Prospect Capital Corporation announced financial results for its fiscal quarter and fiscal year ended June 30, 2025. For the quarter, net investment income (NII) was $79 million, or $0.17 per common share, while the net decrease in net assets from operations was $219.0 million, or $0.50 per common share.
The company declared monthly common shareholder distributions of $0.045 per share for September and October 2025. Prospect made significant progress in its strategic shift, with the first lien mix increasing 642 basis points to 70.5% (at cost) from the prior year, and the second lien mix decreasing 202 basis points to 14.4%.
Prospect substantially completed its exit from the subordinated structured notes portfolio, which now represents 0.6% of investments at cost, a reduction of 781 basis points from the prior year. The company also exited six real estate properties in the last six quarters, achieving a 24.0% unlevered gross cash IRR on 52 exited properties.
New investments included Verify Diagnostics LLC and QC Holdings, Inc. Prospect successfully retired its $156.2 million convertible bond in March 2025 and redeemed its remaining 3.706% Notes due January 2026 in June 2025, with the next institutional bond maturity of $300 million in November 2026.
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