Prospect Capital Announces RGIS Exit With 13.6% Cash on Cash Realized IRR and 1.6x Multiple of Invested Capital

The planned exit would free capital from non-income-producing equity for additional income-producing corporate debt investments.

Rhea-AI Summary

Prospect Capital (NASDAQ: PSEC) signed a definitive agreement to exit its investment in RGIS Services for expected proceeds of approximately $22 million. Prospect expects the transaction to close in November 2026.

For the investment held since 2017, Prospect expects to have achieved a 13.6% realized gross annualized internal rate of return and 1.6 times invested capital, including interest income, equity distributions and other cash flows. The company plans to rotate from the non-income-producing equity investment into additional first lien senior secured corporate debt investments that produce income.

4 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

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0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.RGIS exit agreement provides expected proceeds of approximately $22 million. 2.8% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.RGIS investment since 2017 is expected to deliver 13.6% realized gross annualized internal rate of return.
• Minor point. Forward-looking: it has not happened yet and may not happen.RGIS investment is expected to deliver 1.6 times invested capital through interest, equity distributions and other cash flows.
• Minor point. Forward-looking: it has not happened yet and may not happen.Prospect plans to reinvest in first lien senior secured income-producing corporate debt.

Negative

• Minor pointRGIS exit remains pending closing, expected in November 2026.

Key Figures

Expected proceeds: approximately $22 million Realized gross annualized IRR: 13.6% Multiple of invested capital: 1.6x +1 more

Expected proceeds

approximately $22 million

From the RGIS investment exit

Realized gross annualized IRR

13.6%

RGIS investment since 2017

Multiple of invested capital

1.6x

RGIS investment since 2017

Expected closing

November 2026

RGIS transaction

Historical Context

1 past event · Latest: Aug 20

1 event

1. Aug 20

   Portfolio exit

   24h Move

   +2.2%

   Valley Electric exit reported a 20.5% realized gross annualized IRR and 4.8x invested capital multiple.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

cash on cash, internal rate of return, multiple of invested capital, first lien senior secured

4 terms

cash on cash financial

"13.6% Cash on Cash Realized IRR"

Cash-on-cash is a measure of the annual pre-tax cash income from an investment divided by the total cash that the investor actually put into it. It is calculated by taking the cash received in a year (for example rental income or distributed cash flow after operating expenses and debt service) and dividing that by the initial cash invested; it does not include non-cash accounting items, capital gains or principal repayment and therefore does not reflect changes in market value or tax effects.

internal rate of return financial

"13.6% realized gross annualized internal rate of return"

A percentage that represents the annualized yield an investment would earn, taking into account the timing and amount of all cash inflows and outflows; mathematically it is the rate that makes the discounted sum of future cash flows equal the initial cost. Investors use it to compare different projects or deals the way they compare interest rates — a higher internal rate of return suggests a stronger potential payoff, but it does not by itself show risk, scale, or timing nuances.

multiple of invested capital financial

"1.6 times multiple of invested capital"

Multiple of invested capital is a simple ratio that shows how many dollars an investor has now (or expects to get) for each dollar they put in. Think of it as counting how many slices of pie you receive compared with the slice you paid for; it's a quick measure of total return and helps investors compare how much value an investment produced without accounting for how long that value took to appear.

first lien senior secured financial

"first lien senior secured income-producing corporate debt investments"

Debt described as "first lien senior secured" has the top priority claim on a borrower’s specified assets and must be repaid before other debts if the borrower defaults. Think of it as being first in line with a lien acting like a mortgage on particular assets; because it’s backed by collateral and ranks ahead of other creditors, it generally carries lower risk and affects how investors assess potential recovery and interest rates.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Oct. 27, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”), a leading business development company focused on investing in middle-market businesses, today announced the signing of a definitive agreement for the successful exit of Prospect's investment in RGIS Services, LLC (“RGIS”).

The closing of the transaction is expected to occur in November 2026 and Prospect expects to receive proceeds of approximately $22 million for its investment in RGIS. Over the life of the RGIS investment since 2017, Prospect will have achieved a 13.6% realized gross annualized internal rate of return and 1.6 times multiple of invested capital through a combination of interest income, equity distributions, and other cash flows.

RGIS (formerly known as Retail Grocery Inventory Services) is a global provider of inventory, supply chain and asset solutions. RGIS completes approximately 230,000 inventory counts around the world in 66 countries annually with a team of approximately 15,000 employees. RGIS utilizes proprietary scanning technology for speed and accuracy to reduce downtime and quickly resume operations for clients.

“Prospect’s successful investment in RGIS provides another example of Prospect’s experience successfully investing in leading companies that generate strong investment returns for our shareholders,” said David Moszer, Managing Director at Prospect. “Prospect is pleased to have worked with and supported RGIS for many years to result in a successful outcome, which will allow us to rotate from this non-income-producing equity investment into additional first lien senior secured income-producing corporate debt investments.”

About Prospect Capital Corporation

Prospect is a business development company that invests in middle market privately-held companies. Prospect’s investment objective is to generate both current income and long-term capital appreciation.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.

Internal Rate of Return (“IRR”) is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. IRR is gross of general expenses not related to specific investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized. Prospect’s gross IRR calculations are unaudited. Information regarding internal rates of return are historical results relating to Prospect’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.

For additional information, contact:

Grier Eliasek, President and Chief Operating Officer
grier@prospectcap.com
Telephone (212) 448-0702

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much does Prospect Capital expect from the RGIS exit, and when will it close?

Prospect expects proceeds of approximately $22 million, with closing expected in November 2026. A definitive agreement has been signed; the transaction has not yet closed.

What return does Prospect Capital expect on its RGIS investment?

Prospect expects its investment held since 2017 to have achieved a 13.6% realized gross annualized internal rate of return and 1.6 times invested capital. Those returns include interest income, equity distributions and other cash flows over the investment's life.