Prospect Capital Corporation

For the March quarter, net investment income was $78 million, or $0.16 per common share. NAV was approximately $3 billion, or $6.05 per common share. Net debt to total assets was 27%. On the portfolio side, investment originations were $115 million, repayments and exits were $222 million, resulting in net repayments of $107 million. Non-accruals were around 0.7% of total assets at fair market value, consistent with the prior quarter. Forwardly, management declared monthly common distributions of $35 per share for each of May, June, July, and August. No next-quarter earnings guidance was provided in the call.

John Barry emphasized a multi-year rotation toward Prospect’s core first-lien senior secured middle-market lending strategy. He said the first-lien mix has increased 790 basis points to 72% since June 2024, while second-lien exposure, subordinated structured notes, and selected equity-linked assets are being reduced. He also framed AI and automation as part of efforts to improve portfolio company revenues and lower costs, alongside use of the floating-rate revolver to match assets and liabilities.

Kristin Van Dask focused on balance-sheet strength and funding flexibility. She cited $1.8 billion of combined cash and undrawn revolver capacity, $4.2 billion of unencumbered assets, and $2.12 billion of commitments from 48 banks, with drawn pricing at SOFR plus 2.05%. She also said the company issued about $168 million of senior unsecured 5.5% notes due 2030, has a weighted average cost of unsecured debt financing of 4.71%, and has liability maturities extending through 2052.

There was no substantive analyst Q&A; the operator opened the queue, but the session ended without questions. As a result, no new concerns were raised by analysts and no additional management clarifications were given beyond the prepared remarks.