Prospect Floating Rate Fund Declares Cash Distributions (14.46% APR)

What Happened

• Prospect Floating Rate & Alternative Income Fund, Inc. filed an 8-K (Regulation FD disclosure) announcing the Board declared a monthly "base" and a quarterly "bonus" cash distribution for the September 2026 record period. The monthly base distribution was declared for September 2026 and the Board reported an annualized base distribution rate of 10.00% based on a net asset value (NAV) of $3.89 per share as of June 30, 2026. The combined total annualized cash distribution equals $0.56232, or 14.46% annualized based on the $3.89 NAV.

Key Details

• Monthly base distribution: $0.03242 per share for both PFLOAT Class A and Class I; record date: September 30, 2026 (last business day of September); payment date: October 7, 2026.
• Quarterly bonus distribution: $0.04333 per share for both PFLOAT Class A and Class I; record date: September 30, 2026; payment date: October 7, 2026.
• NAV used for annualized rates: $3.89 per share as of June 30, 2026; total annualized cash distribution = $0.56232 (14.46% annualized).
• Tax and funding notes: tax attributes are determined annually and reported on Form 1099-DIV; distributions may be funded from income, gains, offering proceeds, borrowings or other sources and could include a return of capital; expense reimbursements from Prospect Capital Management, L.P. are possible but not guaranteed.

Why It Matters

• For shareholders, the filing confirms cash payments with specific record and pay dates and shows a high reported yield (14.46% annualized as presented). However, investors should note the fund warns distributions may be paid from various sources and that the final tax characterization will be determined at year-end—some portion could be a return of capital, which reduces cost basis rather than representing taxable income. Distributions are at the Board’s discretion and not guaranteed.