Tax Information

The information on dividends paid by Prospect Capital Corporation ("Prospect") are set forth below. For tax purposes, Prospect is a regulated investment company ("RIC") and is designating the types of distributions you have received as a stockholder in in accordance with Subchapter M of the Internal Revenue Code of 1986, as amended ("IRC"), in the following manner:

Non-Qualified Dividends

These dividends are from Prospect's ordinary net investment income and net short-term capital gains for the year. This type of dividend is to be reported on your tax return as ordinary income. Ordinary dividend distributions from a RIC do not qualify for the preferential tax rate on dividend income from domestic corporations and qualified foreign corporations except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations (see Qualified Dividends below). This type of income is reported in Box 1a of Form 1099.

Qualified Dividends

These dividends are from Prospect's receipt of dividend income from ownership of stock of certain domestic and qualified foreign corporations. This type of dividend is to be reported on your tax return as "qualified" dividend income eligible for preferential tax rates. Qualified dividends are reported in Box 1b of Form 1099.

Capital Gain Dividends

Capital gain dividends arise from net long-term capital gain recognized by Prospect during the respective year. These capital gain distributions generally qualify for the maximum 20% U.S. federal income tax rate on net capital gain recognized by U.S. resident individuals and certain other U.S. persons. Total capital gain distributions are reported in Box 2a of Form 1099.

From 2004 to the first quarter of 2010, we paid our dividends quarterly in arrears. Starting at the end of the second quarter of 2010, we switched to monthly payments. Dividends are paid out of the assets legally available for distribution. Our dividends, if any, will be determined by our board of directors.

The following is a table representing common stock dividends and distributions paid by Prospect:

Year	Amount Per Share	Ordinary Dividend Percentage	Qualified Dividend Percentage1	Non-Qualified Dividend Percentage2	Return of Capital Percentage	Long-Term Capital Gain3	Interest Related or Short-Term Capital Gains Dividends under Sec. 871(k) 4	Qualified REIT Dividends under Sec. 199A5	Sec. 163(j) Interest Dividends6
2004	$0.10	100.00%	100.00%	0.00%	0.00%
2005	$0.76	100.00%	33.33%	66.67%	0.00%
2006	$1.41	100.00%	18.80%	81.20%	0.00%
2007	$1.57	100.00%	15.51%	84.49%	0.00%
2008	$1.61	100.00%	15.67%	84.33%	0.00%
2009	$1.63	72.56%	28.13%	71.87%	27.44%
2010	$1.11	71.38%	9.32%	90.68%	28.62%
2011	$1.22	86.93%	13.08%	86.92%	13.07%
2012	$1.23	100.00%	56.61%	43.39%	0.00%
2013	$1.32	100.00%	4.28%	95.72%	0.00%
2014	$1.33	100.00%	0.60%	99.40%	0.00%
2015	$1.03	100.00%	0.52%	99.48%	0.00%	0.00%	46.23%
2016	$1.00	100.00%	0.11%	99.89%	0.00%	0.00%	48.18%
2017	$0.91	100.00%	0.15%	99.85%	0.00%	0.00%	49.94%
2018	$0.66	100.00%	2.97%	97.03%	0.00%	0.00%	42.53%	4.80%
2019	$0.72	100.00%	2.81%	97.19%	0.00%	0.00%	42.18%	0.00%
1/1/20 - 7/31/207	$0.48	45.54%	1.13%	98.87%	54.46%	0.00%	42.16%	3.17%
8/1/20 - 12/31/207	$0.30	100.00%	1.13%	98.87%	0.00%	0.00%	42.16%	3.17%
1/1/21 - 7/31/217	$0.42	84.16%	2.68%	97.32%	15.84%	0.00%	41.60%	0.00%	63.48%
8/1/21 - 12/31/217	$0.30	100.00%	2.68%	97.32%	0.00%	0.00%	41.60%	0.00%	63.48%
1/1/22 - 7/31/228	$0.42	69.82%	3.63%	96.37%	0.00%	30.18%	54.14%	0.00%	82.38%
8/1/22 - 12/31/20228	$0.30	100.00%	3.63%	96.37%	0.00%	0.00%	54.14%	0.00%	82.38%
1/1/23 - 7/31/20237	$0.42	73.44%	0.02%	99.98%	26.56%	0.00%	56.78%	0.00%	88.68%
8/1/23 - 12/31/20237	$0.30	100.00%	0.02%	99.98%	0.00%	0.00%	56.78%	0.00%	88.68%

The following is a table representing preferred stock dividends and distributions paid by Prospect:

Year	Amount Per Share	Ordinary Dividend Percentage	Qualified Dividend Percentage1	Non-Qualified Dividend Percentage2	Return of Capital Percentage	Long-Term Capital Gain3	Interest Related or Short-Term Capital Gains Dividends under Sec. 871(k) 4	Qualified REIT Dividends under Sec. 199A5	Sec. 163(j) Interest Dividends6
2020 Series A-1	$0.20	100.00%	1.13%	98.87%	0.00%	0.00%	42.16%	3.17%
2021 Series A-1	$1.30	100.00%	2.68%	97.32%	0.00%	0.00%	41.60%	0.00%	63.48%
2021 Series A-2	$0.82	100.00%	2.68%	97.32%	0.00%	0.00%	41.60%	0.00%	63.48%
2021 Series A	$0.38	100.00%	2.68%	97.32%	0.00%	0.00%	41.60%	0.00%	63.48%
2021 Series M-1	$1.21	100.00%	2.68%	97.32%	0.00%	0.00%	41.60%	0.00%	63.48%
1/1/22 - 7/31/22 - Series A-18	$0.77	69.82%	3.63%	96.37%	0.00%	30.18%	54.14%	0.00%	82.38%
8/1/22 - 12/31/2022 – Series A-18	$0.57	100.00%	3.63%	96.37%	0.00%	0.00%	54.14%	0.00%	82.38%
1/1/22 - 7/31/22 - Series A-28	$0.80	69.82%	3.63%	96.37%	0.00%	30.18%	54.14%	0.00%	82.38%
8/1/22 - 12/31/2022 – Series A-28	$0.57	100.00%	3.63%	96.37%	0.00%	0.00%	54.14%	0.00%	82.38%
1/1/22 - 7/31/22 - Series A8	$1.00	69.82%	3.63%	96.37%	0.00%	30.18%	54.14%	0.00%	82.38%
8/1/22 - 12/31/2022 – Series A8	$0.33	100.00%	3.63%	96.37%	0.00%	0.00%	54.14%	0.00%	82.38%
1/1/22 - 7/31/22 - Series M-18	$0.72	69.82%	3.63%	96.37%	0.00%	30.18%	54.14%	0.00%	82.38%
8/1/22 - 12/31/2022 – Series M-18	$0.57	100.00%	3.63%	96.37%	0.00%	0.00%	54.14%	0.00%	82.38%
2022 Series A-3	$0.31	100.00%	3.63%	96.37%	0.00%	0.00%	54.14%	0.00%	82.38%
2022 Series M-3	$0.29	100.00%	3.63%	96.37%	0.00%	0.00%	54.14%	0.00%	82.38%
2023 Series A-1	$1.379	100.00%	0.02%	99.98%	0.00%	0.00%	56.78%	0.00%	88.68%
2023 Series A-2	$1.37	100.00%	0.02%	99.98%	0.00%	0.00%	56.78%	0.00%	88.68%
2023 Series A-3	$1.639	100.00%	0.02%	99.98%	0.00%	0.00%	56.78%	0.00%	88.68%
2023 Series A	$1.34	100.00%	0.02%	99.98%	0.00%	0.00%	56.78%	0.00%	88.68%
2023 Series M-1	$1.379	100.00%	0.02%	99.98%	0.00%	0.00%	56.78%	0.00%	88.68%
2023 Series M-3	$1.639	100.00%	0.02%	99.98%	0.00%	0.00%	56.78%	0.00%	88.68%

This information supersedes any estimated information you may have received during the year.

Form 8937 – 2020
Form 8937 – 2021
Form 8937 – 2023

¹Prospect hereby designates this portion of its ordinary dividends as amounts eligible for treatment as qualified dividend income in accordance with IRC Section 854(b) as well as eligible for the dividends received deduction available to certain U.S. domestic corporations.
²Non-qualified dividends are generally taxed as ordinary income.
³Prospect hereby designates this portion of its distributions as amounts eligible for treatment as capital gain dividends in accordance with IRC Sections 852(b)(3) and 854(a).
⁴Prospect hereby designates this portion of its ordinary dividends as interest related dividends in accordance with IRC Section 871(k). Section 871(k) provides that certain interest related dividends and short term capital gain dividends paid by RICs to foreign shareholders are exempt from U.S. withholding tax.
⁵Prospect hereby designates this portion of its ordinary dividends as qualified REIT dividends in accordance with IRC Section 199A(e)(3). Section 199A provides that ordinary REIT dividends paid to RICs to their shareholders are eligible for a twenty percent deduction as qualified business income.
⁶ Prospect hereby designates this portion of its ordinary dividends as Section 163(j) interest dividends in accordance with Treasury Regulation Section 1.163(j)-1. Treasury Regulation Section 1.163(j)-1 provides that certain dividends paid by RICs may be treated by recipients as interest income for purposes of calculating their interest expense limitation under IRC Section 163(j).
⁷Applicable for all distributions with a record date that falls within the period. Please see Form 8937 attachment for tax characterization of distributions detailed by monthly record and paid dates.
⁸Applicable for all distributions with a record date that falls within the period.
⁹Represents annual amount before pro ration for partial periods.

Distributions that were reinvested through the Prospect's dividend reinvestment plan are treated as if they had been paid in cash for U.S. tax purposes. Therefore, anyone who participated in the dividend reinvestment plan should also refer to the table above for the appropriate tax treatment of any dividends received.

Shareholders should consult their tax advisor for tax guidance pertinent to their own specific facts and circumstances.