stock”), 3,341,380 shares of the Company's 7.50% Series A5 Preferred Stock outstanding (the “Series A5 Preferred Stock”) and 878,753 shares of the Company's 7.50% Series M5 Preferred Stock outstanding (the “Series M5 Preferred Stock”). Each share of common or preferred stock has one vote. To afford additional time to solicit stockholder votes for the proposal found in the Proxy, the Special Meeting has been adjourned until June 23, 2025, at 5:00 p.m., Eastern Time, at www.virtualshareholdermeeting.com/PSEC2026SM.