Good day and welcome to the Prospect Capital first quarter 2026 earnings release and conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to John Barry, Chairman and CEO. Please go ahead.

Thank you, Chloe. Joining me on the call today are Grier Eliasek, our President and Chief Operating Officer, and Kristin Van Dask, our Chief Financial Officer. Kristin?

Thanks, John. This call contains forward-looking statements intended to be subject to safe harbor protection. Future results are highly likely to vary materially. We do not undertake to update our forward-looking statements. For additional disclosure, see our earnings press release and 10-K filed previously and available on our website, prospectstreet.com. John?

Thank you, Kristin. In the June quarter, our net investment income, or NII, was $78 million. Consistent with the prior quarter were $0.15 per common share. Our NAV was approximately $2.9 billion or $5.71 per common share. At June 30, our net debt to total assets ratio was 28.6%. Unsecured debt plus unsecured perpetual preferred with 83.7% of total debt plus preferred. We are announcing monthly common shareholder distributions of 3.5 cents per share for each of September and October. Since our IPO 22 years ago through our October 2026 declared distribution, we will have distributed over $4.8 billion or $22.14 per share. Our preferred shareholder cash distributions continue at their contractual rates. On July 1st, 2026, Prospect closed the successful sale of its portfolio company Valley Electric with total consideration. of approximately $328 million. Over the life of the Valley Electric Investment since 2012 and including expected net exit proceeds of approximately $281 million, together with prior interest on debt, equity distributions, and other cash flow streams, prospect achieved a 20.5% Realize Gross Annualized IRR, and 4.8 times multiple of invested capital. The 13th highest IRR significant investment for Prospect Capital Corporation. If the cash received on July 1 from the sale of Valley Electric had been received previously and repaid borrowings under our revolver, The revolver's drawn amount would have been $323 million on June 30th on a pro forma basis. We are proud of our 38 year history of innovation and first to market accomplishments in alternative asset management, direct lending, and business development companies. We continue to see many opportunities to deploy large language model and other AI and automation tools across every one of Prospect's businesses and investment portfolios, including majority equity-owned companies and properties where Prospect captures upside from improvements. We believe these initiatives will capture economic upside from profit enhancements both in terms of revenues and costs and may result in tens of millions of dollars of annualized cash flow benefit, some of which we have already realized, and an even greater amount on a multiple-driven value basis. We view artificial intelligence as a transformational once-in-a-generation opportunity to enhance profitability and build on our long-standing culture of innovation. and First to Market leadership in the alternative asset management, direct lending and business development company industries. We intend Prospect to be the leader applying transformative AI tools to all we do. Thank you. I'll now turn the call over to Grier.

Thank you, John. Over the past two decades, Prospect Capital Corporation has invested approximately $13.4 billion Thank you for joining us. In Prospect's primary business of middle market lending over the same 22-year time period, Prospect's exited investments resulted in an investment level exited gross IRR of approximately 14.4% based on total capital invested of around $11.5 billion and total proceeds from such exited investments of around $14.7 billion. with an annualized loss rate of 20 basis points. Prospects Middle Market Portfolio Company. Compare favorably to peers across key credit metrics with lower net leverage. 4.9 turns versus 6.1 turns for peers. Stronger cash interest coverage. 223% compared to 160% for peers and a lower annualized net realized loss rate, 20 basis points versus 100 basis points. Together, these metrics demonstrate the portfolio's stronger credit profile and performance. As of June, 2026, we held 91 portfolio companies across 31 different industries with an aggregate fair value of 6.3 billion. Our portfolio at fair market value included 2.3% of investments in software companies, significantly less than the 22% average across business development companies from a recent equity research report in June. We primarily focus on senior and secure debt, which was 84% of our portfolio at cost as of June. Our middle market lending strategy is the primary focus of our company with such strategy as of June representing 85% of our investments at cost. Middle market lending comprised 91% of our originations during the June quarter with a continued focus on first lien senior secured loans. Investments during the quarter included new first lien senior secured loan investments, In Safety Solutions Financing, a provider of fire security products and services, Abacus Dermatology Management, a management services organization, i5, a provider of on-demand product and order fulfillment services, as well as follow-on investments in existing portfolio companies to support acquisitions, working capital needs, organic growth initiatives, and other objectives. We've essentially completed the exit of our subordinated structured notes portfolio as of June with such portfolio representing around 0% of our investment portfolio at cost. A reduction of 840 basis points from 8.4% as of June 2024. Our real estate property portfolio at National Property Recorp or NPRC totaled 14% of our investments at cost as of June, and continue to focus on developed and occupied cash flow multifamily investments. Since inception of this strategy 14 years ago in 2012 and through June of 2026, we have exited nearly 60 property investments, earning an unlevered investment level gross cash IRR of 24%, and cash on cash multiple of 2.4 times. We exited six property investments in the most recently completed fiscal year through June 2026, earning an IRR of 18% and multiple of 2.3 times. The remaining real estate property portfolio included 52 properties paying us an income yield of 5.3% for the June quarter, providing an opportunity for Potential income enhancement from a portfolio rotation strategy. Prospect's aggregate investments in NPRC included a $185 million unrealized gain as of June. And we expect to continue to redeploy future real estate property exit proceeds primarily into more first lien senior secured corporate loans with selected equity linked investments. Our interest income for the 12-month period ending June 2026 was 91% of our total investment income, reflecting a strong recurring revenue profile for our business. Payment in kind interest income for the last 12-month period ending June 2026 has been reduced 53% for the 12-month period ending June of 2024. and with 10% of total investment income for the June 2026 fiscal year. Not accruals as a percentage of total assets as of June stood at approximately 0.7% based on fair market value consistent with the prior quarter. Investment originations in the June quarter aggregate 166 million consisting of 91% middle market investments with a significant majority of first lien senior secured loans. We also experienced 46 million repayments and exits representing in net originations of 120 million. Thank you. I'll now turn the call over to Kristin. Kristin?

Thanks, Greer. We believe our prudent leverage, diversified access to matched book funding, substantial majority of unencumbered assets, Waiting toward unsecured fixed-rate debt and avoidance of unfunded asset commitments all demonstrate balance sheet strength as well as substantial liquidity to capitalize on attractive opportunities. Our company has locked in a ladder of liabilities extending 25 years into the future. On October 30, 2025, we successfully completed the institutional issuance of approximately $168 million in aggregate principal amount of senior unsecured 5.5% notes due 2030, which mature on December 31st, 2030. Our unfunded eligible commitments to portfolio companies total approximately 65 million, of which 52 million are considered at our sole discretion, representing approximately 1% and 0.8% of our total assets as of June 2026, respectively. Our combined balance sheet cash and undrawn revolving credit facility commitments stood at $1.6 billion as of June, prior to the sale of Valley Electric on July 1st, and we held $4.2 billion of our assets as unencumbered assets, representing approximately 66% of our portfolio. The remaining assets are pledged to Prospect Capital Funding, a non-recourse SPV. We currently have 2.12 billion of commitments from 48 banks demonstrating strong support of our company from the lender community with a diversity unmatched by any other company in our industry. The facility does not mature until June 2029 and revolves until June 2028. Our drawn pricing continues to be SOFR plus 2.05%. Outside of our revolver, we have access to diversified funding sources across multiple investor types and have successfully issued securities in an array of markets. Prospect has issued multiple types of unsecured debt, institutional non-convertible bonds, institutional convertible bonds, retail baby bonds, and retail program notes. All of these types of unsecured debt have no asset restrictions and no cross defaults with our revolver. We have tapped the unsecured term debt market on multiple occasions to ladder our maturities and to extend our liability duration out 25 years, with our debt maturities extending through 2052. With so many banks and debt investors across so many unsecured and non-recourse debt tranches, we have substantially reduced our counterparty risk. At June 30, 2026, our weighted average cost of unsecured debt financing was 4.78%. Now I'll turn the call back over to John. John?

Thank you, Kristin. Time for the Q&A. Bring on the questions. Thank you.

Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. At this time there are no further questions. I would like to turn the conference back over to John Barry for any closing remarks.

Okay everyone, I hope you enjoy this upcoming August weekend. Stay dry. Bye now.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.