PROSPECT CAPITAL CORP

Previous wording

We consolidate certain of our wholly owned and substantially wholly owned holding companies formed by us in order to facilitate our investment strategy. The following companies are included in our consolidated financial statements and are collectively referred to as the “Consolidated Holding Companies”: CP Holdings of Delaware LLC (“CP Holdings”); Credit Central Holdings of Delaware, LLC (“Credit Central Delaware”); Energy Solutions Holdings Inc.; First Tower Holdings of Delaware LLC (“First Tower Delaware”); MITY Holdings of Delaware Inc. (“MITY Delaware”); Nationwide Acceptance Holdings LLC; NMMB Holdings, Inc. (“NMMB Holdings”); NPH Property Holdings, LLC (“NPH”); Prospect Opportunity Holdings I, Inc. (“POHI”); SB Forging Company, Inc. (“SB Forging”); STI Holding, Inc.; UTP Holdings Group Inc. (“UTP Holdings”); Valley Electric Holdings I, Inc. (“Valley Holdings I”); and Valley Electric Holdings II, Inc. (“Valley Holdings II”).

Current wording

We consolidate certain of our wholly owned and substantially wholly owned holding companies formed by us in order to facilitate our investment strategy. The following companies are included in our consolidated financial statements and are collectively referred to as the “Consolidated Holding Companies”: CP Holdings of Delaware LLC (“CP Holdings”); Credit Central Holdings of Delaware, LLC (“Credit Central Delaware”); Energy Solutions Holdings Inc.; First Tower Holdings of Delaware LLC (“First Tower Delaware”); MITY Holdings of Delaware Inc. (“MITY Delaware”); Nationwide Acceptance Holdings LLC; NMMB Holdings, Inc. (“NMMB Holdings”); NPH Property Holdings, LLC (“NPH”); Prospect Opportunity Holdings I, Inc. (“POHI”); QC Holdings TopCo, LLC (“QC Holdings”); SB Forging Company, Inc. (“SB Forging”); STI Holding, Inc.; UTP Holdings Group Inc. (“UTP Holdings”); Valley Electric Holdings I, Inc. (“Valley Holdings I”); and Valley Electric Holdings II, Inc. (“Valley Holdings II”).

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 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.

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 March 31, 2025, as shown in our Consolidated Schedule of Investments, the cost basis and fair value of our investments in controlled companies was $3,339,028 and $3,702,161, 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 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.

Current wording

We seek to be a long-term investor with our portfolio companies. During the three months ended March 31, 2025 we acquired$83,577 of new investments, completed follow-on investments in existing portfolio companies totaling approximately$78,481, funded $14,943 of revolver advances, and recorded PIK interest of $19,143, resulting in gross investment originations of $196,144. During the three months ended March 31, 2025 we received full repayments totaling$38,760, received $16,041 in sales, received $6,950 of revolver paydowns, and received $129,905 in partial prepayments, scheduled principal amortization payments, and return of capital distributions, resulting in repayments of approximately $191,656.

Previous 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.

Current wording

During the three months ended March 31, 2025 we repaid $1,803 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 aloss in the amount of the unamortized debt issuance costs. The netloss on the extinguishment of Prospect Capital InterNotes® in the three months ended March 31, 2025 was $49.

Previous 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.

Current wording

During the three months ended March 31, 2025 we issued$2,366 aggregate principal amount of Prospect Capital InterNotes® with a weighted average stated interest rate of 7.27%, to extend our borrowing base. The newly issued notes mature between March 15, 2028 and April 15, 2030 and generated net proceeds of$2,334.

Previous 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.

Current wording

On January 22, 2025, February 19, 2025 and March 20, 2025 we issued 571,264, 564,105, and 553,487 shares of our common stock in connection with the dividend reinvestment plan, respectively.

Previous 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.

Current wording

During the three months ended March 31, 2025, 561,748 shares of our Series A1 Preferred Stock, 212,681 shares of our Series A3 Preferred Stock, 69,080 shares of our Series M1 Preferred Stock, and 370,148 shares of our Series M3 Preferred Stock were converted to 6,803,944 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 $1,619.

Previous 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.

Current wording

During the three months ended March 31, 2025 we issued 1,029,590 shares of Series A5 Preferred Stock for net proceeds of$23,166, and 181,260 sharesof Series M5 Preferred Stock for net proceeds of$4,396, 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 13,954, 13,749, and 13,730 throughout October , November , and December, 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 A5 Preferred Stock Series M1 Preferred Stock, Series M3 Preferred Stock, Series M4 Preferred Stock, and Series M5 Preferred Stock of 13,681, 13,800, and 13,795 throughout January, February, and March, respectively.

Previous 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.

Current wording

At March 31, 2025, we have $6,901,364, or 212.7%, of our net assets applicable to common shares invested in 114 long-term portfolio investments and CLOs.

Previous wording

Our annualized current yield was 11.2% 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.

Current wording

Our annualized current yield was 11.5% and 12.1% as of March 31, 2025 and June 30, 2024, respectively, across all performing interest bearing investments, excluding equity investments and non-accrual loans. Our annualized current yield was 9.2% and 9.8%as of March 31, 2025 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 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.

Current wording

As of March 31, 2025, we own controlling interests in the following portfolio companies: Belnick, LLC (Belnick); 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 Pros pect with $50,077 and $41,177 in first lien term loans (the “Spartan Term Loan A”) due to us as of March 31, 2025 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 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.

Current wording

(1) Our SSN investments do not have industry concentrations and as such have been separated in the tables above. As of March 31, 2025 and June 30, 2024, Structured Finance includes $53,000 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 six months ended December 31, 2024 and December 31, 2023 are presented below:

Current wording

Our gross investment activity for the nine months ended March 31, 2025 and March 31, 2024 are presented below:

Previous 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.

Current wording

(2) Approximately$72,869 and $102,812 was accrued as PIK interest income during the nine months ended March 31, 2025 and March 31, 2024, respectively.

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 $7,132,928.

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 $6,901,364.

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 six months ended December 31, 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 nine months ended March 31, 2025.

Previous wording

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 wording

The fair value of our investment in First Tower was $709,846 as of March 31, 2025, a premium of $244,115 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.

Previous 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.

Current wording

The fair value of our investment in InterDent was $367,052 as of March 31, 2025, a discount of $14,928 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 discount to amortized cost resulted from a decline in financial performance and increased debt in the capital structure.

Previous 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.

Current wording

During thenine months ended March 31, 2024, we provided$183,299 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 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.

Current wording

During thenine months ended March 31, 2024, we received partial repayments of$62,950 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 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.

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 March 31, 2025, the outstanding investment in rated secured structured notes by certain of NPRC’s wholly owned subsidiaries was comprised of 20 investments with a fair value of $72,759 and face value of $95,438. The average outstanding note is approximately $4,772 with an expected maturity date ranging from July 2028 to July 2034 and weighted-average expected maturity of 5 years as of March 31, 2025. Coupons range from three-month SOFR (“3M”) plus 5.31% to 9.23% with a weighted-average coupon of 3M + 6.92%. As of March 31, 2025, 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 $90,044. As of March 31, 2025, based on outstanding notional balance, 45.0% of the portfolio was invested in Single - B or below rated tranches and 55.0% of the portfolio in BB or above rated tranches.

Previous 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.

Current wording

As of March 31, 2025, investments held by certain of NPRC’s wholly-owned subsidiaries was comprised of residual interest in one securitizations valued at $1,083 and other assets valued at $1,078 for an aggregate fair value of $2,161.

Previous 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:

Current wording

As of March 31, 2025, our investment in NPRC and its wholly owned subsidiaries had an amortized cost of $969,079 and a fair value of $1,428,607. The fair value of $1,336,404 related to NPRC’s real estate portfolio was comprised of forty-seven multi-family properties, five 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 March 31, 2025:

Previous 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.

Current wording

The fair value of our investment in NPRC was $1,428,607 as of March 31, 2025, a premium of $459,528 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 $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.

Current wording

The fair value of our investment in Refuel was $81,137 as of March 31, 2025, a premium of $51,414 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 $448,331 above their amortized cost as of December 31, 2024.

Current wording

Our controlled investments, including those discussed above, are valued at $363,133 above their amortized cost as of March 31, 2025.

Previous 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.

Current wording

We hold two affiliate investments at March 31, 2025 (Nixon, Inc. and RGIS Services, LLC, (“RGIS”)) with a total fair value of $22,693, a premium of $10,958 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 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.

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 March 31, 2025, 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 $108,415 discount to amortized cost. Additionally, as of March 31, 2025, eight of our non-control/ non-affiliate investments, United Sporting Companies, Inc. (“USC”), Credit.com Holdings, LLC (“Credit.com”), Aventiv Technologies, LLC (“Securus”), WellPath Holdings, Inc. (“WellPath”), Rising Tide Holdings, Inc. (“West Marine”), K&N HoldCo, LLC (“K&N”), Redstone Holdco 2 LP (“RSA”), and Medical Solutions Holdings, Inc. are valued at discounts to amortized cost of $74,712, $60,427, $57,880, $30,386, $25,982, $25,216, $21,630, and $18,491, 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 $13,734 to amortized cost as of December 31, 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 $4,599 to amortized cost as of March 31, 2025.

Previous wording

Our investment activities are capital intensive and the availability and cost of capital is a critical component of our business. We capitalize our business with a combination of debt and equity. Our debt as of December 31, 2024 consists of: a Revolving Credit Facility availing us of the ability to borrow debt subject to borrowing base determinations; Convertible Notes which we issued in March 2019; Public Notes which we issued in January 2021, May 2021 and September 2021; and Prospect Capital InterNotes® which we issue from time to time. As of December 31, 2024, our equity capital is comprised of common and preferred equity.

Current wording

Our investment activities are capital intensive and the availability and cost of capital is a critical component of our business. We capitalize our business with a combination of debt and equity. Our debt as of March 31, 2025 consists of: a Revolving Credit Facility availing us of the ability to borrow debt subject to borrowing base determinations; Public Notes which we issued in January 2021, May 2021 and September 2021; and Prospect Capital InterNotes® which we issue from time to time. As of March 31, 2025, our equity capital is comprised of common and preferred equity.

Previous wording

The following table shows the contractual maturities by fiscal year of our Revolving Credit Facility, Convertible Notes, Public Notes and Prospect Capital InterNotes® as of December 31, 2024:

Current wording

The following table shows the contractual maturities by fiscal year of our Revolving Credit Facility, Public Notes and Prospect Capital InterNotes® as of March 31, 2025:

Previous 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.

Current wording

As of March 31, 2025 and June 30, 2024, we had $953,965 and $830,124, respectively, available to us for borrowing under the Revolving Credit Facility, net of $459,963 and $794,796 outstanding borrowings as of the respective balance sheet dates. See Note 4. Revolving Credit Facility within our consolidated financial statements for additional details.

Previous wording

As of December 31, 2024 and June 30, 2024, the outstanding principal amount of the 2025 Notes were $156,168 and $156,168, respectively. Refer to Note 5. Convertible Notes within our consolidated financial statements for additional details.

Current wording

As of June 30, 2024, the outstanding principal amount of the 2025 Notes was $156,168. On March 3, 2025 we repaid the remaining outstanding principal amount of $156,168 of the 2025 Notes, plus interest, at maturity. See Note 5. Convertible Notes within our consolidated financial statements for additional details.

Previous wording

The 6.375% 2024 Notes, 2026 Notes, the 3.364% 2026 Notes, and the 3.437% 2028 Notes (collectively, the “Public Notes”) are direct unsecured obligations and rank equally with all of our unsecured indebtedness from time to time outstanding. Refer to Note 6. Public Notes within our consolidated financial statements for additional details.

Current wording

The 6.375% 2024 Notes, 2026 Notes, the 3.364% 2026 Notes, and the 3.437% 2028 Notes (collectively, the “Public Notes”) are direct unsecured obligations and rank equally with all of our unsecured indebtedness from time to time outstanding. See Note 6. Public Notes 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 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.

Current wording

We have, from time to time, repurchased certain notes issued through the InterNotes® Offerings and, therefore, as of March 31, 2025 and June 30, 2024, the aggregate principal amount of Prospect Capital InterNotes® outstanding were $642,898 and $504,028, respectively. See Note 7. Prospect Capital InterNotes®within our consolidated financial statements for additional details.

Previous 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:

Current wording

During the nine months ended March 31, 2025, our net asset value applicable to common shares decreased by$466,369, or$1.49 per basic weighted average common share. During the nine months ended March 31, 2025, the change in NAV was primarily due to net realized and unrealized losses of$547,107, or$1.25 per basic weighted average common share and $0.21 of dilution per basic weighted average common share due to discounted common share issuances through our common stock dividend reinvestment plan and conversions of Preferred Stock at then-current market prices. Additionally, distributions to common and preferred stockholders of$282,961, or $0.65 per basic weighted average common share exceeded net investment income of$259,797, or$0.60 per basic weighted average common share, resulting in a netdecrease of $0.05 per basic weighted average common share. The following table shows the calculation of net asset value per common share as of March 31, 2025 and June 30, 2024:

Previous wording

Operating results for the three and six months ended December 31, 2024 and December 31, 2023 were as follows:

Current wording

Operating results for the three and nine months ended March 31, 2025 and March 31, 2024 were as follows:

Previous 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.

Current wording

The weighted average interest rate earned on performing interest bearing assets decreased to 9.22% for the three months ended March 31, 2025 from 10.02% for the three months ended March 31, 2024. The weighted average interest rate earned on all interest bearing investments decreased to 8.41% for the three months ended March 31, 2025 from 9.51% for the three months ended March 31, 2024. The decrease is primarily due to a $24,743 reduction in interest income recognized on our portfolio company investments as a result of repayments and a decline in SOFR rates.

Previous wording

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 wording

The weighted average interest rate earned on performing interest bearing assets decreased to 9.56% for the nine months ended March 31, 2025 from 10.51% for the nine months ended March 31, 2024. The weighted average interest rate earned on all interest bearing investments decreased to 8.86% for the nine months ended March 31, 2025 from 9.92% for the nine months ended March 31, 2024. The decrease is primarily due to a $53,084 reduction in interest income recognized on our portfolio company investments as a result of repayments and declines in SOFR rates coupled with an $18,812 decline in interest income from our structured credit securities.