XML 13 R3.htm IDEA: XBRL DOCUMENT v3.22.4
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Parenthetical) - USD ($)
Dec. 31, 2022
Jun. 30, 2022
Investments, cost $ 7,583,830,000 [1],[2] $ 7,196,831,000
Temporary equity, par value (usd per share) $ 0.001 $ 0.001
Temporary equity, shares authorized (in shares) 387,900,000 227,900,000
Temporary equity, shares outstanding (in shares) 52,669,005 29,607,882 [3]
Common stock, par value (usd per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 1,612,100,000 1,772,100,000
Common stock, shares issued (in shares) 398,852,478 393,164,437
Common stock, shares outstanding (in shares) 398,852,478 393,164,437
Convertible Notes    
Unamortized discount and debt issuance costs $ 2,024,000 $ 2,477,000
Public Notes    
Unamortized discount and debt issuance costs 19,589,000 22,281,000
Prospect Capital InterNotes    
Unamortized discount and debt issuance costs 6,931,000 7,122,000
Control Investments    
Investments, cost 2,821,034,000 [1],[2],[4] 2,732,906,000 [5]
Non-controlled/Affiliated    
Investments, cost 8,996,000 242,101,000
Non-Control/ Non-Affiliate Investments    
Investments, cost $ 4,753,800,000 $ 4,221,824,000
Series A1    
Temporary equity, shares authorized (in shares) 60,000,000 60,000,000
Temporary equity, shares issued (in shares) 31,143,878 20,794,645
Series M1    
Temporary equity, shares authorized (in shares) 60,000,000 60,000,000
Temporary equity, shares issued (in shares) 3,996,761 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
Series MM1    
Temporary equity, shares authorized (in shares) 20,000,000 20,000,000
Temporary equity, shares issued (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
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
Series A3    
Temporary equity, shares authorized (in shares) 60,000,000 0
Temporary equity, shares issued (in shares) 10,184,347 0
Temporary equity, shares outstanding (in shares) 10,184,347 0
Series M3    
Temporary equity, shares authorized (in shares) 60,000,000 0
Temporary equity, shares issued (in shares) 1,157,019 0
Temporary equity, shares outstanding (in shares) 1,157,019 0
Series AA2    
Temporary equity, shares authorized (in shares) 20,000,000 0
Temporary equity, shares issued (in shares) 0 0
Temporary equity, shares outstanding (in shares) 0  
Series MM2    
Temporary equity, shares authorized (in shares) 20,000,000 0
Temporary equity, shares issued (in shares) 0 0
Temporary equity, shares outstanding (in shares) 0  
[1] The following shows the composition of our investment portfolio at cost by control designation, investment type and by industry as of December 31, 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 & Supplies124,810 — — 7,200 27,349 159,359 
Construction & Engineering56,753 — — — 12,053 68,806 
Consumer Finance462,395 — — — 81,303 543,698 
Diversified Consumer Services— — — — 2,378 2,378 
Energy Equipment & Services82,098 — — — 221,150 303,248 
Equity Real Estate Investment Trusts (REITs)655,324 — — — 15,430 670,754 
Health Care Providers & Services283,507 — — — 45,118 328,625 
Machinery33,622 — — — 6,866 40,488 
Media29,723 — — — — 29,723 
Online Lending23,080 — — — — 23,080 
Personal Products85,403 — — — 189,294 274,697 
Trading Companies & Distributors32,700 — — — 32,500 65,200 
Structured Finance200,600 — — — — 200,600 
Total Control Investments$2,124,812 $— $— $7,200 $689,022 $2,821,034 
Affiliate Investments
Commercial Services & Supplies$— $— $— $— $8,996 $8,996 
 Total Affiliate Investments $— $— $— $— $8,996 $8,996 
Non-Control/Non-Affiliate Investments
Air Freight & Logistics$93,719 $95,000 $— $— $— $188,719 
Auto Components22,307 112,204 — — — 134,511 
Building Products— 35,000 — — — 35,000 
Capital Markets— 42,500 — — — 42,500 
Commercial Services & Supplies124,617 185,328 — — 1,500 311,445 
Communications Equipment9,225 50,591 — — — 59,816 
Consumer Finance47,027 — — — — 47,027 
Distributors187,770 103,730 — — — 291,500 
Diversified Consumer Services70,639 197,411 — — — 268,050 
Diversified Financial Services36,691 — — 5,799 — 42,490 
Diversified Telecommunication Services42,252 121,851 — — — 164,103 
Electrical Equipment64,167 — — — — 64,167 
Food & Staples Retailing27,337 — — — — 27,337 
Food Products— 136,009 — — — 136,009 
Health Care Equipment & Supplies— 7,485 — — — 7,485 
Health Care Providers & Services180,616 159,707 — — 1,546 341,869 
Health Care Technology128,513 — — — — 128,513 
Hotels, Restaurants & Leisure22,629 — — — — 22,629 
Household Durables96,086 29,786 — — 2,001 127,873 
Interactive Media & Services218,904 — — — — 218,904 
Internet & Direct Marketing Retail20,017 — — — — 20,017 
IT Services212,073 148,000 — — — 360,073 
Leisure Products60,009 — — — 1 60,010 
Machinery57,590 9,985 — — — 67,575 
Media50,043 — — — 26,991 77,034 
Pharmaceuticals100,515 — — — — 100,515 
Professional Services66,543 123,716 — — — 190,259 
Software— 52,322 — — — 52,322 
Textiles, Apparel & Luxury Goods160,595 8,941 — — — 169,536 
Structured Finance (A)— — 996,512 — — 996,512 
 Total Non-Control/Non-Affiliate $2,099,884 $1,619,566 $996,512 $5,799 $32,039 $4,753,800 
Total Portfolio Investment Cost$4,224,696 $1,619,566 $996,512 $12,999 $730,057 $7,583,830 
The following table shows the composition of our investment portfolio at fair value by control designation, investment type and by industry as of December 31, 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 $— $— $— $767 $55,564 1.4 %
 Commercial Services & Supplies 76,708 — — 7,200 4,335 88,243 2.2 %
 Construction & Engineering 56,753 — — — 85,829 142,582 3.6 %
 Consumer Finance 463,941 — — — 279,927 743,868 18.8 %
 Diversified Consumer Services — — — — 2,944 2,944 0.1 %
 Energy Equipment & Services 82,098 — — — 44,568 126,666 3.2 %
Equity Real Estate Investment Trusts (REITs)655,324 — — — 720,682 1,376,006 34.7 %
 Health Care Providers & Services 283,507 — — — 142,479 425,986 10.7 %
 Machinery 33,622 — — — 26,507 60,129 1.5 %
 Media 29,723 — — — 72,342 102,065 2.6 %
 Online Lending 21,798 — — — — 21,798 0.5 %
 Personal Products 73,023 — — — — 73,023 1.8 %
 Trading Companies & Distributors 32,700 — — — 5,524 38,224 1.0 %
Structured Finance (A)200,600 — — — — 200,600 5.1 %
Total Control Investments$2,064,594 $— $— $7,200 $1,385,904 $3,457,698 87.2 %
Fair Value % of Net Assets52.1 %— %— %0.2 %34.9 %87.2 %
Affiliate Investments
Commercial Services & Supplies$— $— $— $— $7,944 $7,944 0.2 %
Total Affiliate Investments$— $— $— $— $7,944 $7,944 0.2 %
Fair Value % of Net Assets— %— %— %— %0.2 %0.2 %
Non-Control/Non-Affiliate Investments
Air Freight & Logistics$94,769 $95,000 $— $— $— $189,769 4.8 %
Auto Components22,411 87,390 — — — 109,801 2.8 %
Building Products— 33,817 — — — 33,817 0.9 %
Capital Markets— 40,769 — — — 40,769 1.0 %
Commercial Services & Supplies125,781 182,578 — — 10,992 319,351 8.1 %
Communications Equipment7,388 42,740 — — — 50,128 1.3 %
Consumer Finance22,024 — — — — 22,024 0.6 %
Distributors187,225 22,561 — — 39,785 249,571 6.3 %
Diversified Consumer Services70,639 185,921 — — 58,246 314,806 7.8 %
Diversified Financial Services36,691 — — 5,660 — 42,351 1.1 %
Diversified Telecommunication Services42,039 119,792 — — — 161,831 4.1 %
Electrical Equipment64,167 — — — — 64,167 1.6 %
Food & Staples Retailing27,675 — — — — 27,675 0.7 %
Food Products— 126,849 — — — 126,849 3.2 %
Health Care Equipment & Supplies— 6,765 — — — 6,765 0.2 %
Health Care Providers & Services180,346 156,728 — — 1,502 338,576 8.5 %
Health Care Technology127,623 — — — — 127,623 3.2 %
Hotels, Restaurants & Leisure21,125 — — — — 21,125 0.5 %
Household Durables95,800 26,300 — — — 122,100 3.1 %
Interactive Media & Services218,904 — — — — 218,904 5.5 %
Internet & Direct Marketing Retail14,209 — — — — 14,209 0.4 %
IT Services209,119 128,588 — — — 337,707 8.5 %
Leisure Products58,776 — — — — 58,776 1.5 %
Machinery56,451 9,890 — — — 66,341 1.7 %
Media47,307 — — — — 47,307 1.2 %
Pharmaceuticals100,505 — — — — 100,505 2.5 %
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
Professional Services65,075 111,313 — — — 176,388 4.4 %
Software— 48,267 — — — 48,267 1.2 %
Textiles, Apparel & Luxury Goods159,456 8,779 — — — 168,235 4.2 %
Structured Finance (A)— — 698,957 — — 698,957 17.6 %
Total Non-Control/Non-Affiliate$2,055,505 $1,434,047 $698,957 $5,660 $110,525 $4,304,694 108.5 %
Fair Value % of Net Assets51.8 %36.2 %17.6 %0.1 %2.8 %108.5 %
Total Portfolio$4,120,099 $1,434,047 $698,957 $12,860 $1,504,373 $7,770,336 195.9 %
Fair Value % of Net Assets103.9 %36.2 %17.6 %0.3 %37.9 %195.9 %
(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 six months ended December 31, 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 December 31, 2022Interest
income		Dividend
income		Other
income		Net realized
gains (losses)
CP Energy Services Inc.$64,260 $1,521 $— $8,460 $74,241 $3,277 $— $— $— 
CP Energy - Spartan Energy Services, Inc.48,441 1,231 — (10,765)38,907 1,500 — — — 
Credit Central Loan Company, LLC76,935 6,350 — (10,799)72,486 3,813 — 62 — 
Echelon Transportation, LLC65,766 1,588 — (11,790)55,564 1,761 — — — 
First Tower Finance Company LLC607,283 14,762 — 1,323 623,368 34,363 — — — 
Freedom Marine Solutions, LLC13,899 — — (381)13,518 — — — — 
InterDent, Inc.406,194 10,059 — 9,733 425,986 15,578 — — — 
Kickapoo Ranch Pet Resort3,833 — — (889)2,944 — 100 — — 
MITY, Inc.59,999 1,029 (1,602)2,457 61,883 4,054 — — (1)
National Property REIT Corp.1,615,737 108,090 (76,852)(48,571)1,598,404 43,056 — 35,195 — 
Nationwide Loan Company LLC50,400 876 — (3,262)48,014 2,118 — — — 
NMMB, Inc.109,943 — — (7,878)102,065 1,744 1,710 — (1,711)
Pacific World Corporation59,179 14,301 — (457)73,023 3,362 — 105 — 
R-V Industries, Inc.56,923 — — 3,206 60,129 2,114 — — — 
Universal Turbine Parts, LLC31,147 — (16)7,093 38,224 1,493 — — — 
USES Corp.22,395 6,244 — (2,279)26,360 436 — — — 
Valley Electric Company, Inc.145,983 — 547 (3,948)142,582 4,414 547 333 — 
Total$3,438,317 $166,051 $(77,923)$(68,747)$3,457,698 $123,083 $2,357 $35,695 $(1,712)
(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 — 6 — 
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.