Prospect Floating Rate & Alternative Income Fund Declares Cash Distributions

What Happened

• Prospect Floating Rate & Alternative Income Fund, Inc. announced (via press release dated June 24, 2026) that its Board declared a monthly "base" cash distribution for June 2026 and a quarterly "bonus" cash distribution to common shareholders. The monthly record date is the close of business on the last Friday of June 2026 (June 26, 2026) with payment on July 2, 2026.

Key Details

• Monthly base distribution (June 2026): $0.02924 per share for PFLOAT Class A and Class I.
• Quarterly bonus distribution (June 2026): $0.04723 per share for PFLOAT Class A and Class I.
• Combined annualized cash distribution: $0.56992 total (14.96% annualized based on NAV of $3.81 as of 3/31/2026). Separately, the Board noted an annualized total distribution rate of 10.00% based on NAV for the fiscal quarter ended March 31, 2026.
• Tax and funding notes: Tax attributes are determined annually and will be reported on Form 1099-DIV; distributions may be funded from various sources (net investment income, offering proceeds, borrowings, capital proceeds, reimbursements from Prospect Capital Management, L.P.), and portions may be treated as a return of capital for tax purposes. Future distributions remain at the Board’s discretion and subject to legal limits.

Why It Matters

• Investors receive the immediate cash amounts and dates (record date June 26, 2026; pay date July 2, 2026) and can see the impact on yield: the declared payments imply a high annualized payout (14.96% on the cited NAV), which may be relevant for income-focused shareholders. The filing also warns that the tax treatment of distributed amounts is finalized annually and that distributions can be funded from non-income sources, which can affect after-tax returns and principal.