PSEC · Prospect Capital Corporation

Prospect Capital Corporation, a business development company, has established a flexible at-the-market (ATM) offering program for up to $400 million in liquidation preference of its 5.35% Series A Fixed Rate Cumulative Perpetual Preferred Stock through the Equity Distribution Agreement dated May 8, 2026. This agreement with sales agents including A.G.P./Alliance Global Partners allows sales at prevailing market prices or negotiated terms without a firm commitment, providing the company with opportunistic access to capital based on market conditions and its capital needs. The 2.0% commission structure is standard for ATM programs, aligning agent incentives with execution. Concurrently, the company filed Articles Supplementary with Maryland SDAT, reclassifying 16 million authorized but unissued common shares (reducing common stock authorization from 1,248,117,104 to 1,232,117,104 shares) into Series A Preferred Stock, bringing total authorized Series A shares to 22,151,157. This supports potential issuance under the N-2 Registration Statement (File No. 333-293349, effective February 10, 2026). Venable LLP opined on the validity of the shares. For investors, this enables Prospect Capital to raise perpetual preferred equity efficiently, potentially strengthening its capital structure for investments while offering downside protection via the fixed 5.35% cumulative dividend, though dilution to common equity exists through reclassification and potential conversion features.