🧾 What This Document Is

This is a prospectus supplement, a formal SEC filing that provides the specific details for a new debt offering. Think of it as the "fine print" for a loan Prospect Capital is taking out. It's dated April 6, 2026, and it's selling three new series of corporate bonds, called "InterNotes®," to raise money from investors. The company plans to offer up to $1 billion in total notes over time.

🏢 What The Company Does

👉 In simple terms, Prospect Capital Corporation is a specialized lender. It's a Business Development Company (BDC) that provides loans and capital to middle-market, privately-held companies—businesses too big for small loans but not big enough for the public stock market. It makes money from the interest it earns on these loans. It's externally managed, meaning it pays other companies (Prospect Capital Management L.P. and Prospect Administration LLC) to run its day-to-day operations.

💰 The New Debt Offering: Key Terms

Prospect is selling three different "tranches" of debt. Here’s the breakdown:

1. 2029 Notes (CUSIP: 74348GZM5)

• Coupon (Interest Rate): 6.500% (Fixed)
• Maturity Date: April 15, 2029
• Amount Sold: $20,000 (This seems like a small initial test tranche).
• First Interest Payment: ~$33.58 per $1,000 note on October 15, 2026.

2. 2031 Notes (CUSIP: 74348GZN3) & 3. 2033 Notes (CUSIP: 74348GZP8)

• Coupon Rates: 6.750% (2031) and 7.000% (2033).
• Maturity Dates: April 15, 2031 & April 15, 2033.
• Amount Sold: $0 in this initial filing (listed as "$ —"). This likely means the terms are set, but the exact amount will be sold later.

Common Features for All Notes:

• Interest Paid: Semi-annually (every 6 months) on April 15 and October 15.
• "Survivor's Option": Yes. This is a special feature allowing the holder's estate to request early repayment of the notes after the holder's death.
• Redemption: Prospect can "call" (buy back) these notes at any time on or after September 15, 2026, at 100% of their face value.
• Ranking: They are unsecured senior notes, meaning they are a loan not tied to specific assets, but they rank equally with other similar debt.

🚀 Why Prospect Is Doing This & Recent News

Prospect is raising this debt capital to fund its core business. As stated, the proceeds will first be used to pay down debt on its existing credit facility and then to make new investments in the companies it lends to.

• Recent Repayment: The filing notes that on February 20, 2026, a $63.5 million loan to Interventional Management Services, LLC was fully repaid. This shows capital flowing back to Prospect, which it can now redeploy.

⚖️ The Big Picture: Strengths & Risks

👍 Potential Strengths:

• Predictable Income: The fixed, semi-annual interest payments provide stable cash flow for the company (and for noteholders).
• Market Demand: The offering targets investors seeking regular income, and the longer maturities (2029-2033) lock in funding for Prospect.
• Flexibility: The ability to call the notes early gives Prospect control if interest rates fall.

⚠️ Key Risks to Understand:

• Unsecured Debt: If Prospect runs into financial trouble, these noteholders are not first in line; they have no claim on specific assets.
• Interest Rate Risk: If market interest rates rise, the value of these fixed-rate notes could fall if sold before maturity.
• Company-Specific Risk: As a lender to private companies, Prospect's success depends on those borrowers repaying their loans. An economic downturn could hurt its portfolio.
• External Management: The company relies on external managers, creating potential conflicts of interest and fee structures that may not align perfectly with shareholders.

📅 Key Dates

• Trade Date: April 6, 2026
• Settlement Date: April 9, 2026
• First Interest Payment: October 15, 2026
• Earliest Callable Date: September 15, 2026

🧠 The Analogy

Imagine Prospect Capital as a specialized farm lender. It doesn't grow crops itself; it lends money to farmers to buy seeds and equipment, earning interest. This filing is like the farm lender taking out a new, bigger loan from a group of investors (you) to have more cash to lend to farmers. It promises to pay you a fixed "rent" (the 6.5%-7% coupon) every six months from the interest it collects from the farmers. The "Survivor's Option" is like a special clause allowing your family to get the loan back early if something happens to you.

🧩 Final Takeaway

Prospect Capital is tapping the debt market for up to $1 billion, offering investors fixed interest rates between 6.5% and 7.0% over 3 to 7 years. This move funds its core business of lending to private companies but comes with the risks inherent to an unsecured debt investment in a specialty lender. The initial small issuance of $20,000 for the 2029 notes suggests this filing sets the stage for larger sales to come.