NEW YORK, NY--(Marketwire - Aug 22, 2012) - Prospect Capital Corporation (
For the June 2012 fiscal year, our net investment income ("NII") was $186.7 million, an increase of 98% from the prior year on a dollars basis. On a weighted average share basis, NII increased from $1.10 for the June 2011 fiscal year to $1.63 for the June 2012 fiscal year, an increase of 48%.
Our net asset value per share on June 30, 2012 stood at $10.83 per share, an increase of $0.47 per share from June 30, 2011, and an increase of $0.01 per share from March 31, 2012.
For the June 2012 quarter, our NII was $64.2 million or $0.51 per weighted average number of shares for the quarter, representing increases of 113% and 66% year-over-year, respectively.
For the June 2011 quarter, our NII was $30.2 million or $0.31 per weighted average number of shares for the quarter.
We are targeting continued growth in NII per share as we utilize prudent leverage to finance our growth through new originations, given our debt to equity ratio stood at less than 44% (and less than 36% after subtraction of cash and equivalents) as of June 30, 2012. We estimate that our net investment income for the current September 2012 quarter will be $0.41 to $0.46 per share.
We have previously announced our upcoming cash distributions, our 49th, 50th, and 51st consecutive cash distributions to shareholders, as follows:
- $0.101600 per share for August 2012 (record date of August 31, 2012 and payment date of September 21, 2012);
- $0.101625 per share for September 2012 (record date of September 28, 2012 and payment date of October 24, 2012); and
- $0.101650 per share for October 2012 (record date of October 31, 2012 and payment date of November 22, 2012).
We have generated cumulative NII in excess of cumulative distributions to shareholders for both (i) the current August 2012 tax year ($173.0 million of NII from September 1, 2011 through June 30, 2012, compared to shareholder distributions of $119.2 million during the same period) and (ii) since Prospect's initial public offering eight years ago.
Our NII per weighted average share exceeded our cash distributions per share in each of the June 2012 quarter, March 2012 quarter, December 2011 quarter, and June 2012 fiscal year. Depending on future distributions to shareholders, spillback dividend classifications, differences between NII and investment company taxable income, and other factors, we may retain significantly all or a portion of recent realizations and reinvest them in additional income-producing investments.
Based on past distributions and assuming its current share count for upcoming distributions, Prospect since inception through its October 2012 distribution will have distributed more than $10.40 per share to original shareholders and $530 million in cumulative distributions to all shareholders.
HIGHLIGHTS
Equity Values:
Net assets as of June 30, 2012: $1.512 billion
Net asset value per share as of June 30, 2012: $10.83
Fiscal Year Operating Results:
Net investment income: $186.68 million
Net investment income per share: $1.63
Dividends to shareholders per share: $1.21695
Fourth Fiscal Quarter Operating Results:
Net investment income: $64.23 million
Net investment income per share: $0.51
Dividends to shareholders per share: $0.304575
Fourth Fiscal Quarter Portfolio and Investment Activity:
Portfolio investments in quarter: $573.31 million
Total Portfolio investments at cost at June 30, 2012: $2.099 billion
Number of portfolio companies at June 30, 2012: 82
PORTFOLIO AND INVESTMENT ACTIVITY
Our origination efforts during the June 2012 quarter and current September 2012 quarter continue to prioritize secured lending, with an emphasis on first-lien loans, although we also seek to close selected subordinated debt and equity investments. In addition to targeting investments senior in corporate capital structures with our new originations, we have also increased our new investments in third-party private equity sponsor-owned companies, which tend to have more third-party equity capital supporting our debt investments than in non-sponsor transactions, while still maintaining flexibility to pursue attractive non-sponsor investments. With our scale team of more than 50 professionals, one of the largest dedicated middle-market credit groups in the industry, we believe we are well positioned to select in a disciplined manner a small number of investments out of thousands of investment opportunities sourced per annum.
As a result of these credit risk, yield, and other management initiatives, our portfolio's annualized current yield stood at 13.6% across all long-term debt as of June 30, 2012. Distributions from equity positions that we hold are not included in this yield calculation. In many of our portfolio companies, we hold equity positions, ranging from minority interests to majority stakes, which we expect over time to contribute to our investment returns.
In the June 2012 fiscal year, we completed new and follow-on investments aggregating a record $1.12 billion, an increase from $953.3 million in the June 2011 fiscal year. Our repayments in the June 2012 fiscal year were $501.0 million, compared to $285.9 million in the June 2011 fiscal year. As a result, our investments net of repayments were $619.7 million in the June 2012 fiscal year, compared to $667.5 million in the June 2011 fiscal year.
At June 30, 2012, our portfolio consisted of 82 long-term investments with a fair value of $2.094 billion, a record total, compared to 72 long-term investments with a fair value of $1.463 billion at June 30, 2011, and compared to 58 long-term investments with a fair value of $748.5 million at June 30, 2010.
During the June 2012 quarter, we completed new and follow-on investments aggregating a record $573.3 million, sold two investments, and received repayment on three other investments. Our repayments in the June 2012 quarter totaled $146.3 million, resulting in $427.0 million of investments net of repayments.
- On April 2, 2012, we made an investment of $22.0 million to purchase subordinated notes in Galaxy XII CLO, Ltd.
- On April 16, 2012, we made a senior secured debt investment of $15.0 million to support the acquisition of Nixon, Inc., a designer and distributor of watches and accessories.
- On April 20, 2012, we made an investment of $43.2 million to purchase subordinated notes in Symphony CLO IX, Ltd.
- On May 8, 2012, SonicWALL, Inc. repaid our $23.0 million loan, resulting in an overall 16.4% IRR on our investment.
- On May 17, 2012, we made an investment of $50.0 million in Archipelago Learning, Inc., a provider of educational software delivering online curriculum and assessments to the U.S. educational market.
- On May 21, 2012, we made a follow-on investment of $10.5 million in Stauber Performance Ingredients, Inc.
- On May 31, 2012, The Copernicus Group, Inc. repaid our $17.6 million loan, and we received $2.6 million for our preferred stock positions, resulting in a realized gain of $2.3 million and an overall 34.8% IRR on our investment.
- On June 1, 2012, we made a senior secured second-lien investment of $17.5 million in Southern Management Corporation.
- On June 1, 2012, we sold our membership interests in C&J Cladding, LLC for $4.0 million, recognizing a realized gain of $3.4 million on the sale, and received an advisory fee of $1.5 million, resulting in an overall 36% IRR on our investment.
- On June 7, 2012, we provided $51.1 million of senior secured financing, of which $48.6 million was funded at closing, to Naylor, LLC, an outsourced provider of media and communications services to professional, trade and interest associations.
- On June 7, 2012, we made an investment of $27.4 million to purchase subordinated notes in Babson CLO Ltd. 2012-IIA.
- On June 14, 2012, we made an investment of $18.7 million to purchase subordinated notes in Apidos CLO IX.
- On June 15, 2012, we acquired 80.1% of the businesses of First Tower LLC ("First Tower") for $110.2 million in cash and approximately 14.518 million unregistered shares of our common stock. Based on our share price of $11.06 at the time of issuance, we acquired our 80.1% interest in First Tower for approximately $270.8 million. As consideration for our investment, First Tower Holdings of Delaware LLC ("First Tower Delaware"), which is 100% owned by us, issued $244.8 million of debt and $43.2 million of equity to us. First Tower Delaware owns 80.1% of First Tower Holdings LLC, the holding company of First Tower. We received $8.1 million in structuring fee income as part of the acquisition. We expect to receive annualized yields in excess of 18% from the First Tower investment.
- On June 15, 2012, we exited our investment in Nupla for a sale price of $6.9 million. After payment of expenses, including accumulated managerial assistance and structuring fees, the proceeds were applied to repayment of our debt, resulting in a realized gain of $2.9 million on this loan that was acquired in the Patriot Capital acquisition at a discount to par.
- On June 22, 2012, we made an investment of $25.8 million to purchase subordinated notes in Madison Park Funding IX, Ltd.
- On June 29, 2012, Sport Helmets Holdings, LLC repaid our $17.6 million loan, resulting in an overall IRR of 40.8% on our investment. We recognized $2.6 million of accelerated purchase discount accretion in the June 2012 quarter.
Since June 30, 2012 in the current September 2012 quarter, we have completed eleven new investments aggregating $400 million, received repayment of two investments, and sold one investment.
- On July 5, 2012, we made a senior secured debt investment of $28.0 million to support the acquisition of Material Handling Services, LLC, a provider of fleet management and procurement services for forklift and other material handling equipment, by funds managed by CI Capital Partners, LLC.
- On July 16, 2012, we provided $15.0 million of secured second lien financing to Pelican Products, Inc., a leading provider of unbreakable, watertight protective cases and technically advanced professional lighting equipment.
- On July 20, 2012, we provided $12.0 million of senior secured financing to EIG Investors Corp., a provider of an array of online services such as web presence, domain hosting, e-commerce, e-mail, and other related services to small- and medium-sized businesses.
- On July 20, 2012, we provided $10.0 million of senior secured financing to FPG, LLC, a supplier of branded consumer and commercial products sold to the retail, foodservice, and hospitality sectors.
- On July 24, 2012, we sold our shares of Iron Horse common stock in connection with the exercise of an equity buyout option, receiving $2.0 million of net proceeds and realizing a gain of approximately $1.8 million on the sale.
- On July 27, 2012, we provided $85.0 million of senior subordinated financing to support the acquisition of substantially all the assets of Arctic Glacier Income Funds by funds affiliated with H.I.G. Capital, LLC. The new company, Arctic Glacier Holdings, Inc., will continue to conduct business under the "Arctic Glacier" name and be a leading producer, marketer, and distributor of high-quality packaged ice to consumers in Canada and the United States.
- On August 2, 2012, we provided a $27.0 million secured loan to support the acquisition of New Star Metals, Inc., a provider of specialized processing services to the steel industry, by funds managed by Insight Equity Management Company.
- On August 3, 2012, we provided $110.0 million senior secured financing to support the acquisition of InterDent, Inc., a leading provider of dental practice management services to dental professional corporations and associations in the United States.
- On August 3, 2012, we provided $44.0 million of secured subordinated financing to support the refinancing of New Century Transportation, Inc., a leading transportation and logistics company.
- On August 3, 2012, we provided $10.0 million of senior secured financing to Paradigm Geophysical, Ltd., the largest multi-national software company focused on the delivery of analytical and information management solutions for the discovery and extraction of subsurface natural resources.
- On August 3, 2012, Pinnacle Treatment Centers, Inc. repaid our $17.5 million loan, resulting in an overall IRR of 14.7% on our investment.
- On August 6, 2012, we made an investment of $22.2 million to purchase subordinated notes in Halcyon Loan Advisors Funding 2012-I.
- On August 7, 2012, we made an investment of $36.8 million to purchase subordinated notes in ING IM CLO 2012-II.
- On August 10, 2012, U.S. HealthWorks Holding Company, Inc. repaid our $25.0 million loan, resulting in an overall IRR of 14.6% on our investment.
We are pleased with the overall credit quality of our portfolio, with many of our companies generating year-over-year and sequential growth in top-line revenues and bottom-line profits. None of our loans originated in nearly five years have gone on non-accrual status. The fair market value of our loan assets on non-accrual as a percentage of total assets stood at approximately 1.9% on June 30, 2012, down from 2.2% on March 31, 2012 and 3.5% on June 30, 2011.
Because of the performance of several controlled positions in our portfolio, we have selectively monetized certain such companies and may monetize other positions if we identify attractive opportunities for exit. As such exits materialize, we expect to reinvest such proceeds into new income-producing opportunities. We are pleased with the performance of our controlled portfolio companies, and are actively exploring other new investment opportunities at attractive multiples of cash flow.
Our advanced investment pipeline aggregates more than $600 million of potential opportunities. These investments are primarily secured investments with double-digit coupons, sometimes coupled with equity upside through additional investments, and diversified across multiple sectors.
LIQUIDITY AND FINANCIAL RESULTS
Our modestly leveraged balance sheet is a source of significant strength. Our debt to equity ratio stood at less than 44% (and less than 36% after subtraction of cash and equivalents) at June 30, 2012. Our equitized balance sheet also gives us the potential for future earnings upside as we prudently look to utilize and grow our existing revolving credit facility as well as potentially add additional secured or unsecured term facilities, made more attractive by our investment-grade ratings at corporate, revolving facility, and term debt levels.
On March 27, 2012, we renegotiated our credit facility and closed on an expanded five-year revolving credit facility (the "Facility") for Prospect Capital Funding LLC. As of March 31, 2012, ten original lenders had extended commitments of $410 million under the Facility. We have since increased the Facility size to $507.5 million with commitments from five additional lenders and increased commitments from existing lenders, thereby bringing the total number of lenders to 15. The Facility includes an accordion feature which allows aggregate commitments to be increased to up to $650 million without the need for re-approval from the existing lenders or the rating agency.
As we make additional investments, we generate additional availability to the extent such investments are eligible to be placed into the borrowing base. The revolving period of the Facility extends through March 2015, with an additional two-year amortization period, with distributions allowed after the completion of the revolving period. Interest on borrowings under the Facility is one-month Libor plus 275 basis points, with no minimum Libor floor. The Facility continues to carry a high-investment-grade Moody's rating of Aa3.
We also have significantly diversified our counterparty risk. We currently have 15 institutional lenders in our Facility, up from five lenders at June 30, 2010, two lenders at June 30, 2009, and one lender at June 30, 2008.
In addition, our repeat issuance in the past year in the five-year, seven-year, ten-year, and greater unsecured term debt market has extended our liability duration, thereby better matching our assets and liabilities for balance sheet risk management.
On December 21, 2010, we issued $150.0 million in principal amount of 6.25% senior unsecured convertible notes, convertible at $11.35 per common share and due December 2015 ("2015 Notes").
On February 18, 2011, we issued $172.5 million in principal amount of 5.50% senior unsecured convertible notes, convertible at $12.76 per common share and due August 2016 ("2016 Notes"). In the March 2012 quarter, we repurchased $5.0 million of our 2016 Notes.
On April 16, 2012, we issued $130.0 million in principal amount of 5.375% senior unsecured convertible notes, convertible at $11.65 per common share and due October 2017 ("2017 Notes").
On August 14, 2012, we issued $200.0 million in principal amount of 5.75% senior unsecured convertible notes, convertible at $12.14 per common share and due March 2018 ("2018 Notes," and together with the 2015 Notes, 2016 Notes, and 2017 Notes, the "Convertible Notes").
On February 16, 2012, we entered into a Selling Agent Agreement (the "Selling Agent Agreement") with Incapital LLC, as purchasing agent for our issuance and sale from time to time of senior unsecured Prospect Capital InterNotes® (the "InterNotes").
During the June 2012 fiscal year, we issued $20.6 million in principal amount of InterNotes. These notes were issued with interest rates ranging from 6.50% to 7.00% with an average rate of 6.78%. These notes mature between June 15, 2019 and June 15, 2022. In the current September 2012 quarter, we have issued an additional $38.5 million in principal amount of InterNotes. The average interest rate for the $59.1 million total InterNotes issued to date is 6.41%.
On May 1, 2012, we issued $100.0 million in principal amount of 6.95% senior unsecured notes due November 2022 (the "2022 Baby Bond Notes," and together with our Convertible Notes and our InterNotes, the "Unsecured Notes"). The 2022 Baby Bond Notes trade on the New York Stock Exchange with ticker PRY and further demonstrate our diversified access to longer-dated funding.
The Unsecured Notes are general unsecured obligations of Prospect, with no financial covenants, no technical cross default provisions, and no payment cross default provisions with respect to our revolving credit facility. The Unsecured Notes have no restrictions related to the type and security of assets in which Prospect might invest. The issuance of these notes has allowed us to grow our investment program in calendar year 2012 and commit to loans with maturities longer than our existing revolving credit facility maturity. These Unsecured Notes have an investment-grade S&P rating of BBB. As of June 30, 2012, Prospect held more than $1.46 billion of unencumbered assets on its balance sheet to benefit holders of Unsecured Notes and Prospect shareholders.
Since March 31, 2012, we have completed two equity issuances at prices above net asset value per share.
On June 1, 2012, we and KeyBanc Capital Markets Inc. entered into an equity distribution agreement relating to sales by us through KeyBanc Capital Markets, by means of at-the-market offerings from time to time, of up to 9,500,000 shares of our common stock. During the period from June 7, 2012 to July 9, 2012, we sold 5,199,764 shares of our common stock at an average price of $11.38 per share, and raised $59.2 million of gross proceeds.
On July 16, 2012 and subsequently through exercise of the underwriter option, we issued 24,150,000 shares of our common stock at $11.15 per share, raising $269.3 million of gross proceeds.
We currently have no borrowings under our Facility. Assuming sufficient assets are pledged to the Facility and that we are in compliance with all Facility terms, and taking into account our cash balances on hand, we have over $600 million of new investment capacity. Any principal repayments or other monetizations of our assets would further increase our new investment capacity. Any issuance of equity, increase in our Facility size, or issuance of other debt, including additional term debt, would also further increase our investment capacity.
CONFERENCE CALL
The Company will host a conference call on Thursday, August 23, 2012, at 10:00 a.m. Eastern Time. The conference call dial-in number will be 877-317-6789. A recording of the conference call will be available for approximately 30 days. To hear a replay, call 877-344-7529 and use passcode 10017256.
| PROSPECT CAPITAL CORPORATION AND SUBSIDIARY | ||||||||||
| CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES | ||||||||||
| June 30, 2012 and 2011 | ||||||||||
| (in thousands, except share and per share data) | ||||||||||
| June 30, 2012 (audited) |
June 30, 2011 (audited) |
|||||||||
| Assets | ||||||||||
| Investments at fair value: | ||||||||||
| Control investments (net cost of $518,015 and $262,301, respectively) | $ | 564,489 | $ | 310,072 | ||||||
| Affiliate investments (net cost of $44,229 and $56,833, respectively) | 46,116 | 72,337 | ||||||||
| Non-control/Non-affiliate investments (net cost of $1,537,069 and $1,116,601, respectively) | 1,483,616 | 1,080,601 | ||||||||
| Total investments at fair value (net cost of $2,099,313 and $1,435,734, respectively) | 2,094,221 | 1,463,010 | ||||||||
| Investments in money market funds | 118,369 | 59,903 | ||||||||
| Cash | 2,825 | 1,492 | ||||||||
| Receivables for: | ||||||||||
| Interest, net | 14,219 | 9,269 | ||||||||
| Dividends | 1 | -- | ||||||||
| Other | 783 | 267 | ||||||||
| Prepaid expenses | 421 | 101 | ||||||||
| Deferred financing costs | 24,415 | 15,275 | ||||||||
| Total Assets | 2,255,254 | 1,549,317 | ||||||||
| Liabilities | ||||||||||
| Credit facility payable | 96,000 | 84,200 | ||||||||
| Senior convertible notes | 447,500 | 322,500 | ||||||||
| Senior unsecured notes | 100,000 | -- | ||||||||
| Prospect Capital InterNotes® | 20,638 | -- | ||||||||
| Dividends payable | 14,180 | 10,895 | ||||||||
| Due to Prospect Administration | 658 | 212 | ||||||||
| Due to Prospect Capital Management | 7,913 | 7,706 | ||||||||
| Due to Broker | 44,533 | -- | ||||||||
| Accrued expenses | 9,648 | 5,876 | ||||||||
| Other liabilities | 2,210 | 3,571 | ||||||||
| Total Liabilities | 743,280 | 434,960 | ||||||||
| Net Assets | $ | 1,511,974 | $ | 1,114,357 | ||||||
| Components of Net Assets | ||||||||||
| Common stock, par value $0.001 per share (500,000,000 common shares authorized; 139,633,870 and 107,606,690 issued and outstanding, respectively) | $ | 140 | $ | 108 | ||||||
| Paid-in capital in excess of par | 1,544,801 | 1,196,741 | ||||||||
| Undistributed (distributions in excess of) net investment income | 23,667 | (21,638 | ) | |||||||
| Accumulated realized losses on investments | (51,542 | ) | (88,130 | ) | ||||||
| Unrealized (depreciation) appreciation on investments | (5,092 | ) | 27,276 | |||||||
| Net Assets | $ | 1,511,974 | $ | 1,114,357 | ||||||
| Net Asset Value Per Share | $ | 10.83 | $ | 10.36 | ||||||
| PROSPECT CAPITAL CORPORATION AND SUBSIDIARY | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| For the Three Months and the Year Ended June 30, 2012 and 2011 | |||||||||||||||||
| (in thousands, except share and per share data) | |||||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||||
| June 30, 2012 (unaudited) |
June 30, 2011 (unaudited) |
June 30, 2012 (audited) |
June 30, 2011 (audited) |
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| Investment Income | |||||||||||||||||
| Interest income: | |||||||||||||||||
| Control investments | $ | 7,862 | $ | 5,949 | $ | 53,408 | $ | 21,747 | |||||||||
| Affiliate investments | 4,976 | 1,784 | 12,155 | 11,307 | |||||||||||||
| Non-control/Non-affiliate investments | 37,514 | 35,934 | 144,592 | 101,400 | |||||||||||||
| CLO Fund Securities | 5,713 | -- | 9,381 | -- | |||||||||||||
| Total interest income | 56,065 | 43,667 | 219,536 | 134,454 | |||||||||||||
| Dividend income: | |||||||||||||||||
| Control investments | 33,325 | 6,759 | 63,144 | 13,569 | |||||||||||||
| Non-control/Non-affiliate investments | -- | -- | 1,733 | 1,507 | |||||||||||||
| Money market funds | 2 | 5 | 4 | 16 | |||||||||||||
| Total dividend income | 33,327 | 6,764 | 64,881 | 15,092 | |||||||||||||
| Other income: | |||||||||||||||||
| Control investments | 11,078 | 1,042 | 25,464 | 2,829 | |||||||||||||
| Affiliate investments | 23 | 14 | 108 | 190 | |||||||||||||
| Non-control/Non-affiliate investments | 2,189 | 4,904 | 10,921 | 16,911 | |||||||||||||
| Total other income | 13,290 | 5,960 | 36,493 | 19,930 | |||||||||||||
| Total Investment Income | 102,682 | 56,391 | 320,910 | 169,476 | |||||||||||||
| Operating Expenses | |||||||||||||||||
| Investment advisory fees: | |||||||||||||||||
| Base management fee | 9,851 | 7,273 | 35,836 | 22,496 | |||||||||||||
| Income incentive fee | 16,057 | 7,547 | 46,671 | 23,555 | |||||||||||||
| Total investment advisory fees | 25,908 | 14,820 | 82,507 | 46,051 | |||||||||||||
| Interest and credit facility expenses | 10,160 | 7,416 | 38,534 | 17,598 | |||||||||||||
| Legal fees | (919 | ) | 299 | 279 | 1,062 | ||||||||||||
| Valuation services | 296 | 281 | 1,212 | 992 | |||||||||||||
| Audit, compliance and tax related fees | 305 | 227 | 1,446 | 876 | |||||||||||||
| Allocation of overhead from Prospect Administration | 1,705 | 1,670 | 6,848 | 4,979 | |||||||||||||
| Insurance expense | 156 | 68 | 324 | 285 | |||||||||||||
| Directors' fees | 78 | 64 | 273 | 255 | |||||||||||||
| Other general and administrative expenses | 766 | 1,356 | 2,803 | 3,157 | |||||||||||||
| Total Operating Expenses | 38,455 | 26,201 | 134,226 | 75,255 | |||||||||||||
| Net Investment Income | 64,227 | 30,190 | 186,684 | 94,221 | |||||||||||||
| Net realized gain on investments | 12,855 | 9,371 | 36,588 | 16,465 | |||||||||||||
| Net change in unrealized (depreciation) appreciation on investments | (40,809 | ) | (12,602 | ) | (32,368 | ) | 7,552 | ||||||||||
| Net Increase in Net Assets Resulting from Operations | $ | 36,303 | $ | 26,959 | $ | 190,904 | $ | 118,238 | |||||||||
| Net increase in net assets resulting from operations per share: | $ | 0.29 | $ | 0.28 | $ | 1.67 | $ | 1.38 | |||||||||
| Weighted average shares of common stock outstanding: | 125,051,187 | 97,620,618 | 114,394,554 | 85,978,757 | |||||||||||||
| PROSPECT CAPITAL CORPORATION AND SUBSIDIARY | ||||||||||||||||
| ROLLFORWARD OF NET ASSET VALUE PER SHARE | ||||||||||||||||
| For the Three Months and the Year Ended June 30, 2012 and 2011 | ||||||||||||||||
| (in actual dollars) | ||||||||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||||||
| June 30, 2012 (unaudited) |
June 30, 2011 (unaudited) |
June 30, 2012 (audited) |
June 30, 2011 (audited) |
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| Per Share Data: | ||||||||||||||||
| Net asset value at beginning of period | $ | 10.82 | $ | 10.33 | $ | 10.36 | $ | 10.30 | ||||||||
| Net investment income | 0.51 | 0.31 | 1.63 | 1.10 | ||||||||||||
| Net realized gain (loss) | 0.10 | -- | 0.32 | 0.19 | ||||||||||||
| Net unrealized (depreciation) appreciation | (0.33 | ) | (0.03 | ) | (0.28 | ) | 0.09 | |||||||||
| Net increase (decrease) in net assets as a result of public offerings | 0.03 | 0.08 | 0.04 | (0.08 | ) | |||||||||||
| Dividends recognized | (0.30 | ) | (0.33 | ) | (1.24 | ) | (1.24 | ) | ||||||||
| Net asset value at end of period | $ | 10.83 | $ | 10.36 | $ | 10.83 | $ | 10.36 | ||||||||
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com) is a closed-end investment company that lends to and invests in private and microcap public businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
We have elected to be treated as a business development company under the Investment Company Act of 1940 ("1940 Act"). We are required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. Failure to comply with any of the laws and regulations that apply to us could have an adverse effect on us and our shareholders.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.