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”); 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”).

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”: Belnick Holdings of Delaware, LLC (“Belnick Delaware”); 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”).

Previous wording

•Purchasing Controlling Equity Positions and Lending to Real Estate Companies - We purchase debt and controlling equity positions in tax-efficient real estate investment trusts (“REIT” or “REITs”). The real estate investments of National Property REIT Corp. (“NPRC”) are in various classes of developed and occupied real estate properties that generate current yields, including multi-family properties, student housing and senior living. NPRC seeks to identify properties that have historically significant occupancy rates and recurring cash flow generation. NPRC generally co-invests with established and experienced property management teams that manage such properties after acquisition. Additionally, NPRC makes investments in rated secured structured notes (primarily debt of structured credit). NPRC also purchases loans originated by certain consumer loan facilitators. It purchases each loan in its entirety (i.e., a “whole loan”). The borrowers are consumers, and the loans are typically serviced by the facilitators of the loans.

Current wording

We also invest a lesser amount of our assets in senior and secured debt and controlling equity positions in real estate investment trusts (“REIT” or “REITs”). The real estate investments of National Property REIT Corp. (“NPRC”) are in various classes of developed and occupied real estate properties that generate current yields, including multi-family properties and other tenant-diversified properties; historically, NPRC made investments in structured credit (primarily debt tranches). We historically invested in structured credit (primarily equity tranches).

Previous wording

We currently have four primary strategies that guide our origination of investment opportunities: (1) lending to companies, including companies controlled by private equity sponsors and not controlled by private equity sponsors, and including both directly-originated loans and syndicated loans, (2) lending to companies and purchasing controlling equity positions in such companies, including both operating companies and financial services companies, (3) purchasing controlling equity positions and lending to real estate companies, and (4) investing in structured credit. We may also invest in other strategies and opportunities from time to time that we view as attractive. We continue to evaluate other origination strategies in the ordinary course of business with no specific top-down allocation to any single origination strategy.

Current wording

We may also invest in other strategies and opportunities from time to time that the Investment Adviser views as attractive. The Investment Adviser may continue to evaluate other origination strategies in the ordinary course of business with no specific top-down allocation to any single origination strategy.

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 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.

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 September 30, 2025, as shown in our Consolidated Schedule of Investments, the cost basis and fair value of our investments in controlled companies was $3,416,328 and $3,710,632, 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 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.

Current wording

We seek to be a long-term investor with our portfolio companies. During thethree months ended September 30, 2025 we acquired $20,048 of new investments, completed follow-on investments in existing portfolio companies totaling approximately $50,170, funded $5,658 of revolver advances, and recorded PIK interest of $15,691, resulting in gross investment originations of $91,567. During the three months ended September 30, 2025 we received full repayments totaling $82,219, received $41,285 in sales, received $23 of revolver paydowns, and received $111,133 in partial prepayments, scheduled principal amortization payments, and return of capital distributions, resulting in repayments of approximately $234,660.

Previous 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.

Current wording

During the three months ended September 30, 2025 we repaid $3,264 aggregate principal amount of Prospect Capital InterNotes® at par in accordance with the Survivor’s Option, as defined inthe 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, 2025 was $77.

Previous 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.

Current wording

During the three months ended September 30, 2025 we issued $7,868 aggregate principal amount of Prospect Capital InterNotes® with a weighted average stated interest rate of 7.42%, to extend our borrowing base. The newly issued notes mature between July 15, 2028 and October 15, 2032 and generated net proceedsof $7,752.

Previous 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.

Current wording

On July 22, 2025, August 20, 2025 and September 18, 2025 we issued 718,088, 836,705, and 807,813 shares of our common stock in connection with the dividend reinvestment plan, respectively.

Previous 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.

Current wording

During the three months ended September 30, 2025, 548,527 shares of our Series A1 Preferred Stock, 243,132 shares of our Series A3 Preferred Stock, 59,740 shares of our Series M1 Preferred Stock, and 115,320 shares of our Series M3 Preferred Stock were converted to 7,650,920 shares of our common stock, in connection with Holder Optional Conversions and Optional Redemptions Following Death of a Holder, resulting in aloss from redemption of preferred stockof $1,410.

Previous 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.

Current wording

During the three months ended September 30, 2025 we issued 577,233 shares of Series A5 Preferred Stock for net proceeds of $12,988, and 133,736 sharesof Series M5 Preferred Stock for net proceeds of$3,249, 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 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.

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 13,809, 13,774, and 14,073 throughout July, August, and September, respectively.

Previous 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.

Current wording

At September 30, 2025, we have $6,513,456, or 216.8%, of our net assets applicable to common shares invested in 92 portfolio investments and CLOs.

Previous 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.

Current wording

Our annualized current yield was 11.8% and 12.2% as of September 30, 2025 and June 30, 2025, respectively, across all performing interest bearing investments, excluding equity investments and non-accrual loans. Our annualized current yield was 9.1% and 9.6%as of September 30, 2025 and June 30, 2025, 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 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.

Current wording

As of September 30, 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 Prospect with $53,857 and $51,477 in first lien term loans (the “Spartan Term Loan A”) due to us as of September 30, 2025 and June 30, 2025, 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)Participating Interest includes our participating equity investments, such as net profits interests, net operating income interests, net revenue interests, and overriding royalty interests.

Current wording

(1)Participating Interest includes our participating equity investments, such as net profits interests, net operating income interests, net revenue interests, revenue interests, liquidating trusts and overriding royalty interests.

Previous wording

The following shows our investments in interest bearing securities by type of investment as of March 31, 2025 and June 30, 2024:

Current wording

The following shows our investments in interest bearing securities, including non-accrual investments, by type of investment as of September 30, 2025 and June 30, 2025:

Previous 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.

Current wording

(1) Our SSN investments do not have industry concentrations and as such have been separated in the tables above.

Previous wording

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

Current wording

Our gross investment activity for the three months ended September 30, 2025 and September 30, 2024 are presented below:

Previous 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.

Current wording

(2) Approximately$15,416 and $33,144 was accrued as PIK interest income during the three months ended September 30, 2025 and September 30, 2024, respectively.

Previous wording

In determining the range of values for our investments in CLOs, the independent valuation firm uses a discounted multi-path cash flow model. The valuations were accomplished through the analysis of the CLO deal structures to identify the risk exposures from the modeling point of view as well as to determine an appropriate call date (i.e., expected maturity). These risk factors are sensitized in the multi-path cash flow model using Monte Carlo simulations, which are simulations used to model the probability of different outcomes, to generate probability-weighted (i.e., multi-path) cash flows for the underlying assets and liabilities. These cash flows are discounted using appropriate market discount rates, and relevant data in the CLO market and certain benchmark credit indices are considered, to determine the value of each CLO investment. In addition, we generate a single-path cash flow utilizing our best estimate of expected cash receipts, and assess the reasonableness of the implied discount rate that would be effective for the value derived from the corresponding multi-path cash flow model.

Current wording

In determining the range of values for our investments in CLOs, the independent valuation firm uses a discounted multi-path cash flow model. The valuations were accomplished through the analysis of the CLO deal structures to identify the risk exposures from the modeling point of view as well as to determine an appropriate call date (i.e., expected maturity). These risk factors are sensitized in the multi-path cash flow model using Monte Carlo simulations, which are simulations used to model the probability of different outcomes, to generate probability-weighted (i.e., multi-path) cash flows for the underlying assets and liabilities. These cash flows are discounted using appropriate market discount rates, and relevant data in the CLO market and certain benchmark credit indices are considered, to determine the value of each CLO investment. In addition, we generate a single-path cash flow utilizing our best estimate of expected cash receipts, and assess the reasonableness of the implied discount rate that would be effective for the value derived from the corresponding multi-path cash flow model. These investments are classified as Level 3 in the fair value hierarchy.

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 $6,901,364.

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 $6,513,456.

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 nine months ended March 31, 2025.

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 three months ended September 30, 2025.

Previous 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.

Current wording

During thethree 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 rate secured structured notes.

Previous 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.

Current wording

During thethree months ended September 30, 2024, we received partial repayments of$14,000 of our loans previously outstanding with NPRC and its wholly owned subsidiary.

Previous 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:

Current wording

As of September 30, 2025, our investment in NPRC and its wholly owned subsidiaries had an amortized cost of $925,611 and a fair value of $1,245,263. The fair value of $1,235,113 related to NPRC’s real estate portfolio was comprised of forty-five 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 September 30, 2025:

Previous 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.

Current wording

The fair value of our investment in NPRC was $1,245,263 as of September 30, 2025, a premium of $319,652 from its amortized cost basis, compared to a fair value of $1,300,972 as of June 30, 2025. The decrease in premium to amortized cost was primarily driven by a decline in market interest rates, an increase in discount and terminal capitalization rates, and higher leverage within the capital structure. These effects were partially offset by growth in net operating income across NPRC’s real estate portfolio.

Previous wording

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

Current wording

Our controlled investments, including those discussed above, are valued at $294,304 above their amortized cost as of September 30, 2025.

Previous 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.

Current wording

We hold two affiliate investments at September 30, 2025 (Nixon, Inc. and RGIS Services, LLC, (“RGIS”)) with a total fair value of $30,821, a premium of $19,086 from their combined amortized cost, compared to a fair value of $27,057 as of June 30, 2025, representing a $15,322 premium to its amortized cost. The increase in premium to amortized cost was driven by an improvement in RGIS’ 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 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.

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 seven of our non-control/non-affiliate investments, Credit.com Holdings, LLC, Discovery Point Retreat, Druid City Infusion, LLC, Taos Footwear, Town & Country Holdings, Inc. (“Town & Country”), Verify Diagnostics LLC, and our CLO investment portfolio, have larger equity or convertible debt option positions and are therefore more susceptible to changes in value than the rest of our non-control/non-affiliate investments. As of September 30, 2025, our non-control/non-affiliate portfolio is valued at a discount to amortized cost primarily due to ten of our non-control/ non-affiliate investments, United Sporting Companies, Inc. (“USC”), Credit.com Holdings, LLC (“Credit.com”), Aventiv Technologies, LLC (“Aventiv”), First Brands Group, STG Distribution, LLC, Town & Country Holdings, Inc., Redstone Holdco 2 LP (“RSA”), Medical Solutions Holdings Inc., Rising Tide Holdings, Inc. (“West Marine”), and K&N HoldCo, LLC (“K&N”), are valued at discounts to amortized cost of $73,496, $66,317, $55,985, $50,268, $44,581, $38,046, $28,897, $26,962, $26,600, and $25,273, 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 $4,599 to amortized cost as of March 31, 2025.

Current wording

Excluding those non-control/non-affiliate investments discussed above, our remaining non-control/non-affiliate portfolio is valued at a premium of $102,072 to amortized cost as of September 30, 2025.

Previous 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.

Current wording

As of September 30, 2025 and June 30, 2025, we had $678,827 and $570,532, respectively, available to us for borrowing under the Revolving Credit Facility, net of $683,579 and $856,322 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

On March 1, 2019, we issued $175,000 aggregate principal amount of senior convertible notes that mature on March 1, 2025 (the “2025 Notes”), unless previously converted or repurchased in accordance with their terms. We granted the underwriters a 13-day over-allotment option to purchase up to an additional $26,250 aggregate principal amount of the 2025 Notes. The underwriters fully exercised the over-allotment option on March 11, 2019 and we issued $26,250 aggregate principal amount of 2025 Notes at settlement on March 13, 2019. The 2025 Notes bear interest at a rate of 6.375% per year, payable semi-annually on March 1 and September 1 each year, beginning September 1, 2019. Total proceeds from the issuance of the 2025 Notes, net of underwriting discounts and offering costs, were $198,674.

Current wording

On March 1, 2019, we issued $175,000 aggregate principal amount of senior convertible notes that mature on March 1, 2025 (the “2025 Notes”), unless previously converted or repurchased in accordance with their terms. We granted the underwriters a 13-day over-allotment option to purchase up to an additional $26,250 aggregate principal amount of the 2025 Notes. The underwriters fully exercised the over-allotment option on March 11, 2019 and we issued $26,250 aggregate principal amount of 2025 Notes at settlement on March 13, 2019. The 2025 Notes bore interest at a rate of 6.375% per year, payable semi-annually on March 1 and September 1 each year, beginning September 1, 2019. Total proceeds from the issuance of the 2025 Notes, net of underwriting discounts and offering costs, were $198,674.

Previous 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.

Current wording

On March 3, 2025 we repaid the remaining outstanding principal amount of $156,168 of the 2025 Notes, plus interest, at maturity. Following the maturity of the 2025 Notes during the year ended June 30, 2025, none of the 2025 Notes remained outstanding. See Note 5. Convertible Notes within our consolidated financial statements for additional details.

Previous wording

On January 22, 2021, we issued $325,000 aggregate principal amount of unsecured notes that mature on January 22, 2026 (the “Original 2026 Notes”). The Original 2026 Notes bear interest at a rate of 3.706% per year, payable semi-annually on July 22, and January 22 of each year, beginning on July 22, 2021. Total proceeds from the issuance of the 2026 Notes, net of underwriting discounts and offering costs, were $317,720. On February 19, 2021, we issued an additional $75,000 aggregate principal amount of unsecured notes that mature on January 22, 2026 (the “Additional 2026 Notes”, and together with the Original 2026 Notes, the “2026 Notes”). The Additional 2026 Notes were a further issuance of, and are fully fungible and rank equally in right of payment with, the Original 2026 Notes and bear interest at a rate of 3.706% per year, payable semi-annually on July 22 and January 22 of each year, beginning July 22, 2021. Total proceeds from the issuance of the Additional 2026 Notes, net of underwriting discounts and offering costs, were $74,061.

Current wording

On January 22, 2021, we issued $325,000 aggregate principal amount of unsecured notes that mature on January 22, 2026 (the “Original 2026 Notes”). The Original 2026 Notes bore interest at a rate of 3.706% per year, payable semi-annually on July 22, and January 22 of each year, beginning on July 22, 2021. Total proceeds from the issuance of the 2026 Notes, net of underwriting discounts and offering costs, were $317,720. On February 19, 2021, we issued an additional $75,000 aggregate principal amount of unsecured notes that mature on January 22, 2026 (the “Additional 2026 Notes”, and together with the Original 2026 Notes, the “2026 Notes”). The Additional 2026 Notes were a further issuance of, and are fully fungible and rank equally in right of payment with, the Original 2026 Notes and bore interest at a rate of 3.706% per year, payable semi-annually on July 22 and January 22 of each year, beginning July 22, 2021. Total proceeds from the issuance of the Additional 2026 Notes, net of underwriting discounts and offering costs, were $74,061.

Previous wording

During the nine months ended March 31, 2025, we repurchased $57,053 aggregate principal amount of the 2026 Notes at a weighted average price of 97.44%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $1,264 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 wording

During the year ended June 30, 2025, we repurchased $57,053 aggregate principal amount of the 2026 Notes at a weighted average price of 97.44%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $1,264 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.

Previous wording

On April 9, 2025, we commenced a tender offer to purchase for cash any and all of the $342,947 aggregate principal amount of our outstanding 2026 Notes at a purchase price of 99.00%, plus accrued and unpaid interest (the “2026 Notes April Tender Offer”). The 2026 Notes April Tender Offer expired at 5:00 p.m., New York City time, on April 17, 2025. As of the settlement date, $135,731 aggregate principal amount of the 2026 Notes were validly tendered and accepted. Following settlement of the 2026 Notes April Tender Offer, which occurred on April 22, 2025, approximately $207,216 aggregate principal amount of the 2026 Notes remain outstanding.

Current wording

During the year ended June 30, 2025, we commenced a tender offer to purchase for cash any and all of the aggregate principal amount of our outstanding 2026 Notes at a purchase price of 99.00%, plus accrued and unpaid interest. As a result, $135,731 aggregate principal amount of the 2026 Notes were validly tendered and accepted, and we recognized a net realized gain of $874 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the tendered 2026 Notes.

Previous wording

As of March 31, 2025 and June 30, 2024, the outstanding aggregate principal amount of the 3.364% 2026 Notes was $300,000 and $300,000, respectively.

Current wording

As of September 30, 2025 and June 30, 2025, the outstanding aggregate principal amount of the 3.364% 2026 Notes were $300,000 and $300,000, respectively.

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. See Note 6. Public Notes within our consolidated financial statements for additional details.

Current wording

The 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 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.

Current wording

We have, from time to time, repurchased certain notes issued through the InterNotes® Offerings and, therefore, as of September 30, 2025 and June 30, 2025, the aggregate principal amount of Prospect Capital InterNotes® outstanding were $651,836 and $647,232, respectively. See Note 7. Prospect Capital InterNotes®within our consolidated financial statements for additional details.

Previous 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:

Current wording

During the three months ended September 30, 2025, our net asset value applicable to common shares increased by $16,018 and decreased by $0.11 per basic weighted average common share. Our net asset value applicable to common shareholders increased by $6,711 and $23,613 due to shares issued through reinvestment of dividends and conversion of preferred stock to common stock, respectively, but decreased per basic weighted average common share primarily due to $0.08 of dilution related to conversions of Preferred Stock at then-current market prices and discounted common share issuances through our common stock dividend reinvestment plan. Additionally, distributions to common and preferred stockholders of $89,160, or $0.20 per basic weighted average common share exceeded net investment income of $79,350, or $0.17 per basic weighted average common share, resulting in a net decrease of $0.03 per basic weighted average common share. Net realized and net change in unrealized losses of $4,496, or $0.01 per basic weighted average common share further decreased our net asset value applicable to common shares. The following table shows the calculation of net asset value per common share as of September 30, 2025 and June 30, 2025: