Prospect Capital Corporation (NASDAQ:PSEC) Q4 2024 Earnings Conference Call August 29, 2024 9:00 AM ET

Company Participants

John Barry - Chairman and Chief Executive Officer
Kristin Van Dask - Chief Financial Officer
Grier Eliasek - President and Chief Operating Officer

Conference Call Participants

Finian O'Shea - Wells Fargo Securities

Operator

Good day, and welcome to the Prospect Capital Fourth Quarter Fiscal Year 2024 Earnings Release and Conference Call. [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, sir.

John Barry

Thank you, Chuck. 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-K filed previously and available on our website, prospectstreet.com.

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

John Barry

Thank you, Kristin.

Prospect Capital Corporation is celebrating our 20th anniversary as a leading provider of private debt and equity to U.S. middle-market companies. Since 2004, we've invested $20.9 billion across 423 investments, exiting 303 investments. Over the past five years, we've generated higher total returns than our peer BDC median.

In the June quarter, our net investment income, or NII, was $102.9 million, or $0.25 per common share. Our NAV was $3.71 billion, or $8.74 per common share. At June 30, our net debt to total assets ratio was 30.5%. Unsecured debt plus preferred is 80.3% of total debt plus preferred for Prospect.

We are announcing monthly common shareholder distributions of $0.06 per share for each of September and October, with the latter representing our 86th consecutive such distribution. We plan on announcing our next set of shareholder distributions in November. Since inception through October 2024, declared distribution, we will have distributed $4.3 billion, or $21.12 per share, representing 2.4 times June 2024 common NAV per share and 4.1 times our Tuesday stock price.

As a majority shareholder in several private companies, we support company investments by providing capital, expertise and guidance. When companies make acquisitions, purchase property, plant and equipment, or need working capital, including community increased demand, we often provide capital by directing such companies to pay for such expenditures using cash on hand, instead of using such cash to make interest payments to us, recording the resulting payment-in-kind interest, or PIK interest, as additional debt.