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Portfolio Investments - Composition of Investment Portfolio (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Jun. 30, 2022
Schedule of Investments [Line Items]    
Cost $ 7,345,486 [1],[2] $ 7,196,831
Fair Value [3] 7,582,665 [1],[2] 7,602,510
First Lien Revolving Line of Credit    
Schedule of Investments [Line Items]    
Cost 40,875 39,775
Fair Value 40,751 39,746
First Lien Debt    
Schedule of Investments [Line Items]    
Cost 3,980,337 3,839,553
Fair Value 3,884,792 3,757,960
Second Lien Debt    
Schedule of Investments [Line Items]    
Cost 1,593,464 1,588,557
Fair Value 1,441,284 1,471,336
Unsecured Debt    
Schedule of Investments [Line Items]    
Cost 7,200 7,200
Fair Value 7,200 7,200
Subordinated Structured Notes    
Schedule of Investments [Line Items]    
Cost 990,723 997,703
Fair Value 695,292 711,429
Equity    
Schedule of Investments [Line Items]    
Cost 732,887 724,043
Fair Value $ 1,513,346 $ 1,614,839
[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] Fair value is determined by or under the direction of our Board of Directors. Unless otherwise indicated by endnote 47 below, all of our investments are valued using significant unobservable inputs. In accordance with ASC 820, such investments are classified as Level 3 within the fair value hierarchy. See Notes 2 and 3 within the accompanying notes to consolidated financial statements for further discussion.