🧾 What This Document Is

This is a preliminary pricing supplement (Form 424B2). Think of it as the final, detailed "price tag and terms sheet" for a new batch of bonds (called "notes") that Prospect Capital Corporation plans to sell. It's preliminary because the exact details could still change slightly. This document is meant to be read alongside the company's main prospectus. It officially announces three new series of fixed-rate notes the company is offering to investors.

🏢 What The Company Does

👉 In simple terms, Prospect Capital is a lender for middle-market businesses. They are a "Business Development Company" (BDC), which is a special type of investment firm that provides financing primarily to privately-held, mid-sized companies. They make money from the interest and income earned on these loans and investments. This offering is how they raise money from the public (by selling bonds) to fund more of those loans.

💰 The Notes Being Offered

The company is selling three distinct "flavors" of unsecured bonds. Here are the key terms for each:

1. 2029 Notes (CUSIP: 74348GZQ6)

• Coupon (Interest Rate): 6.750%
• Maturity Date: April 15, 2029 (You get your principal back then)
• Interest Payment: Paid every 6 months. First payment: October 15, 2026.
• Call Feature: The company can buy these bonds back from investors (call them) starting October 15, 2026, at 100% of their value.

2. 2031 Notes (CUSIP: 74348GZR4)

• Coupon (Interest Rate): 7.000%
• Maturity Date: April 15, 2031
• Interest Payment: Paid every 6 months. First payment: October 15, 2026.
• Call Feature: Company can call them starting October 15, 2026.

3. 2033 Notes (CUSIP: 74348GZS2)

• Coupon (Interest Rate): 7.250%
• Maturity Date: April 15, 2033
• Interest Payment: Paid every 6 months. First payment: October 15, 2026.
• Call Feature: Company can call them starting October 15, 2026.

👉 Why it matters: The longer you lend them money (the longer the maturity), the higher the interest rate they promise to pay you (7.25% for 8 years vs. 6.75% for 3 years). The Survivor's Option means in certain cases, heirs can ask for early repayment after the owner's death.

🔑 Key Deal Mechanics

• Trade Date: April 13, 2026
• Settlement (You Pay): April 16, 2026
• Minimum Investment: $1,000 (and then in multiples of $1,000).
• How to Own: These are "book-entry" notes. You won't get a paper certificate. Your ownership is recorded electronically through The Depository Trust Company (DTC), like most modern stocks and bonds.
• Selling Agents: InspereX (Purchasing Agent), Citigroup, and RBC Capital Markets are helping to sell these notes to investors.

🏦 Company Background & Recent Move

Prospect Capital is externally managed by Prospect Capital Management L.P. The filing notes a recent positive event: On February 20, 2026, a $63.5 million loan and a $5.0 million credit line to "Interventional Management Services, LLC" were fully repaid at par. This means they got their money back cleanly from that investment, which is good for their portfolio health.

🎯 Use of Proceeds (What They'll Do With Your Money)

The company plans to use the money raised from this bond sale for general corporate purposes. Specifically, they intend to:

1. First, maintain liquidity by repaying existing debt (like their credit facility) or redeeming other outstanding bonds.
2. Then, invest the funds long-term in their core business: making loans to and investing in middle-market companies, in line with their investment objective.

⚖️ Big Picture: Strengths & Risks

👍 Potential Strengths:

• Fixed Income: Offers a predictable, fixed interest payment (semi-annually).
• Established Program: This is part of their ongoing "InterNotes" program, with over $2.4 billion issued historically.
• Senior Obligation: These bonds are "unsecured senior debt," meaning they rank equally with other main debt, not below it (like "secured" debt would be).
• Recent Repayment: The clean repayment of the Interventional Management loan is a positive signal.

⚠️ Key Risks to Consider:

• Credit Risk: You are lending money to Prospect Capital. If they have losses on their loans to middle-market companies, they could have trouble paying you back. Their obligations are not guaranteed by the U.S. government.
• Interest Rate Risk: If market interest rates rise, the fixed 6.75%-7.25% coupon on these notes might become less attractive, potentially lowering the notes' resale value before maturity.
• Call Risk: The company can redeem ("call") these notes starting October 15, 2026. If they do, you'll get your principal back but then have to reinvest your money at likely lower prevailing interest rates.
• Liquidity Risk: These notes are not listed on a stock exchange. While agents may trade them in a secondary market, there's no guarantee you can sell them easily or at a fair price before they mature.
• Complex Structure: As a BDC with external management, fees and performance are key factors.

🧠 The Analogy

Investing in these notes is like being a specialized bank for a company that lends to other businesses. You're not buying a piece of ownership (stock); you're giving them a fixed-term loan. They promise to pay you back your original loan amount at the end (the maturity date) and, in the meantime, pay you regular "rent" (the interest coupon) for using your money. The longer you agree to lend them the money, the higher the rent they promise to pay.

🧩 Final Takeaway

Prospect Capital is raising long-term debt by offering investors three series of fixed-rate, unsecured notes with maturities ranging from 3 to 8 years and coupons from 6.75% to 7.25%. The company can call the notes back starting in about six months. This is a standard part of their business model as a BDC to fund their lending operations, but it carries the inherent credit risk of their underlying loan portfolio.