Prospect Capital Corporation (NASDAQ:PSEC) Q3 2024 Earnings Conference Call May 9, 2024 10:30 AM ET
Company Participants
John Barry - Chairman & Chief Executive Officer
Kristin Van Dask - Chief Financial Officer
Grier Eliasek - President & Chief Operating Officer
Conference Call Participants
Operator
Good day, and welcome to the Prospect Capital Third Quarter Fiscal Year 2024 Earnings Release and Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to Mr. John Barry, Chairman and CEO. Please go ahead.
John Barry
Thank you, Allan. 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
Thanks, John. This call contains forward-looking statements that are intended to be subject to safe harbor protection. Future results are highly likely to vary materially. We do not undertake to update our forward-looking statements. For additional disclosure, see our earnings press release and 10-Q filed previously and available on our website prospectstreet.com.
And 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 $94.4 million, $0.23 per common share. Our NAV was $3.74 billion or $8.99 per common share, up $0.07 from the prior quarter. At March 31, our net debt-to-equity ratio was 46.2%.
We are announcing monthly common shareholder distributions of $0.06 per share for each of May, June, July and August. We plan on announcing our next set of shareholder distributions in August. Grier?
Grier Eliasek
Thank you, John. As of March 31, our portfolio at fair value comprised 59% first lien debt. That's up 0.3% from the prior quarter, 14.6% second lien debt, that's down 0.9% from the prior quarter, 7.3% subordinated structured notes with underlying secured first lien collateral, that's down 0.6% from the prior quarter, and 19.1% unsecured debt and equity investments. That's up 1.2% from the prior quarter, which results in 81% of our investments being assets with underlying secured debt benefiting from borrower pledged collateral. Prospect's approach is one that generates attractive risk-adjusted yields. In our performing interest-bearing investments, we're generating an annualized yield of 12.1%, as of March 2024, a decrease of 0.2 percentage points in the prior quarter. Our interest income in the March quarter was 91% of total investment income, reflecting a strong recurring revenue profile to our business.