Fair Value and Maturity of Debt Outstanding (Tables)

3 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Long-Term Debt Instruments

The following table summarizes the Prospect Capital InterNotes® outstanding as of September 30, 2022:

Tenor at Origination (in years)	Principal Amount		Interest Rate Range	Weighted Average Interest Rate	Maturity Date Range
3	$	2,161	1.50% – 2.50%	2.19%	January 15, 2024 – March 15, 2025
5	97,758		2.25% – 4.50%	3.30%	January 15, 2026 – September 15, 2027
6	15,007		3.00%	3.00%	June 15, 2027 – July 15, 2027
7	29,252		2.75% – 4.25%	3.17%	January 15, 2028 – February 15, 2029
8	3,511		3.40% – 3.50%	3.45%	June 15, 2029 – July 15, 2029
10	77,291		3.15% – 4.50%	3.85%	August 15, 2029 – May 15, 2032
12	14,946		3.70% – 4.00%	3.95%	June 15, 2033 – July 15, 2033
15	14,836		3.50% – 4.50%	3.84%	July 15, 2036 – February 15, 2037
18	3,085		4.50% – 5.00%	4.73%	January 15, 2031 – April 15, 2031
20	1,597		5.75%	5.75%	November 15, 2032
25	8,036		6.25% – 6.50%	6.37%	November 15, 2038 – May 15, 2039
30	81,564		4.00% – 6.63%	5.30%	November 15, 2042 – March 15, 2052
Principal Outstanding	$	349,044
Less Discounts
Unamortized Debt Issuance	(6,969)
Carrying Amount	$	342,075

The following table summarizes the Prospect Capital InterNotes® outstanding as of June 30, 2022:

Tenor at Origination (in years)	Principal Amount		Interest Rate Range	Weighted Average Interest Rate	Maturity Date Range
3	$	2,161	1.50% - 2.50%	2.19%	January 15, 2024 – March 15, 2025
5	95,134		2.25% - 4.50%	3.27%	January 15, 2026 – June 15, 2027
6	15,057		3.00%	3.00%	June 15, 2027 – July 15, 2027
7	29,252		2.75% - 4.25%	3.17%	January 15, 2028 – February 15, 2029
8	3,511		3.40% - 3.50%	3.45%	June 15, 2029 – July 15, 2029
10	77,434		3.15% - 4.50%	3.85%	August 15, 2029 – May 15, 2032
12	15,066		3.70% - 4.00%	3.95%	June 15, 2033 – July 15, 2033
15	15,041		3.50% - 4.50%	3.84%	July 15, 2036 – February 15, 2037
18	3,085		4.50% - 5.00%	4.73%	January 15, 2031 – April 15, 2031
20	1,597		5.75%	5.75%	November 15, 2032
25	8,036		6.25% - 6.50%	6.37%	November 15, 2038 – May 15, 2039
30	82,190		4.00% - 6.63%	5.29%	November 15, 2042 – March 15, 2052
Principal Outstanding	$	347,564
Less Discounts
Unamortized debt issuance	(7,122)
Carrying Amount	$	340,442

Information about our senior securities is shown in the following table as of the end of each of the last ten fiscal years and as of September 30, 2022 (All figures in this item are in thousands except per unit data):

	Total Amount Outstanding(1)		Asset Coverage per Unit(2)		Involuntary Liquidating Preference per Unit	Average Market Value per Unit(3)
Credit Facility
Fiscal 2023 (as of September 30, 2022)	$	799,851	$	9,459	—	—
Fiscal 2022 (as of June 30, 2022)	839,464		9,015		—	—
Fiscal 2021 (as of June 30, 2021)	356,937		17,408		—	—
Fiscal 2020 (as of June 30, 2020)	237,536		22,000		—	—
Fiscal 2019 (as of June 30, 2019)	167,000		34,298		—	—
Fiscal 2018 (as of June 30, 2018)	37,000		155,503		—	—
Fiscal 2017 (as of June 30, 2017)	—		—		—	—
Fiscal 2016 (as of June 30, 2016)	—		—		—	—
Fiscal 2015 (as of June 30, 2015)	368,700		18,136		—	—
Fiscal 2014 (as of June 30, 2014)	92,000		69,470		—	—
Fiscal 2013 (as of June 30, 2013)	124,000		34,996		—	—
2015 Notes(4)
Fiscal 2015 (as of June 30, 2015)	$	150,000	$	2,241	—	—
Fiscal 2014 (as of June 30, 2014)	150,000		2,305		—	—
Fiscal 2013 (as of June 30, 2013)	150,000		2,578		—	—
2016 Notes(5)
Fiscal 2016 (as of June 30, 2016)	$	167,500	$	2,269	—	—
Fiscal 2015 (as of June 30, 2015)	167,500		2,241		—	—
Fiscal 2014 (as of June 30, 2014)	167,500		2,305		—	—
Fiscal 2013 (as of June 30, 2013)	167,500		2,578		—	—
2017 Notes(6)
Fiscal 2017 (as of June 30, 2017)	$	50,734	$	2,251	—	—
Fiscal 2016 (as of June 30, 2016)	129,500		2,269		—	—
Fiscal 2015 (as of June 30, 2015)	130,000		2,241		—	—
Fiscal 2014 (as of June 30, 2014)	130,000		2,305		—	—
Fiscal 2013 (as of June 30, 2013)	130,000		2,578		—	—
2018 Notes(7)
Fiscal 2017 (as of June 30, 2017)	$	85,419	$	2,251	—	—
Fiscal 2016 (as of June 30, 2016)	200,000		2,269		—	—

Fiscal 2015 (as of June 30, 2015)	200,000		2,241		—	—
Fiscal 2014 (as of June 30, 2014)	200,000		2,305		—	—
Fiscal 2013 (as of June 30, 2013)	200,000		2,578		—	—
2019 Notes(9)
Fiscal 2018 (as of June 30, 2018)	$	101,647	$	2,452	—	—
Fiscal 2017 (as of June 30, 2017)	200,000		2,251		—	—
Fiscal 2016 (as of June 30, 2016)	200,000		2,269		—	—
Fiscal 2015 (as of June 30, 2015)	200,000		2,241		—	—
Fiscal 2014 (as of June 30, 2014)	200,000		2,305		—	—
Fiscal 2013 (as of June 30, 2013)	200,000		2,578		—	—
5.00% 2019 Notes(10)
Fiscal 2018 (as of June 30, 2018)	$	153,536	$	2,452	—	—
Fiscal 2017 (as of June 30, 2017)	300,000		2,251		—	—
Fiscal 2016 (as of June 30, 2016)	300,000		2,269		—	—
Fiscal 2015 (as of June 30, 2015)	300,000		2,241		—	—
Fiscal 2014 (as of June 30, 2014)	300,000		2,305		—	—
2020 Notes (13)
Fiscal 2019 (as of June 30, 2019)	$	224,114	$	2,365	—	—
Fiscal 2018 (as of June 30, 2018)	392,000		2,452		—	—
Fiscal 2017 (as of June 30, 2017)	392,000		2,251		—	—
Fiscal 2016 (as of June 30, 2016)	392,000		2,269		—	—
Fiscal 2015 (as of June 30, 2015)	392,000		2,241		—	—
Fiscal 2014 (as of June 30, 2014)	400,000		2,305		—	—
6.95% 2022 Notes(8)
Fiscal 2014 (as of June 30, 2014)	$	100,000	$	2,305	—	$	1,038
Fiscal 2013 (as of June 30, 2013)	100,000		2,578		—	1,036
2022 Notes
Fiscal 2022 (as of June 30, 2022)	$	60,501	$	2,733	—	—
Fiscal 2021 (as of June 30, 2021)	111,055		2,740		—	—
Fiscal 2020 (as of June 30, 2020)	258,240		2,408		—	—
Fiscal 2019 (as of June 30, 2019)	328,500		2,365		—	—
Fiscal 2018 (as of June 30, 2018)	328,500		2,452		—	—
Fiscal 2017 (as of June 30, 2017)	225,000		2,251		—	—
2023 Notes(11)
Fiscal 2023 (as of September 30, 2022)	$	283,872	$	2,833	—	—
Fiscal 2022 (as of June 30, 2022)	284,219		2,733		—	—
Fiscal 2021 (as of June 30, 2021)	284,219		2,740		—	—
Fiscal 2020 (as of June 30, 2020)	319,145		2,408		—	—
Fiscal 2019 (as of June 30, 2019)	318,863		2,365		—	—
Fiscal 2018 (as of June 30, 2018)	318,675		2,452		—	—
Fiscal 2017 (as of June 30, 2017)	248,507		2,251		—	—
Fiscal 2016 (as of June 30, 2016)	248,293		2,269		—	—
Fiscal 2015 (as of June 30, 2015)	248,094		2,241		—	—
Fiscal 2014 (as of June 30, 2014)	247,881		2,305		—	—
Fiscal 2013 (as of June 30, 2013)	247,725		2,578		—	—

2024 Notes(14)
Fiscal 2020 (as of June 30, 2020)	$	233,788	$	2,408	—	$	959
Fiscal 2019 (as of June 30, 2019)	234,443		2,365		—	1,002
Fiscal 2018 (as of June 30, 2018)	199,281		2,452		—	1,029
Fiscal 2017 (as of June 30, 2017)	199,281		2,251		—	1,027
Fiscal 2016 (as of June 30, 2016)	161,364		2,269		—	951
6.375% 2024 Notes(11)
Fiscal 2023 (as of September 30, 2022)	$	81,240	$	2,833	—	—
Fiscal 2022 (as of June 30, 2022)	81,240		2,733		—	—
Fiscal 2021 (as of June 30, 2021)	81,389		2,740		—	—
Fiscal 2020 (as of June 30, 2020)	99,780		2,408		—	—
Fiscal 2019 (as of June 30, 2019)	99,726		2,365		—	—
2025 Notes
Fiscal 2023 (as of September 30, 2022)	$	156,168	$	2,833	—	—
Fiscal 2022 (as of June 30, 2022)	156,168		2,733		—	—
Fiscal 2021 (as of June 30, 2021)	156,168		2,740		—	—
Fiscal 2020 (as of June 30, 2020)	201,250		2,408		—	—
Fiscal 2019 (as of June 30, 2019)	201,250		2,365		—	—
2026 Notes
Fiscal 2023 (as of September 30, 2022)	$	400,000	$	2,833	—	—
Fiscal 2022 (as of June 30, 2022)	400,000		2,733		—	—
Fiscal 2021 (as of June 30, 2021)	400,000		2,740		—	—
3.364% 2026 Notes
Fiscal 2023 (as of September 30, 2022)	$	300,000	$	2,833	—	—
Fiscal 2022 (as of June 30, 2022)	300,000		2,733		—	—
Fiscal 2021 (as of June 30, 2021)	300,000		2,740		—	—
3.437% 2028 Notes
Fiscal 2023 (as of September 30, 2022)	$	300,000	$	2,833	—	—
Fiscal 2022 (as of June 30, 2022)	300,000		2,733		—	—
2028 Notes(15)
Fiscal 2020 (as of June 30, 2020)	$	70,761	$	2,408	—	$	950
Fiscal 2019 (as of June 30, 2019)	70,761		2,365		—	984
Fiscal 2018 (as of June 30, 2018)	55,000		2,452		—	1,004
2029 Notes(16)
Fiscal 2021 (as of June 30, 2021)	$	69,170	$	2,740	—	$	1,028
Fiscal 2020 (as of June 30, 2020)	69,170		2,408		—	970
Fiscal 2019 (as of June 30, 2019)	69,170		2,365		—	983
Prospect Capital InterNotes®
Fiscal 2023 (as of September 30, 2022)	$	349,044	$	2,833	—	—
Fiscal 2022 (as of June 30, 2022)	347,564		2,733		—	—
Fiscal 2021 (as of June 30, 2021)	508,711		2,740		—	—
Fiscal 2020 (as of June 30, 2020)	680,229		2,408		—	—
Fiscal 2019 (as of June 30, 2019)	707,699		2,365		—	—
Fiscal 2018 (as of June 30, 2018)	760,924		2,452		—	—
Fiscal 2017 (as of June 30, 2017)	980,494		2,251		—	—
Fiscal 2016 (as of June 30, 2016)	908,808		2,269		—	—

Fiscal 2015 (as of June 30, 2015)	827,442		2,241		—		—
Fiscal 2014 (as of June 30, 2014)	785,670		2,305		—		—
Fiscal 2013 (as of June 30, 2013)	363,777		2,578		—		—
5.50% Preferred Stock
Fiscal 2023 (as of September 30, 2022)	$	871,607	$	51	$	25	—
Fiscal 2022 (as of June 30, 2022)	590,197		54		25		—
Fiscal 2021 (as of June 30, 2021)	137,040		65		25		—
5.35% Preferred Stock
Fiscal 2023 (as of September 30, 2022)	$	150,000	$	51	$	25	$	16.92
Fiscal 2022 (as of June 30, 2022)	150,000		54		$	25	21.08
All Senior Securities(11)(12)
Fiscal 2023 (as of September 30, 2022)	$	3,691,782	$	2,049	—		—
Fiscal 2022 (as of June 30, 2022)	3,509,353		2,156		—		—
Fiscal 2021 (as of June 30, 2021)	2,404,689		2,584		—		—
Fiscal 2020 (as of June 30, 2020)	2,169,899		2,408		—		—
Fiscal 2019 (as of June 30, 2019)	2,421,526		2,365		—		—
Fiscal 2018 (as of June 30, 2018)	2,346,563		2,452		—		—
Fiscal 2017 (as of June 30, 2017)	2,681,435		2,251		—		—
Fiscal 2016 (as of June 30, 2016)	2,707,465		2,269		—		—
Fiscal 2015 (as of June 30, 2015)	2,983,736		2,241		—		—
Fiscal 2014 (as of June 30, 2014)	2,773,051		2,305		—		—
Fiscal 2013 (as of June 30, 2013)	1,683,002		2,578		—		—

(1)     Except as noted, the total amount of each class of senior securities outstanding at the end of the year/period presented (in 000’s).

(2)The asset coverage ratio for a class of secured senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by secured senior securities representing indebtedness. The asset coverage ratio for a class of unsecured senior securities representing indebtedness is inclusive of all senior securities representing indebtedness. With respect to the senior securities represented by indebtedness, this asset coverage ratio is multiplied by $1,000 to determine the Asset Coverage Per Unit. The asset coverage ratio for a class of senior securities representing preferred stock is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by the sum of all senior securities representing indebtedness and the involuntary liquidation preference of senior securities representing preferred stock (the “Total Asset Coverage Ratio”). With respect to the Preferred Stock, the Asset Coverage Per Unit figure is expressed in terms of a dollar amount per share of outstanding Preferred Stock (based on a per share liquidation preference of $25). The rows reflecting “All Senior Securities” reflect the Total Asset Coverage Ratio as the asset coverage ratio, and express Asset Coverage Per Unit as per $1,000 of indebtedness or per $1,000 of Preferred Stock liquidation preference.

(3)This column is inapplicable, except for the 6.95% 2022 Notes, the 2024 Notes, the 2028 Notes, the 2029 Notes, and the 5.35% Preferred Stock. The average market value per unit is calculated as an average of quarter-end prices. With respect to the senior securities represented by indebtedness, the market value is shown per $1,000 of indebtedness.

(4)We repaid the outstanding principal amount of the 2015 Notes on December 15, 2015.

(5)We repaid the outstanding principal amount of the 2016 Notes on August 15, 2016.

(6)We repaid the outstanding principal amount of the 2017 Notes on October 15, 2017.

(7)We repaid the outstanding principal amount of the 2018 Notes on March 15, 2018.

(8)We redeemed the 6.95% 2022 Notes on May 15, 2015.

(9)We repaid the outstanding principal amount of the 2019 Notes on January 15, 2019.

(10)We redeemed the 5.00% 2019 Notes on September 26, 2018.

(11)For the fiscal years ended June 30, 2020 or prior, the 2023 Notes and 6.375% 2024 Notes are presented net of unamortized discount.

(12)While we do not consider commitments to fund under revolving arrangements to be Senior Securities, if we were to elect to treat such unfunded commitments, which were $43,434 as of September 30, 2022 as Senior Securities for purposes of Section 18 of the 1940 Act, our asset coverage per unit would be $2,026.

(13)We repaid the outstanding principal amount of the 2020 Notes on April 15, 2020.

(14)We redeemed the 2024 Notes on February 16, 2021.

(15)We redeemed the 2028 Notes on June 15, 2021.

(16)We redeemed the 2029 Notes on December 30, 2021.

(17)We redeemed the 2022 Notes on July 15, 2022.

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table shows our outstanding debt as of September 30, 2022:

		Principal Outstanding		Unamortized Discount & Debt Issuance Costs		Net Carrying Value			Fair Value			Effective Interest Rate
Revolving Credit Facility		$	799,851	$	15,223	$	799,851	(1)	$	799,851	(2)	1M SOFR +	2.05%	(5)
2025 Notes		156,168		2,243		153,925			154,919		(3)	6.63%		(6)
Convertible Notes		156,168				153,925			154,919
2023 Notes		283,872		389		283,483			284,380		(3)	6.07%		(6)
6.375%	2024 Notes	81,240		254		80,986			80,540		(3)	6.57%		(6)
2026 Notes		400,000		6,669		393,331			347,808		(3)	3.98%		(6)
3.364%	2026 Notes	300,000		5,706		294,294			248,496		(3)	3.60%		(6)
3.437%	2028 Notes	300,000		7,925		292,075			221,616		(3)	3.64%		(6)
Public Notes		1,365,112				1,344,169			1,182,840
Prospect Capital InterNotes®		349,044		6,969		342,075			283,400		(4)	5.71%		(7)
Total		$	2,670,175			$	2,640,020		$	2,421,010

(1)Net Carrying Value excludes deferred financing costs associated with the Revolving Credit Facility. See Note 2 for accounting policy details.

(2)The fair value of the Revolving Credit Facility is equal to its carrying value as the Company has the ability to repay the outstanding principal at par value at any time. The fair value is categorized as Level 2 under ASC 820.

(3)We use available market quotes to estimate the fair value of the Convertible Notes and Public Notes. The fair value of these debt obligations are categorized as Level 1 under ASC 820.

(4)The fair value of Prospect Capital InterNotes® is estimated by discounting remaining payments using current Treasury rates plus spread based on observable market inputs. The fair value of these debt obligations are categorized as Level 2 under ASC 820.

(5)Represents the rate on drawn down and outstanding balances. Deferred debt issuance costs are amortized on a straight-line method over the stated life of the obligation.

(6)The effective interest rate is equal to the effect of the stated interest, the accretion of original issue discount and amortization of debt issuance costs.

(7)For the Prospect Capital InterNotes®, the rate presented is the weighted average effective interest rate. Interest expense and deferred debt issuance costs, which are amortized on a straight-line method over the stated life of the obligation which approximates level yield, are weighted against the average year-to-date principal balance.

The following table shows our outstanding debt as of June 30, 2022:

		Principal Outstanding		Unamortized Discount & Debt Issuance Costs		Net Carrying Value			Fair Value			Effective Interest Rate
Revolving Credit Facility		$	839,464	$	10,801	$	839,464	(1)	$	839,464	(2)	1ML +	2.05	%	(5)
2022 Notes		60,501		18		60,483			60,753		(3)	5.63%			(6)
2025 Notes		156,168		2,459		153,709			158,094		(3)	6.63%			(6)
Convertible Notes		216,669				214,192			218,847
2023 Notes		284,219		600		283,619			286,101		(3)	6.07%			(6)
6.375%	2024 Notes	81,240		299		80,941			82,084		(3)	6.57%			(6)
2026 Notes		400,000		7,134		392,866			355,316		(3)	3.98%			(6)
3.364%	2026 Notes	300,000		6,026		293,974			254,931		(3)	3.60%			(6)
3.437%	2028 Notes	300,000		8,222		291,778			229,866		(3)	3.64%			(6)
Public Notes		1,365,459				1,343,178			1,208,298
Prospect Capital InterNotes®		347,564		7,122		340,442			285,822		(4)	5.71%			(7)
Total		$	2,769,156			$	2,737,276		$	2,552,431

(1)Net Carrying Value excludes deferred financing costs associated with the Revolving Credit Facility. See Note 2 for accounting policy details.

(2)The fair value of the Revolving Credit Facility is equal to its carrying value as the Company has the ability to repay the outstanding principal at par value at any time. The fair value is categorized as Level 2 under ASC 820.

(3)We use available market quotes to estimate the fair value of the Convertible Notes and Public Notes. The fair value of these debt obligations are categorized as Level 1 under ASC 820.

(4)The fair value of Prospect Capital InterNotes® is estimated by discounting remaining payments using current Treasury rates plus spread based on observable market inputs. The fair value of these debt obligations are categorized as Level 2 under ASC 820.

(5)Represents the rate on drawn down and outstanding balances. Deferred debt issuance costs are amortized on a straight-line method over the stated life of the obligation.

(6)The effective interest rate is equal to the effect of the stated interest, the accretion of original issue discount and amortization of debt issuance costs.

(7)For the Prospect Capital InterNotes®, the rate presented is the weighted average effective interest rate. Interest expense and deferred debt issuance costs, which are amortized on a straight-line method over the stated life of the obligation which approximates level yield, are weighted against the average year-to-date principal balance.

Schedule of Maturities of Long-Term Debt

The following table shows the contractual maturities of our Revolving Credit Facility, Convertible Notes, Public Notes and Prospect Capital InterNotes® as of September 30, 2022:

	Payments Due by Fiscal Year
	Total		Remainder of 2023		2024		2025		2026		2027		After 5 Years
Revolving Credit Facility	$	799,851	$	—	$	—	$	—			$	—	$	799,851
Convertible Notes	156,168		—		—		156,168		—		—		—
Public Notes	1,365,112		283,872		81,240		—		400,000		300,000		300,000
Prospect Capital InterNotes®	349,044		—		662		1,499		30,293		75,176		241,414
Total Contractual Obligations	$	2,670,175	$	283,872	$	81,902	$	157,667	$	430,293	$	375,176	$	1,341,265