PSEC vs RNST

PSEC Core

Annual filing released 2025-08-26 · GPT 6 Luna

Item 1. Business In this Annual Report, the terms “Prospect,” “the Company”, “we,” “us” and “our” mean Prospect Capital Corporation and all entities included in our consolidated financial statements, unless the context specifically requires otherwise. General Prospect is a financial services company that primarily lends to and invests in middle market privately-held companies. We are a closed-end investment company incorporated in Maryland. We have elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”). As a BDC, we have elected to be treated as a regulated investment company (“RIC”), under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). We were organized on April 13, 2004, and were funded in an initial public offering completed on July 27, 2004.

in need of capital for refinancings, acquisitions, capital expenditures, growth initiatives, recapitalizations and other purposes. Typically, we focus on making investments in middle-market companies with annual revenues of less than $750 million and enterprise values of less than $1 billion. These private, middle-market companies are primarily owned by private equity funded and independent sponsors or us, as well as by a portfolio company’s management team, founder(s), or other investors. Our typical investment involves a senior and secured loan of less than $250 million. Our investments in senior and secured loans are generally senior debt instruments that rank ahead of unsecured debt and equity of a given portfolio company. These loans also have the benefit of security interests on assets of the applicable portfolio company, which often rank ahead of any other security interests.

RNST Core

Annual filing released 2025-02-26 · GPT 6 Luna

Operations In the first half of 2024, the Company had three reportable segments: a Community Banks segment, an Insurance segment and a Wealth Management segment. The Company no longer has an Insurance segment as a result of the sale of the Company’s insurance agency business in July 2024. We do not have any foreign operations. Operations of Community Banks Substantially all of our business activities are conducted through, and substantially all of our assets and revenues are derived from, the operations of our community banks, which offer a complete range of banking and financial services to individuals and to businesses of all sizes.

As described in more detail below, these services include business and personal loans, interim construction loans, specialty commercial lending, factoring and asset-based lending, treasury management services and checking and savings accounts, as well as safe deposit boxes and night depository facilities. Automated teller machines are located throughout our market area, and we have interactive teller machines in many of our urban markets. Our Online and Mobile Banking products and our call center also provide 24-hour banking services. As of December 31, 2024, we had 180 banking, lending and mortgage offices located throughout our markets in the Southeast, while our subsidiary Republic Business Credit had four stand-alone offices in California, Illinois, Louisiana and Texas.

PSEC Core

Annual filing released 2025-08-26 · GPT 6 Luna

Item 1. Business In this Annual Report, the terms “Prospect,” “the Company”, “we,” “us” and “our” mean Prospect Capital Corporation and all entities included in our consolidated financial statements, unless the context specifically requires otherwise. General Prospect is a financial services company that primarily lends to and invests in middle market privately-held companies. We are a closed-end investment company incorporated in Maryland. We have elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”). As a BDC, we have elected to be treated as a regulated investment company (“RIC”), under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). We were organized on April 13, 2004, and were funded in an initial public offering completed on July 27, 2004.

We intend to invest primarily in privately owned United States (“U.S.”) middle market companies, in senior and secured first lien loans and, to a lesser extent, second lien loans, as well as equity and equity-linked investments with capital-appreciation potential (such as senior and secured convertible debt, preferred equity, common equity and warrants). Most of our investments will be in private U.S. companies; however, we may also invest to some extent in broadly-traded public companies and non-U.S. companies (subject to compliance with BDC requirements to invest at least 70% of assets in “eligible portfolio companies,” which are generally privately offered securities issued by U.S. private or thinly-traded companies). We are a non-diversified company within the meaning of the 1940 Act. Our primary investment strategy is investing in private, middle-market companies in the U.S.

RNST Core

Annual filing released 2025-02-26 · GPT 6 Luna

Operations In the first half of 2024, the Company had three reportable segments: a Community Banks segment, an Insurance segment and a Wealth Management segment. The Company no longer has an Insurance segment as a result of the sale of the Company’s insurance agency business in July 2024. We do not have any foreign operations. Operations of Community Banks Substantially all of our business activities are conducted through, and substantially all of our assets and revenues are derived from, the operations of our community banks, which offer a complete range of banking and financial services to individuals and to businesses of all sizes.

As described in more detail below, these services include business and personal loans, interim construction loans, specialty commercial lending, factoring and asset-based lending, treasury management services and checking and savings accounts, as well as safe deposit boxes and night depository facilities. Automated teller machines are located throughout our market area, and we have interactive teller machines in many of our urban markets. Our Online and Mobile Banking products and our call center also provide 24-hour banking services. As of December 31, 2024, we had 180 banking, lending and mortgage offices located throughout our markets in the Southeast, while our subsidiary Republic Business Credit had four stand-alone offices in California, Illinois, Louisiana and Texas.

PSEC Material

Annual filing released 2025-08-26 · GPT 6 Luna

NMMB, Inc. Prospect owns 100% of the equity of NMMB Holdings, Inc. (“NMMB Holdings”), a Consolidated Holding Company. NMMB Holdings owns 92.77% of the fully-diluted equity of NMMB, Inc. (f/k/a NMMB Acquisition, Inc.) (“NMMB”) as of June 30, 2025 and June 30, 2024, with NMMB management owning the remaining equity. NMMB owns 100% of Refuel Agency, Inc. (“Refuel Agency”). Refuel Agency owns 100% of Armed Forces Communications, Inc. (“Armed Forces”). NMMB is an advertising media buying business. Year Ended June 30, 2025 June 30, 2024 June 30, 2023 Interest Income $ 4,039 $ 4,255 $ 3,754 Dividend Income (1) — 657 2,510 Managerial Assistance (2) 400 400 $ 400 Realized (Loss) Gain 6,366 1,040 (2,510) Reimbursement of Legal, Tax, etc. (3) 9 1 4

RNST Not tagged

Annual filing released 2025-02-26 · GPT 6 Luna

This activity has no positive tag in the selected filing snapshot.

PSEC Material

Annual filing released 2025-08-26 · GPT 6 Luna

(“Valley”), a leading provider of specialty electrical services in the state of Washington and among the top 50 electrical contractors in the United States. 245 PROSPECT CAPITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (in thousands, except share and per share data) Year Ended June 30, 2025 June 30, 2024 June 30, 2023 Interest Income Interest Income from Valley $ 1,314 $ 1,389 $ 1,508 Interest Income from Valley Electric 11,363 10,927 7,895 Total Interest Income $ 12,677 $ 12,316 $ 9,403 Dividend Income (1) $ — $ — $ 547 Other Income Structuring Fee $ — $ — $ 380 Royalty, net profit and revenue interests 666 666 666 Total Other Income $ 666 $ 666 $ 1,046 Managerial Assistance (2) $ 600 $ 600 $ 600 Reimbursement of Legal, Tax, etc. (3) 3 — 85

RNST Not tagged

Annual filing released 2025-02-26 · GPT 6 Luna

This activity has no positive tag in the selected filing snapshot.

PSEC Material

Annual filing released 2025-08-26 · GPT 6 Luna

As a result, Prospect’s investment in Belnick is classified as a control investment. Effective May 22, 2025, Prospect established 100% ownership of Belnick Holdings of Delaware, LLC (“Belnick Delaware”), a Consolidated Holding Company. On May 23, 2025, Belnick Delaware acquired a 100% voting interest in Belnick’s Class P Preferred units, which equate to a 99.01% fully diluted interest in Belnick as of June 30, 2025. Belnick is a provider of high-volume, value-oriented furniture and furnishings to a broad range of residential and commercial end markets. 232 PROSPECT CAPITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (in thousands, except share and per share data) Year Ended June 30, 2025 June 30, 2024 June 30, 2023 Interest Income $ 2,748 $ — $ — Other Income — — Structuring Fee $ 33 $ — $ — Total Other Income $ 33 $ — $ —

MITY, Inc. Prospect owns 100% of the equity of MITY Holdings of Delaware Inc. (“MITY Delaware”), a Consolidated Holding Company. MITY Delaware owns 100% of the equity of MITY, Inc. (f/k/a MITY Enterprises, Inc.) (“MITY”). MITY owns 100% of each of MITY-Lite, Inc. (“MITY-Lite”); Broda USA, Inc. (f/k/a Broda Enterprises USA, Inc.) (“Broda USA”); and Broda Enterprises ULC (“Broda Canada”). MITY is a designer, manufacturer and seller of multipurpose room furniture and specialty healthcare seating products. During the three months ended December 31, 2016, Prospect formed a separate legal entity, MITY FSC, Inc., (“MITY FSC”) in which Prospect owns 100% of the equity. MITY FSC does not have material operations. This entity earns commission 238 PROSPECT CAPITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (in thousands, except share and per share data)

RNST Not tagged

Annual filing released 2025-02-26 · GPT 6 Luna

This activity has no positive tag in the selected filing snapshot.

PSEC Material

Annual filing released 2025-08-26 · GPT 6 Luna

Discovery MSO Holdco, LLC owns 100% of Discovery Point Retreat, LLC. Energy Solutions owns interests in companies operating in the energy sector. These include companies operating offshore supply vessels, ownership of a non-operating biomass electrical generation plant and several coal mines. Energy Solutions subsidiaries formerly owned interests in gathering and processing business in east Texas.

RNST Not tagged

Annual filing released 2025-02-26 · GPT 6 Luna

This activity has no positive tag in the selected filing snapshot.

PSEC Material

Annual filing released 2025-08-26 · GPT 6 Luna

MITY, Inc. Prospect owns 100% of the equity of MITY Holdings of Delaware Inc. (“MITY Delaware”), a Consolidated Holding Company. MITY Delaware owns 100% of the equity of MITY, Inc. (f/k/a MITY Enterprises, Inc.) (“MITY”). MITY owns 100% of each of MITY-Lite, Inc. (“MITY-Lite”); Broda USA, Inc. (f/k/a Broda Enterprises USA, Inc.) (“Broda USA”); and Broda Enterprises ULC (“Broda Canada”). MITY is a designer, manufacturer and seller of multipurpose room furniture and specialty healthcare seating products. During the three months ended December 31, 2016, Prospect formed a separate legal entity, MITY FSC, Inc., (“MITY FSC”) in which Prospect owns 100% of the equity. MITY FSC does not have material operations. This entity earns commission 238 PROSPECT CAPITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (in thousands, except share and per share data)

RNST Not tagged

Annual filing released 2025-02-26 · GPT 6 Luna

This activity has no positive tag in the selected filing snapshot.

PSEC Material

Annual filing released 2025-08-26 · GPT 6 Luna

Discovery MSO Holdco, LLC owns 100% of Discovery Point Retreat, LLC. Energy Solutions owns interests in companies operating in the energy sector. These include companies operating offshore supply vessels, ownership of a non-operating biomass electrical generation plant and several coal mines. Energy Solutions subsidiaries formerly owned interests in gathering and processing business in east Texas.

RNST Not tagged

Annual filing released 2025-02-26 · GPT 6 Luna

This activity has no positive tag in the selected filing snapshot.

PSEC Material

Annual filing released 2025-08-26 · GPT 6 Luna

Discovery MSO Holdco, LLC owns 100% of Discovery Point Retreat, LLC. Energy Solutions owns interests in companies operating in the energy sector. These include companies operating offshore supply vessels, ownership of a non-operating biomass electrical generation plant and several coal mines. Energy Solutions subsidiaries formerly owned interests in gathering and processing business in east Texas.

RNST Not tagged

Annual filing released 2025-02-26 · GPT 6 Luna

This activity has no positive tag in the selected filing snapshot.

PSEC Material

Annual filing released 2025-08-26 · GPT 6 Luna

CP Energy Services Inc. Prospect owns 100% of the equity of CP Holdings of Delaware LLC (“CP Holdings”), a Consolidated Holding Company. CP Holdings owns 99.8% of the equity of CP Energy Services, Inc. (“CP Energy”), and the remaining equity is owned by CP Energy management. CP Energy owns directly or indirectly 100% of each of CP Well; Wright Foster Disposals, LLC; Foster Testing Co., Inc.; ProHaul Transports, LLC; and Wright Trucking, Inc. CP Energy provides oilfield flowback services and fluid hauling and disposal services through its subsidiaries. In June 2019, CP Energy purchased a controlling interest in the common equity of Spartan Energy Holdings, Inc.

RNST Not tagged

Annual filing released 2025-02-26 · GPT 6 Luna

This activity has no positive tag in the selected filing snapshot.

PSEC Material

Annual filing released 2025-08-26 · GPT 6 Luna

PROSPECT CAPITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (in thousands, except share and per share data) Year Ended June 30, 2025 June 30, 2024 June 30, 2023 Additions $ 17,000 $ — $ — Interest Income Capitalized as PIK 15,479 23,249 20,681 Repayment of Loan Receivable — — 950 As of June 30, 2025 June 30, 2024 Interest Receivable (3) $ 116 $ 318 Other Receivables (4) 55 1 (3) Interest income recognized but not yet paid. (4) Represents amounts due from InterDent to Prospect for reimbursement of expenses paid by Prospect on behalf of InterDent. Kickapoo Ranch Pet Resort Prospect owns 100% of the membership interest of Kickapoo Ranch Pet Resort (“Kickapoo”). Kickapoo is a luxury pet boarding facility.

RNST Not tagged

Annual filing released 2025-02-26 · GPT 6 Luna

This activity has no positive tag in the selected filing snapshot.

PSEC Material

Annual filing released 2025-08-26 · GPT 6 Luna

The preferred stockholders are entitled to receive cumulative dividends semi-annually at an annual rate of 12.5% and do not have the ability to participate in the management or operation of NPRC. NPRC was formed to hold for investment, operate, finance, lease, manage, and sell a portfolio of real estate assets and engage in any and all other activities as may be necessary, incidental or convenient to carry out the foregoing. NPRC acquires real estate assets, including, but not limited to, industrial, commercial, and multi-family properties. NPRC may acquire real estate assets directly or through joint ventures by making a majority equity investment in a property-owning entity (the “JV”).

RNST Not tagged

Annual filing released 2025-02-26 · GPT 6 Luna

This activity has no positive tag in the selected filing snapshot.

PSEC Material

Annual filing released 2025-08-26 · GPT 6 Luna

CP Energy Services Inc. Prospect owns 100% of the equity of CP Holdings of Delaware LLC (“CP Holdings”), a Consolidated Holding Company. CP Holdings owns 99.8% of the equity of CP Energy Services, Inc. (“CP Energy”), and the remaining equity is owned by CP Energy management. CP Energy owns directly or indirectly 100% of each of CP Well; Wright Foster Disposals, LLC; Foster Testing Co., Inc.; ProHaul Transports, LLC; and Wright Trucking, Inc. CP Energy provides oilfield flowback services and fluid hauling and disposal services through its subsidiaries. In June 2019, CP Energy purchased a controlling interest in the common equity of Spartan Energy Holdings, Inc.

RNST Not tagged

Annual filing released 2025-02-26 · GPT 6 Luna

This activity has no positive tag in the selected filing snapshot.

PSEC Not tagged

Annual filing released 2025-08-26 · GPT 6 Luna

This activity has no positive tag in the selected filing snapshot.

RNST Material

Annual filing released 2025-02-26 · GPT 6 Luna

ctively. Excluding brokered deposits, the deposits held by the Bank have been primarily generated within the market areas where our branches are located. Operations of Wealth Management Our Wealth Management segment operates through two divisions: Trust and Financial Services. The Trust division, which is housed in the Bank’s trust department, offers a wide variety of fiduciary and custodial services, including investment advisory, accounting and administrative services (acting as trustee or in other capacities) for qualified retirement and other employee benefit plans, IRAs, personal trusts and estates.

Our fees for managing these accounts are based on changes in market values of the assets under management in the account, with the amount of the fee depending on services we provide and the type of account. The Financial Services division, which primarily operates through Park Place Capital (although the Bank’s trust department maintains some legacy financial service operations), offers specialized products and services to our customers. These products and services include fixed and variable annuities, mutual funds and stocks, some of which are offered through a third party provider. Park Place Capital also provides administrative and compliance services for certain mutual funds. 6