Prospect Flexible Income Fund Inc., a non-traded business development company formerly known as TP Flexible Income Fund Inc., has increased its quarterly net asset value per share and monthly cash distributions to stockholders.
Prospect Flexible Income Fund, which changed its name last month, was created by the merger of Pathway Capital Opportunity Fund and Triton Pacific Investment Corporation.
The fund’s new NAV per share is $8.28, representing a 3 percent increase over the quarter ended March 31, 2020.
The fund also declared increased monthly cash distributions to stockholders for September 2020, October 2020, and November 2020, representing a 6 percent increase in per share amounts.
As a result of the increase in NAV and a corresponding increase in offering price, the fund is increasing its targeted shareholder annualized distribution amount to equal 7 percent of the current Class A offering price of $9.33 per share.
The declared distributions have weekly record dates and are payable monthly to the stockholders of record as of the close of business of each week in September 2020, October 2020, and November 2020. The distributions equal a weekly amount of $0.01253 per share of common stock (representing $0.16289 per common share on a quarterly basis, or $0.65156 annualized).
For the fiscal year ended June 30, 2020, the fund’s distributions were composed of approximately 20 percent from cash flows from its investments and operations, 80 percent was a return of capital, and 0 percent from borrowings.
According to a filing with the SEC, Prospect Flexible Income Fund’s continuous public offering includes up to $300 million shares of Class A common stock.
Last month, the fund amended its dealer manager agreement with Triton Pacific Securities to increase upfront selling commissions from a maximum of 3.0 percent to a maximum of 6.0 percent, with a dealer manager fee of up to 3.0 percent.
Thus, the upfront sales load will increase from up to 6.0 percent to up to 9.0 percent of the offering proceeds from Class A shares sold in the offering.
Prospect Flexible Income Fund invests primarily in senior and secured credit of privately-owned U.S. middle market companies. As of the first quarter of 2020, the fair value of the fund’s investments totaled $36.5 million, and as of June 2020, the fund had raised $23.8 million.
The fund is managed by Prospect Flexible Income Management LLC, which is a controlled affiliate of Prospect Capital Management L.P., which had $5.9 billion of assets under management as of June 30, 2020.