Prospect Capital Corporation

Prospect Capital Corp reported net investment income of $78 million, or $0.15 per common share, for the June quarter, consistent with the prior quarter. Net asset value stood at approximately $2.9 billion, or $5.71 per common share, and the company declared monthly distributions of $0.05 per share for September and October. The company closed the sale of Valley Electric on July 1, 2026, for approximately $328 million, achieving a 20.5% realized gross annualized IRR and 4.8 times multiple of invested capital. Investment originations totaled $166 million in the quarter, with 91% in middle-market investments, while repayments and exits were $46 million, resulting in net originations of $120 million. The portfolio comprised 91 companies across 31 industries with an aggregate fair value of $6.3 billion, and non-accruals represented approximately 0.7% of total assets based on fair market value.

Prospect Capital reported fiscal fourth-quarter net investment income per share of $0.15, beating the average analyst estimate of $0.11 but down from $0.16 in the prior quarter and $0.17 a year earlier. Total investment income climbed to $155.8 million from $150.1 million in the third quarter, while total originations rose to $166.3 million from $115.3 million. Net asset value per common share fell to $5.71 at June 30, 2026, from $6.05 at March 31, 2026, and $6.56 a year ago. The company said it is actively implementing artificial intelligence and automation across its investment processes and portfolio companies.

Prospect Enhanced Yield Fund announced a $0.04775 increase in its monthly cash shareholder distributions for July, August, and September 2026, bringing the annualized total cash distribution to $2.85 per share, an 11.5% annualized rate based on the June 30, 2026 net asset value of $24.87 per common share. The Fund's Board of Directors declared the increase, which results in monthly distributions of $0.23775 per share with record dates of July 30, August 28, and September 29, 2026, and payment dates shortly thereafter. These distributions represent the tenth, eleventh, and twelfth monthly distributions paid by the Fund. The Fund is a closed-end interval fund managed by Prospect Enhanced Yield Management, LLC, investing primarily in non-mortgage related structured credit instruments.

Prospect Floating Rate and Alternative Income Fund declared a total annualized cash distribution of $0.56992 per share, representing a 14.96% annualized rate based on its March 31, 2026 net asset value of $3.81. The total distribution consists of a monthly base cash distribution of $0.02924 per share and a quarterly bonus cash distribution of $0.04723 per share, both with a record date of June 26, 2026 and a payment date of July 2, 2026. The base distribution alone equates to an annualized rate of 10.00% on net asset value. The Fund, a non-diversified closed-end management investment company, invests primarily in floating rate loans of privately-owned U.S. middle market companies.

Prospect Capital Corporation has agreed to sell its portfolio company Valley Electric Company to specialty contractor MYR Group for approximately $328 million. The transaction is expected to close around July 1, 2026, and Prospect anticipates net exit proceeds of roughly $280 million after adjustments and earn-out payments. Combined with prior returns from interest, dividends, and other cash flows since the original 2012 investment, the total outcome represents a 20.4% annualized return and nearly five times the original capital invested. Valley Electric, founded in 1982, provides electrical contracting services for critical infrastructure and saw its revenues grow by 289% during Prospect's 14-year ownership.