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Prospect Floating Rate & Alternative Income Fund Inc.

25/07/2024 | Press release | Distributed by Public on 25/07/2024 20:31

Material Event Form 8 K

Item 8.01. Other Events.
Declaration of Monthly Cash Distributions
On July 25, 2024, the Board of Directors of Prospect Floating Rate and Alternative Income Fund, Inc. (the "Company") declared a distribution for the month of July 2024, which reflects a targeted annualized distribution rate of 7.50% based on the current net asset value per share for the third fiscal quarter ended March 31, 2024. The distribution has a monthly record date as of the close of business of the last Friday in July 2024 and equals a weekly amount of $0.00681 per share of common stock. The distribution will be payable monthly to stockholders of record as of the monthly record date set forth below.
Record Date Payment Date PFLOAT Class A Common Shares, per share
July 26, 2024 August 2, 2024 $0.02724
Certain Information About Distributions
The determination of the tax attributes of the Company's distributions is made annually as of the end of the Company's fiscal year based upon its taxable income and distributions paid, in each case, for the full year. Therefore, a determination as to the tax attributes of the distributions made on a weekly, monthly or quarterly basis may not be representative of the actual tax attributes for a full year. The Company intends to update shareholders quarterly with an estimated percentage of its distributions that resulted from taxable ordinary income. The actual tax characteristics of distributions to shareholders will be reported to shareholders annually on a Form 1099-DIV. The payment of future distributions on the Company's common stock is subject to the discretion of the Board of Directors and applicable legal restrictions, and therefore, there can be no assurance as to the amount or timing of any such future distributions.
The Company may fund its cash distributions to shareholders from any sources of funds available to it, including offering proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies and expense reimbursements from Prospect Capital Management, L.P. ("PCM"), which are subject to recoupment. If distributions exceed the Company's net investment income or earnings, a portion of the distributions made by the Company may represent a return of capital for tax purposes. PCM has no obligation to provide expense reimbursements to the Company in future periods. There can be no assurance that the Company will be able to pay distributions at a specific rate or at all.
The information disclosed under this Item 8.01 is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.