Prospect Capital Corp (NYSE:PSECpA.PFD)
$ 17.13 -0.72 (-4.04%) Market Cap: - Enterprise Value: - PE Ratio: 0 PB Ratio: 0.47 GF Score: 35/100
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Q2 2025 Prospect Capital Corp Earnings Call Transcript

Feb 11, 2025 / 02:00PM GMT
Release Date Price: $16.2 (+2.02%)

Key Points

Positve
  • Prospect Capital Corp (PSEC) reported a net investment income of $86.4 million or $0.20 per common share for the December quarter.
  • The company has distributed over $4.4 billion or $21.39 per share since inception, demonstrating a strong track record of shareholder returns.
  • PSEC's portfolio at fair value comprised 64.9% first-lien debt, indicating a focus on secured investments.
  • The company has a diversified portfolio with 114 portfolio companies across 33 industries, totaling an aggregate fair value of $7.1 billion.
  • Prospect Capital Corp (PSEC) has a strong liquidity position with $1.9 billion in combined balance sheet cash and undrawn revolving credit facility commitments.
Negative
  • Payment in kind income for the December quarter was $20 million, down 39% from the prior quarter.
  • The company experienced net repayments of $248 million during the December quarter, which could indicate challenges in maintaining investment levels.
  • Non-accruals as a percentage of total assets stood at approximately 0.4%, which, while low, still represents potential risk.
  • The weighted average cost of unsecured debt financing was 4.49%, which may impact profitability if interest rates rise.
  • PSEC's subordinate structured notes portfolio has decreased, representing only 5.8% of the investment portfolio, which may limit diversification.
Operator

Hello and welcome to the Prospect Capital second fiscal quarter earnings relief and conference call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to hand the call to John Barry, Chairman and CEO. Please go ahead.

John Barry
Prospect Capital Corp - Chairman of the Board, Chief Executive Officer

Thank you, MJ. 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
Prospect Capital Corp - Chief Financial Officer, Chief Compliance Officer, Treasurer, Secretary

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 in 10-K filed previously and available on our website, prospectstreet.com. Now I'll turn the call back over to John.

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