Prospect Capital announces $200 million share repurchase and $0.05 monthly distributions

Prospect Capital Corp reported a $53 million loss for the quarter ended September 30, 2026 and simultaneously unveiled a $200 million share‑repurchase authorization. The board also approved monthly cash distributions of $0.05 per common share for November, December and January. Management highlighted stronger credit metrics than peers, with net leverage of 4.8 times EBITDA and cash interest coverage of 211 %.

The $200 million buyback provides a direct return of capital to shareholders and may support the stock price, while the $0.05 per‑share distributions add cash yield. The improved credit profile and $1.9 billion of cash and undrawn credit facilities reinforce balance‑sheet strength, which could lower financing costs for the firm.

  • 1Prospect Capital posted a net loss of $53 million for the quarter ended September 30, 2026.
  • 2The board approved a new common‑share repurchase authorization of $200 million.
  • 3Monthly common‑shareholder distributions of $0.05 per share were declared for November, December and January.
  • 4Prospect’s middle‑market portfolio net leverage is 4.8 times EBITDA, compared with the market average of 6.1 times.
  • 5Cash interest coverage is 211 % versus 160 % for the market.
  • 6Combined cash and undrawn credit facility commitments total $1.9 billion.

Sources