Prospect Floating Rate & Alternative Income Fund Declares May 2026 Distribution

What Happened

• Prospect Floating Rate & Alternative Income Fund, Inc. filed an 8-K (Item 8.01) on May 28, 2026 announcing a "base" distribution for May 2026. The Board set a targeted annualized "base" distribution rate of 10.0% based on NAV for the third fiscal quarter ended March 31, 2026.
• Record date: close of business May 29, 2026. Payment date: June 5, 2026. Distribution per share: $0.03655 for PFLOAT Class A and $0.03655 for PFLOAT Class I.

Key Details

• Targeted annualized "base" distribution rate: 10.0% (based on Q3 ended March 31, 2026 NAV).
• Per-share payment: $0.03655 for both Class A and Class I common shares.
• Record date: May 29, 2026; Payment date: June 5, 2026.
• Tax reporting: final tax character of distributions determined annually; shareholders will get Form 1099-DIV. The company may fund distributions from various sources (net investment income, offering proceeds, borrowings, realized gains, reimbursements from Prospect Capital Management, L.P.), and portions may be treated as a return of capital for tax purposes.

Why It Matters

• This filing informs shareholders of the cash distribution and the Board’s targeted annualized payout level (10.0% based on recent NAV), which is a key driver of income for investors in the fund.
• The filing also warns that the tax treatment of distributions is determined annually (so monthly/quarterly disclosures may be estimates) and that distributions can come from multiple sources and could include return of capital—important for after-tax return considerations.
• The Board retains discretion over future distributions and there is no guarantee distributions will continue at this rate.