Prospect Capital Announces September 2026 Results and $200 Million Common Share Repurchase Program

(NASDAQ:PSEC) Prospect Capital Corporation announced financial results for the fiscal quarter ended September 30, 2026. Net Investment Income (NII) for the quarter was $76,359,000, with NII per common share of $0.15. Net loss applicable to common shareholders was $(53,448,000), or $(0.10) per common share. Distributions to common shareholders totaled $55,256,000, or $0.105 per common share, with cumulative paid and declared distributions reaching $4,869,192,000, or $22.24 per common share. Total assets as of September 30, 2026 were $6,038,758,000, and total liabilities were $1,612,574,000. Net asset value (NAV) to common shareholders was $2,875,089,000, or $5.36 per common share. Prospect declared monthly cash common shareholder distributions of $0.0350 per share for November 2026, December 2026, and January 2027. Since inception through January 2027, Prospect will have distributed approximately $4.9 billion, or $22.24 per share, to original common shareholders. Since its IPO in July 2004 through September 30, 2026, Prospect has invested approximately $23 billion in over 450 investments, exiting more than 350, with exited investments generating a gross IRR of approximately 12% (based on $13.7 billion invested and $17.7 billion proceeds). In middle market lending since 2004, exited investments produced a gross IRR of approximately 14.5% (on $11.5 billion invested and $14.8 billion proceeds) and an annualized realized loss rate of 0.2%. As of September 30, 2026, Prospect's portfolio included 85 companies across 31 industries, with total investments at cost of $5,944,319,000 and at fair value of $5,944,478,000. First lien debt comprised 71.5% of investments at cost, and equity investments 17.3%. Non-accrual loans were 1.8% of total investments at cost. During the September 2026 quarter, total originations were $90,477,000, with 83.4% in middle-market and 16.6% in real estate, while repayments and sales totaled $257,372,000. Prospect exited six property investments in the last twelve months, and the remaining real estate property portfolio included 50 properties as of September 30, 2026. The company closed the sale of Valley Electric for approximately $328 million, achieving a 20.5% realized gross annualized IRR and 4.8x multiple of invested capital. On October 27, 2026, Prospect signed a definitive agreement to sell its 8.3% equity stake in RGIS Services, LLC for approximately $22.0 million, generating a 13.6% IRR and 1.6x multiple, with closing expected within 45 days. Prospect's senior management and employees own 26% of all common shares outstanding, or approximately $0.7 billion of common equity at NAV. The company reduced outstanding debt principal by $341.4 million during the quarter, and asset coverage ratio on senior securities increased to 387.7%. Prospect gave notice to redeem all $263.2 million of its November 2026 Notes, with redemption expected by November 13, 2026. On October 29, 2026, Prospect priced a $300.0 million institutional offering of notes due 2031, expecting net proceeds of $283.4 million, with closing anticipated on November 5, 2026. The company intends to use the proceeds primarily to refinance existing indebtedness.

Prospect Capital Completes Investment in ShipOffers

(NASDAQ:PSEC) Prospect Capital Corporation and an affiliate have provided a first lien senior secured term loan and an equity-linked investment in ShipOffers, in collaboration with the company’s founders and leadership team. ShipOffers was founded in 2001 with a 25-year history and operates fulfillment facilities in Colorado, Tennessee, and the Netherlands. 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. ShipOffers is backed by a team of more than 150 professionals worldwide. Prospect is a business development company that primarily lends to and invests in middle market privately-held companies. Prospect has elected to be treated as a business development company under the Investment Company Act of 1940 and as a regulated investment company under the Internal Revenue Code of 1986. The company projects that this investment allows ShipOffers to keep driving growth, expand its footprint, and continue delivering for its clients.

Prospect Capital Announces Sale of Valley Electric to MYR Group for Expected Gross Proceeds of $328 Million, Achieving a 4.8x Multiple of Invested Capital to Prospect Over Investment Lifetime

Prospect Capital Corporation (NASDAQ: PSEC) announced the successful sale of its portfolio company, Valley Electric Company, Inc., to MYR Group Inc. The transaction is expected to close on or about July 1, 2026, for consideration of approximately $328 million, subject to net asset, other post-closing purchase price adjustments, and earn-out payment. Over the life of the Valley Electric investment since 2012, Prospect expects net exit proceeds of approximately $280 million, not including potential adjustments and earn-out payments. Prospect achieved a 20.4% realized gross annualized internal rate of return (IRR) and a 4.8 times multiple of invested capital from this investment. Valley Electric expanded revenues by 289% during Prospect’s investment period. The announcement highlights Prospect’s track record of identifying high-quality businesses and delivering attractive realized returns. The press release also contains cautionary statements regarding forward-looking statements and IRR calculations.

Prospect Capital Announces March 2026 Results

Prospect Capital Corporation (NASDAQ:PSEC) announced its financial results for the fiscal quarter ended March 31, 2026. Net Investment Income for the quarter was $78,457,000, with NII per common share of $0.16. The company declared monthly cash distributions of $0.0350 per share for May through August 2026. Since inception through August 2026, Prospect will have distributed $22.07 per share, totaling approximately $4.8 billion to common shareholders. As of March 31, 2026, total assets were $6,383,972,000 and net asset value per common share was $6.05.

Prospect Capital Completes $26 Million Investment in Security Fire Systems

Prospect Capital Corporation (NASDAQ:PSEC) and an affiliate have provided a first lien senior secured term loan and a preferred equity investment in Security Fire Systems (SFS), totaling approximately $26 million, in collaboration with Blackford Capital. SFS, founded in 1993, is a leader in fire security and protection services, certified in Texas, California, Arkansas, Colorado, and Oklahoma. The investment aims to support SFS's organic and acquisitive growth opportunities. Blackford Capital, a private equity firm, partnered in the transaction and highlighted Prospect's role as an investor. This announcement is significant for investors as it demonstrates Prospect's continued activity in middle market lending and investment.