PROSPECT CAPITAL CORP
For the period ended Dec 31, 2024. Filed Feb 10, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2024 · Filed Feb 10, 2025
PSEC$1.41+1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0001287032-24-000408
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-31; filed 2025-02-10.
0001287032-25-000012
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 234 previous paragraphs and 259 current paragraphs.
146 unchanged; 78 reworded; 20 added; 9 removed; 1 previous and 15 current paragraphs rearranged.
Tables are not compared: 26 previous and 31 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
Second Quarter Highlights
Current report
During the three months ended December 31, 2024, we repurchased $11,443 aggregate principal amount of the 2026 Notes at a weighted average price of 97.32%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $264 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 2026 Notes.
Current report
First Tower Finance Company LLC
Current report
Prospect owns 100% of the equity of First Tower Delaware, a consolidated holding company. First Tower Delaware owns 78.06% of First Tower Finance. First Tower Finance owns 100% of First Tower, LLC (“First Tower”), a multiline specialty finance company.
Current report
The fair value of our investment in First Tower was $665,118 as of December 31, 2024, a premium of $200,353 to its amortized cost basis compared to a fair value of $605,928 as of June 30, 2024, a premium of $149,790 to its amortized cost. The increase in premium to amortized cost was driven by an increase in financial performance and increased comparable trading multiples.
Current report
During the three months ended December 31, 2024, we repurchased $11,443 aggregate principal amount of the 2026 Notes at a weighted average price of 97.32%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $264 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 2026 Notes.
Current report
During the six months ended December 31, 2024, we repurchased $23,728 aggregate principal amount of the 2026 Notes at a weighted average price of 97.21%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $571 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 2026 Notes.
Current report
As of December 31, 2024 and June 30, 2024, the outstanding aggregate principal amount of the 2026 Notes was $376,272 and $400,000, respectively.
Current report
The weighted average interest rate earned on performing interest bearing assets decreased to 9.72% for the six months ended December 31, 2024 from 10.75% for the six months ended December 31, 2023. The weighted average interest rate earned on all interest bearing investments decreased to 9.09% for the six months ended December 31, 2024 from 10.12% for the six months ended December 31, 2023. The decrease is primarily due to a decrease in interest income to $339,930 from $368,271, as a result of repayments and originations at lower rates than our average existing portfolio yield and a decline in SOFR rates, and a decrease in income from our structured credit investments to $8,233 from $25,569, for the six months ended December 31, 2024 and 2023, respectively.
Current report
Other income for the six months ended December 31, 2024 decreased by $26,720 compared to the six months ended December 31, 2023 primarily due to a $16,129 decrease in structuring and amendment fees due to lower levels of originations and a $10,618 decrease in royalty and net revenue interests.
Current report
During thethree months ended December 31, 2024 we recorded a net realized loss of$946 from the conversions of preferred stock to common, which was offset by a gain of$40 from the redemptions of preferred stock to cash, resulting in a net realized loss of $906. During thethree months ended December 31, 2023 we recorded a gain of $5,344 from preferred stock repurchases and a tender offer, which was offset by a loss of $4,966 from conversion of preferred stock to common stock, resulting in a net realized gain of $378.
Current report
The following table reflects net change in unrealized gains (losses) on investments for the six months ended December 31, 2024:
Current report
The following table reflects net change in unrealized gains (losses) on investments for the six months ended December 31, 2023:
Current report
Additionally, we have covenanted to waive the applicable 2% / 5% / 20% redemption limits for the Floating Rate Preferred Stock as set forth in the terms of the Floating Rate Preferred Stock such that holders of the Floating Rate Preferred Stock may, in addition to the amount of Floating Rate Preferred Stock such holders are entitled to redeem pursuant to the terms of the Floating Rate Preferred Stock, also redeem an amount of such Floating Rate Preferred Stock equal to the lowest excess, if any, between the corresponding applicable 2% / 5% / 20% redemption limits for the 7.50% Preferred Stock as set forth in the terms of the 7.50% Preferred Stock and the respective amounts requested for the 7.50% Preferred Stock on a Holder Redemption Deadline for the 7.50% Preferred Stock.
Current report
On October 30, 2023, we commenced a tender offer (the “Series A Preferred Stock Tender Offer”) to purchase for cash any and all of 5,882,351 shares of outstanding Series A Preferred Stock at a price of $15.88, plus accrued and unpaid dividends for a total consideration of $16.00 per share. The Series A Preferred Stock Tender Offer expired at 5:00 p.m., New York City time, on November 29, 2023 and as a result, $15,780 aggregate liquidation amount of the Series A Preferred Stock were validly tendered and accepted, and we recognized a realized gain of $5,197 from the purchase of 631,194 shares of Series A Preferred Stock in the amount of the difference between the consideration transferred and the net carrying amount of the Series A Preferred Stock.
Current report
During the three and six months ended December 31, 2023, we exchanged an aggregate of -267,740 Series M1 Preferred Stock for an aggregate of 267,740 newly-issued Series M3 Preferred Stock pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended (the “Securities Act”).
Current report
During the six months ended December 31, 2024, we exchanged an aggregate of 138,618 Series M1 Preferred Stock for an aggregate of 10,842 and 127,774 newly-issued Series M3 Preferred Stock and Series M4 Preferred Stock, respectively, pursuant to Section 3(a)(9) of the Securities Act. During the six months ended December 31, 2024, we exchanged an aggregate of 235,507 Series M3 Preferred Stock for an aggregate of 235,504 newly-issued Series M4 Preferred Stock pursuant to the Securities Act.
Current report
On January 17, 2025, we announced the declaration of monthly dividends for our 7.50% Preferred Stock holders for holders of record on the following dates based on an annualized rate equal to 7.50% of the stated value of $25.00 per share as set forth in the Articles Supplementary for the Preferred Stock, 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 February or March as a result), authorized on January 17, 2025, as follows:
Current report
On February 10, 2025, we announced the declaration of monthly dividends for ourfor 7.50% Preferred Stock holders of record on the following dates based on an annualized rate equal to 7.50% of the stated value of $25.00 per share as set forth in the Articles Supplementary for the Preferred Stock, 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 June as a result), as follows:
Current report
On January 31, 2025 the Company launched an offer to exchange (i) any and all outstanding 6.50% Series M3 Preferred Stock for either Floating Rate Series M4 Preferred Stock or 7.50% Series M5 Preferred Stock and (ii) 5.50% Series M1 Preferred Stock for either 6.50% Series M3 Preferred Stock, Floating Rate Series M4 Preferred Stock or 7.50% Series M5 Preferred Stock pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended (the “Securities Act”). The shares issued in the exchanges will be issued in each case to an existing security holder of the Company exclusively in exchange for such holder’s securities and no commission or other remuneration will be paid or given for soliciting the exchange. Other exemptions may apply.
Removed paragraphs (9)
Previous report
First Quarter Highlights
Previous report
During the three months ended September 30, 2024, we commenced various tender offers to purchase for cash any and all outstanding aggregate principal amount of the 2026 Notes at prices ranging from 96.96% to 97.12%, plus accrued and unpaid interest. As a result, $12,285 aggregate principal amount of the 2026 Notes were validly tendered and accepted, and we recognized a realized gain of $307 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the 2026 Notes, net of the proportionate amount of unamortized debt issuance costs.
Previous report
Valley Electric Company, Inc.
Previous report
Prospect owns 100% of the common stock of Valley Holdings I, a Consolidated Holding Company. Valley Holdings I owns 100% of Valley Holdings II, a Consolidated Holding Company. Valley Holdings II owns 94.99% of Valley Electric Company, Inc. (“Valley Electric”), with Valley Electric management owning the remaining 5.01% of the equity. Valley Electric owns 100% of the equity of VE Company, Inc., which owns 100% of the equity of Valley Electric Co. of Mt. Vernon, Inc. (“Valley”) and Comet Electric, Inc (“Comet”), leading providers of specialty electrical services in the states of Washington and California. Valley and Comet are amongst the top electrical contractors in the United States.
Previous report
The fair value of our investment in Valley Electric was $305,384 as of September 30, 2024, a premium of $209,472 to its amortized cost, compared to a fair value of $316,419 as of June 30, 2024, representing a $220,508 premium to its amortized cost. The decrease in premium to amortized cost resulted from modest changes to timing of ongoing and future projects.
Previous report
Our largest non-control/non-affiliate investment is Town & Country, which is valued at $13,022 above its amortized cost and represents approximately 6.9% of our net asset value as of September 30, 2024. Town & Country is a supplier of home textiles and accessories to retailers throughout North America.
Previous report
During the three months ended September 30, 2024, we commenced various tender offers to purchase for cash any and all outstanding aggregate principal amount of the 2026 Notes at prices ranging from 96.96% to 97.12%, plus accrued and unpaid interest. As a result, $12,285 aggregate principal amount of the 2026 Notes were validly tendered and accepted, and we recognized a realized gain of $307 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the 2026 Notes, net of the proportionate amount of unamortized debt issuance costs.
Previous report
As of September 30, 2024 and June 30, 2024, the outstanding aggregate principal amount of the 2026 Notes was $387,715 and $400,000, respectively.
Previous report
On October 17, 2024, we entered into an amendment (the “Amendment”) to the Amended and Restated Dealer Manager Agreement, dated as of February 25, 2021, by and between the Company and PCS, pursuant to which the Dealer Manager agreed to serve as the Company’s agent, principal distributor and exclusive and dealer manager for the Company’s increased offering of up to 90,000,000 shares, par value $0.001 per share, of preferred stock, with a $2,250,000 aggregate liquidation preference (the “Preferred Stock”). On October 17, 2024, in connection with the Offering, we filed Articles Supplementary (the “Articles Supplementary”) with the State Department of Assessments and Taxation of Maryland (“SDAT”), reclassifying and designating 20,000,000 shares of the Company’s authorized and unissued shares of Common Stock into shares of Preferred Stock.
Reworded paragraphs (78)
Previous wording
•Lending to Companies - We make directly-originated, agented loans to companies, including companies which are controlled by private equity sponsors and companies that are not controlled by private equity sponsors (such as companies that are controlled by the management team, the founder, a family or public shareholders). This debt can take the form of first lien, second lien, unitranche or unsecured loans. These loans typically have equity subordinate to our loan position. We may also purchase selected equity co-investments in such companies. In addition to directly-originated, agented loans, we also invest in senior and secured loans syndicated loans and high yield bonds that have been sold to a club or syndicate of buyers, both in the primary and secondary markets. These investments are often purchased with a long term, buy-and-hold outlook, and we often look to provide significant input to the transaction by providing anchoring orders.
Current wording
•Lending to Companies - We make directly-originated, agented loans to companies, including companies which are controlled by private equity sponsors and companies that are not controlled by private equity sponsors (such as companies that are controlled by the management team, the founder, a family or public shareholders). This debt can take the form of first lien, second lien, unitranche or unsecured loans. These loans typically have equity subordinate to our loan position. We may also purchase selected equity investments in such companies. In addition to directly-originated, agented loans, we also invest in senior and secured loans syndicated loans and high yield bonds that have been sold to a club or syndicate of buyers, both in the primary and secondary markets. These investments are often purchased with a long term, buy-and-hold outlook, and we often look to provide significant input to the transaction by providing anchoring orders.
Previous wording
We hold many of our control investments in a two-tier structure consisting of a holding company and one or more related operating companies for tax purposes. These holding companies serve various business purposes including concentration of management teams, optimization of third-party borrowing costs, improvement of supplier, customer, and insurance terms, and enhancement of co-investments by the management teams. In these cases, our investment, which is generally equity in the holding company, the holding company’s equity investment in the operating company and any debt from us directly to the operating company structure represents our total exposure for the investment. As of September 30, 2024, as shown in our Consolidated Schedule of Investments, the cost basis and fair value of our investments in controlled companies was $3,326,598 and $3,744,510, respectively. This structure gives rise to several of the risks described in our public documents and highlighted elsewhere in this Quarterly Report. We consolidate all wholly owned and substantially wholly owned holding companies formed by us for the purpose of holding our controlled investments in operating companies. There is no significant effect of consolidating these holding companies as they hold minimal assets other than their investments in the controlled operating companies. Investment company accounting prohibits the consolidation of any operating companies.
Current wording
We hold many of our control investments in a two-tier structure consisting of a holding company and one or more related operating companies for tax purposes. These holding companies serve various business purposes including concentration of management teams, optimization of third-party borrowing costs, improvement of supplier, customer, and insurance terms, and enhancement of co-investments by the management teams. In these cases, our investment, which is generally equity in the holding company, the holding company’s equity investment in the operating company and any debt from us directly to the operating company structure represents our total exposure for the investment. As of December 31, 2024, as shown in our Consolidated Schedule of Investments, the cost basis and fair value of our investments in controlled companies was $3,323,998 and $3,772,329, respectively. This structure gives rise to several of the risks described in our public documents and highlighted elsewhere in this Quarterly Report. We consolidate all wholly owned and substantially wholly owned holding companies formed by us for the purpose of holding our controlled investments in operating companies. There is no significant effect of consolidating these holding companies as they hold minimal assets other than their investments in the controlled operating companies. Investment company accounting prohibits the consolidation of any operating companies.
Previous wording
We seek to be a long-term investor with our portfolio companies. During the three months ended September 30, 2024 we acquired$213,056 of new investments, completed follow-on investments in existing portfolio companies totaling approximately$32,875, funded$6,219 of revolver advances, and recorded PIK interest of $38,489, resulting in gross investment originations of$290,639. During the three months ended September 30, 2024 we received full repayments totaling $255,646, received$0 in sales, received $616 of revolver paydowns, and received $26,066 in partial prepayments, scheduled principal amortization payments, and return of capital distributions, resulting in repayments of approximately$282,328.
Current wording
We seek to be a long-term investor with our portfolio companies. During the three months ended December 31, 2024 we acquired$45,694 of new investments, completed follow-on investments in existing portfolio companies totaling approximately$65,554, funded$2,433 of revolver advances, and recorded PIK interest of $21,275, resulting in gross investment originations of $134,956. During the three months ended December 31, 2024 we received full repayments totaling$258,068, received $25,995 in sales, received $3,387 of revolver paydowns, and received $95,913 in partial prepayments, scheduled principal amortization payments, and return of capital distributions, resulting in repayments of approximately $383,363.
Previous wording
During the three months ended September 30, 2024 we repaid $2,500 aggregate principal amount of Prospect Capital InterNotes® at par in accordance with the Survivor’s Option, as defined in the InterNotes® Offering prospectus. As a result of these transactions, we recorded a loss in the amount of the unamortized debt issuance costs. The net loss on the extinguishment of Prospect Capital InterNotes® in the three months ended September 30, 2024 was $59.
Current wording
During the three months ended December 31, 2024 we repaid $1,187 aggregate principal amount of Prospect Capital InterNotes® at par in accordance with the Survivor’s Option, as defined in the InterNotes® Offering prospectus. As a result of these transactions, we recorded a loss in the amount of the unamortized debt issuance costs. The net loss on the extinguishment of Prospect Capital InterNotes® in the three months ended December 31, 2024 was $28.
Previous wording
During the three months ended September 30, 2024 we issued$101,734 aggregate principal amount of Prospect Capital InterNotes® with a weighted average stated interest rate of 7.14%, to extend our borrowing base. The newly issued notes mature between July 15, 2027 and October 15, 2034 and generated net proceeds of$100,266.
Current wording
During the three months ended December 31, 2024 we issued$41,759 aggregate principal amount of Prospect Capital InterNotes® with a weighted average stated interest rate of 7.13%, to extend our borrowing base. The newly issued notes mature between October 15, 2027 and December 15, 2034 and generated net proceeds of$41,179.
Previous wording
On July 18, 2024, August 21, 2024 and September 19, 2024 we issued 571,807, 650,357, and 611,918 shares of our common stock in connection with the dividend reinvestment plan, respectively.
Current wording
On October 22, 2024, November 19, 2024 and December 19, 2024 we issued 612,816, 685,674, and 573,973 shares of our common stock in connection with the dividend reinvestment plan, respectively.
Previous wording
During the three months ended September 30, 2024, 683,012 shares of our Series A1 Preferred Stock, 308,914 shares of our Series A3 Preferred Stock,292,649 shares of our Series M1 Preferred Stock, and 217,979 shares of our Series M3 Preferred Stock were converted to 6,879,683 shares of our common stock, in connection with Holder Optional Conversions and Optional Redemptions Following Death of a Holder, resulting in a loss from redemption of preferred stock of $1,688.
Current wording
During the three months ended December 31, 2024, 314,776 shares of our Series A1 Preferred Stock,1,000 shares of our Series A2 Preferred Stock, 150,948 shares of our Series A3 Preferred Stock,48,100 shares of our Series M1 Preferred Stock, and 194,880 shares of our Series M3 Preferred Stock were converted to 3,418,387 shares of our common stock, in connection with Holder Optional Conversions and Optional Redemptions Following Death of a Holder, resulting in a loss from redemption of preferred stock of $946.
Previous wording
During the three months ended September 30, 2024 we issued 87,237 shares of our Series A3 Preferred Stock for net proceeds of$1,963,17,000 shares of our Series M3 Preferred Stock for net proceeds of $412, 2,033,017 shares of Series A4 Preferred Stock for net proceeds of$45,743, 234,027 shares of Series M4 Preferred Stock for net proceeds of$5,680, each excluding offering costs and preferred stock dividend reinvestment.
Current wording
During the three months ended December 31, 2024 we issued 1,227,329 shares of Series A4 Preferred Stock for net proceeds of$27,616, and 194,885 shares of Series M4 Preferred Stock for net proceeds of$4,726, each excluding offering costs and preferred stock dividend reinvestment.
Previous wording
In connection with our Preferred Stock Dividend Reinvestment Plan, we issued additional Series A1 Preferred Stock, Series A3 Preferred Stock, Series A4 Preferred Stock, Series M1 Preferred Stock, Series M3 Preferred Stock, and Series M4 Preferred Stock of 13,432, 12,954, and 13,771 throughout July, August, and September , respectively.
Current wording
In connection with our Preferred Stock Dividend Reinvestment Plan, we issued additional Series A1 Preferred Stock, Series A3 Preferred Stock, Series A4 Preferred Stock, Series M1 Preferred Stock, Series M3 Preferred Stock, and Series M4 Preferred Stock of 13,954, 13,749, and 13,730 throughout October , November , and December, respectively.
Previous wording
At September 30, 2024, we have $7,476,641, or 213.0%, of our net assets applicable to common shares invested in 117 long-term portfolio investments and CLOs.
Current wording
At December 31, 2024, we have $7,132,928, or 207.4%, of our net assets applicable to common shares invested in 114 long-term portfolio investments and CLOs.
Previous wording
Our annualized current yield was 11.8% and 12.1% as of September 30, 2024 and June 30, 2024, respectively, across all performing interest bearing investments, excluding equity investments and non-accrual loans. Our annualized current yield was 9.7%and 9.8% as of September 30, 2024 and June 30, 2024, respectively, across all investments. In many of our portfolio companies we hold equity positions, ranging from minority interests to majority stakes, which we expect over time to contribute to our investment returns. Some of these equity positions include features such as contractual minimum internal rates of returns, preferred distributions, flip structures and other features expected to generate additional investment returns, as well as contractual protections and preferences over junior equity, in addition to the yield and security offered by our cash flow and collateral debt protections.
Current wording
Our annualized current yield was 11.2% and 12.1% as of December 31, 2024 and June 30, 2024, respectively, across all performing interest bearing investments, excluding equity investments and non-accrual loans. Our annualized current yield was 9.1% and 9.8%as of December 31, 2024 and June 30, 2024, respectively, across all investments. In many of our portfolio companies we hold equity positions, ranging from minority interests to majority stakes, which we expect over time to contribute to our investment returns. Some of these equity positions include features such as contractual minimum internal rates of returns, preferred distributions, flip structures and other features expected to generate additional investment returns, as well as contractual protections and preferences over junior equity, in addition to the yield and security offered by our cash flow and collateral debt protections.
Previous wording
As of September 30, 2024, we own controlling interests in the following portfolio companies: CP Energy Services Inc. (“CP Energy”); Credit Central Loan Company, LLC (“Credit Central”); Echelon Transportation, LLC (“Echelon”); First Tower Finance Company LLC (“First Tower Finance”); Freedom Marine Solutions, LLC (“Freedom Marine”); InterDent, Inc. (“InterDent”); Kickapoo Ranch Pet Resort (“Kickapoo”); MITY, Inc. (“MITY”); NPRC; Nationwide Loan Company LLC (“Nationwide”); NMMB, Inc. (“NMMB”); Pacific World Corporation (“Pacific World”); R-V Industries, Inc. (“R-V”); Universal Turbine Parts, LLC (“UTP”); USES Corp. (“United States Environmental Services” or “USES”); and Valley Electric Company, Inc. (“Valley Electric”). In June 2019, CP Energy purchased a controlling interest of the common equity of Spartan Energy Holdings, Inc. (“Spartan Holdings”), which owns 100% of Spartan Energy Services, LLC (“Spartan”), a portfolio company of Prospect with $43,321 and$41,177 in first lien term loans (the “Spartan Term Loan A”) due to us as of September 30, 2024 and June 30, 2024, respectively. As a result of CP Energy’s purchase, and given Prospect’s controlling interest in CP Energy, we report our investments in Spartan as control investment. Spartan remains the direct borrower and guarantor to Prospect for the Spartan Term Loan A.
Current wording
As of December 31, 2024, we own controlling interests in the following portfolio companies: CP Energy Services Inc. (“CP Energy”); Credit Central Loan Company, LLC (“Credit Central”); Echelon Transportation, LLC (“Echelon”); First Tower Finance Company LLC (“First Tower Finance”); Freedom Marine Solutions, LLC (“Freedom Marine”); InterDent, Inc. (“InterDent”); Kickapoo Ranch Pet Resort (“Kickapoo”); MITY, Inc. (“MITY”); NPRC; Nationwide Loan Company LLC (“Nationwide”); NMMB, Inc. (“NMMB”); Pacific World Corporation (“Pacific World”); R-V Industries, Inc. (“R-V”); Universal Turbine Parts, LLC (“UTP”); USES Corp. (“United States Environmental Services” or “USES”); and Valley Electric Company, Inc. (“Valley Electric”). In June 2019, CP Energy purchased a controlling interest of the common equity of Spartan Energy Holdings, Inc. (“Spartan Holdings”), which owns 100% of Spartan Energy Services, LLC (“Spartan”), a portfolio company of Prospect with $46,095 and $41,177 in first lien term loans (the “Spartan Term Loan A”) due to us as of December 31, 2024 and June 30, 2024, respectively. As a result of CP Energy’s purchase, and given Prospect’s controlling interest in CP Energy, we report our investments in Spartan as control investment. Spartan remains the direct borrower and guarantor to Prospect for the Spartan Term Loan A.
Previous wording
(1) Our SSN investments do not have industry concentrations and as such have been separated in the tables above. As of September 30, 2024 and June 30, 2024, Structured Finance includes $190,500 and $190,500, respectively, of senior secured term loan investments held through our investment in NPRC and its wholly-owned subsidiary related to its rated secured structured notes.
Current wording
(1) Our SSN investments do not have industry concentrations and as such have been separated in the tables above. As of December 31, 2024 and June 30, 2024, Structured Finance includes $155,000 and $190,500, respectively, of senior secured term loan investments held through our investment in NPRC and its wholly-owned subsidiary related to its rated secured structured notes.
Previous wording
Our gross investment activity for the three months ended September 30, 2024 and September 30, 2023 are presented below:
Current wording
Our gross investment activity for the six months ended December 31, 2024 and December 31, 2023 are presented below:
Previous wording
(2) Approximately $33,144 and $30,278 was accrued as PIK interest income during the three months ended September 30, 2024 and September 30, 2023, respectively.
Current wording
(2) Approximately$53,343 and $68,588 was accrued as PIK interest income during the six months ended December 31, 2024 and December 31, 2023, respectively.
Previous wording
(4) Weighted average interest rates for new investments by portfolio composition is calculated with the current rate at the end of the period. In addition, Revolving Line of Credit and Delayed Draw Term Loans are excluded from the calculation.
Current wording
(4) The annual weighted average interest rates for new investments by portfolio composition is calculated with the interest rate as of the respective quarter end date when the investment activity occurred. In addition, Revolving Line of Credit and Delayed Draw Term Loans are excluded from the calculation.
Previous wording
The Board of Directors looked at several factors in determining where within the range to value the asset including: recent operating and financial trends for the asset, independent ratings obtained from third parties, comparable multiples for recent sales of companies within the industry and discounted cash flow models for our investments in CLOs. The composite of all these various valuation techniques, applied to each investment, was a total valuation of $7,476,641.
Current wording
The Board of Directors looked at several factors in determining where within the range to value the asset including: recent operating and financial trends for the asset, independent ratings obtained from third parties, comparable multiples for recent sales of companies within the industry and discounted cash flow models for our investments in CLOs. The composite of all these various valuation techniques, applied to each investment, was a total valuation of $7,132,928.
Previous wording
Control investments offer increased risk and reward over straight debt investments. Operating results and changes in market multiples can result in dramatic changes in values from quarter to quarter. Significant downturns in operations can further result in our looking to recoveries on sales of assets rather than the enterprise value of the investment. Equity positions in our portfolio are susceptible to potentially significant changes in value, both increases as well as decreases, due to changes in operating results and market multiples. Our controlled companies discussed below experienced such changes and we recorded corresponding fluctuations in valuations during the three months ended September 30, 2024.
Current wording
Control investments offer increased risk and reward over straight debt investments. Operating results and changes in market multiples can result in dramatic changes in values from quarter to quarter. Significant downturns in operations can further result in our looking to recoveries on sales of assets rather than the enterprise value of the investment. Equity positions in our portfolio are susceptible to potentially significant changes in value, both increases as well as decreases, due to changes in operating results and market multiples. Our controlled companies discussed below experienced such changes and we recorded corresponding fluctuations in valuations during the six months ended December 31, 2024.
Previous wording
The fair value of our investment in InterDent was $403,727 as of September 30, 2024, a premium of $35,409 to its amortized cost basis compared to a fair value of $463,883 as of June 30, 2024, a premium of $102,337 to its amortized cost. The decrease in premium to amortized cost was driven by a decline in financial performance and increased debt in the capital structure.
Current wording
The fair value of our investment in InterDent was $406,593 as of December 31, 2024, a premium of $31,462 to its amortized cost basis compared to a fair value of $463,883 as of June 30, 2024, a premium of $102,337 to its amortized cost. The decrease in premium to amortized cost was driven by a decline in financial performance and increased debt in the capital structure.
Previous wording
During the three months ended September 30, 2024, we provided $21,615 of debt financing to NPRC to fund real estate capital expenditures, provide working capital, and to fund purchases of rated secured structured notes.
Current wording
During the six months ended December 31, 2024, we provided $44,769 of debt financing to NPRC to fund real estate capital expenditures, provide working capital, and to fund purchases of rated secured structured notes.
Previous wording
During the three months ended September 30, 2024, we received partial repayments of $14,000 of our loans previously outstanding with NPRC and its wholly owned subsidiary.
Current wording
During thesix months ended December 31, 2024, we received partial repayments of $76,756 of our loans previously outstanding with NPRC and its wholly owned subsidiary.
Previous wording
During the three months ended September 30, 2023, we provided $63,305 of debt financing to NPRC to fund real estate capital expenditures and provide working capital.
Current wording
During thesix months ended December 31, 2023, we provided$119,781 of debt financing and$4,600 of equity financing to NPRC to fund real estate capital expenditures, provide working capital, and to fund purchases of rated secured structured notes.
Previous wording
During the three months ended September 30, 2023, we received partial repayments of $13,450 of our loans previously outstanding with NPRC and its wholly owned subsidiary.
Current wording
During thesix months ended December 31, 2023, we received partial repayments of$50,450 of our loans previously outstanding with NPRC and its wholly owned subsidiary.
Previous wording
The rated secured structured note investments held by certain of NPRC’s wholly owned subsidiaries are subordinated debt interests in broadly syndicated loans managed by established collateral management teams with many years of experience in the industry. As of September 30, 2024, the outstanding investment in rated secured structured notes by certain of NPRC’s wholly owned subsidiaries was comprised of 106 investments with a fair value of $403,258 and face value of $423,984. The average outstanding note is approximately $4,000 with an expected maturity date ranging from July 2028 to July 2034 and weighted-average expected maturity of 5 years as of September 30, 2024. Coupons range from three-month SOFR (“3M”) plus 5.20% to 9.23% with a weighted-average coupon of 3M + 6.90%. As of September 30, 2024, our senior secured term loan debt and common equity investments in NPRC and its wholly-owned subsidiaries relating to rated secured structured notes had a fair value of $243,364. As of September 30, 2024, based on outstanding notional balance, 34.9% of the portfolio was invested in Single - B or below rated tranches and 65.1% of the portfolio in BB or above rated tranches.
Current wording
The rated secured structured note investments held by certain of NPRC’s wholly owned subsidiaries are subordinated debt interests in broadly syndicated loans managed by established collateral management teams with many years of experience in the industry. As of December 31, 2024, the outstanding investment in rated secured structured notes by certain of NPRC’s wholly owned subsidiaries was comprised of 101 investments with a fair value of $381,508 and face value of $402,128. The average outstanding note is approximately $3,981 with an expected maturity date ranging from July 2028 to July 2034 and weighted-average expected maturity of 5 years as of December 31, 2024. Coupons range from three-month SOFR (“3M”) plus 5.20% to 9.23% with a weighted-average coupon of 3M + 6.90%. As of December 31, 2024, our senior secured term loan debt and common equity investments in NPRC and its wholly-owned subsidiaries relating to rated secured structured notes had a fair value of $208,340. As of December 31, 2024, based on outstanding notional balance, 31.7% of the portfolio was invested in Single - B or below rated tranches and 68.3% of the portfolio in BB or above rated tranches.
Previous wording
As of September 30, 2024, investments held by certain of NPRC’s wholly-owned subsidiaries was comprised of residual interest in two securitizations valued at $2,553, one corporate bond valued at $18,359 and other assets valued at $1,656 for an aggregate fair value of $22,568.
Current wording
As of December 31, 2024, investments held by certain of NPRC’s wholly-owned subsidiaries was comprised of residual interest in two securitizations valued at $2,549, one corporate bond valued at $18,923 and other assets valued at $1,270 for an aggregate fair value of $22,742.
Previous wording
As of September 30, 2024, our investment in NPRC and its wholly owned subsidiaries had an amortized cost of $1,116,839 and a fair value of $1,629,967. The fair value of $1,364,035 related to NPRC’s real estate portfolio was comprised of forty-nine multi-family properties, six student housing properties, four senior living properties, and two commercial properties. The following table shows the location, acquisition date, purchase price, and mortgage outstanding due to other parties for each of the properties held by NPRC as of September 30, 2024:
Current wording
As of December 31, 2024, our investment in NPRC and its wholly owned subsidiaries had an amortized cost of $1,078,146 and a fair value of $1,600,591. The fair value of $1,369,509 related to NPRC’s real estate portfolio was comprised of forty-seven multi-family properties, sixstudent housing properties, four senior living properties, and twocommercial properties. The following table shows the location, acquisition date, purchase price, and mortgage outstanding due to other parties for each of the properties held by NPRC as of December 31, 2024:
Previous wording
The fair value of our investment in NPRC was $1,629,967 as of September 30, 2024, a premium of $513,128 from its amortized cost basis, compared to a fair value of $1,696,462 as of June 30, 2024, representing a premium of $588,151. The decrease in premium to amortized cost is primarily driven by a decrease in market interest rates and increased debt in the capital structure, offset by growth in net operating income in our real estate portfolio.
Current wording
The fair value of our investment in NPRC was $1,600,591 as of December 31, 2024, a premium of $522,445 from its amortized cost basis, compared to a fair value of $1,696,462 as of June 30, 2024, representing a premium of $588,151. The decrease in premium to amortized cost is primarily driven by a decrease in market interest rates and increased debt in the capital structure, offset by growth in net operating income in our real estate portfolio.
Previous wording
The fair value of our investment in Refuel was $81,287 as of September 30, 2024, a premium of $51,564 to its amortized cost basis compared to a fair value of $94,265 as of June 30, 2024, a premium of $64,542 to its amortized cost. The decrease in premium to amortized cost resulted from a revised forecast impacted by continued headwinds in the advertising market and a dividend declared by Refuel.
Current wording
The fair value of our investment in Refuel was $78,844 as of December 31, 2024, a premium of $49,121 to its amortized cost basis compared to a fair value of $94,265 as of June 30, 2024, a premium of $64,542 to its amortized cost. The decrease in premium to amortized cost resulted from a revised forecast impacted by continued headwinds in the advertising market and a dividend declared by Refuel.
Previous wording
Our controlled investments, including those discussed above, are valued at $417,912 above their amortized cost as of September 30, 2024.
Current wording
Our controlled investments, including those discussed above, are valued at $448,331 above their amortized cost as of December 31, 2024.
Previous wording
We hold two affiliate investments at September 30, 2024 (Nixon, Inc. and RGIS Services, LLC, (“RGIS”)) with a total fair value of $21,658, a premium of $9,923 from their combined amortized cost, compared to a fair value as $18,069 of June 30, 2024, representing a $6,475 premium to its amortized cost. The increase in premium to amortized cost was driven by an improvement in RGIS’s financial performance.
Current wording
We hold two affiliate investments at December 31, 2024 (Nixon, Inc. and RGIS Services, LLC, (“RGIS”)) with a total fair value of $20,212, a premium of $8,477 from their combined amortized cost, compared to a fair value of $18,069 as of June 30, 2024, representing a $6,475 premium to its amortized cost. The increase in premium to amortized cost was driven by an improvement in RGIS’s financial performance.
Previous wording
With the non-control/non-affiliate investments, generally, there is less volatility related to our total investments because our equity positions tend to be smaller than with our control/affiliate investments, and debt investments are generally not as susceptible to large swings in value as equity investments. For debt investments, the fair value is generally limited on the high side to each loan’s par value, plus any prepayment premium that could be imposed. Note that three of our non-control/non-affiliate investments, Credit.com Holdings, LLC, Town & Country Holdings, Inc. (“Town & Country”), and our CLO investment portfolio, have larger equity positions and are therefore more susceptible to changes in value than the rest of our non-control/non-affiliate investments. As of September 30, 2024, our non-control/non-affiliate portfolio is valued at a discount to amortized cost primarily due to our CLO investment portfolio, which is valued ata $69,429 discount to amortized cost.
Current wording
With the non-control/non-affiliate investments, generally, there is less volatility related to our total investments because our equity positions tend to be smaller than with our control/affiliate investments, and debt investments are generally not as susceptible to large swings in value as equity investments. For debt investments, the fair value is generally limited on the high side to each loan’s par value, plus any prepayment premium that could be imposed. Note that three of our non-control/non-affiliate investments, Credit.com Holdings, LLC, Town & Country Holdings, Inc. (“Town & Country”), and our CLO investment portfolio, have larger equity positions and are therefore more susceptible to changes in value than the rest of our non-control/non-affiliate investments. As of December 31, 2024, our non-control/non-affiliate portfolio is valued at a discount to amortized cost primarily due to our CLO investment portfolio, which is valued at a $69,312 discount to amortized cost. Additionally, as of December 31, 2024, nine of our non-control/ non-affiliate investments, United Sporting Companies, Inc. (“USC”), Aventiv Technologies, LLC, K&N HoldCo, LLC (“K&N”), Rising Tide Holdings, Inc. (“West Marine”), Credit.com Holdings, LLC (“Credit.com”), Redstone Holdco 2 LP (“RSA”), WellPath Holdings, Inc. (“WellPath”), Medical Solutions Holdings, Inc., and STG Distribution, LLC (f/k/a Reception Purchaser, LLC) (“STG”) are valued at discounts to amortized cost of $79,243, $57,822, $25,216, $24,232, $24,070, $16,096, $15,869, $15,348, and $8,643 respectively.
Previous wording
Excluding those non-control/non-affiliate investments discussed above, our remaining non-control/non-affiliate portfolio is valued at a discount of $9,822 to amortized cost as of September 30, 2024.
Current wording
Excluding those non-control/non-affiliate investments discussed above, our remaining non-control/non-affiliate portfolio is valued at a discount of $13,734 to amortized cost as of December 31, 2024.
Previous wording
As of September 30, 2024 and June 30, 2024, we had $973,630 and $830,124, respectively, available to us for borrowing under the Revolving Credit Facility, net of $547,231 and $794,796 outstanding borrowings as of the respective balance sheet dates. Refer to Note 4. Revolving Credit Facility within our consolidated financial statements for additional details.
Current wording
As of December 31, 2024 and June 30, 2024, we had $1,049,788 and $830,124, respectively, available to us for borrowing under the Revolving Credit Facility, net of $301,522 and $794,796 outstanding borrowings as of the respective balance sheet dates. Refer to Note 4. Revolving Credit Facility within our consolidated financial statements for additional details.
Previous wording
We have, from time to time, repurchased certain notes issued through the InterNotes® Offerings and, therefore, as of September 30, 2024 and June 30, 2024, the aggregate principal amount of Prospect Capital InterNotes® outstanding were $603,262 and $504,028, respectively. Refer to Note 7. Prospect Capital InterNotes®within our consolidated financial statements for additional details.
Current wording
We have, from time to time, repurchased certain notes issued through the InterNotes® Offerings and, therefore, as of December 31, 2024 and June 30, 2024, the aggregate principal amount of Prospect Capital InterNotes® outstanding were $643,834 and $504,028, respectively. Refer to Note 7. Prospect Capital InterNotes®within our consolidated financial statements for additional details.
Previous wording
During the three months ended September 30, 2024, our net asset value applicable to common shares decreased by$200,920, or$0.64 per common share. During the three months ended September 30, 2024, the change in NAV was primarily due to net realized and unrealized losses of$227,789, or$0.53 per basic weighted average share, and$0.08 of dilution per common share related to issuances of common stock through our dividend reinvestment plan and through conversion of Preferred Stock, as applicable. Additionally, distributions to common and preferred stockholders of$104,515, or$0.24 per basic weighted average common share, exceeded net investment income of$89,877, or$0.21 per basic weighted average common share, resulting in a net decrease of$0.03 per basic weighted average common share. The following table shows the calculation of net asset value per common share as of September 30, 2024 and June 30, 2024:
Current wording
During the six months ended December 31, 2024, our net asset value applicable to common shares decreased by$271,697, or$0.90 per basic weighted average common share. During the six months ended December 31, 2024, the change in NAV was primarily due to net realized and unrealized losses of$318,986, or$0.74 per basic weighted average common share, and $0.13 of dilution per basic weighted average common share, due to discounted share issuances and conversions at current market prices through our common stock dividend reinvestment plan and through conversion of Preferred Stock, as applicable. Additionally, distributions to common and preferred stockholders of$196,297, or $0.45 per basic weighted average common share, exceeded net investment income of$176,308, or$0.41 per basic weighted average common share, resulting in a net decrease of $0.04 per basic weighted average common share. The following table shows the calculation of net asset value per common share as of December 31, 2024 and June 30, 2024:
Previous wording
Operating results for the three months ended September 30, 2024 and September 30, 2023 were as follows:
Current wording
Operating results for the three and six months ended December 31, 2024 and December 31, 2023 were as follows:
Previous wording
The average interest earned on interest bearing performing assets decreased to 10.04% for the three months ended September 30, 2024 from 11.04% for the three months ended September 30, 2023. The weighted average interest rate earned on our performing interest bearing investments decreased by 1.00% due to a decrease in income from our structured credit investments to $4,179 from $16,687, for the three months ended September 30, 2024 and 2023, in addition to a decrease in interest income due to repayments and originations at lower rates than our average existing portfolio yield of $177,989 from $184,255, for the three months ended September 30, 2024 and 2023. The average interest earned on all interest bearing assets decreased to 9.45% for the three months ended September 30, 2024 from 10.22% for the three months ended September 30, 2023. The weighted average interest rate earned on all interest bearing investments decreased by 0.77% primarily due to a decrease in income from our structured credit investments of $4,179 from $16,687 for the three months ended September 30, 2024 and 2023.
Current wording
The weighted average interest rate earned on performing interest bearing assets decreased to 9.40% for the three months ended December 31, 2024 from 10.46% for the three months ended December 31, 2023. The weighted average interest rate earned on all interest bearing investments decreased to 8.72% for the three months ended December 31, 2024 from 10.02% for the three months ended December 31, 2023. The decrease is primarily due to a decrease in interest income to $161,941 from $184,016, as a result of repayments and originations at lower rates than our average existing portfolio yield and a decline in SOFR rates, and a decrease in income from our structured credit investments to $4,054 from $8,882, for the three months ended December 31, 2024 and 2023, respectively.
Previous wording
Investment income is also generated from dividends and other income which is less predictable than interest income. The following table describes dividend income earned for the three months ended September 30, 2024 and September 30, 2023, respectively:
Current wording
Investment income is also generated from dividends and other income which is less predictable than interest income. The following table describes dividend income earned for the three and six months ended December 31, 2024 and December 31, 2023, respectively:
Previous wording
Other income is comprised of structuring fees, advisory fees, amendment fees, royalty interests, receipts for residual net profit and revenue interests, administrative agent fees and other miscellaneous and sundry cash receipts. The following table describes other income earned for the three months ended September 30, 2024 and September 30, 2023, respectively:
Current wording
Other income is comprised of structuring fees, advisory fees, amendment fees, royalty interests, receipts for residual net profit and revenue interests, administrative agent fees and other miscellaneous and sundry cash receipts. The following table describes other income earned for the three and six months ended December 31, 2024 and December 31, 2023, respectively:
Previous wording
Other income for the three months ended September 30, 2024 decreased by $21,456 compared to the three months ended September 30, 2023 primarily due to a $14,147 decrease structuring and amendment fees and a $7,328 decrease in royalty and net revenue interests.
Current wording
Other income for the three months ended December 31, 2024 decreased by $5,264 compared to the three months ended December 31, 2023 primarily due to a $1,982 decrease in structuring and amendment fees due to lower levels of originations and a $3,290 decrease in royalty and net revenue interests.
Showing the first 40 of 78 pairs. Open the source sections for the rest.
Rearranged current paragraphs (15)
Current report — wording carried from elsewhere
Income recognized from dividend income, prepayment premium from early repayments, structuring fees and amendment fees related to specific loan positions is considered to be non-recurring income. For the six months ended December 31, 2024 and six months ended December 31, 2023, we recognized $13,295 and $24,486 of non-recurring income, respectively. The $11,191 decrease in nonrecurring income during the six months ended December 31, 2024 is primarily due to the $16,129 decrease in structuring and amendment fees, an increase of $4,972 in dividend income.
Current report — wording carried from elsewhere
Total gross and net base management fee was $75,675 and $78,376 for the six months ended December 31, 2024 and 2023, respectively. The decrease in total gross base management fee is directly related to a decrease in average total assets.
Current report — wording carried from elsewhere
For the six months ended December 31, 2024 and 2023, we incurred $29,312 and$43,942 of income incentive fees, respectively. This decrease was driven by a corresponding decrease in pre-incentive fee net investment income (net of preferred stock dividends) to $152,235 from$219,260 for thesix months ended December 31, 2024, and 2023, respectively. No capital gains incentive fee has yet been incurred pursuant to the Investment Advisory Agreement.
Current report — wording carried from elsewhere
Interest expense was $67,002 and$72,601 for thesix months ended December 31, 2024 and 2023, respectively. The weighted average stated interest rate on borrowings (excluding amortization, accretion and undrawn facility fees) was 5.30% and 5.45% for thesix months ended December 31, 2024 and 2023, respectively. The decrease is primarily due to a decrease in the average Revolving Credit Facility outstanding and decrease in the average stated interest rate on the Revolving Credit Facility as a result of declining SOFR rates, and the maturity of the 2024 Notes, offset by an increase in the average outstanding balance and stated interest rates for Prospect Capital InterNotes®. The weighted average interest rate on borrowings was 6.15% and 6.05% for thesix months ended December 31, 2024 and 2023, respectively. The increase is primarily due to anincrease in the average outstanding balance and weighted average rate of the outstanding Prospect Capital InterNotes®, partially offset by the maturity of the 2024 Notesand decreased average Revolving Credit Facility outstanding and decrease in the average interest rate on the Revolving Credit Facility as a result of declining SOFR rates.
Current report — wording carried from elsewhere
The allocation of net overhead expense from Prospect Administration was $5,708 and$12,252 for the three months ended December 31, 2024 and 2023, respectively. Prospect Administration received estimated payments of$805 and$964 directly from our portfolio companies, and certain funds managed by the Investment Adviser for legal and tax services during the three months ended December 31, 2024 and 2023, respectively.
Current report — wording carried from elsewhere
Total operating expenses, excluding investment advisory fees, interest and credit facility expenses, and allocation of overhead from Prospect Administration (“Other Operating Expenses”), net of any expense reimbursements, were $4,647 and$4,307 for the three months ended December 31, 2024 and December 31, 2023, respectively.
Current report — wording carried from elsewhere
The following table details net realized gains (losses) from investments for the six months ended December 31, 2024 and December 31, 2023:
Current report — wording carried from elsewhere
During the six months ended December 31, 2024 we recorded a net realized loss of$9,997 from the accretion to redemption value of redeemable securities. No such gains or losses were recorded during thesix months ended December 31, 2023.
Current report — wording carried from elsewhere
Shares of the Floating Rate Preferred Stock and 7.50% Preferred Stock are redeemable, at the option of the holder of such Floating Rate Preferred Stock and 7.50% Preferred Stock, on a monthly basis (the “Holder Optional Redemption”). For all shares of Floating Rate Preferred Stock and 7.50% Preferred Stock duly submitted for redemption on or before a monthly Holder Redemption Deadline (defined in the prospectus supplement dated December 29, 2023), the HOR Settlement Amount (as defined below) is determined on any business day after such Holder Redemption Deadline but before the Holder Redemption Deadline occurring two months thereafter (such date, the “Holder Redemption Exercise Date”). Within such period, we may select the Holder Redemption Exercise Date in our sole discretion. We will settle any Holder Optional Redemption by paying the HOR Settlement Amount in cash.
Current report — wording carried from elsewhere
The aggregate amount of Holder Optional Redemptions by the holders of 7.50% Preferred Stock is subject to the following redemption limits: (i) no more than 2% of the outstanding 7.50% Preferred Stock, in aggregate, as of the end of the most recent fiscal quarter will be redeemed per calendar month; (ii) no more than 5% of the outstanding 7.50% Preferred Stock, in aggregate, as of the end of the most recent fiscal quarter will be redeemed per fiscal quarter; and (iii) no more than 20% of the outstanding 7.50% Preferred Stock, in aggregate, as of the end of the most recent fiscal quarter will be redeemed per Annual Redemption Period; plus, for each redemption limit set forth above in clauses (i) through (iii) of this paragraph, an amount of such 7.50% Preferred Stock equal to the lowest excess, if any, between the corresponding applicable 2% / 5% / 20% redemption limits for Floating Rate Preferred Stock as set forth above and the respective amounts requested for the Floating Rate Preferred Stock on a Holder Redemption Deadline for the Floating Rate Preferred Stock.
Current report — wording carried from elsewhere
Redemption capacity of the 7.50% Preferred Stock will be allocated on a pro rata basis based on the number of 7.50% Preferred Stock, as applicable, submitted in the event that a monthly redemption is oversubscribed based on any of the foregoing redemption limits.
Current report — wording carried from elsewhere
An “Annual Redemption Period” means our then current fiscal quarter and the three fiscal quarters immediately preceding our then current fiscal quarter. Shares of Series A4 Preferred Stock and Series A5 Preferred Stock are subject to an early redemption fee if it is redeemed by its holder within five years of issuance. We may waive the foregoing redemption limits in our sole discretion at any time.
Current report — wording carried from elsewhere
For the Series M4 Preferred Stock and Series M5 Preferred Stock, “HOR Settlement Amount” means (A) the stated value, plus (B) unpaid dividends accrued to, but not including, the Holder Redemption Exercise Date, but if a holder of Series M4 Preferred Stock or Series M5 Preferred Stock exercises a Holder Optional Redemption within the first twenty-four months of issuance of such Series M4 Preferred Stock or Series M5 Preferred Stock, the HOR Settlement Amount payable to such holder will be reduced by (i) during the first twelve months of issuance of such Series M4 Preferred Stock or Series M5 Preferred
Current report — wording carried from elsewhere
During the three months ended December 31, 2023, we repurchased 17,994 shares of Series A Preferred Stock for a total cost of approximately $278, including fees and commissions paid to the broker, representing an average repurchase price of $15.41 per share. The difference in the consideration transferred and the net carrying value of the Series A Preferred Stock repurchased, which was $434, resulted in a gain applicable to common stock holders of approximately $156 during the three months ended December 31, 2023.
Current report — wording carried from elsewhere
Preferred Stock at any time, in whole or, from time to time, in part, including prior to the Optional Redemption Date, pro rata, based on liquidation preference, with all other series of our then outstanding preferred stock, in the event that our Board of Directors determines to redeem any series of our preferred stock, in whole or, from time to time, in part, because such redemption is deemed necessary by our Board of Directors to comply with the asset coverage requirements of the 1940 Act or for us to maintain RIC status.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Additionally, as of September 30, 2024, eight of our non-control/ non-affiliate investments, United Sporting Companies, Inc. (“USC”), K&N HoldCo, LLC (“K&N”), Rising Tide Holdings, Inc. (“West Marine”), WellPath Holdings, Inc. (“WellPath”), Reception Purchaser, LLC (“STG”), Credit.com Holdings, LLC, Medical Solutions Holdings, Inc., and Redstone Holdco 2 LP (“RSA”), are valued at discounts to amortized cost of $79,635, $25,106, $24,136, $22,840, $18,691, $18,001, $14,124, and $11,770 respectively.