Prospect Capital presents portfolio update showing first-lien share rises to 71.5%
PSEC•Prospect Capital reported that first-lien exposure rose to 71.5% from 64.1% since June 2024. It also reported 0.2% non-accrual loans, $1.9 billion in undrawn revolver commitments and cash, and $281 million in net proceeds from its Valley Electric exit.
1. Portfolio update
Prospect Capital outlined a shift toward first-lien lending, with exposure reaching 71.5% from 64.1% since June 2024. Non-accrual loans were 0.2% of total assets, while payment-in-kind interest income fell 53% for the 12 months ended September 2026 compared with the 12 months ended September 2024.
2. Funding and exit
Debt represented 26% of total capital, and the company had $1.9 billion in undrawn revolver commitments and cash. A $300 million five-year unsecured institutional bond offering at 8.95% in October 2026 supported funding. The July 2026 Valley Electric exit generated $281 million in net proceeds and a 20.5% realized gross IRR.
