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”: 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”).

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”); Valley Electric Holdings II, Inc. (“Valley Holdings II”); and Victor Holdings of Delaware, LLC (“Victor Holdings”).

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, 2025, as shown in our Consolidated Schedule of Investments, the cost basis and fair value of our investments in controlled companies was $3,364,482 and $3,695,903, 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, 2026, as shown in our Consolidated Schedule of Investments, the cost basis and fair value of our investments in controlled companies was $3,310,666 and $3,679,145, 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

Our previously outstanding 6.375% convertible notes due 2025, which matured during the fiscal year ended June 30, 2025, are referred to as the “2025 Notes” or the “Convertible Notes”. Our previously outstanding 3.706% unsecured notes due 2026, which were redeemed during the fiscal year ended June 30, 2025, are referred to as the “2026 Notes”. Our $267.5 million of 3.364% unsecured notes due 2026 are referred to as the “3.364% 2026 Notes”. Our $279.8 million of 3.437% unsecured notes due 2028 are referred to as the “3.437% 2028 Notes”. Our $171.3 million of 5.50% unsecured notes due 2030 are referred to as the “5.50% 2030 Notes”, and collectively with the 2026 Notes, the 3.364% 2026 Notes, and the 3.437% 2028 Notes, as the “Public Notes”. Any corporate notes issued pursuant to our medium term notes program with InspereX LLC are referred to as “Prospect Capital InterNotes®”. The Convertible Notes, Public Notes, and Prospect Capital InterNotes® are collectively referred to as the “Unsecured Notes”.

Current wording

Our previously outstanding 6.375% convertible notes due 2025, which matured during the fiscal year ended June 30, 2025, are referred to as the “2025 Notes” or the “Convertible Notes”. Our previously outstanding 3.706% unsecured notes due 2026, which were redeemed during the fiscal year ended June 30, 2025, are referred to as the “2026 Notes”. Our $265.2 million of 3.364% unsecured notes due 2026 are referred to as the “3.364% 2026 Notes”. Our $279.8 million of 3.437% unsecured notes due 2028 are referred to as the “3.437% 2028 Notes”. Our $172.5 million of 5.50% unsecured notes due 2030 are referred to as the “5.50% 2030 Notes”, and collectively with the 2026 Notes, the 3.364% 2026 Notes, and the 3.437% 2028 Notes, as the “Public Notes”. Any corporate notes issued pursuant to our medium term notes program with InspereX LLC are referred to as “Prospect Capital InterNotes®”. The Convertible Notes, Public Notes, and Prospect Capital InterNotes® are collectively referred to as the “Unsecured Notes”.

Previous wording

We seek to be a long-term investor with our portfolio companies. During thethree months ended December 31, 2025 we acquired $13,290 of new investments, completed follow-on investments in existing portfolio companies totaling approximately $37,818, funded $9,322 of revolver advances, and recorded PIK interest of $20,004, resulting in gross investment originations of $80,434. During the three months ended December 31, 2025 we received full repayments totaling $17,200, received $14,176 of revolver paydowns, and received $47,890 in partial prepayments, scheduled principal amortization payments, and return of capital distributions, resulting in repayments of approximately $79,266. There were no sales of investments during the three months ended December 31, 2025.

Current wording

We seek to be a long-term investor with our portfolio companies. During the three months ended March 31, 2026 we acquired $8,300 of new investments, completed follow-on investments in existing portfolio companies totaling approximately $80,637, funded $6,869 of revolver advances, and recorded PIK interest of $19,470, resulting in gross investment originations of $115,276. During the three months ended March 31, 2026 we received full repayments totaling $146,250, received $8,568 of revolver paydowns, received $14,563 in sales, and received $52,861 in partial prepayments, scheduled principal amortization payments, and return of capital distributions, resulting in repayments of approximately $222,242.

Previous wording

During the three months ended December 31, 2025 we repaid $2,386 aggregate principal amount of Prospect Capital InterNotes® at par in accordance with the Survivor’s Option, as defined inthe InterNotes® Offering prospectus. During the three months ended December 31, 2025, we also redeemed$20,658 aggregate principal amount of Prospect Capital InterNotes® at par with a weighted average interest rate of 6.41%. 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, 2025 was $119.

Current wording

During the three months ended March 31, 2026 we repaid $3,521 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 March 31, 2026 was $86.

Previous wording

During the three months ended December 31, 2025 we issued $9,491 aggregate principal amount of Prospect Capital InterNotes® with a weighted average stated interest rate of 6.32%, to extend our borrowing base. The newly issued notes mature between October 15, 2028 and January 15, 2033 and generated net proceedsof $9,372.

Current wording

During the three months ended March 31, 2026 we issued $5,523 aggregate principal amount of Prospect Capital InterNotes® with a weighted average stated interest rate of 6.76%, to extend our borrowing base. The newly issued notes mature between January 15, 2029 and April 15, 2033 and generated net proceedsof $5,436.

Previous wording

On October 22, 2025, November 18, 2025 and December 18, 2025 we issued 828,162, 839,173, and 969,998 shares of our common stock in connection with the dividend reinvestment plan, respectively.

Current wording

On January 22, 2026, February 19, 2026 and March 20, 2026 we issued 840,928, 804,914, and 928,532 shares of our common stock in connection with the dividend reinvestment plan, respectively.

Previous wording

During the three months ended December 31, 2025, 446,904 shares of our Series A1 Preferred Stock, 253,842 shares of our Series A3 Preferred Stock, 27,770 shares of our Series M1 Preferred Stock, and 157,744 shares of our Series M3 Preferred Stock were converted to 7,908,194 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 $1,388.

Current wording

During the three months ended March 31, 2026, 454,925 shares of our Series A1 Preferred Stock, 283,920 shares of our Series A3 Preferred Stock, 85,820 shares of our Series M1 Preferred Stock, and 186,105 shares of our Series M3 Preferred Stock were converted to 8,992,783 shares of our common stock, in connection with Holder Optional Conversions and Optional Redemptions Following Death of a Holder, resu lting in aloss from redemption of preferred stockof $1,678.

Previous wording

During the three months ended December 31, 2025 we issued 709,071 shares of Series A5 Preferred Stock for net proceeds of $15,954, and 163,585 sharesof Series M5 Preferred Stock for net proceeds of$3,968, each excluding offering costs and preferred stock dividend reinvestment.

Current wording

During the three months ended March 31, 2026 we issued 556,736 shares of Series A5 Preferred Stock for net proceeds of $12,527, and 178,248 shares of Series M5 Preferred Stock for net proceeds of $4,323, 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 13,472, 13,394, and 13,419 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 13,306, 13,247, and 13,391 throughout January, February, and March, respectively.

Previous wording

As of December 31, 2025, we have $6,441,536, or 217.7%, of our net assets applicable to common shares invested in 91 portfolio investments and CLOs.

Current wording

As of March 31, 2026, we have $6,302,465, or 213.4%, of our net assets applicable to common shares invested in 89 portfolio investments and CLOs.

Previous wording

Our annualized current yield was 10.9% and 12.2% as of December 31, 2025 and June 30, 2025, respectively, across all performing interest bearing investments, excluding equity investments and non-accrual loans. Our annualized current yield was 8.3% and 9.6%as of December 31, 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.

Current wording

Our annualized current yield was 10.5% and 12.2% as of March 31, 2026 and June 30, 2025, respectively, across all performing interest bearing investments, excluding equity investments and non-accrual loans. Our annualized current yield was 7.9% and 9.6% as of March 31, 2026 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 December 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 Prospect with $56,251 and $51,477 in first lien term loans (the “Spartan Term Loan A”) due to us as of December 31, 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.

Current wording

As of March 31, 2026, 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”); Strategic Chemical Solutions Corp. (f/k/a USES Corp.); 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 $60,529 and $51,477 in first lien term loans (the “Spartan Term Loan A”) due to us as of March 31, 2026 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

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

Current wording

Our gross investment activity for the nine months ended March 31, 2026 and March 31, 2025 are presented below:

Previous wording

(2) Approximately$30,560 and $53,343 was accrued as PIK interest income during the six months ended December 31, 2025 and December 31, 2024, respectively.

Current wording

(2) Approximately $47,615 and $72,869 was accrued as PIK interest income during the nine months ended March 31, 2026 and March 31, 2025, respectively.

Previous wording

Key developments in the Company’s portfolio during the six months ended December 31, 2025 are as follows:

Current wording

Key developments in the Company’s portfolio during the nine months ended March 31, 2026 are as follows:

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 $6,441,536.

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 $6,302,465.

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, 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 nine months ended March 31, 2026.

Previous wording

The fair value of our investment in Belnick was $76,264 as of December 31, 2025, a discount of $17,711 to its amortized cost basis compared to a fair value of $51,166 as of June 30, 2025, a discount of $37,086 to its amortized cost. The decrease in discount to amortized cost resulted from an improvement in financial performance.

Current wording

The fair value of our investment in Belnick was $104,035 as of March 31, 2026, a premium of $7,229 to its amortized cost basis compared to a fair value of $51,166 as of June 30, 2025, a discount of $37,086 to its amortized cost. The premium to amortized cost resulted from an improvement in financial performance and expected tariff refunds.

Previous wording

The fair value of our investment in First Tower was $901,020 as of December 31, 2025, a premium of $420,538 to its amortized cost basis compared to a fair value of $760,518 as of June 30, 2025, a premium of $277,200 to its amortized cost. The increase in premium to amortized cost resulted from an improvement in financial performance and an expansion of comparable company trading multiples.

Current wording

The fair value of our investment in First Tower was $952,349 as of March 31, 2026, a premium of $471,867 to its amortized cost basis compared to a fair value of $760,518 as of June 30, 2025, a premium of $277,200 to its amortized cost. The increase in premium to amortized cost resulted from an improvement in financial performance, higher projected performance, and an expansion of comparable company trading multiples.

Previous wording

The fair value of our investment in InterDent was $337,872 as of December 31, 2025, a discount of $75,828 to its amortized cost basis compared to a fair value of $338,781 as of June 30, 2025, a discount of $55,244 to its amortized cost. The increase in discount to amortized cost resulted from a decline in financial performance and increased debt in the capital structure.

Current wording

The fair value of our investment in InterDent was $339,156 as of March 31, 2026, a discount of $82,568 to its amortized cost basis compared to a fair value of $338,781 as of June 30, 2025, a discount of $55,244 to its amortized cost. The increase in 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, 2024, we provided$44,769 of debt financing to NPRC to fund real estate capital expenditures, provide working capital, and to fund purchases of rate secured structured notes.

Current wording

During thenine months ended March 31, 2025, we provided$71,427 of debt financing to NPRC to fund real estate capital expenditures and provide working capital.

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, 2025, we received partial repayments of$213,386 of our loans previously outstanding with NPRC and its wholly owned subsidiary.

Previous wording

As of December 31, 2025, our investment in NPRC and its wholly owned subsidiaries had an amortized cost of $903,670 and a fair value of $1,173,262. The fair value of $1,164,472 related to NPRC’s real estate portfolio was comprised of forty-four multi-family properties, four 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 December 31, 2025:

Current wording

As of March 31, 2026, our investment in NPRC and its wholly owned subsidiaries had an amortized cost of $883,242 and a fair value of $1,112,198, primarily related to NPRC’s real estate portfolio. The real estate portfolio was comprised of forty-four multi-family properties, three 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, 2026:

Previous wording

The fair value of our investment in NPRC was $1,173,262 as of December 31, 2025, a premium of $269,592 from its amortized cost basis, compared to a fair value of $1,300,972 as of June 30, 2025, a premium of $378,325 to its amortized cost. The decrease in premium to amortized cost was primarily driven by a softening in cash flow projections across NPRC’s real estate portfolio, an increase in discount and terminal capitalization rates, and higher leverage within the capital structure.

Current wording

The fair value of our investment in NPRC was $1,112,198 as of March 31, 2026, a premium of $228,956 from its amortized cost basis, compared to a fair value of $1,300,972 as of June 30, 2025, a premium of $378,325 to its amortized cost. The decrease in premium to amortized cost was primarily driven by a softening in cash flow projections across NPRC’s real estate portfolio, an increase in discount and terminal capitalization rates, and higher leverage within the capital structure.

Previous wording

The fair value of our investment in QC Holdings was $95,672 as of December 31, 2025, a premium of $16,680 to its amortized cost compared to a fair value of $77,286 as of June 30, 2025, equal to its amortized cost. The increase in premium to amortized cost resulted from an improvement in financial performance.

Current wording

The fair value of our investment in QC Holdings was $95,331 as of March 31, 2026, a premium of $14,670 to its amortized cost compared to a fair value of $77,286 as of June 30, 2025, equal to its amortized cost. The increase in premium to amortized cost resulted from an improvement in financial performance.

Previous wording

The fair value of our investment in Pacific World was $107,626 as of December 31, 2025, a discount of $244,625 to its amortized cost compared to a fair value of $107,970 as of June 30, 2025, a discount of $228,143 to its amortized cost. The increase in discount to amortized cost resulted from increased debt in the capital structure and lower projected performance.

Current wording

The fair value of our investment in Pacific World was $114,455 as of March 31, 2026, a discount of $241,864 to its amortized cost compared to a fair value of $107,970 as of June 30, 2025, a discount of $228,143 to its amortized cost. The increase in discount to amortized cost resulted from increased debt in the capital structure.

Previous wording

The fair value of our investment in R-V was $102,664 as of December 31, 2025, a premium of $39,476 to its amortized cost compared to a fair value of $105,577 as of June 30, 2025, a premium of $51,389 to its amortized cost. The decrease in premium to amortized cost was primarily driven by Prospect’s incremental investment to R-V made in connection with a dividend recapitalization.

Current wording

The fair value of our investment in R-V was $91,709 as of March 31, 2026, a premium of $28,521 to its amortized cost compared to a fair value of $105,577 as of June 30, 2025, a premium of $51,389 to its amortized cost. The decrease in premium to amortized cost was primarily driven by Prospect’s incremental investment to R-V made in connection with a dividend recapitalization.

Previous wording

Prospect owns 99.96% of the equity of USES Corp. as of December 31, 2025 and June 30, 2025. USES provides industrial, environmental, and maritime services in the Gulf States region.

Current wording

Prospect owns 99.96% of the equity of Strategic Chemical Solutions Corp. (f/k/a USES Corp.) as of March 31, 2026 and June 30, 2025. Strategic Chemical Solutions Corp. (f/k/a USES Corp.) provides industrial, environmental, and maritime services in the Gulf States region.

Previous wording

The fair value of our investment in USES was $10,708 as of December 31, 2025, a discount of $10,394 to its amortized cost compared to a fair value of $14,518 as of June 30, 2025, a discount of $72,258 to its amortized cost. The decrease in discount is due to a realized loss recorded in the December 2025 quarter, which reduced amortized cost basis following a period of decreased performance and core asset sales.

Current wording

The fair value of our investment in Strategic Chemical Solutions Corp. (f/k/a USES Corp.) was $9,982 as of March 31, 2026, a discount of $11,512 to its amortized cost compared to a fair value of $14,518 as of June 30, 2025, a discount of $72,258 to its amortized cost. The decrease in discount is due to a realized loss recorded in the December 2025 quarter, which reduced amortized cost basis following a period of decreased performance and core asset sales.

Previous wording

The fair value of our investment in Valley Electric was $318,383 as of December 31, 2025, a premium of $222,471 to its amortized cost compared to a fair value of $351,291 as of June 30, 2025, a premium of $255,379 to its amortized cost. The decrease in premium to amortized cost primarily resulted from a reduction in comparable company multiples.

Current wording

The fair value of our investment in Valley Electric was $319,814 as of March 31, 2026, a premium of $223,902 to its amortized cost compared to a fair value of $351,291 as of June 30, 2025, a premium of $255,379 to its amortized cost. The decrease in premium to amortized cost primarily resulted from a reduction in comparable company multiples.

Previous wording

Our controlled investments, including those discussed above, are valued at $331,421 above their amortized cost as of December 31, 2025.

Current wording

Our controlled investments, including those discussed above, are valued at $368,479 above their amortized cost as of March 31, 2026.

Previous wording

We hold two affiliate investments as of December 31, 2025 (Nixon, Inc. and RGIS Services, LLC, (“RGIS”)) with a total fair value of $33,902, a premium of $21,067 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.

Current wording

We hold two affiliate investments as of March 31, 2026 (Nixon, Inc. and RGIS Services, LLC, (“RGIS”)) with a total fair value of $36,438, a premium of $23,603 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 six 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”), and Verify Diagnostics LLC, 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 December 31, 2025, our non-control/non-affiliate portfolio is valued at a discount to amortized cost primarily due to nine of our non-control/ non-affiliate investments, Credit.com Holdings, LLC (“Credit.com”), First Brands Group, Aventiv Technologies, LLC (“Securus”), STG Distribution, LLC (f/k/a Reception Purchaser, LLC), Town & Country Holdings, Inc., Medical Solutions Holdings, Inc., Redstone Holdco 2 LP (“RSA”), Rising Tide Holdings, Inc. (“West Marine”), and K&N HoldCo, LLC (“K&N”), which are valued at discounts to amortized cost of $89,277, $68,794, $56,439, $45,138, $39,943, $32,657, $29,123, $26,898, and $25,428, 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 some of our non-control/non-affiliate investments 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 March 31, 2026, our non-control/non-affiliate portfolio is valued at a discount to amortized cost primarily due to eight of our non-control/ non-affiliate investments, Credit.com Holdings, LLC (“Credit.com”), First Brands Group, Aventiv Technologies, LLC (“Securus”), STG Distribution, LLC (f/k/a Reception Purchaser, LLC), Medical Solutions Holdings, Inc., Rising Tide Holdings, Inc. (“West Marine”), Town & Country Holdings, Inc., and K&N HoldCo, LLC (“K&N”), which are valued at discounts to amortized cost of $91,301, $68,972, $57,037, $45,502, $39,176, $27,200, $26,095, and $25,428, respectively.

Previous wording

Excluding those non-control/non-affiliate investments discussed above, our remaining non-control/non-affiliate portfolio is valued at a premium of $113,130 to amortized cost as of December 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 $98,193 to amortized cost as of March 31, 2026.

Previous wording

As of December 31, 2025 and June 30, 2025, we had $770,431 and $570,532, respectively, available to us for borrowing under the Revolving Credit Facility, net of $512,343 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.

Current wording

As of March 31, 2026 and June 30, 2025, we had $799,535 and $570,532, respectively, available to us for borrowing under the Revolving Credit Facility, net of $403,711 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

During the three months ended December 31, 2025, we repurchased $34,837 aggregate principal amount of the 3.364% 2026 Notes at a weighted average price of 96.87%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $1,006 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 3.364% 2026 Notes.

Current wording

During the three months ended March 31, 2026, we did not have repurchase activity on the 3.364% 2026 Notes. During the nine months ended March 31, 2026, we repurchased $34,837 aggregate principal amount of the 3.364% 2026 Notes at a weighted average price of 96.87%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $1,006 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 3.364% 2026 Notes.

Previous wording

During the three months ended December 31, 2025, we repurchased $20,250 aggregate principal amount of the 3.437% 2028 Notes at a weighted average price of 89.46%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $2,009 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 3.437% 2028 Notes.

Current wording

During the three months ended March 31, 2026, we did not have repurchase activity on the 3.437% 2028 Notes. During the nine months ended March 31, 2026, we repurchased $20,250 aggregate principal amount of the 3.437% 2028 Notes at a weighted average price of 89.46%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $2,009 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 3.437% 2028 Notes.

Previous wording

As of December 31, 2025 and June 30, 2025, the fair value of the derivative assets and derivative liabilities were $484 and $968, and $0 and $0, respectively.

Current wording

As of March 31, 2026 and June 30, 2025, the fair value of the derivative assets and derivative liabilities were $1,951 and $0, and $0 and $0, respectively.

Previous wording

Certain notes issued through the InterNotes® Offerings have been repaid and we have, from time to time, repurchased or redeemed such other notes and, therefore, as of December 31, 2025 and June 30, 2025, the aggregate principal amount of Prospect Capital InterNotes® outstanding were $637,232 and $647,232, respectively. See Note 7. Prospect Capital InterNotes®within our consolidated financial statements for additional details.

Current wording

Certain notes issued through the InterNotes® Offerings have been repaid and we have, from time to time, repurchased or redeemed such other notes and, therefore, as of March 31, 2026 and June 30, 2025, the aggregate principal amount of Prospect Capital InterNotes® outstanding were $629,946 and $647,232, respectively. See Note 7. Prospect Capital InterNotes®within our consolidated financial statements for additional details.