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CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Parenthetical) - USD ($)
Sep. 30, 2022
Jun. 30, 2022
Investments, cost $ 7,345,486,000 [1],[2] $ 7,196,831,000
Temporary equity, par value (usd per share) $ 0.001 $ 0.001
Temporary equity, shares authorized (in shares) 227,900,000 227,900,000
Temporary equity, shares outstanding (in shares) 40,864,292 29,607,882 [3]
Common stock, par value (usd per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 1,772,100,000 1,772,100,000
Common stock, shares issued (in shares) 396,179,053 393,164,437
Common stock, shares outstanding (in shares) 396,179,053 393,164,437
Convertible Notes    
Unamortized discount and debt issuance costs $ 2,243,000 $ 2,477,000
Public Notes    
Unamortized discount and debt issuance costs 20,943,000 22,281,000
Prospect Capital InterNotes    
Unamortized discount and debt issuance costs 6,969,000 7,122,000
Control Investments    
Investments, cost 2,786,356,000 [1],[2],[4] 2,732,906,000 [5]
Non-controlled/Affiliated    
Investments, cost 236,898,000 242,101,000
Non-Control/ Non-Affiliate Investments    
Investments, cost $ 4,322,232,000 $ 4,221,824,000
Series A1    
Temporary equity, shares authorized (in shares) 60,000,000 60,000,000
Temporary equity, shares issued (in shares) 30,751,961 30,751,961
Temporary equity, shares outstanding (in shares) 20,794,645 20,794,645
Series M1    
Temporary equity, shares authorized (in shares) 60,000,000 60,000,000
Temporary equity, shares issued (in shares) 3,925,331 3,925,331
Temporary equity, shares outstanding (in shares) 2,626,238 2,626,238
Series M2    
Temporary equity, shares authorized (in shares) 60,000,000 60,000,000
Temporary equity, shares issued (in shares) 0 0
Temporary equity, shares outstanding (in shares) 0 0
Series AA1    
Temporary equity, shares authorized (in shares) 20,000,000 20,000,000
Temporary equity, shares issued (in shares) 0 0
Temporary equity, shares outstanding (in shares) 0 0
Series MM1    
Temporary equity, shares authorized (in shares) 20,000,000 20,000,000
Temporary equity, shares issued (in shares) 0 0
Temporary equity, shares outstanding (in shares) 0 0
Series A2    
Temporary equity, shares authorized (in shares) 1,000,000 1,000,000
Temporary equity, shares issued (in shares) 187,000 187,000
Temporary equity, shares outstanding (in shares) 187,000 187,000
Series A    
Temporary equity, shares authorized (in shares) 6,900,000 6,900,000
Temporary equity, shares issued (in shares) 6,000,000 6,000,000
Temporary equity, shares outstanding (in shares) 6,000,000 6,000,000
[1] The following shows the composition of our investment portfolio at cost by control designation, investment type and by industry as of September 30, 2022:
Industry1st Lien
Term Loan
2nd Lien
Term Loan
Subordinated Structured NotesUnsecured Debt
Equity (B)
Cost Total
Control Investments
Aerospace & Defense$54,797 $— $— $— $55,581 $110,378 
Commercial Services & Supplies124,680 — — 7,200 27,349 159,229 
Construction & Engineering56,753 — — — 11,550 68,303 
Consumer Finance452,388 — — — 81,303 533,691 
Diversified Consumer Services— — — — 2,378 2,378 
Energy Equipment & Services81,566 — — — 221,150 302,716 
Equity Real Estate Investment Trusts (REITs)651,586 — — — 15,430 667,016 
Health Care Providers & Services278,429 — — — 45,118 323,547 
Machinery33,622 — — — 6,866 40,488 
Media29,723 — — — — 29,723 
Online Lending25,080 — — — — 25,080 
Personal Products73,104 — — — 189,295 262,399 
Trading Companies & Distributors32,708 — — — 32,500 65,208 
Structured Finance (A)196,200 — — — — 196,200 
Total Control Investments$2,090,636 $— $— $7,200 $688,520 $2,786,356 
Affiliate Investments
Commercial Services & Supplies$— $— $— $— $9,523 $9,523 
Diversified Consumer Services70,639 153,931 — — — 224,570 
Textiles, Apparel & Luxury Goods— — — — 2,805 2,805 
 Total Affiliate Investments $70,639 $153,931 $— $— $12,328 $236,898 
Non-Control/Non-Affiliate Investments
Air Freight & Logistics$92,620 $95,000 $— $— $— $187,620 
Auto Components22,348 112,179 — — — 134,527 
Building Products— 35,000 — — — 35,000 
Capital Markets— 42,500 — — — 42,500 
Commercial Services & Supplies68,786 185,304 — — 1,500 255,590 
Communications Equipment9,214 50,585 — — — 59,799 
Consumer Finance47,028 — — — — 47,028 
Distributors168,207 103,730 — — — 271,937 
Diversified Consumer Services— 22,713 — — — 22,713 
Diversified Financial Services36,816 — — — — 36,816 
Diversified Telecommunication Services44,266 121,799 — — — 166,065 
Food & Staples Retailing27,437 — — — — 27,437 
Food Products— 131,036 — — — 131,036 
Health Care Equipment & Supplies— 7,484 — — — 7,484 
Health Care Providers & Services181,414 159,664 — — 1,546 342,624 
Health Care Technology128,973 — — — — 128,973 
Hotels, Restaurants & Leisure23,127 — — — — 23,127 
Household Durables96,475 29,777 — — 2,001 128,253 
Household Products20,874 — — — — 20,874 
Interactive Media & Services226,054 — — — — 226,054 
Internet & Direct Marketing Retail20,217 — — — — 20,217 
IT Services211,406 147,925 — — — 359,331 
Leisure Products67,879 — — — 67,880 
Machinery57,749 9,983 — — — 67,732 
Media51,098 — — — 26,991 78,089 
Pharmaceuticals25,536 — — — — 25,536 
Professional Services66,785 123,606 — — — 190,391 
Industry1st Lien
Term Loan
2nd Lien
Term Loan
Subordinated Structured NotesUnsecured Debt
Equity (B)
Cost Total
Software— 52,309 — — — 52,309 
Textiles, Apparel & Luxury Goods165,628 8,939 — — — 174,567 
Structured Finance (A)— — 990,723 — — 990,723 
 Total Non-Control/Non-Affiliate $1,859,937 $1,439,533 $990,723 $— $32,039 $4,322,232 
Total Portfolio Investment Cost$4,021,212 $1,593,464 $990,723 $7,200 $732,887 $7,345,486 
The following table shows the composition of our investment portfolio at fair value by control designation, investment type and by industry as of September 30, 2022:
Industry1st Lien
Term Loan
2nd Lien
Term Loan
Subordinated Structured NotesUnsecured Debt
Equity (B)
Fair Value TotalFair Value % of Net Assets Applicable to Common Stock
Control Investments
 Aerospace & Defense $54,797 $— $— $— $7,225 $62,022 1.6 %
 Commercial Services & Supplies 76,017 — — 7,200 280 83,497 2.1 %
 Construction & Engineering 56,753 — — — 84,926 141,679 3.6 %
 Consumer Finance 454,041 — — — 268,049 722,090 18.2 %
 Diversified Consumer Services — — — — 3,833 3,833 0.1 %
 Energy Equipment & Services 81,566 — — — 37,697 119,263 3.0 %
Equity Real Estate Investment Trusts (REITs)651,586 — — — 761,144 1,412,730 35.7 %
 Health Care Providers & Services 278,429 — — — 129,105 407,534 10.3 %
 Machinery 33,622 — — — 22,496 56,118 1.4 %
 Media 29,723 — — — 84,971 114,694 2.9 %
 Online Lending 25,058 — — — — 25,058 0.6 %
 Personal Products 65,336 — — — — 65,336 1.6 %
 Trading Companies & Distributors 32,708 — — — 3,406 36,114 0.9 %
Structured Finance (A)194,510 — — — — 194,510 4.9 %
Total Control Investments$2,034,146 $— $— $7,200 $1,403,132 $3,444,478 86.9 %
Fair Value % of Net Assets51.3 %— %— %0.2 %35.4 %86.9 %
Affiliate Investments
Commercial Services & Supplies$— $— $— $— $9,755 $9,755 0.2 %
Diversified Consumer Services69,029 151,818 — — 66,904 287,751 7.3 %
Textiles, Apparel & Luxury Goods— — — — 19,769 19,769 0.5 %
Total Affiliate Investments$69,029 $151,818 $— $— $96,428 $317,275 8.0 %
Fair Value % of Net Assets1.7 %3.8 %— %— %2.5 %8.0 %
Non-Control/Non-Affiliate Investments
Air Freight & Logistics$92,978 $95,000 $— $— $— $187,978 4.7 %
Auto Components22,251 100,510 — — — 122,761 3.1 %
Building Products— 34,669 — — — 34,669 0.9 %
Capital Markets— 41,640 — — — 41,640 1.1 %
Commercial Services & Supplies69,021 181,895 — — 10,145 261,061 6.6 %
Communications Equipment8,743 47,864 — — — 56,607 1.4 %
Consumer Finance26,681 — — — — 26,681 0.7 %
Distributors160,832 6,076 — — 2,012 168,920 4.2 %
Diversified Consumer Services— 19,717 — — — 19,717 0.5 %
Diversified Financial Services36,816 — — — — 36,816 0.9 %
Diversified Telecommunication Services43,854 119,457 — — — 163,311 4.1 %
Food & Staples Retailing27,146 — — — — 27,146 0.7 %
Food Products— 125,700 — — — 125,700 3.2 %
Health Care Equipment & Supplies— 6,894 — — — 6,894 0.2 %
Health Care Providers & Services179,381 157,370 — — 1,542 338,293 8.4 %
Health Care Technology128,927 — — — — 128,927 3.3 %
Hotels, Restaurants & Leisure22,234 — — — — 22,234 0.6 %
Industry1st Lien
Term Loan
2nd Lien
Term Loan
Subordinated Structured NotesUnsecured Debt
Equity (B)
Fair Value TotalFair Value % of Net Assets Applicable to Common Stock
Household Durables96,485 26,364 — — — 122,849 3.1 %
Household Products20,874 — — — — 20,874 0.5 %
Interactive Media & Services226,054 — — — — 226,054 5.7 %
Internet & Direct Marketing Retail16,946 — — — — 16,946 0.4 %
IT Services210,459 138,251 — — — 348,710 8.8 %
Leisure Products67,534 — — — — 67,534 1.7 %
Machinery56,713 9,749 — — — 66,462 1.7 %
Media50,874 — — — 87 50,961 1.3 %
Pharmaceuticals25,829 — — — — 25,829 0.7 %
Professional Services66,108 119,563 — — — 185,671 4.7 %
Software— 50,013 — — — 50,013 1.3 %
Textiles, Apparel & Luxury Goods165,628 8,734 — — — 174,362 4.4 %
Structured Finance (A)— — 695,292 — — 695,292 17.5 %
Total Non-Control/Non-Affiliate$1,822,368 $1,289,466 $695,292 $— $13,786 $3,820,912 96.4 %
Fair Value % of Net Assets46.0 %32.6 %17.5 %— %0.3 %96.4 %
Total Portfolio$3,925,543 $1,441,284 $695,292 $7,200 $1,513,346 $7,582,665 191.3 %
Fair Value % of Net Assets99.0 %36.4 %17.5 %0.2 %38.2 %191.3 %
(A) Our SSN investments do not have industry concentrations and as such have been separated in the tables above.
(B) Equity, unless specifically stated otherwise, includes our investments in preferred stock, common stock, membership interests, net profits interests, net operating income interests, net revenue interests, overriding royalty interests, escrows receivable, and warrants.
[2] The terms “Prospect,” “the Company,” “we,” “us” and “our” mean Prospect Capital Corporation and its subsidiaries unless the context specifically requires otherwise. The securities in which Prospect has invested were acquired in transactions that were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These securities may be resold only in transactions that are exempt from registration under the Securities Act.
[3] Certain reclassifications have been made in the presentation of prior year amounts since initial disclosure in our Quarterly Report on Form 10-Q for the period ended September 30, 2021 to conform to the presentation in our Annual Report on Form 10-K for the year ended June 30, 2022. In addition, we have not yet finalized return of capital estimates for the current period. See Note 2 and Note 12 within the accompanying notes to consolidated financial statements for further discussion.
[4] As defined in the 1940 Act, we are deemed to “Control” these portfolio companies because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the three months ended September 30, 2022 with these controlled investments were as follows:
Controlled CompaniesFair Value at June 30, 2022Gross Additions (Cost)(A)Gross Reductions (Cost)(B)Net unrealized
gains (losses)
Fair Value at September 30, 2022Interest
income
Dividend
income
Other
income
Net realized
gains (losses)
CP Energy Services Inc.$64,260 $1,521 $— $(608)$65,173 $1,521 $— $— $— 
CP Energy - Spartan Energy Services, Inc.48,441 699 — (8,362)40,778 700 — — — 
Credit Central Loan Company, LLC76,935 1,882 — (11,360)67,457 1,859 — — — 
Echelon Transportation, LLC65,766 1,588 — (5,332)62,022 869 — — — 
First Tower Finance Company LLC607,283 9,577 — (11,578)605,282 20,235 — — — 
Freedom Marine Solutions, LLC13,899 — — (587)13,312 — — — — 
InterDent, Inc.406,194 4,981 — (3,641)407,534 7,508 — — — 
Kickapoo Ranch Pet Resort3,833 — — — 3,833 — 50 — — 
MITY, Inc.59,999 — (573)(1,598)57,828 1,897 — — — 
National Property REIT Corp.1,615,737 77,600 (52,500)(8,539)1,632,298 20,272 — 20,665 — 
Nationwide Loan Company LLC50,400 522 — (1,571)49,351 1,045 — — — 
NMMB, Inc.109,943 — — 4,751 114,694 818 1,093 — (1,093)
Pacific World Corporation59,179 2,003 — 4,154 65,336 1,508 — — — 
R-V Industries, Inc.56,923 — — (805)56,118 985 — — — 
Universal Turbine Parts, LLC31,147 — (8)4,975 36,114 688 — — — 
USES Corp.22,395 6,114 — (2,840)25,669 173 — — — 
Valley Electric Company, Inc.145,983 — 44 (4,348)141,679 2,185 44 — — 
Total$3,438,317 $106,487 $(53,037)$(47,289)$3,444,478 $62,263 $1,187 $20,665 $(1,093)
(A) Gross additions include increases in the cost basis of the investments resulting from new portfolio investments, OID accretion and PIK interest, and any transfer of investments.
(B) Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investments repayments or sales, impairments, and any transfer of investments.
[5] As defined in the 1940 Act, we are deemed to “Control” these portfolio companies because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the year ended June 30, 2022 with these controlled investments were as follows:
Portfolio CompanyFair Value at June 30, 2021Gross Additions (Cost)(A)Gross Reductions (Cost)(B)Net unrealized
gains (losses)
Fair Value at June 30, 2022Interest
income
Dividend
income
Other
income
Net realized
gains (losses)
CP Energy Services Inc.$44,621 $11,277 $— $8,362 $64,260 $5,424 $— $— $— 
CP Energy - Spartan Energy Services, LLC26,866 10,992 — 10,583 48,441 1,884 — — 
Credit Central Loan Company, LLC78,023 9,599 (1,295)(9,392)76,935 15,106 — — — 
Echelon Transportation LLC84,240 10,646 — (29,120)65,766 7,695 — — — 
First Tower Finance Company LLC592,356 42,669 (11,153)(16,589)607,283 74,501 — 7,898 — 
Freedom Marine Solutions, LLC11,717 1,000 — 1,182 13,899 — — — — 
InterDent, Inc.412,339 36,123 (246)(42,022)406,194 26,517 — 200 — 
Kickapoo Ranch Pet Resort3,833 — — — 3,833 — 25 — — 
MITY, Inc.49,680 4,956 — 5,363 59,999 7,317 — — 12 
National Property REIT Corp.1,189,755 410,867 (301,382)316,497 1,615,737 63,818 — 69,772 — 
Nationwide Loan Company LLC47,993 — — 2,407 50,400 4,108 2,650 405 — 
NMMB, Inc.46,888 25,000 (13,021)51,076 109,943 1,206 8,383 450 3,946 
Pacific World Corporation71,097 11,151 — (23,069)59,179 4,779 — — — 
R-V Industries, Inc.49,693 5,000 — 2,230 56,923 3,051 441 125 — 
Universal Turbine Parts, LLC27,106 — (33)4,074 31,147 2,354 — — — 
USES Corp.33,815 — — (11,420)22,395 203 — — — 
Valley Electric Company, Inc.149,695 13,022 (14,698)(2,036)145,983 7,531 3,150 926 — 
Total$2,919,717 $592,302 $(341,828)$268,126 $3,438,317 $225,494 $14,649 $79,782 $3,958 
(A) Gross additions include increases in the cost basis of the investments resulting from new portfolio investments, PIK interest, and any transfer of investments.
(B) Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investments repayments or sales, impairments, and any transfer of investments.