Prospect Capital issued $167M in notes due 2030

Item 1.01. Entry into a Material Definitive Agreement.

On October 30, 2025, in connection with the previously announced institutional notes offering, Prospect Capital Corporation (the "Company") issued approximately $167 million in aggregate principal amount of 5.5% Series A Notes due 2030 (the "Notes") under a deed of trust, dated as of October 28, 2025, between the Company and Mishmeret Trust Company Ltd., as trustee (the "Deed of Trust").

The Notes will mature on December 31, 2030 and will bear interest at a rate of 5.5% per annum payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, commencing on March 31, 2026¹. The Notes will be general senior unsecured obligations of the Company², will rank equally in right of payment with the Company's existing and future senior unsecured debt, and will rank senior in right of payment to any potential subordinated debt, should any be issued in the future.

After 60 days from the date on which the Notes are listed for trading on the Tel Aviv Stock Exchange Ltd. (the "TASE"), the Company may redeem the Notes³, at its option, in whole or in part, at any time or from time to time, at a redemption price equal to the greater of (i) par plus accrued and unpaid interest on the Notes, if any, to, but excluding, the date of redemption, (ii) the average closing price of the Notes over the 30 trading days preceding the Company's board of directors' resolution approving the redemption and (iii) the discounted value of the remaining payments under the Notes, as set forth in the Deed of Trust.

The Deed of Trust contains other terms and conditions, including, without limitation, affirmative and negative covenants, such as minimum total equity (common equity plus preferred equity), a maximum ratio of net debt to total assets⁴, a minimum ratio of total equity (common equity plus preferred equity) to total assets, and a negative pledge. These and other covenants are subject to important limitations and except

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

Item 8.01. Other Events.

In connection with the issuance of the Notes, the Company entered into foreign exchange forward contracts in an aggregate notional amount equal to the expected interest and principal payments under the Notes, thereby substantially mitigating foreign exchange risk associated with the Notes, which are denominated in Israeli shekel⁵.

3

The Company's shares of common stock are expected to list and commence trading on the TASE on November 2, 2025 under the ticker symbol "PSEC⁶".