Dividend Reinvestment Plan

Dividend Reinvestment Plan

PLAN OVERVIEW

We have adopted a dividend reinvestment plan that provides for reinvestment of our distributions on behalf of our stockholders, unless a stockholder elects to receive cash. If and when our board of directors authorizes, and we declare, a cash dividend, then our stockholders who have not "opted out" of our dividend reinvestment plan may have their cash dividends automatically reinvested in additional shares of our common stock, rather than receiving the cash dividends.

We encourage any shareholder interested in participating in our dividend reinvestment plan (also known as a “DRIP” or “DRP”) to contact his or her broker to make sure such DRIP participation election has been made for the benefit of such shareholder. In making such DRIP election, be sure to specify to your broker the desire to participate in the "Prospect Capital Corporation DRIP plan through DTC" that issues shares based on 95% of the market price (a 5% discount to the market price), and not the broker's own "synthetic DRIP” plan with 0% discount.

Do not assume your broker will automatically place you in our DRIP plan through DTC; you will need to make this election proactively with your broker.

Effective as of May 21, 2020, we made a change to our long-standing dividend reinvestment plan started in 2004: stockholders may now receive a number of newly-issued shares based on 95% of the market price of our common stock if they are enrolled in our dividend reinvestment plan (provided their brokers participate), as described in further detail in the 8-K filed April 17, 2020.

For monthly information on our dividends, including the historic Prospect Capital Corporation DRIP plan price, please see Dividends.


HOW TO PARTICIPATE

Shares held with a broker or financial institution

Some brokers and financial institutions “opt out” of an issuer’s dividend reinvestment plan on behalf of all their clients and instead implement a synthetic dividend reinvestment plan in which they (1) purchase shares in the open market at the market price with zero discount with the funds from cash dividends and (2) credit client accounts with the number of shares purchased. If you hold your shares in the name of a broker or financial institution, we suggest you consult with a representative of your broker or financial institution with respect to your participation in our dividend reinvestment plan and to verify that your broker or financial institution has not “opted out” of our dividend reinvestment plan (which utilizes DTC’s dividend reinvestment service) so that you may receive a greater number of shares based on 95% of the market price. You may also consult with a representative of your broker or financial institution to request that the number of shares you wish to enroll in our dividend reinvestment plan be re-registered by the broker or financial institution in your own name as record owner in order to participate directly in our dividend reinvestment plan.

Shares registered directly with our transfer agent

If you hold shares registered in your own name with our transfer agent (only a small number of our shareholders hold their shares this way) and want to make a change to how you receive your dividends, please contact our plan administrator, American Stock Transfer and Trust Company LLC by mail or by telephone.


American Stock Transfer and Trust Company LLC

6201 15th Avenue, Brooklyn, New York 11219

1-888-888-0313.