Prospect Capital Corporation (PSEC) Q3 2023 Earnings Conference Call May 10, 2023 9:00 AM ET

Corporate Participants

John Barry - Chairman and Chief Executive Officer

Grier Eliasek - President and Chief Operating Officer

Kristin Van Dask - Chief Financial Officer

Conference Call Participants

Sean Adams - Raymond James

Operator

Good morning and welcome to Prospect Capital Third Quarter Fiscal Year 2023 Earnings Release and Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to John Barry, Chairman and CEO. Please go ahead.

John Barry

Thank you, Jordan.

Joining me on the call today are Grier Eliasek, our President and Chief Operating Officer; and Kristin Van Dask, our Chief Financial Officer. Kristin?

Kristin Van Dask

Thank you, John.

This call is the property of Prospect. Unauthorized use is prohibited. This call contains forward-looking statements that are intended to be subject to Safe Harbor protection. Actual developments and results are highly likely to vary materially, and we do not undertake to update our forward-looking statements unless required by law. For additional disclosure, see our earnings press release and 10-Q filed previously and available on our website, prospectstreet.com.

Now I'll turn the call back over to John.

John Barry

Thank you, Kristin.

In the March quarter, our net investment income, or NII was $102.2 million, or basic NII of $0.21 per common share exceeding our distribution rate per common share by $0.03. Our basic NII coverage of our common distribution is now 117%. Our annualized basic NII yield is 8.9% on a book basis and 13.2% based on our May 8 stock price close.

Prospect's 92.1% interest income, as a percent of total investment income in March 2023, was at the highest level since September 2020 demonstrating Prospect's strong recurring revenue model. Our basic net income, net loss applicable to common shareholders, was $108.9 million or $0.27 per common share.

Our NAV stood at $9.48 per common share in March, down $0.46 and 4.6% from the prior quarter, largely due to unrealized mark-to-market depreciation. Since inception in 2004, Prospect has invested $20 billion across 414 investments exiting 278 of those investments.

On the cash shareholder distribution front, we are pleased to report the Board's declaration of continued steady monthly distributions. We are announcing monthly cash common shareholder distributions of $0.06 per share for each of May, June, July and August. These four months represent the 69, 70, 71 & 72nd consecutive $0.06 per share cash distributions.