Prospect BDC Declares Increased 7.5% Distribution Rate, Launches Multi-Class Offering
Prospect Floating Rate and Alternative Income Fund Inc. – an externally managed non-diversified, closed-end management investment company that has elected to be regulated as a business development company – announced an increased 7.5% annualized total cash distribution rate on its net asset value of $4.75 per share for May 2024. The company declared May 2024 gross distributions per share of $0.03405 (payable in June), an increase of more than 24% compared to the gross distribution of $0.0274 per share declared in April.
Prospect Floating Rate and Alternative Income Fund was formerly known as Prospect Sustainable Income Fund Inc., and prior to that as Prospect Flexible Income Fund Inc.
The 7.5% rate is an increase from the prior annualized distribution rate of 7% based on net asset value. Prospect says the increase is due to increased scale from the unregistered sale of $20 million of common stock to an affiliate of the fund.
On May 10, the fund launched an offering of multiple classes of shares, with Preferred Capital Securities LLC as the dealer manager.
The fund invests primarily in the floating rate loans of privately-owned U.S. middle market companies. These investments are generally sourced by Prospect Capital Management L.P., our investment adviser.
As of April 30, 2024, the Prospect Floating Rate and Alternative Income Fund investment portfolio had a total fair value of approximately $300 million comprised of interests in 39 portfolio companies.
Prospect Capital Management L.P., headquartered in New York City, is an SEC-registered investment adviser that, along with its predecessors and affiliates, has more than 30-years of investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of over 100 professionals and reports $8.9 billion of assets under management as of March 31, 2024.
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