Prospect Capital Announces September 2022 Results: $0.22 per Common Share Basic Net Investment Income and Stable Monthly $0.06 per Common Share Distributions
November 9, 2022 | Prospect Capital Corporation
Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our fiscal quarter ended September 30, 2022.
(1) Basic NII is calculated by dividing NII, less preferred dividends, by the weighted average number of common shares outstanding.
(2) Basic Net (Loss) Income is calculated by dividing Net (Loss) Income by the weighted average number of common shares outstanding.
(3) Including our preferred stock as equity.
CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION
Prospect is declaring distributions to common shareholders as follows:
These monthly cash distributions are the 63rd, 64th, and 65th consecutive $0.06 per share distributions to common shareholders.
Prospect expects to declare February 2023, March 2023, and April 2023 distributions to common shareholders in February 2023.
Based on the declarations above, Prospect’s closing stock price of $7.34 at November 8, 2022 delivers to our common shareholders an annualized distribution yield of 9.8%.
Taking into account past distributions and our current share count for declared distributions, and since inception through our January 2023 declared distribution, Prospect will have distributed $19.86 per share to original common shareholders, aggregating approximately $3.8 billion in cumulative distributions to all common shareholders.
Since inception in 2004, Prospect has invested $19.6 billion across 403 investments, exiting 274 of these investments.
Over the ten quarters from the pre-pandemic December 2019 quarter to the June 2022 quarter, Prospect delivered the highest growth in the business development company industry of net asset value per common share, with NAV per common share increasing by 21% over that time period.
Since October 2017, our NII per common share has aggregated $3.97 while our common shareholder and preferred shareholder distributions per common share have aggregated $3.60, causing our NII to exceed common and preferred distributions during this period by $0.37 per common share.
Initiatives focused on enhancing accretive NII per share growth include (1) our $1.75 billion targeted 6.50% perpetual preferred stock offerings (which could potentially be increased in capacity in an accretive fashion), (2) greater utilization of our cost efficient revolving credit facility (with an incremental cost of approximately 5.45% at today’s one month SOFR), (3) increase of short-term Libor and SOFR rates based on Fed tightening to exceed floors and boost asset yields, and (4) increased primary and secondary originations of senior secured debt and selected equity investments targeting attractive risk-adjusted yields and total returns as we deploy dry powder from our underleveraged balance sheet.
Our senior management team and employees own approximately 28% of all common shares outstanding, approximately $1.1 billion of our common equity as measured at NAV.
