1. Prospect Enhanced Yield Fund announces cash distributions totaling $2.28 per share. 2. Distributions are established for three months with a 9% annualized rate. 3. Fund invests in non-mortgage related structured credit instruments. 4. Returns may exceed earnings, affecting capital returns for tax purposes. 5. Prospect manages $7.5 billion in assets and focuses on high-yield investments.
FAQ
Why Bullish?
The announced distributions and yield signify strong cash flow potential, benefiting PSEC.
How important is it?
This news influences PSEC indirectly through portfolio management and distribution strategies.
Why Short Term?
Immediate cash distribution news likely influences investor sentiment and stock price rapidly.
Prospect Enhanced Yield Fund Declares 9.0% Annualized Total Cash Distribution Rate
NEW YORK, Dec. 08, 2025 (GLOBE NEWSWIRE) — Prospect Enhanced Yield Fund (“PENF” or the “Fund”) has announced significant monthly cash shareholder distributions, marking its first distributions for the months from October to December 2025. The declared annualized total cash distribution is set at $2.28 per share, reflecting a 9.0% annualized rate based on the net asset value (NAV) as of October 20, 2025.
Details of the Monthly Cash Distributions
The Fund’s Board of Directors has approved three monthly cash distributions with record dates spanning October 30, 2025, to December 30, 2025. Based on the current NAV of $25.29 per common share, these distributions are as follows:
- October 2025: Record Date: 10/30/2025 | Payment Date: 11/03/2025 | Amount: $0.19 per share
- November 2025: Record Date: 11/26/2025 | Payment Date: 12/01/2025 | Amount: $0.19 per share
- December 2025: Record Date: 12/30/2025 | Payment Date: 01/02/2026 | Amount: $0.19 per share
These distributions will cumulatively equal $0.57 per share on a quarterly basis, representing a notable return for investors.
Tax Treatment of Distributions
The distributions are initially categorized as distributions of taxable investment company income undistributed from the prior year. This treatment, however, will not impact tax reporting for shareholders. Investors can expect comprehensive details on the tax implications associated with these distributions in their individual statements.
About Prospect Enhanced Yield Fund
The Prospect Enhanced Yield Fund is a closed-end fund functioning as an interval fund, primarily focused on acquiring and growing investments in non-mortgage related structured credit instruments. These instruments include:
- Asset-backed securities
- Collateralized loan obligations
- Securitized investments representing cash flows from various assets including loans and leases
The Fund’s management is helmed by Prospect Enhanced Yield Management, LLC, featuring a skilled team of investment professionals. This experienced team is responsible for optimizing the Fund's investment strategy and achieving its financial objectives.
About Prospect Capital Management L.P.
Prospect Capital Management L.P. (“Prospect”), based in New York City, is an SEC-registered investment adviser with over 30 years of experience in managing high-yield debt and equity investments. With over 100 professionals dedicated to credit-oriented investments, Prospect manages approximately $7.5 billion in assets as of June 30, 2025. Prospect is also the investment adviser to Prospect Capital Corporation (NASDAQ: PSEC).
Important Considerations for Investors
It is crucial for investors to evaluate the Fund's investment objectives, risk factors, management fees, and ongoing expenses prior to investing. The prospectus contains detailed information regarding these aspects and should be reviewed carefully. For a prospectus, investors can contact their investment representative or reach Investor Services at 866.655.3650.
Forward-Looking Statements
This press release may contain forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, which may cause actual results to differ materially from expectations. Prospective investors should keep in mind that future performance cannot be guaranteed.