Why Invest in Prospect?

Prospect Capital Corporation is among the oldest and largest BDCs. Throughout our 16+ years as a public company, we have provided consistent returns to our shareholders through our disciplined approach to investing in the U.S. middle market.

Attractive Dividend Yield

PSEC is a yield-oriented investor and has paid a continuous, regular dividend to its investors since inception. We have declared 145 consecutive dividends, totaling over $3.1 billion, since our 2004 IPO.¹

Focus on Senior and Secured Lending

PSEC is focused on providing senior and secured term loans to U.S. middle market businesses. Of our total investments, over 82% are in the form of interest bearing loans secured by a first or second lien.² For the March 2020 quarter, 89.8% of our total investment income was interest income on loans.

Proven Organization Strategies

Our team has developed a broad and deep network of U.S. middle market relationships over many years of investing, including extensive relationships with private equity firms, other capital providers, business owners and managers, and intermediaries.

Broad Investment Portfolio

Since its 2004 IPO, PSEC has made over 360 investments totaling $15.2 billion of capital. In addition, a PSEC non-consolidated portfolio company and its subsidiaries have made over 115 investments. PSEC's current portfolio includes more than 120 portfolio investments spanning 40+ separate industries.

Large and Experienced Team

We cover the U.S. middle market with a team of approximately 95 professionals with experience investing across a range of industries and through multiple economic and investing cycles, with offices in New York and Connecticut. Our investment professionals are supported by a dedicated team of attorneys, accountants, and other specialists.

Conservative, Strong Capitalization

With over $5.2 billion of assets, PSEC is among the largest of the BDCs. We benefit from a strong balance sheet with long-term matched-book funding, reasonable leverage, and a high level of unencumbered assets. As affirmation of our financial profile, we have investment grade ratings from S&P and Kroll. Management and affiliates of Prospect own approximately 26% of outstanding PSEC shares as of 5/11/2020, so we are very much aligned with our shareholders.

All information derived from PSEC filings and management, and is as of 3/31/20 unless otherwise noted.

Past performance does not guarantee future results and current performance may be lower or higher than the performance contained herein. An investment in PSEC’s common stock may fluctuate such that an investor’s shares, when sold, may be worth more or less than their original cost.

Investors are advised to carefully consider the investment objective, risks, charges and expenses of PSEC before investing. A prospectus dated February 13, 2020, and a prospectus supplement dated June 12, 2020, have been filed with the Securities and Exchange Commission. The supplemental prospectus and prospectus contain information about PSEC and should be read carefully before investing. A more detailed discussion of risks and uncertainties is contained in the prospectus supplement and prospectus.

This information page does not constitute an offer to sell or a solicitation of an offer to buy nor will there be any sale of the shares referred to in this information page in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.

The information contained herein may contain forward-looking statements. Any such statements are likely to be affected by unknowable future events and conditions, most of which are not under PSEC’s control and that PSEC may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance, and actual developments and results may vary materially. Such statements speak only as of the time when made, and PSEC undertakes no obligation to update any such statement now or in the future.

Certain information discussed in this presentation (including information relating to portfolio companies) was derived from third party sources and has not been independently verified and, accordingly, Prospect Capital Corporation makes no representation or warranty in respect of this information.

¹Dividends may not continue at the current level if at all.
²Includes underlying collateral in securitizations, represented by Prospect's investments in CLOs.