Prospect Capital Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Prospect Capital Corp. has filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing its financial position and investment activities.</b>

AI Summary

PROSPECT CAPITAL CORP (PSEC-PA) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Prospect Capital Corp. filed its 10-Q report for the period ending March 31, 2024. The filing covers the period from July 1, 2023, to March 31, 2024. The company's fiscal year ends on June 30. The filing includes data on various investment types, including affiliated and unaffiliated issuers. The report details different series of preferred stock and public notes.

Why It Matters

For investors and stakeholders tracking PROSPECT CAPITAL CORP, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and asset allocation details for Prospect Capital Corp. as of the end of the third fiscal quarter. Understanding the breakdown of investments and liabilities in this report is crucial for assessing the company's risk profile and future revenue-generating potential.

Risk Assessment

Risk Level: medium — PROSPECT CAPITAL CORP shows moderate risk based on this filing. The company operates in the financial services sector, which is subject to market volatility and regulatory changes, as indicated by the various investment categories and debt instruments detailed in the filing.

Analyst Insight

Review the detailed investment portfolio and debt structure in the 10-Q to assess the company's risk exposure and potential for future returns.

Key Numbers

• 2024-03-31 — Conformed Period of Report (10-Q)
• 2024-05-08 — Filed As Of Date (10-Q)
• 06/30 — Fiscal Year End (Company Data)
• 2023-07-01 — Period Start Date (10-Q)

Key Players & Entities

• PROSPECT CAPITAL CORP (company) — FILER
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-08 (date) — FILED AS OF DATE
• 0001287032-24-000152 (other) — ACCESSION NUMBER
• 10 EAST 40TH STREET 44TH FL (address) — BUSINESS ADDRESS STREET 1
• NEW YORK (location) — BUSINESS ADDRESS CITY
• 10016 (postal_code) — BUSINESS ADDRESS ZIP
• 212-448-0702 (phone_number) — BUSINESS PHONE

FAQ

Risk Factors

• Investment Portfolio Risks [medium — financial]: The company's investments are subject to various risks, including market fluctuations and credit defaults, as detailed by the different investment categories (affiliated, unaffiliated issuers).
• Debt and Leverage Risks [medium — financial]: The company utilizes various forms of debt, including public notes and convertible debt, which expose it to interest rate risk and refinancing risk.
• Regulatory Compliance [medium — regulatory]: As a business development company, Prospect Capital Corp. is subject to specific regulations that impact its operations and investment strategies.

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q report was officially filed with the SEC.
• 2023-07-01: Quarter Start Date — Beginning of the reporting period for the 10-Q filing.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value PSEC NASDAQ Global Select Mar

Filing Documents

• psec-20240331.htm (10-Q) — 10468KB
• psec10-qq32024ex311.htm (EX-31.1) — 10KB
• psec10-qq32024ex312.htm (EX-31.2) — 10KB
• psec10-qq32024ex321.htm (EX-32.1) — 6KB
• psec10-qq32024ex322.htm (EX-32.2) — 6KB
• 0001287032-24-000152.txt (&nbsp;) — 53997KB
• psec-20240331.xsd (EX-101.SCH) — 191KB
• psec-20240331_cal.xml (EX-101.CAL) — 93KB
• psec-20240331_def.xml (EX-101.DEF) — 1432KB
• psec-20240331_lab.xml (EX-101.LAB) — 1372KB
• psec-20240331_pre.xml (EX-101.PRE) — 1406KB
• psec-20240331_htm.xml (XML) — 11522KB

Forward-Looking Statements

Forward-Looking Statements 3

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Statements of Assets and Liabilities as of March 31 , 202 4 (unaudited) and June 30, 2023 4 Consolidated Statements of Operations for the three and nine months ended March 31 , 202 4 and March 31, 2023 (unaudited) 5 Consolidated Statements of Changes in Net Assets and Temporary Equity for the three and nine months ended March 31, 202 4 and March 31, 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the nine months ended March 31, 202 4 and Mar ch 31, 2023 (unaudited) 8 Consolidated Schedules of Investments as of March 31, 2024 (unaudited) and June 30, 2023 9

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 46 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 113 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 145 Item 4.

Controls and Procedures

Controls and Procedures 147

OTHER INFORMATION

PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 148 Item 1A.

Risk Factors

Risk Factors 148 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 150 Item 3. Defaults Upon Senior Securities 151 Item 4. Mine Safety Disclosures 151 Item 5. Other Information 152 Item 6. Exhibits 157

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report contains information that may constitute "forward-looking statements." Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will," "should," "could," "may," "plan" and similar expressions identify forward-looking statements, which generally are not historical in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to volume growth, share of sales and earnings per share growth, and statements expressing general views about future operating results—are forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part II, "Item 1A. Risk Factors" and elsewhere in this report and in our Annual Report on Form 10-K for the year ended June 30, 2023, and those described from time to time in reports that we have filed or in the future may file with the Securities and Exchange Commission. The forward-looking statements contained in this report involve a number of risks and uncertainties, including statements concerning: our, or our portfolio companies', future operating results; our busi

Financial Statements

Item 1. Financial Statements PROSPECT CAPITAL CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share and per share data) March 31, 2024 June 30, 2023 (Unaudited) (Audited) Assets Investments at fair value: Control investments (amortized cost of $ 3,222,326 and $ 2,988,496 , respectively) $ 3,814,119 $ 3,571,697 Affiliate investments (amortized cost of $ 10,162 and $ 8,855 , respectively) 13,805 10,397 Non-control/non-affiliate invest ments (amortized cost of $ 4,456,184 and $ 4,803,245 , respectively) 3,978,788 4,142,837 Total investments at fair value (a mortized cost of $ 7,688,672 and $ 7,800,596 , respectively)(Note 3) 7,806,712 7,724,931 Cash an d cash equivalents (restricted cash of $ 4,532 and $ 5,074 , respectively) 53,480 95,646 Receivables for: Interest, net 30,652 22,701 Other 1,169 1,051 Deferred financing costs on Revolving Credit Facility (Note 4) 13,019 15,569 Due from broker — 617 Prepaid expenses 588 1,149 Due from Affiliate (Note 13) 174 2 Total Assets 7,905,794 7,861,666 Liabilities Revolving Credit Facility (Notes 4 and 8) 906,376 1,014,703 Public Notes (less unamortized discount and debt issuance costs of $ 13,589 and $ 17,103 , respectively) (Notes 6 and 8) 986,411 1,064,137 Prospect Capital InterNotes (less unamortized debt issuance costs of $ 7,403 and $ 6,688 , respectively) (Notes 7 and 8) 435,550 351,417 Convertible Notes (less unamortized debt issuance costs of $ 885 and $ 1,577 , respectively) (Notes 5 and 8) 155,283 154,591 Due to Prospect Capital Management (Note 13) 56,608 61,651 Dividends payable 25,274 31,033 Interest payable 20,627 22,684 Accrued expenses 3,287 4,926 Due to Prospect Administration (Note 13) 5,325 4,066 Due to broker 8,904 94 Due to Affiliate (Note 13) — 161 Other liabilities 166 1,524 Total Liabilities 2,603,811 2,710,987 Commitments and Contingencies (Note 3 and Note 15) Preferred Stock, par value $ 0.001 per share ( 647,900,000

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View this 10-Q filing on SEC EDGAR