UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): ~~January~~February ~~27, 2026 (January~~ 26, 2026)

Prospect Floating Rate and Alternative Income Fund, Inc.

(Exact name of registrant as specified in its charter)

Maryland

814-00908

45-2460782

(State or other jurisdiction

(Commission File Number)

(IRS Employer

of incorporation)

Identification No.)

10 East 40th Street, 42nd Floor, New York, New York 10016

(Address of principal executive offices, including zip code)

(212) 448-0702
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


o						Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o						Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o						Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o						Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
None	None	None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

o Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.o

Item 17.01. ~~Entry~~Regulation ~~into~~FD ~~a Material Definitive Agreement~~Disclosure.

On ~~January~~February 26, 2026, Prospect Floating Rate and Alternative Income Fund, Inc. (the "Company") ~~entered~~issued ~~into~~ a ~~Distribution~~press ~~Agreement (the "Distribution Agreement") with Ultimus Fund Distributors~~release, ~~LLC~~included ~~(the~~herewith ~~"Distributor") to act~~ as ~~distributor~~Exhibit ~~in the Company's continuous public offering of the Class S, Class D and Class I shares of the Company's common stock (the "Shares") (the "Offering")~~99. The Distribution Agreement will become effective as of the effective date of the post-effective amendment to the Company’s registration statement on Form N-2 naming the Distributor as the distributor of the Company (the "Distribution Agreement Effective Date"). Either party may terminate the Distribution Agreement upon 60 days’ written notice to the other party. Pursuant to the Distribution Agreement1, ~~the Company will indemnify the Distributor, its officers, directors, employees~~ and ~~other agents in certain circumstances, except that such parties will not be indemnified for any liability to which they would otherwise be subject~~ by ~~reason~~this ofreference ~~willful~~incorporated ~~misfeasance~~herein, ~~bad~~announcing ~~faith or gross negligence in~~ the ~~performance~~declaration of ~~their~~monthly ~~duties,~~cash ordistributions byto ~~reason~~common ~~of their reckless disregard of their obligations and duties under the Distribution Agreement~~shareholders.

~~Ultimus~~The ~~Fund~~Board ~~Solutions~~of Directors of the Company declared distributions for the months of February 2026, ~~LLC~~March 2026 and April 2026, anrespectively, ~~affiliate~~which reflect a targeted annualized distribution rate of 10.0% based on the ~~Distributor~~net asset value per share for the second fiscal quarter ended December 31, is2025. ~~expected~~The todistributions ~~serve~~have a record date as of the ~~Company's~~close ~~transfer~~of ~~agent~~business of the last Friday of February 2026, ~~plan~~March ~~administrator~~2026 and April 2026, ~~distribution~~respectively. ~~paying~~The ~~agent~~distributions ~~and~~will ~~registrar~~be payable to stockholders of record as of the monthly record dates set forth below.

The foregoing description of the Distribution Agreement is a summary only and does not purport to be complete and is qualified in its entirety by reference to the full text of the Distribution Agreement, which is filed herewith as Exhibit 10.1 and incorporated herein by reference.

Record Date

Payment Date

PFLOAT Class A Common Shares, per share

PFLOAT Class I Common Shares, per share

February 27, 2026

March 6, 2026

$0.02916

March 27, 2026

April 3, 2026

$0.02916

April 24, 2026

May 1, 2026

$0.02916

~~Item~~Certain ~~1.02.~~Information ~~Termination~~About ~~of a Material Definitive Agreement.~~Distributions

OnThe ~~January~~determination ~~26,~~of ~~2026,~~the tax attributes of the Company’s ~~signed~~distributions anis ~~agreement~~made ~~with~~annually ~~Preferred~~as ~~Capital~~of ~~Securities,~~the ~~LLC~~end ~~("PCS")~~of tothe ~~terminate~~Company’s fiscal year based upon its ~~existing~~taxable ~~Dealer~~income ~~Manager~~and ~~Agreement~~distributions (paid, in each case, for the ~~"Existing~~full ~~Dealer~~year. ~~Manager~~Therefore, ~~Agreement")~~a ~~with~~determination ~~PCS~~as ~~dated~~to ~~May~~the ~~13,~~tax ~~2024~~attributes ~~under~~of ~~which~~the ~~PCS~~distributions ismade ~~acting~~on asa ~~dealer~~weekly, ~~manager~~monthly inor quarterly basis may not be representative of the ~~Offering~~actual tax attributes for a full year. The ~~termination~~Company intends to update shareholders quarterly with an estimated percentage of ~~the~~its ~~Existing~~distributions ~~Dealer~~that ~~Manager~~resulted ~~Agreement~~from taxable ordinary income. The actual tax characteristics of distributions to shareholders will be ~~effective~~reported asto ofshareholders ~~the~~annually ~~Distribution~~on ~~Agreement~~a ~~Effective~~Form ~~Date~~1099-DIV. The ~~termination~~payment of future distributions on the Company’s common stock is bysubject ~~mutual~~to ~~agreement~~the discretion of the ~~parties~~Board of Directors and noapplicable ~~early~~legal ~~termination~~restrictions, ~~penalties~~and ~~will~~therefore, there can be ~~incurred~~no byassurance as to the ~~Company~~amount ~~resulting~~or timing of any such future distributions. Distributions shall first be treated as a distribution of taxable investment company income undistributed from the ~~termination~~prior year and then treated as a distribution of taxable investment company income for the ~~Existing~~current ~~Dealer~~year. ~~Manager~~This ~~Agreement~~treatment will not affect tax reporting to shareholders.

The Company may fund its cash distributions to shareholders from any sources of funds available to it, including offering proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies and expense reimbursements from Prospect Capital Management, L.P. (“PCM”), which are subject to recoupment. If distributions exceed the Company’s net investment income or earnings, a portion of the distributions made by the Company may represent a return of capital for tax purposes. PCM has no obligation to provide expense reimbursements to the Company in future periods. There can be no assurance that the Company will be able to pay distributions at a specific rate or at all.

The information disclosed under this Item 8.01 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

Exhibit No.			Description
10.1			Distribution Agreement, by and between Prospect Floating Rate and Alternative Income Fund, Inc. and Ultimus Fund Distributors, LLC
99.1			Press Release, dated February 26, 2026

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: January 27, 2026

Prospect Floating Rate and Alternative Income Fund, Inc.

Dated: February 26, 2026

Prospect Floating Rate and Alternative Income Fund, Inc.

/s/ M. Grier Eliasek

M. Grier EliasekChief Executive Officer(Principal Executive Officer)

Filing Compare · Prospect Floating Rate & Alternative Income Fund, Inc.