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PSEC - Prospect Capital Announces 48% Increase in Net Investment Income per Share and $0.47 per Share Increase in Net Asset Value for June 2012 Fiscal Year, Including $0.51 of Net Investment Income per Share in June 2012 Quarter

MarketwirePress Release: Prospect Capital Corporation – 31 minutes ago


NEW YORK, NY--(Marketwire -08/22/12)- Prospect Capital Corporation (PSEC) ("Company" or "Prospect") today announced financial results for our fourth fiscal quarter and fiscal year ended June 30, 2012.

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

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