Prospect Capital Corporation · NASDAQ:PSEC
Prospect Capital — Investor Presentation (June 2026)
28 slides from Prospect Capital's investor presentation, June 2026
Slide 1: Series A5 & M5 Preferred Stock Offering
PROSPECT CAPITAL CORPORATION Series A5 & M5 Preferred Stock Offering
Slide 2: Disclaimers
DISCLAIMERS The information regarding prior performance in this presentation should not be considered as indicative of how the 5.50% Series A1 Preferred Stock (the “Series A1”), 6.50% Series A3 Preferred Stock (the “Series A3”), Floating Rate A4 Preferred Stock (the “Series A4”), 7.50% Series A5 Pre
Slide 3: Important Risk Factors to Consider
IMPORTANT RISK FACTORS TO CONSIDER An investment in the Preferred Stock involves certain risks, including the risk of a substantial loss of investment. You should carefully consider the information set forth in the “Risk Factors” section of the prospectus for a discussion of material risk factors re
Slide 4: Important Risk Factors to Consider (continued)
IMPORTANT RISK FACTORS TO CONSIDER Continued from Prior Page • Senior securities, including debt and preferred stock, expose us to additional risks, including the typical risks associated with leverage and could adversely affect our business, financial condition and results of operations. • Our obli
Slide 5: Agenda
AGENDA • PROSPECT CAPITAL CORPORATION OVERVIEW • PROSPECT CAPITAL CORPORATION PREFERRED STOCK OFFERING • WHY PROSPECT CAPITAL CORPORATION • OFFERING DETAILS 5
Slide 6: 7.5% per annum cash dividend paid monthly
Opportunity to invest in a stable stated-value, preferred stock with a 7.5% per annum cash dividend paid monthly issued by a business development company with $6.4B in total assets and a 22-year history Dividends are not guaranteed and are intended to be paid monthly as authorized by the Board of Di
Slide 7: Prospect Capital Corporation Overview
PROSPECT CAPITAL CORPORATION OVERVIEW 7
Slide 8: PSEC is a top ranked BDC with significant scale
PSEC IS A TOP RANKED BUSINESS DEVELOPMENT COMPANY WITH SIGNIFICANT SCALE PCM founded in 1988 with same 22-year $6.4B $2.9B Invested over $22B senior leadership for history in assets of common since 2004 equity past 26 years(1) Preferred stock is rated BBB- by Egan-Jones(2) Corporate Credit Ratings(2
Slide 9: Experienced and long-tenured leadership aligned with shareholders
EXPERIENCED AND LONG-TENURED LEADERSHIP ALIGNED WITH SHAREHOLDERS JOHN BARRY GRIER ELIASEK DARIA BECKER KRISTIN VAN DASK Chairman & CEO President & COO Head of Administration Chief Financial Officer 27% of PSEC Largest Financial Consistent Senior Common Stock Owned Insider Ownership in Leadership by
Slide 10: Series A5 & M5 Preferred Stock Offering
PROSPECT CAPITAL CORPORATION SERIES A5 & M5 PREFERRED STOCK OFFERING 10
Slide 11: Offering Highlights
OFFERING HIGHLIGHTS SENIOR POSITION $2.9B common equity buffer Preferred shareholders paid first(1) STABLE STATED VALUE $25.00 per share ALIGNED INTERESTS 27% management ownership Highest among BDCs DEFENSIVE BY DESIGN Leverage limited 55.7% loan-to-asset-value leverage (2) (1) Preferred shareholder
Slide 12: Potential Benefits of Preferred Stock Offering
POTENTIAL BENEFITS OF PREFERRED STOCK OFFERING Downside Protection Alignment Liquidity(1) with PSEC Investor Interests Income Potential(2) (1) Series A5 shares are subject to a 5-year declining redemption fee (10%, 10%, 10%, 8%, 5%) as a percentage of the $25.00 per share stated value of the Preferr
Slide 13: Downside Protection & Lower Risk
DOWNSIDE PROTECTION & LOWER RISK $6.4B in total assets 91 investments across 31 industries Four corporate credit ratings Diversified funding that is long-term and primarily unsecured Senior position to $2.9B in common equity 13
Slide 14: Liquidity
LIQUIDITY Access to capital Holder redemption Redemptions in 0% redemption fee(2) with cash redemptions deadlines monthly cash for redemption upon death available from day one on the last business day (up to 2 months later) of Preferred stockholder (subject to fees below and of the month limitations
Slide 15: Why seek alternative to traditional fixed income?
WHY SEEK ALTERNATIVE TO TRADITIONAL FIXED INCOME? PSEC Preferred Stock May Significantly Decrease Portfolio Volatility While Maintaining the Same Level of Return 12.0% S&P 500 11.0% 10.0% Annualized Return Traditional Portfolio with Preferred 9.0% 8.0% Traditional Portfolio without Preferred 7.0% 6.
Slide 16: Income Potential
INCOME POTENTIAL Preferred stockholders paid before common stockholders(1) 7.5% fixed cumulative annual distribution – paid monthly(2) Positioned for well-covered dividend payments Run Rate Preferred Dividend Coverage June 2026 Quarter(3) ($000) Net Investment Income $77,692 Dividend Amount (Run Rat
Slide 17: Alignment with investor interests
ALIGNMENT WITH INVESTOR INTERESTS Aligned Interests Accountability Management holds 27% of the ’33 Act, '34 Act, and ‘40 Act SEC common equity as of regulatory filing and reporting 6/30/2026 requirements Voting Conservative BDC Leverage Limit Preferred shareholders as a class always Regulatory lever
Slide 18: Issuer pays upfront fees
ISSUER PAYS UPFRONT FEES 100% of up-front fees and expenses paid by PSEC, not the preferred investor(1) $25 stable preferred stated value (1) The maximum sales load is 10.0% (A5) and 3.0% (M5) of the stated value, which is covered by the common equity and not the preferred. The preferred does not pa
Slide 19: Why Prospect Capital Corporation
WHY PROSPECT CAPITAL CORPORATION 19
Slide 20: Why invest in PSEC?
WHY INVEST IN PSEC? Among the oldest and largest BDCs Attractive Focus on Senior Conservative, 22-year history Dividend Yield and Secured Strong Capitalization Lending Provided consistent returns to shareholders Disciplined approach to investing in the U.S. Dividend Broad Investment Large and middle
Slide 21: Investment Portfolio
INVESTMENT PORTFOLIO Over $22B STRATEGY BREAKDOWN Invested Since 2004 $0.1B $0.9B Other 31 Real Estate Current Industries 91 $6.4B Current Investments PSEC Assets Over 350 Exited Investments $5.3B Middle Market Portfolio based on cost. 21
Slide 22: Investment Strategies
INVESTMENT STRATEGIES MIDDLE-MARKET – 85% Primarily senior and secured loans to U.S. middle-market companies that need capital to grow, employ more people and bring products and services to market. In select transactions, also equity-linked investments with capital appreciation potential alongside s
Slide 23: Why focus on U.S. middle market lending?
WHY FOCUS ON U.S. MIDDLE MARKET LENDING? Size of Market 200,000 private businesses in U.S. make up roughly 33% of Private GDP(1) Leading World Economies ($TN)(1) $30.8 $19.5 $9.1 $5.1 $4.4 United States China U.S. Middle Market Germany Japan (1) Source: National Center for the Middle Market, US Bure
Slide 24: Current Examples of Prospect's Investments
CURRENT EXAMPLES OF PROSPECT’S INVESTMENTS 24
Slide 25: Summary
SUMMARY • The Opportunity • Why Prospect Capital Corporation (PSEC)? • Why PSEC Preferred Stock? 25 25
Slide 26: Where does this fit in your portfolio?
WHERE DOES THIS FIT IN YOUR PORTFOLIO? A Fixed Income Solution $ Consistent monthly $25 Stated Value Access to capital (subject to income(1) limitations)(2) Improve portfolio De-risk investment Contractual and cumulative diversification allocation by moving higher dividends(1) up the capital stack (
Slide 27: Offering Details
OFFERING DETAILS 27
Slide 28: PSEC Series A5 & M5 Preferred Stock Offering Details
PSEC SERIES A5 & M5 PREFERRED STOCK OFFERING DETAILS Offering Price PSEC Investment Generate both current income and long-term capital Objective appreciation through debt and equity investments $25.00 per share Capital Structure Senior to common stock, junior to debt, on parity with Ranking other pr