Prospect Capital highlights shift to first-lien lending, now 71.5% of portfolio
PSEC•Prospect Capital said first-lien loans reached 71.5% of its portfolio, up 740 basis points since June 2024. Assets totaled $6 billion, and non-accrual loans were 0.2% of assets at fair value.
1. Portfolio and financing
Prospect Capital's investor presentation showed first-lien lending at 71.5% of its portfolio, up 740 basis points since June 2024. Assets totaled $6 billion, non-accrual loans were 0.2% of assets at fair value, and debt-to-total-capital was 26%. The company reported $1.9 billion in undrawn revolver commitments and cash and said it completed a $300 million five-year unsecured institutional bond offering in October 2026.
2. Valley Electric exit
The Valley Electric exit generated $281 million in net proceeds and a 20.5% realized gross internal rate of return.
