Slides
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1 PROSPECT CAPITAL CORPORATION NASDAQ: PSEC MIDDLE MARKET FINANCE
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2 FORWARD-LOOKING STATEMENTS AND DISCLAIMERS Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events or performances are forward- looking statements within the meaning of the federal securities laws. Forward-looking statements predict or describe our future operations, business plans, business and investment strategies and portfolio management and the performance of our investments and our investment management business. Our actual results or actions may differ materially from those expressed in any forward-looking statements made by us. Forward-looking statements involve a number of risks of uncertainties including, but not limited to, the risks described under headings such as “Risk Factors” in our SEC filings. All forward-looking statements are qualified by those risk factors. All statements made by us in this presentation are further qualified in all respects by the information disclosed in our SEC filings. We disclaim any obligation to update our forward looking statements unless required by law. Certain information discussed in this presentation (including information relating to portfolio companies) was derived from third-party sources and has not been independently verified and, accordingly, Prospect Capital Corporation makes no representation or warranty in respect of this information. The following slides contain summaries of certain financial and statistical information about Prospect Capital Corporation. The information contained in this presentation is summary information that is intended to be considered in the context of our SEC filings and other public announcements that we may make, by press release or otherwise, from time to time. We undertake no duty or obligation to publicly update or revise the information contained in this presentation. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of Prospect Capital Corporation, or information about the market, as indicative of Prospect Capital Corporation’s future results. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of Prospect Capital Corporation. Internal Rate of Return (“IRR”) is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. IRR is gross of general expenses not related to specific investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized. Prospect’s gross IRR calculations are unaudited. Information regarding internal rates of return are historical results relating to Prospect’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured. All data in this presentation is as of 12/31/2025 unless noted.
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3 PROSPECT CAPITAL CORPORATION (“PSEC”) Source: Company filings, management. (1) Prospect Capital Management L.P. (“Prospect”) is the external investment adviser to Prospect Capital Corporation (“PSEC”). (2) Represents unlevered investment-level gross cash IRR to PSEC. See Forward-Looking Statements and Disclaimers herein for further information. (3) As a percentage of total assets (at fair value). (4) Calculated as (Net Investment Income + Interest Expense + Incentive Fees) / Interest Expense. (5) Total equity includes preferred equity. Manager founded in 1988 with same senior leadership for past 26 Years(1) 130+ Employees 21 Years PSEC History Over $22B Invested Since 2004 Over 350 Investment Exits 12% Exited Gross IRR Since Inception(2) 91 Investments 32 Industries 0.7% Non-Accrual Loan Rate(3) 3.6x LTM Interest Coverage(4) $6.5B Total Assets 8% Secured Debt Capitalization 29% Total Debt Capitalization 71% and $4.6B Total Equity Capitalization(5)
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4 PSEC OVERVIEW PSEC is the One of the Longest Running and Largest Listed BDCs PSEC Highlights Operating History 21 Years Assets $6.5B, including 91 investments across 32 industries Investment Mix(1) 84% senior and secured 71% first lien Credit Quality(2) 0.7% non-accrual loan rate PSEC LTM Interest Coverage 3.6x Secured Debt Capitalization 8% Total Debt Capitalization 29% Total Equity Capitalization (3) 71% Total Equity(3) $4.6B Track Record $22B+ invested 12% exited gross IRR on more than 350 exits Investment Approach ►Primarily focused on senior and secured debt investments, sometimes with equity-linked investments made alongside such debt investments ►Primarily invest in U.S. middle-market companies with EBITDA typically up to $150 million ►Typically sole or lead investor and constructive post-closing portfolio management ►Scaled portfolio weighted towards non-cyclical, defensive industries ►Objective is to generate both current income and long-term capital appreciation Managed by Prospect Capital Management L.P . (“Prospect”) ►Founded in 1988 with same senior management team for the past 26 years ►Proven investment process spans multiple business cycles ►Vertically integrated platform of 130+ professionals with scale ability to originate, diligence, and manage investments ►Extensive network of sponsor and financial intermediary relationships ►Substantial originations with disciplined book-to-look ratio (less than 2% historically) Source: Company filings, management. (1) At cost. (2) At fair value. (3) Total equity includes preferred equity.
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5 PSEC is the One of the Longest Running and Largest Listed BDCs PSEC OVERVIEW INVESTMENT PORTFOLIO ►Strategy focused on risk reduction, capital preservation, and avoidance of “yield chasing” investments ►92% LTM interest income as a percentage of total investment income ►Non-accrual loans remain low at 0.7%(1) ►Payment-in-kind interest income reduced by 46% for the LTM period ending 12/31/2025 year over year ►Intensive screening process (<2% book-to-look ratio) with a majority focus on senior and secured lending SOLID FINANCIAL FOUNDATION ►Laddered liability structure with long-term matched-book funding ►Debt leverage has remained low – 29% debt-to-total-capital and 0.40x net-debt-to-total-equity(2) ►$1.6B undrawn revolver commitments plus cash ►Diversified funding sources across multiple investor basis: • 48 credit facility lenders (credit facility matures 2029) • Emphasis on unsecured financing (85% of PSEC’s total debt + preferred) • Emphasis on unencumbered assets (64% of PSEC’s assets) • Institutional bonds, institutional convertible bonds, retail baby bonds, and retail program bonds • Multiple series of perpetual preferred equity ►Low unfunded commitments - 0.5% of total assets (0.3% are considered at the Company’s sole discretion) ►Strong insider ownership of 28% (approximately $0.8B of net asset value) ►$4.7B distributed to common shareholders since 2004 IPO through April 2026 declared distribution(3) Source: Company filings, management. (1) At fair value. (2) Including preferred stock as equity. (3) Includes past distributions and declared distributions based on PSEC’s shares outstanding as of 2/6/2026.
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6 SUBSTANTIAL PROGRESS WITH STRATEGIC PRIORITIES Investment Portfolio(1) Rotation / Optimization ►Continued focus on senior and secured lending (84%) and middle market (85%) ►First lien mix increased 728 basis points since June 2024 to 71.4% of portfolio • Focusing new investments in companies with less than $50M of EBITDA • Levered returns enhanced by prudent credit facility leverage ► Reduction in second lien senior and secured loans • Decreased 371 basis points since June 2024 to 12.7% of portfolio ► Exited CLO equity (subordinated structured notes) portfolio • Decreased 818 basis points since June 2024 to only 0.2% of portfolio ► Prudent exits of real estate properties • Four properties exited in current fiscal year through December 2025, with 21% cash- on-cash IRR (one additional property exited after December 2025) • 56 property exits overall with 24% cash-on-cash IRR • Potential income upside as exit 5% yielding real estate assets and rotate into higher yielding first lien senior and secured middle-market loans ► Prudent exits of corporate equity investments • Sale of significant assets within Echelon Transportation in July and December 2025 • Additional exits planned Source: Company filings and management. (1) Investment portfolio allocations at cost.
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7 SUBSTANTIAL PROGRESS WITH STRATEGIC PRIORITIES Source: Company filings, management. (1) Investment portfolio allocations at cost. (2) As a percentage of total assets (at fair value). (3) Calculated as total principal debt minus cash and cash equivalents divided by total equity (including preferred stock). (4) Ratings current as of 2/9/2026. Investment Portfolio(1) Rotation / Optimization Investment Performance ►12% cash on cash realized IRR across over 350 exits over 21-year history with $22B invested ►PIK Interest: 46% reduction year over year (only 9% of total investment income in the quarter) ►Non-Accrual Loans: Remain low at 0.7%(2) ►Recurring Quality Revenue: 92% LTM interest income of total revenue Liability Management ► Access to Capital: $168M 5.5% 5-year unsecured institutional bond offering in October 2025 ► Debt Repayment: $400M (original) January 2026 and $32M of November 2026 bonds repaid ► Leverage: 0.40x net debt to total equity(3) ► Credit Ratings: Stable ratings and outlooks(4) 64.1% 71.4% 16.4% 12.7% 8.4% 0.2% 11.1% 15.7% 6/30/24 12/31/25 First Lien Second Lien Subordinated Structured Notes Unsecured / Equity SSN substantially exited
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8 EXPERIENCED AND BROAD TEAM ADMINISTRATION Administration Professionals 29 CLIENT ADVISORY & IR Capital Markets, Business Dev & Investor Relations Professionals 17 ACCOUNTING & TAX Accounting and Tax Professionals 24 LEGAL Legal Professionals 13 With Over 130 Professionals, Prospect has One of the Largest T eams Focused on the Middle Market INVESTMENT TEAM Investment Professionals 49 130+ person organization helps drive originations through superior scale and market coverage SENIOR EXECUTIVES John Barry – Chairman / CEO ►Co-founder of PSEC ►47 years of experience, including Merrill Lynch, Rothschild and Davis Polk ►JD Harvard, AB Princeton Grier Eliasek – President / COO ►Co-founder of PSEC ►29 years of experience; previously a consultant at Bain & Company ►MBA Harvard, BS Chemical Engineering University of Virginia Kristin Van Dask – CFO ►Joined Prospect Capital Management in 2008 ►25 years of experience, including an investment advisor, E&Y and Arthur Andersen ►BS Towson University Daria Becker – Head of Admin ►Joined Prospect Capital Management in 1998 ►40 years of experience, including Lexington, Citigroup and a family office ►BA Wellesley College Source: Company filings, management.
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9 MIDDLE-MARKET LENDING INVESTMENT STRATEGY Focus on Capital Preservation and Attractive Current Yields MIDDLE MARKET ►U.S. companies with EBITDA typically up to $150M • Current focus on sub-$50M EBITDA as less competitive than large-cap direct and syndicated loans ►Sponsor-owned and non-sponsor-owned companies ►Proprietary origination ►Customized investment solution for each borrower PRINCIPAL PROTECTION ►Senior – Focus on senior payment rights – no contractual subordination ►Secured – Benefits from asset collateral security ►Industries – Focus on stable, recession-resistant industries with risk mitigants; broad industry expertise ►Credit Statistics – Lower leverage multiples and higher coverage multiples (typically relative to larger borrowers) ►Sole or Lead Investor – Control diligence, documentation and portfolio management ►Documentation – protective legal documentation with covenants (often including maintenance covenants) Source: Company filings, management.
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10 MIDDLE-MARKET LENDING INVESTMENT STRATEGY Focus on Capital Preservation and Attractive Current Yields TARGET RETURNS ►Credit Spreads – Middle-market credit spreads often higher than large-cap direct / syndicated loans ►Floating Rates – Benefits from interest rate / inflation protection as well as SOFR floors ►Equity Linked Investments – Sometimes make equity-linked investments alongside senior secured loans • Senior secured convertible term loans, preferred equity (liquidation preferences), common equity • One-stop benefit for borrower can drive better loan terms (e.g., higher credit spreads, higher SOFR floors) • Capital appreciation potential • Invest alongside management teams with long-term alignment of interests Source: Company filings, management.
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11 MIDDLE-MARKET LENDING TRACK RECORD Source: Company filings, management. Middle-market lending track record segmentation by EBITDA represents EBITDA at the date of initial investment. Numbers may not add up to precise totals due to rounding. See “Forward Looking Statements and Disclaimers” slide herein for further information. (1) Amount remaining represents the fair value of investments and any additional accrued interest receivable, net. Strong Track Record Across Borrower Sizes with Even Higher Returns <$50M EBITDA PSEC Overall <$50M EBITDA >$50M EBITDA Investments 379 215 164 Total Capital Invested $17.3 billion $9.8 billion $7.5 billion Total Proceeds $18.7 billion $10.7 billion $8.1 billion Amount Remaining(1) $5.3 billion $3.0 billion $2.3 billion Total $24.0 billion $13.6 billion $10.4 billion Exited Track Record Since Inception Investments 292 161 131 Total Capital Invested $11.2 billion $6.3 billion $4.9 billion Total Proceeds $14.3 billion $8.3 billion $6.0 billion Exited Gross IRR 14.5% 17.2% 10.3%
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12 MIDDLE-MARKET LENDING CREDIT PERFORMANCE NTD: Source: Company filings, management. Middle-market lending track record segmentation by EBITDA represents EBITDA at the date of initial investment. PSEC annualized net realized loss rate defined as realized gains/(losses) on investments as a percentage of total invested capital since inception, divided by the number of years since inception for the respective investments. (1) The reference loss rate is calculated by taking the default rate * (1 – the recovery rate). The default rate is calculated by taking the PitchBook average monthly reported LTM default rate for leveraged loans from September 2004 through December 2025. The recovery rate reflects Moody’s average assumption from its loss given default framework used for speculative-grade issuers. Strong Credit Performance in Absolute Terms, Relative Terms and Across Borrower Sizes 1.0% 0.2% 0.1% 0.3% Reference Loss Rate PSEC Overall <$50M EBITDA >$50M EBITDA Annualized Net Realized Loss Rate (1)
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13 MIDDLE-MARKET LENDING PORTFOLIO CURRENT CREDIT STATISTICS NTD: Source: Company filings, management. PSEC Middle-Market Lending portfolio credit statistics segmentation by (i) EBITDA represents EBITDA at the date of initial investment and (ii) ten largest middle-market lending portfolio companies measured by fair value. See Appendix “Middle-Market Lending Portfolio Company EBITDA, Net Leverage and Cash Interest Coverage” herein for further information. (1) KBRA Private Credit: Q4 2025 Middle Market Borrower Surveillance Compendium. Quarterly report includes median statistics for 2,416 unique global middle-market sponsored borrowers assessed over the last twelve months ended December 31, 2025. Strong Credit Statistics Across Borrower Sizes and Largest Investments Middle-Market Reference(1) PSEC Average Overall <$50M EBITDA >$50M EBITDA 10 Largest Net Leverage 6.1x 5.0x 4.6x 5.7x 6.1x Cash Interest Coverage 150% 210% 229% 179% 175%
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14 MIDDLE-MARKET LENDING SELECT RECENT INVESTMENTS INDUSTRY Health Care Providers & Services Consumer Finance Health Care Providers & Services Textiles, Apparel & Luxury Goods BUSINESS DESCRIPTION Provides inpatient and outpatient healthcare services Provides consumer credit Provides advanced molecular diagnostics testing Sells shoes, sneakers, boots, and sandals through wholesale and e-commerce channels STRUCTURE First Lien Credit Facility and Preferred Equity Second Lien Term Loan and Common Equity First Lien Term Loan and Preferred Equity First Lien Term Loan, First Lien Convertible Note, and Preferred Equity ORIGINAL INVESTMENT DATE August 2025 June 2025 May 2025 January 2025 SENIOR AND SECURED TERM LOAN $12.0 million $55.0 million $37.5 million $38.4 million SENIOR AND SECURED OTHER $1.0 million (revolver) NA NA $9.4 million (convertible) OTHER $2.2 million (preferred equity) $22.3 million (common equity) $9.3 million (preferred equity) $16.8 million (preferred equity) ADD-ON INVESTMENT DATE NA September 2025 NA June 2025 ADD-ON AMOUNT(S) NA $1.7 million NA $0.4 million TERM LOAN COUPON S + 8.00% (3.50% floor) S + 19.00% (5.00% floor) S + 10.28% (3.50% floor) S + 7.00% (3.00% floor) TERM LOAN FEE 2.25% 3.00% 3.00% 2.50% TERM LOAN MATURITY 5 years 5 years 5 years 5 years Verify Diagnostics Source: Company filings, management. Includes selected middle-market lending investments with equity linked investments. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the investments in this list. Past performance does not guarantee future results.
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15 0% 10% 20% 30% 40% 50% 60% LIMITED SOFTWARE INDUSTRY EXPOSURE PSEC’s Software Industry Exposure is only 3% vs. BDC Publicly T raded Bond Issuer Average of 23% Source: PitchBook, Barclays Research. As a percentage of total investments (at fair value). Peer data as of 9/30/2025. Publicly Traded Bond Issuer Peer Average of 23%
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16 SUPERIOR DEAL FLOW AND DISCIPLINED EXECUTION ORIGINATE SCREEN 3,000+/year STRUCTURE 200- 300/year CLOSE 20-40/year MONITOR 91 portfolio investments EXITS Over 350 since inception Disciplined underwriting and execution helps to keep credit losses low 3,000+ Opportunities Sourced Annually with <2% of Initially Screened Investments Advancing to Closing SYSTEMATIC CALLING EFFORT ►PE sponsors • 100+ top tier relationships ►Other intermediaries • ~3,200 total ►Syndication/Club relationships COLD-CALLING EFFORT ►Small-to-mid cap companies with identified financing needs ►Dedicated in-house call center ►Proprietary deal flow MANAGEMENT RELATIONSHIPS ►From past and present portfolio companies ►Add-on investments, new investments, assistance with due diligence and post- closing value add CONTACT DATABASE ►40,000+ contacts built over two decades ►Receive all transaction announcements, resulting in both in- bound opportunities and top-of-mind awareness IN-BOUND OPPORTUNITIES ►From scale, longevity, and visibility of PSEC ►$8.1B of capital(1) Source: Company filings, management. (1) Total assets as of 12/31/2025 plus undrawn revolving credit facility, which includes $2.1B of commitments from 48 lenders.
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17 PORTFOLIO OVERVIEW ►$6.5B total assets ►Portfolio includes 91 investments across 32 industries ►84% of portfolio in senior and secured investments (majority first lien)(1) ►92% LTM interest income as a percentage of total investment income ►Sole or lead investor in 75% of overall portfolio(1) Source: Company filings, management. All data as of, or for the quarter ended 12/31/2025, unless otherwise noted. (1) At cost.
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18 RIGOROUS AND INDEPENDENT VALUATION PROCESS INDEPENDENT THIRD-PARTY VALUATION ►Every investment valued quarterly and since inception at fair value by a third-party ►Third-party valuation agents complete a review of all investments on an independent basis (i.e., not merely on a “positive / negative assurance review” or “sampling” basis) SENIOR PORTFOLIO MANAGER ►Preliminary valuation discussions are documented and discussed with senior Prospect Capital Corporation management AUDIT COMMITTEE ►PSEC’s Independent Audit Committee reviews the preliminary valuations, including asking questions and receiving supplemental information as required by PSEC’s Audit Committee ►PSEC’s Independent Audit Committee approves all valuations PSEC’S BOARD OF DIRECTORS ►PSEC’s majority independent board of directors determines the fair value of each investment based on the third-party valuations and recommendations from PSEC’s Audit Committee ►To date, the Board’s final valuations have never been outside the range provided by the third- party valuation firm Source: Company filings, management.
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19 19 HIGHLIGHTS
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20 I. SIGNIFICANT SCALE PROVIDES COMPETITIVE ADVANTAGE I. BROAD PORTFOLIO ACROSS 32 DIFFERENT INDUSTRIES I. LOW 0.7% NON-ACCRUALS I. STRONG 71% EQUITY CAPITALIZATION AND FLEXIBLE FUNDING I. RESPONSIBLE LONG-TERM, MATCHED-BOOK FUNDING I. SIGNIFICANT $4.2B UNENCUMBERED ASSETS I. DISCIPLINED FINANCIAL POLICY WITH LOW LEVERAGE AND HIGH EQUITY I. LOWER LEVERAGE THAN LISTED BDC PEERS I. STRONG 3.6x LTM INTEREST COVERAGE I. SUCCESSFUL TRACK RECORD OF REPAYING $5.1B UNSECURED BONDS I. SIGNIFICANT 28% INSIDER OWNERSHIP I. $4.7B COMMON DIVIDENDS DECLARED SINCE IPO HIGHLIGHTS 1 2 3 5 6 7 8 4 9 10 11 12
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21 $3.5B $6.5B Listed Peer Average PSEC T otal Assets SIGNIFICANT SCALE PROVIDES COMPETITIVE ADVANTAGE Source: PSEC analysis of S&P Capital IQ data and company filings for 49 listed BDCs. PSEC as of 12/31/2025. Peer data for the quarter ending 9/30/2025; data may be materially different for the quarter ending 12/31/2025. (1) Total assets as of 12/31/2025 plus undrawn revolving credit facility, which includes $2.1B of commitments from 48 lenders. (2) Total equity is inclusive of preferred stock. $1.7B $4.6B Listed Peer Average PSEC T otal Equity(2) PSEC is One of the Longest Running and Largest Listed BDCs with $8.1B of Capital(1)
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22 BROAD PORTFOLIO ACROSS 32 DIFFERENT INDUSTRIES PSEC’s Portfolio at Cost (12/31/2025) Residential Real Estate Investment Trusts (REITs) 14% Health Care Providers & Services 13% Consumer Finance 12% Commercial Services & Supplies 7% Personal Care Products 6%Energy Equipment & Services 5% Distributors 5% Diversified T elecommunication Services 4% Air Freight & Logistics 3% Software 3% Health Care T echnology 2% Automobile Components 2% Media 2% Other 23% Source: Company filings, management.
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23 LOW NON-ACCRUALS 0.4% 0.3% 0.5% 0.4% 0.6% 0.3% 0.7% 0.7% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 PSEC’s Non-Accrual Loans Have Remained Low at 0.7% as of 12/31/2025 Source: Company filings, management. As a percentage of total assets (at fair value).
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24 STRONG EQUITY CAPITALIZATION AND FLEXIBLE FUNDING Capitalization MULTIPLE INVESTOR BASES ►$2.1B revolving credit facility from 48 lenders ►Institutional bondholders and retail bondholders ►Multiple series of perpetual preferred equity STRONG LIQUIDITY ►$1.6B undrawn credit facility plus cash / equivalents ►Low unfunded commitments at 0.5% of total assets (0.3% are at PSEC’s sole discretion) ►4.1 year weighted average remaining term for unsecured bonds FLEXIBLE FUNDING ►$4.6B of funding is equity (common plus preferred), which does not mature ►85% unsecured financing (term debt + preferred equity) Source: Company filings, management. $3.0B $1.6B $1.4B $0.5B Secured Debt Preferred Equity Common Equity $4.6B Total Equity Unsecured Bonds
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25 $438 $2,268 $856 $1,052 $392 $1,436 $328 $146 $332 $624 $184 $4,837 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2026 2027 2028 2029 2030 Later or No Maturity Millions Asset Maturities Funding Maturities Cumulative Asset Maturities Cumulative Funding Maturities RESPONSIBLE LONG-TERM, MATCHED-BOOK FUNDING (2) ►Repaid January 2026 ($400M original) and $32M of November 2026 institutional bonds ►Issued $168M December 2030 5.5% institutional bond in October 2025 ►$2.1B credit facility does not mature until June 2029 (1) Source: Company filings, management. (1) Funding maturity includes revolving credit facility. The facility, for which $2.1B of commitments from 48 lenders, matures in June 2029 with a revolving period extending through June 2028 followed by a one- year amortization period. Pricing for amounts drawn under the facility is one-month SOFR plus 2.05%. (2) Includes investments, equity capital, and debt capital maturing after 2030.
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26 SIGNIFICANT UNENCUMBERED ASSETS Source: Company filings, management. At fair value. $4.2B of Unencumbered Assets (64% of T otal Assets) Unecumbered Assets Encumbered Assets Prospect Capital Funding LLC (SPV credit facility borrower) • Encumbered assets • Secured credit facility Prospect Capital Corporation (PSEC) • Unencumbered assets • Senior bonds (unsecured)
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27 DISCIPLINED FINANCIAL POLICY WITH LOW LEVERAGE AND HIGH EQUITY Source: Company filings, management. (1) Calculated as total principal debt minus cash and cash equivalents divided by total equity (including preferred stock). 29% 71% Net Debt Leverage(1) 0.46x 0.45x 0.44x 0.40x 0.41x 0.44x 0.40x 48% 48% 47% 48% 47% 44% 46% 46% 20% 20% 22% 23% 24% 24% 25% 25% 20% 21% 24% 25% 23% 19% 19% 21% 12% 10% 7% 4% 7% 13% 10% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Capitalization (% of T otal) Common Equity Preferred Stock Unsecured Notes Secured Debt 0.40x 71% Capitalization from Preferred Equity and Common Equity as of 12/31/2025
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28 LOWER LEVERAGE THAN LISTED BDC PEERS PSEC has Lower Debt and Higher Book Value of T otal Equity Relative to the Listed BDC Peer Group 1.07x 0.40x Listed Peer Average PSEC Net Debt / T otal Equity(1) To t a l Equity 49% To t a l Equity 71% Total Debt 51% Total Debt 29% Listed Peer Average PSEC % of T otal Capitalization Source: PSEC analysis of S&P Capital IQ data and company filings for 49 listed BDCs. PSEC as of 12/31/2025. Peer data for the quarter ending 9/30/2025; data may be materially different for the quarter ending 12/31/2025. (1) Calculated as total principal debt minus cash and cash equivalents divided by total equity (including preferred stock).
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29 SUCCESSFUL TRACK RECORD OF REPAYING UNSECURED BONDHOLDERS $1,594M 8 Tranches $1,782M 8 Tranches $1,744M 914 Tranches $5,120M 930 Tranches Unsecured Debt Repaid Non-Convertible Notes Convertible Notes InterNotes PSEC Has Repaid $5.1B of Unsecured Bond T ranches over Its 21 Year History Source: Company filings, management.
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30 4.2% 27.9% Listed Peer Average PSEC Insider Ownership – Percentage of Common Stock SIGNIFICANT INSIDER OWNERSHIP Source: For PSEC as of 12/31/2025 and includes 9.2% share ownership through the John and Daria Barry Foundation. PSEC senior management has not sold any of such investments in PSEC. PSEC analysis of S&P Capital IQ data and company filings for 49 listed BDCs as of 2/2/2026. Peers based on insider ownership percentages multiplied by NAV as of 9/30/2025; data may be materially different for the quarter ending 12/31/2025. PSEC has Significant Insider Ownership Compared to the Listed BDC Peer Group $30.0M $826.0M Listed Peer Average PSEC Insider Ownership – Based on NAV
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31Source: Company filings, management. Includes past distributions and declared distributions based on PSEC’s shares outstanding as of 2/6/2026. $4.7B COMMON DIVIDENDS DECLARED SINCE IPO $1 $6 $23 $55 $101 $156 $264 $388 $577 $918 $1,370 $1,737 $2,094 $2,421 $2,683 $2,947 $3,217 $3,497 $3,780 $4,072 $4,366 $4,613 $4,700 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000Millions
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32 MIDDLE-MARKET LENDING PORTFOLIO COMPANY EBITDA, NET LEVERAGE AND CASH INTEREST COVERAGE Middle-Market Lending Portfolio Company Net Leverage (“Middle-Market Portfolio Net Leverage”) and Middle-Market Lending Portfolio Company Cash Interest Coverage (“Middle-Market Portfolio Cash Interest Coverage”) provide clarity into the underlying capital structure of PSEC’s middle- market loan portfolio investments and the likelihood that such portfolio will make interest payments and repay principal. Investments in real estate, subordinated structured notes, and equity (for which principal repayment is not fixed) and for which EBITDA is not available, negative or de minimis are not included in the calculations. Middle-Market Portfolio Net Leverage reflects the simple average net leverage of each of PSEC’s middle-market loan portfolio investments. The net leverage for each such investment is calculated based on PSEC’s loan investment in the capital structure of the portfolio company, with a maximum limit of 10.0x, and adjusted EBITDA. This calculation excludes debt subordinate to PSEC’s position within the capital structure because PSEC’s exposure to interest payment and principal repayment risk is limited beyond that point. The calculation does not exceed 10.0x adjusted EBITDA for any individual investment because 10.0x captures the highest level of risk to PSEC. Middle-Market Portfolio Cash Interest Coverage reflects the simple average cash interest coverage of each of PSEC’s middle-market loan portfolio investments. The cash interest coverage for each middle-market loan portfolio investment is calculated based on the portfolio company’s cash interest and adjusted EBITDA. Middle-Market Portfolio Net Leverage and Middle-Market Portfolio Cash Interest Coverage generally indicate a portfolio company’s ability to make interest payments and repay principal. Adjusted EBITDA provides PSEC with insight into profitability and scale of the portfolio companies within PSEC's middle-market loan portfolio. These calculations include addbacks and adjustments that are often negotiated and documented in the applicable investment documents, including but not limited to transaction costs, share-based compensation, management fees, foreign currency translation adjustments, and nonrecurring transaction expenses. Consumer finance companies are adjusted to treat third-party receivables financing as a cost of goods sold (rather than financing) because consumer finance companies typically rely on such financing to fund their lending activities. Middle-Market Portfolio Net Leverage and Middle-Market Portfolio Cash Interest Coverage assist PSEC in assessing the likelihood that PSEC will timely receive interest and principal payments. However, these calculations are not meant to substitute for an analysis of PSEC’s underlying portfolio company debt investments, but to supplement such analysis.