CONFERENCE CALL
The Company will host a conference call on Friday, February 8, 2013 at 11:00 a.m. Eastern Time. The conference call dial-in number will be 888-317-6016. A recording of the conference call will be available for approximately 30 days. To hear a replay, call 877-344-7529 and use passcode 10024741.
PROSPECT CAPITAL CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES December 31, 2012 and June 30, 2012 (in thousands, except share and per share data) December 31, June 30, 2012 2012 ------------- -------------Assets (Unaudited) (Audited)Investments at fair value: Control investments (amortized cost of $666,360 and $518,015, respectively) $ 649,380 $ 564,489 Affiliate investments (amortized cost of $48,659 and $44,229, respectively) 48,266 46,116 Non-control/Non-affiliate investments (amortized cost of $2,402,038 and $1,537,069, respectively) 2,341,162 1,483,616 ------------- ------------- Total investments at fair value (amortized cost of $3,117,057 and $2,099,313, respectively) 3,038,808 2,094,221 Investments in money market funds 430,945 118,369 ------------- -------------Total investments 3,469,753 2,212,590 ------------- -------------Cash 2,219 2,825Receivables for: Interest, net 16,531 14,219 Dividends 11 1 Other 2,409 783Prepaid expenses 227 421Deferred financing costs 38,571 24,415 ------------- ------------- Total Assets 3,529,721 2,255,254 ------------- -------------LiabilitiesCredit facility payable -- 96,000Senior convertible notes 847,500 447,500Senior unsecured notes 100,000 100,000Prospect Capital InterNotes® 164,993 20,638Due to broker 38,291 44,533Dividends payable 23,669 14,180Due to Prospect Administration 373 658Due to Prospect Capital Management 2,019 7,913Accrued expenses 16,544 9,648Other liabilities 9,697 2,210 ------------- ------------- Total Liabilities 1,203,086 743,280 ------------- -------------Net Assets $ 2,326,635 $ 1,511,974 ============= =============Components of Net AssetsCommon stock, par value $0.001 per share (500,000,000 common shares authorized; 215,173,410 and 139,633,870 issued and outstanding, respectively) $ 215 $ 140Paid-in capital in excess of par 2,379,742 1,544,801Undistributed net investment income 82,817 23,667Accumulated realized losses on investments (57,890) (51,542)Unrealized depreciation on investments (78,249) (5,092) ------------- -------------Net Assets $ 2,326,635 $ 1,511,974 ============= =============Net Asset Value Per Share $ 10.81 $ 10.83 ============= ============= PROSPECT CAPITAL CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months and Six Ended December 31, 2012 and 2011 (in thousands, except share and per share data) (Unaudited) For The Three Months For The Six Months Ended Ended December 31, December 31, ----------------------- ---------------------- 2012 2011 2012 2011 ---------- ----------- ---------- ----------Investment IncomeInterest Income: Control investments $ 33,239 $ 6,415 $ 51,158 $ 12,580 Affiliate investments 1,694 2,399 3,345 4,801 Non-control/Non-affiliate investments other than CLO securities 58,513 36,714 103,540 70,034 CLO fund securities 23,420 608 37,133 1,108 ---------- ----------- ---------- ---------- Total interest income 116,866 46,136 195,176 88,523 ---------- ----------- ---------- ----------Dividend income: Control investments 31,717 17,645 64,967 24,345 Non-control/Non-affiliate investments 230 1,384 3,185 1,733 Money market funds 8 - 11 1 ---------- ----------- ---------- ---------- Total dividend income 31,955 19,029 68,163 26,079 ---------- ----------- ---------- ----------Other income: Control investments 5,095 612 5,097 618 Affiliate investments 605 13 613 74 Non-control/Non-affiliate investments 11,514 1,473 20,622 7,311 ---------- ----------- ---------- ---------- Total other income 17,214 2,098 26,332 8,003 ---------- ----------- ---------- ---------- Total Investment Income 166,035 67,263 289,671 122,605 ---------- ----------- ---------- ----------Operating ExpensesInvestment advisory fees: Base management fee 16,306 8,825 29,534 17,036 Income incentive fee 24,804 9,127 43,311 16,096 ---------- ----------- ---------- ---------- Total investment advisory fees 41,110 17,952 72,845 33,132Interest and credit facility expenses 16,414 9,759 29,925 18,719Legal fees 635 510 1,257 942Valuation services 371 306 747 608Audit, compliance and tax related fees 378 525 810 865Allocation of overhead from Prospect Administration 2,139 1,117 4,323 2,233Insurance expense 78 20 171 99Directors' fees 75 63 150 127Excise tax 4,500 - 4,500 -Other general and administrative expenses 1,119 503 1,700 1,495 ---------- ----------- ---------- ---------- Total Operating Expenses 66,819 30,755 116,428 58,220 ---------- ----------- ---------- ---------- Net Investment Income 99,216 36,508 173,243 64,385 ---------- ----------- ---------- ----------Net realized (loss) gain on investments (8,123) 13,498 (6,348) (1,109)Net change in unrealized (depreciation) appreciation on investments (44,604) 14,486 (73,157) 41,116 ---------- ----------- ---------- ---------- Net Increase in Net Assets Resulting from Operations $ 46,489 $ 64,492 $ 93,738 $ 104,392 ---------- ----------- ---------- ----------Net increase in net assets resulting from operations per share: $ 0.24 $ 0.59 $ 0.52 $ 0.96 ---------- ----------- ---------- ----------Dividends declared per share $ 0.31 $ 0.31 $ 0.61 $ 0.61 ---------- ----------- ---------- ---------- PROSPECT CAPITAL CORPORATION AND SUBSIDIARY ROLLFORWARD OF NET ASSET VALUE PER SHARE For the Three and Six Months December 31, 2012 and 2011 (in actual dollars) (Unaudited) For The Three Months For The Six Months Ended Ended ---------------------- ---------------------- December December December December 31, 2012 31, 2011 31, 2012 31, 2011 ---------- ---------- ---------- ----------Per Share Data:Net asset value at beginning of period $ 10.88 $ 10.41 $ 10.83 $ 10.36Net investment income 0.51 0.33 0.97 0.59Net realized (loss) gain (0.04) 0.12 (0.04) (0.01)Net unrealized (depreciation) appreciation (0.23) 0.14 (0.41) 0.38Net increase (decrease) in net assets as a result of public offerings 0.01 - 0.10 (0.01)Dividends declared (0.32) (0.31) (0.64) (0.62) ---------- ---------- ---------- ----------Net asset value at end of period $ 10.81 $ 10.69 $ 10.81 $ 10.69 ========== ========== ========== ==========
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com) is a closed-end investment company that lends to and invests in private and microcap public businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
We have elected to be treated as a business development company under the Investment Company Act of 1940 ("1940 Act"). We are required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. Failure to comply with any of the laws and regulations that apply to us could have an adverse effect on us and our shareholders.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.
