PSEC - Prospect Capital Announces June 2023 Financial Results and Declares Stable Monthly Dividends through October 2023 of $0.06 Per Common Share | Benzinga

NEW YORK, Aug. 29, 2023 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ:PSEC) ("Prospect", "our", or "we") today announced financial results for our fiscal quarter and year ended June 30, 2023.

FINANCIAL RESULTS

⁽¹⁾ Basic NII is calculated by dividing NII, less preferred dividends, by the weighted average number of common shares outstanding.
⁽²⁾ Basic Net Income (Loss) is calculated by dividing Net Income (Loss) by the weighted average number of common shares outstanding.
⁽³⁾ Including our preferred stock as equity.

CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION

Prospect is declaring distributions to common shareholders as follows:

These monthly cash distributions are the 73^rd and 74^th consecutive $0.06 per share distributions to common shareholders.

Prospect expects to declare November 2023, December 2023, and January 2024 distributions to common shareholders in November 2023.

Based on the declarations above, Prospect's closing stock price of $6.01 at August 28, 2023 delivers to our common shareholders an annualized distribution yield of 12.0% and an annualized basic NII yield of 15.3%, representing 128% basic NII coverage of common distributions.

Taking into account past distributions and our current share count for declared distributions, since inception through our October 2023 declared distribution, Prospect will have distributed $20.40 per share to original common shareholders, representing 2.2 times June 2023 common NAV per share, aggregating over $4.01 billion in cumulative distributions to all common shareholders.

Since inception in 2004, Prospect has invested $20.2 billion across 418 investments, exiting 279 of these investments.

Since October 2017, our NII per common share has aggregated $4.63 while our common shareholder and preferred shareholder distributions per common share have aggregated $4.14, with our NII exceeding common and preferred distributions during this period by $0.49 per common share and representing 112% coverage.

Drivers focused on enhancing accretive NII per share growth include (1) our $2.05 billion targeted 6.50% perpetual preferred stock offerings (which could potentially be increased in capacity in an accretive fashion), (2) greater utilization of our cost efficient revolving floating rate credit facility, (3) increase of short-term Libor and SOFR rates based on Fed tightening to boost asset yields, and (4) increased primary and secondary originations of senior secured debt and selected equity investments targeting attractive risk-adjusted yields and total returns as we deploy dry powder from our underleveraged balance sheet.

Our senior management team and employees own over 27% of all common shares outstanding, over $1.0 billion of our common equity as measured at NAV.

CASH PREFERRED SHAREHOLDER DISTRIBUTION DECLARATION

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

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

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

PORTFOLIO UPDATE AND INVESTMENT ACTIVITY

⁽¹⁾ Excluding our underlying industry-diversified structured credit portfolio.
⁽²⁾ Calculated at fair value.
⁽³⁾ For additional disclosure see "Middle-Market Loan Portfolio Company Weighted Average EBITDA and Net Leverage" at the end of this release.

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

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