Prospect Floating Rate & Alternative Income Fund, Inc. 8-K

What Happened

• On January 26, 2026, Prospect Floating Rate & Alternative Income Fund, Inc. filed an 8-K disclosing it entered into a Distribution Agreement with Ultimus Fund Distributors, LLC to act as distributor for the Company’s continuous public offering of Class S, Class D and Class I shares. The Distribution Agreement becomes effective when a post-effective amendment to the Company’s Form N-2 registration statement names Ultimus as distributor (the "Distribution Agreement Effective Date").
• The filing also states that, effective as of the Distribution Agreement Effective Date, the Company and Preferred Capital Securities, LLC (PCS) have mutually agreed to terminate the Existing Dealer Manager Agreement dated May 13, 2024, and no early termination penalties will be incurred.

Key Details

• Agreement date: January 26, 2026; Form 8‑K filed January 27, 2026 (signed by CEO M. Grier Eliasek).
• Distributor: Ultimus Fund Distributors, LLC; related affiliate Ultimus Fund Solutions, LLC is expected to serve as transfer agent, plan administrator, distribution paying agent and registrar.
• Termination: Existing Dealer Manager Agreement with PCS (dated May 13, 2024) terminated by mutual agreement, effective on the Distribution Agreement Effective Date, with no early termination penalties.
• Contract terms: Either party may terminate the Distribution Agreement with 60 days’ written notice; the Company will indemnify the Distributor and certain affiliates except in cases of willful misfeasance, bad faith, gross negligence or reckless disregard.

Why It Matters

• This filing documents a change in who will distribute and administer the Company’s public offering and related investor services. For investors, that can affect how shares are offered, serviced and how communications are handled (transfer agent/administration).
• The termination of the PCS dealer manager without penalties removes a potential near-term cost or disruption; the Distribution Agreement’s effectiveness depends on the Company’s amended Form N‑2, so operational changes will occur only after that amendment is effective.
• The Agreement’s 60‑day termination right and the indemnification provisions are standard contract protections that define risk allocation between the Company and the distributor.