Q2 2022 Prospect Capital Corp Earnings Call
Speaker 4: This diversity of origination approaches allows us to source a broad range and high volume of opportunities.
Speaker 4: then select in a disciplined, bottoms-up manner the opportunities we deem to be the most attractive on a risk-adjusted basis.
Speaker 4: Our team typically evaluates thousands of opportunities annually and invests in a disciplined manner in a low single digit percentage of such opportunities.
Speaker 4: Our non-bank structure gives us the flexibility to invest in multiple levels of the corporate capital stack with a preference for secured lending and senior loans.
Speaker 4: As of December 2021, our portfolio at fair value comprised 46.7% secured first lien debt.
Speaker 4: 19.5% other senior secured debt.
Speaker 4: 10.6% subordinated structured notes with underlying secured first lien collateral.
Speaker 4: and 23.2% unsecured debt, other debt, and equity investments.
Speaker 4: Resolving in 76.8% of our investments being assets with underlying secure debt benefiting from bar war pledged collateral.
Speaker 4: Prospects approach is one that generates attractive risk-adjusted yields and our performing interest-barry investments were generating an annualized yield of 10.6% as of December , down 1% from the prior quarter. We also hold equity positions in certain investments that can act as yield enhancers or capital gains, contributors, as such positions generate distribution.
Speaker 4: We've continued to prioritize senior and secure debt with our originations to protect against downside risk, while still achieving above market yields through credit selection discipline and a differentiated origination.
Speaker 4: As of December , we held 127 portfolio companies, up three from the prior quarter, with a fair value of 7.0 billion.
Speaker 4: It increased of $572 million from the prior quarter.
Speaker 4: We also continue to invest in a diversified fashion across many different portfolio company industry.
Speaker 4: with a preference for avoiding cyclicality and with no significant industry concentration. The largest is 15.
Speaker 4: As of December , our asset concentration in the energy industry stood at 1.3 percent.
Speaker 4: our concentration in the hotel restaurant in leisure sector stood at 0.3% and our concentration in the retail industry stood at 0%. Non-accruals as a percentage-
[music].
Speaker 4: We stood at approximately 0.4% in December , down 0.1% from the prior quarter, and down 0.5% from June .
Speaker 4: Our weighted average middle market portfolio net leverage stood at 5.2 times EBITDA. Substantially below our reporting peer.
Speaker 4: are weighted average EBITDA per portfolio company, stood at 99.5 million in December . It increased to 4.2 million and 4%.
Speaker 4: from September 2021, as we continue to achieve solid profit growth with our portfolio.
Speaker 4: Originations in December aggregated 855 million for the quarter. We also experienced 444 million of repayments in exits as a validation of our capital preservation objectives. Resulting in net originations of 411 million.
Speaker 4: During the December quarter, our originations comprised 85.6% middle-market lending, 9.4% real estate, 3.3% support four day instructions.
Speaker 4: 1% middle market lending buyouts and 0.7% other.
Speaker 4: To date, we deployed significant capital in the real state arena through our private REIT strategy.
Speaker 4: largely focused on multi-family workforce stabilized yield acquisitions with attractive seven to twelve year finance
Speaker 4: NPRC, our private reach, has real estate properties that have benefited over the last several years and more recently from rising rents, showing the inflation hedge nature of this business segment.
Speaker 4: strong occupancies, high collections, suburban work from home dynamic.
Speaker 4: High Returning Value-Aided Renovation Program.
Speaker 4: and attractive financing recapitalization. Resulting in an increase in...
Hello, and welcome to today's prospect capsule second fiscal quarter earnings release and conference call. My name is I think that's might be COVID-19, you cold stack. If you would like to register a question. During the presentation. You may do so by pressing star followed by one on your telephone keypad.
Speaker 4: as a validation of this income growth business alongside our corporate credit.
Speaker 4: NPRC as of December has exited completely 43 properties at an average IRR of 25.
I would now like to hand over to our host Mr. John Barry Chairman and CEO of Prospect capital. Please go ahead.
Thank you Elliot and good morning, everyone Joy.
Speaker 4: and average realized cash multiple of invested capital of 2.5 times.
Joining on.
The call today.
Greer, Elisa Guy President and Chief operating Officer.
Speaker 4: with an objective to redeploy capital into new property acquisitions, including with repeat property manager relationship.
And Kristin Van desk, our Chief Financial Officer Kristin.
Speaker 4: Our structured credit business has delivered attractive cash yields, demonstrating the benefits of pursuing-
Thank you John .
<unk> is the property of prospect unauthorized use is prohibited.
This call contains forward looking statements that are intended to be subject to safe Harbor protection.
Speaker 4: working with world-class management teams, providing strong collateral underwriting through primary issuance, and focusing on favorable risk-adjusted opportunities.
Actual developments and results are highly likely to vary materially and we do not undertake to update our forward looking statements unless required by law.
Speaker 4: As of December , we held $744 million across 39 non-recourse subordinated structured notes in vest...
For additional disclosure please see our earnings press release, and 10-Q filed previously and available on our website Prospect Street Dot Com now I will turn the call back over to John .
Speaker 4: These underlying structured credit portfolios comprised around 1800 loans.
Thank you Kristen.
Speaker 4: and a total acid base of around 16 billion.
In the December quarter.
Our net investment income or NII was $85.6 million.
Speaker 4: As of December 2021, the structured credit portfolio experienced a trailing 12-month default rate of 19-bas-
<unk> 22 cents per common share.
Speaker 4: down seven basis points on the prior quarter and representing ten basis points less than the broadly syndicated market default rate of 20.
Exceeding our distribution rate per common share by four cents.
Our basic net income.
Attributable to common shareholders.
Speaker 4: In the December quarter, this portfolio generated an annual cash yield of 20.5%.
Was $246.4 million or 63 cents per common share.
Speaker 4: and gap yield of 9.8% with a difference representing a significant amortization of our cost-based.
As the overall value of our investment portfolio increased for the seventh consecutive quarter due to a combination of positive company specific and macro factors.
Speaker 4: As of December , our subordinate structured credit portfolio has generated 1.41 billion in cumulative cash distributions to us.
Our net asset value stood at $10.60 per common share in December up 48 cents and four 7%.
Speaker 4: representing around 99% of our original investments.
Speaker 4: Through December , we've also exited 10 investments, totaling 286 million.
From the prior quarter.
And representing our seventh quarter in a row with N a V growth.
Speaker 4: with an average realized IRR of 15.7% and cash on cash multiple of 1.55 times.
Our NAV per common share.
Is now at the highest level since September 2015 over six years ago.
Speaker 4: Our subordinate structured credit portfolio consists entirely of majority-owned positions.
Speaker 4: Such positions can enjoy significant benefits compared to minority holdings in the same trunch. In many cases, we receive fee rebates because of our majority position. As a majority holder, we control the ability to call a transaction in our sole discretion in the future, and we believe such options add substantial value.
We have outperformed our peers during the past multiple quarters of macro volatility.
As a direct result.
Of our previous Derisking not.
Not chasing leverage as well as other risk management controls.
We are staying true to the strategy.
He has served us well since 1988 <unk>.
Speaker 4: We have the option of waiting years to call a transaction in an optimal fashion rather than when loan prices and loan asset valuations might be temporarily low.
Controlling and reducing portfolio and balance sheet risk.
Both to protect the capital entrusted to us.
And to protect the ability of such capital.
Speaker 4: We as majority investor can refinance liabilities on more advantageous terms, remove bond baskets and exchange for better terms from debt investors in the deal, and extend or reset the investment period to an enhanced value.
To generate earnings for our shareholders.
In the December quarter, our net debt to equity ratio was 51, 3%.
Speaker 4: We completed 32 refinancings and resets since December of 2020.
Down 22, eight percentage points from March 2020.
Speaker 4: So far in the current March 2022 quarter, we have booked 284 million in originations and experienced 108 million of repayment.
And up three one percentage points.
The September quarter.
As we continue to run.
And under leveraged balance sheet.
Speaker 4: for 176 million of net origination.
Which has been the case for us.
Speaker 4: Our originations have consisted of 81.9% it'll market lending.
For multiple quarters.
In may two.
Speaker 4: 12.3% subordinate structured notes, 4.3% real estate, and 1.5% other. Thank you. I'll now turn the call over.
2020, we moved our minimum 1940 act regulatory asset coverage.
150%.
Equivalent to 200% debt to equity.
Which not only increased our cushion.
Speaker 3: We believe our prudent leverage, diversified access to matchbook funding, substantial majority of unencumbered assets waiting toward unsecured fixed rate debt, avoidance of unfunded asset commitments, and lack of near-term materities demonstrate both balance sheet strengths, as well as substantial liquidity to capitalize unattractive opportunities.
But it also gave us flexibility to pursue our subsequently announced junior capital.
Perpetual preferred equity issuance.
Which counts toward 40 act asset coverage.
But which gets significant equity treatment.
Speaker 3: Our company has locked in a ladder of liabilities extending 30 years into the future.
By our rating agencies.
We have no plans to increase our actual drawn debt leverage beyond our historical target of <unk> seven O. The 0.85.
Speaker 3: Today we have zero debt maturing until July 2022, with a sole maturity of 60.5 million then, for all of calendar year 2022.
Debt to equity.
Speaker 3: Our total unfunded eligible commitments to non-control portfolio companies total is approximately 38 million, representing approximately 0.5% of our assets.
And we are currently significantly below that target range.
Prospects balance sheet is highly differentiated from peers with 100% of prospects funding.
Speaker 3: are combined balance cash and undrawn revolving credit facility commitments currently stand at approximately nine hundred and sixty million
Coming from unsecured.
And nonrecourse debt.
Which has been the case for prospect for over 14 years.
Speaker 3: We are a leader and innovator in our marketplace. We were the first company in our industry to issue a convertible bond, develop a notes program, issue under a bond, an equity ATM, acquire another BDC, and many other lists of firsts.
Unsecured debt.
Was 83%.
Of prospects total debt.
In December .
2021 .
We're about 30 percentage points higher.
Speaker 3: In 2020, we also added our programmatic perpetual preferred issuance to that list of firsts.
Then around 50% for.
For the typical listed BDC.
Speaker 3: followed in 2021 by our listed perpetual preferred as another first in the industry.
Our unsecured and diversified funding profile provides us with significantly lower risk and significantly more investment strategy and balance sheet flexibility than many of our BDC peers.
Speaker 3: Shareholders and unsecured creditors alike should appreciate the thoughtful approach differentiated in our end.
Speaker 3: which we have taken toward construction of the right hand side of our balance sheet.
On the cash shareholder distribution front.
Speaker 3: As of December 2021, we held approximately 4.99 billion of our assets as unencumbered assets, representing approximately 71% of our portfolio.
We are pleased to report the board's declaration of continued steady monthly distributions.
We are announcing monthly cash common shareholder distributions of <unk> <unk> per share.
Speaker 3: The remaining assets are pledged to prospect capital funding, a non-recourse SPV. Where in April 2021, we completed an up sizing and extension of our revolver to a refreshed five-year maturity.
For each of February March and April .
These three months represent the 50 455.
Speaker 3: After another recently completed up sizing, we currently have 1.5 billion of commitment from 43 banks and increase of 13 lenders from March 2021 and demonstrating strong support of our company from the lender community with a diversity unmatched by any other company in our industry.
And 56th in a row consecutive stable per share rate.
Nearly five years of stable monthly cash shareholder distributions.
Consistent with past practice.
We plan on our next set of shareholder distribution announcements in May.
Speaker 3: The facility revolves until April 2025, followed by a year of amortization with interest distributions continuing to be allowed to us.
Our goal over the long term is to maintain and ideally grow this steady monthly cash shareholder distribution.
As we seek to provide low volatility stability to our shareholders amidst a macro market backdrop.
Speaker 3: are undrawn pricing between 35% and 60% utilization has been reduced by 30 basis points.
Livers greater volatility elsewhere.
Speaker 3: We also now have an improvement in our borrowing base due to a change in concentration baskets which we estimate increased our borrowing base by approximately 150 million.
Yeah.
Shareholders participating in a common stock drip for.
For the 12 months ended December 31st 2021.
Speaker 3: Other floating rate assets 95.2% had LIBOR floors with a weighted average LIBOR floor of 1.35%.
We received a return of 4.5% greater.
Then non participating shareholders.
Speaker 3: Outside of our revolver and benefiting from our unencumbered assets that we have issued at Prospect Capital Corporation, including in the past few years, multiple types of investment grade, unsecured debt, including convertible bonds, institutional bonds, baby bonds, and program notes.
For a total return.
Of more than 73%.
For the 12 months ended December 31.
2021 .
Both returns and four 5%.
Greater than non drip.
73%.
Speaker 3: All of these types of unsecured debt have no financial covenants, no asset restriction, and no cross defaults with our revolver.
All are greater than the same period returns on the S&P 500.
Speaker 3: We enjoy an investment grade triple B negative rating from S&P and investment grade B, AA3 rating from Moody.
And I'm more glamorous names that do not pay dividends.
Including well known tech stocks and so many other high fliers.
Speaker 3: An investment grade triple B negative rating from CROL. An investment grade triple B rating from E. and Jones.
Since our IPO.
Nearly 18 years ago through our April 2022 distribution at the current share count.
Speaker 3: and an investment grade trip will be low rating from DBRS.
Speaker 3: In 2021, we received the latter investment grade rating, taking us to five investment grade ratings, more than any other company in our industry. All of these ratings have stable outlooks.
We will have paid out $19 32.
Per common share to original shareholders.
The aggregated approximately $3.6 billion in cumulative distributions to all common shareholders.
Speaker 3: We've now tapped the unsecured term debt market on multiple occasions to ladder our maturities and to extend our liability duration out 30 years. Our debt maturities extend through
Since October 2017.
Speaker 3: With so many banks and debt investors across so many debt branches, they substantially reduced our counterparty risk over the years.
More than four years ago.
Our net investment income per common share has aggregated $3.37.
Speaker 3: In the December 2021 quarter, we completed successful redemptions, tender offerings, and repayments, retiring 74 million of our internotes, and 69 million of our 2029 notes.
Well, our common and preferred shareholder distributions.
Common share have aggregated $3 and nine.
Speaker 3: In the current March quarter, we have retired 16 million of our internodes.
Resulting in our net investment income.
Exceeding distributions.
Speaker 3: In the December 2021 quarter, we have continued to substitute more expensive term debt with significantly lower cost revolving credit with an incremental 1.47% cost.
During this period by <unk> 28 per share.
Our net investment income covered distributions to common and preferred shareholders in.
Speaker 3: We also have continued with our weekly programmatic internals issuance on an efficient funding basis.
In the June 2021 fiscal year.
And have exceeded common and preferred shareholder distributions and.
Speaker 3: To date, we have raised over 515 million aggregate issuance of our perpetual preferred stock across our preferred programs and listed preferred.
In the 2021 fiscal year to date <unk> per share.
We are also pleased to announce continued preferred shareholder distributions.
Speaker 3: We now have seven separate, unsecured debt issuances aggregating 1.6 billion, not including our program notes, with maturities extending through October of 2020-28.
On the heels of successful launches.
Of our one <unk> two 5 billion.
Speaker 3: As of December 2021, we had 341 million of program notes outstanding with staggered maturities through 2051.
Five 5% preferred programs.
And $150 million.
535%.
Speaker 3: At December 31, 2021, our weighted average cost of unsecured debt financing was 4.39%. A decrease of 0.17% from September 30, 2021. A decrease of 1.11% from December 31, 2020.
Listed preferred.
We have raised over 515 million in preferred stock today.
With strong support.
From institutional investors.
The A's and broker dealers <unk>.
Including the recent addition of two top five sized independent broker dealer systems.
Speaker 3: including usage of our revolving credit facility at December 31, 2021, our weighted average cost of all debt financing was 3.95%, a decrease of 0.51% from September 30 at 2021, and a decrease of 1.13% from December 31, 2020.
As well as top wire house.
And regional broker dealer systems.
We believe there is no greater alignment between management and shareholders then.
For management to purchase and own a significant amount of stock.
Speaker 3: In 2020, we added a shareholder liability benefit to our dividend reinvestment plan or drip that allows for a 5% discount to the market price for drip participants.
Particularly when management has purchased stock.
On the same basis as other shareholders in the open market.
Speaker 3: As many brokerage firms either do not make DRIP automatic or have their own synthetic DRIPs with no such 5% discount benefit, we encourage any shareholder interested in DRIP participation to contact your broker.
Prospect management is the largest shareholder in prospect.
And has never sold a single share.
Our senior management team.
And employees.
Happily eat our own cooking currently owning approximately 28% of shares outstanding representing over $1 $1 billion of our common equity.
Speaker 3: Make sure you specify that you wish to participate in the prospect capital corporation to plan through DTC at a 5% discount and obtain confirmation of fame from your broker.
Speaker 3: Our preferred holders can also elect a drip at a price per share of $25. Now I'll turn the call back over to John .
Thank you.
I'll now turn the call over to Greer.
Thank you John .
Our scale platform with nearly $8 billion of assets and Undrawn credit at Prospect Capital Corporation.
Speaker 2: Thank you, Kristen. We can now answer any questions.
Speaker 1: Thank you for our Q&A if you'd like to ask a question, please press star one on your telephonic partners.
Can you use to deliver solid performance and the current dynamic environment.
Our experienced team consists of over 100 professionals.
Speaker 1: When preparing to ask your question, please ensure your device is unmuted locally.
Representing one of the largest middle market investment groups in the industry.
With our scale longevity experience and deep bench, we continue to focus on a diversified investment strategy that spans third party <unk>.
Speaker 1: We have no further questions, I'll now hand back to Mr. Tronberry for any closing remarks.
<unk> equity sponsor related lending.
Direct non sponsor lending.
Speaker 2: Well, thank you very much. Have a wonderful afternoon and we'll see you in approximately 90 days. Thanks all. Bye now. Thank you all.
Prospect sponsored operating and financial buyouts.
Structured credit.
Real estate yield investing.
Consistent with past cycles.
Speaker 1: This concludes today's call. Thanks for joining. You may now disconnect your lines.
We expect during the next downturn just see an increase in secondary opportunities coupled with wider spread primary opportunities with a pull back from other investment groups, particularly highly leveraged ones.
Unlike many other groups.
We've maintained and continue to maintain significant dry powder that we expect will enable us to capitalize on such attractive opportunities as they arise.
This diversity of origination approaches allows us to source, a broad range and high volume of opportunities.
Then select in a disciplined bottoms up manner the opportunities we deem to be the most attractive on a risk adjusted basis.
Our team typically evaluates thousands of opportunities annually.
And invests in a disciplined manner in a low single digit percentage of such opportunities.
Our non bank structure gives us the flexibility to invest in multiple levels of the corporate capital stack with a preference for secured lending.
And senior loans.
As of December 2021.
Our portfolio at fair value.
Apprised 46, 7% secured first lien debt.
<unk> 19, 5% other senior secured debt.
10, 6% subordinated structured notes with underlying secured first lien collateral.
And 23, 2% unsecured debt.
Other debt and equity investments.
<unk> and 76, 8% of our investments being assets with underlying secured debt benefiting from borrower pledged collateral.
Prospects approach is one that generates attractive risk adjusted yields and our performing interest bearing investments were generating an annualized yield of 10, 6% as of December down.
Down 1% from the prior quarter, we also hold equity positions in certain investments that can act as yield enhancers or capital gains contributors as such positions generate distributions we've.
We've continued to prioritize senior and secured debt with our originations to protect against downside risk, while still achieving above market yields through credit selection discipline.
And a differentiated origination approach.
As of December we held 127 portfolio companies up three from the prior quarter.
With a fair value of seven point billion.
Net increase of $572 million.
From the prior quarter.
We also continue to invest in a diversified fashion across many different portfolio company industries with a preference for avoiding cyclicality.
And with no significant industry concentration.
The largest is 15, 8%.
As of December our asset concentration in the energy industry stood at one 3%.
Our concentration in the hotel restaurant and leisure sector stood at <unk>, 3%.
And our concentration in the retail industry stood at zero percent.
Non accruals as a percentage of total assets.
Stood at approximately <unk>, 4% in December .
Down 1% from the prior quarter.
And down.
5%.
From June of 2020.
Our weighted average middle market portfolio net leverage stood at five two times EBITDA substantially below our reporting peers.
Our weighted average EBITDA per portfolio company stood at $99 5 million in December .
An increase of $4 2 million and 4%.
From September 2021, as we continue to achieve solid profit growth with our portfolio companies.
Originations in December aggregated $855 million for the quarter, we also experienced $444 million of repayments and exits as a validation of our capital preservation objective, resulting in net originations of $411 million.
During the December quarter, our originations comprised 85, 6% middle market lending nine.
Nine 4% real estate three.
Three 3% subordinated structured notes one.
1% middle market lending and buyouts and <unk>, 7% other.
To date, we deployed significant capital in the real estate arena through our private REIT strategy largely focused on multifamily workforce stabilized yield acquisitions with attractive seven to 12 year financing.
And PRC, our private REIT has.
As real estate properties that have benefited over the last several years and more recently.
Rising rents showing any inflation hedge nature of this business segment.
Strong Occupancies hi.
Hi collections suburban work from home dynamics.
High returning value added renovation programs.
And attractive financing recapitalizations.
<unk> and an increase in cash yields as.
As a validation of this income growth business.
Alongside our corporate credit businesses.
And PRC.
As of December .
Has exited completely 43 properties.
At an average IRR of 25, 5%.
And average realized cash multiple of invested capital.
Two five times.
With an objective to redeploy capital into new property acquisitions, including with repeat property manager relationships.
Our structured credit business has delivered attractive cash yields demonstrating.
Getting the benefits of pursuing majority stakes.
Working with World Class management teams provide.
Providing strong collateral underwriting through primary issuance and focusing on favorable risk adjusted opportunities.
As of December <unk>.
$744 million.
<unk> 39, nonrecourse subordinated structured notes investments.
These underlying structured credit portfolios comprised around 800 loans and.
Total asset base of around $16 billion.
As of December 2021, the structured credit portfolio experienced a trailing 12 month default rate of 19 basis points down seven basis points from the prior quarter, and representing 10 basis points less than the broadly syndicated market default rate.
Of 29 basis points.
In the December quarter, this portfolio generated an annual cash yield.
Of 25%.
And GAAP yield of nine 8% was the difference representing a significant amortization of our cost basis.
As of December our subordinated structured credit portfolio.
Has generated 1.41 billion in cumulative cash distributions to us.
Representing around 99% of our original investment.
Through December we've also exited 10 investments.
Totaling $286 million.
With an average realized IRR of 15.
7%.
And cash on cash multiple of 155 times.
Our subordinated structured credit portfolio consists entirely of majority owned positions.
Such positions can enjoy significant benefits compared to minority holdings in the same tranche in many cases, we receive fee rebates because of our majority.
<unk>.
As a majority holder, we control the ability to call a transaction in.
Our sole discretion in the future.
And we believe such options add substantial value.
To our portfolio.
We have the option of waiting years to call a transaction in an optimal fashion.
Rather than when loan prices and loan asset valuations might be temporarily low.
We as majority investor can refinance liabilities.
On more advantageous terms remove bond baskets in exchange for better terms from debt investors in the deal and extend or reset the investment period to enhance value.
We completed 32 refinancings and resets.
Since December of 2017.
So far in the current March 2022 quarter, we have booked $284 million in originations and experienced $108 million of repayments.
$176 million of net originations.
Originations have consisted of 81, 9% middle market lending 12.
12, 3% subordinated structured notes for 3% real estate.
And 1.5% other.
Thank you I'll now turn the call over to Kristin.
Thank you Greg.
We believe our prudent leverage diversified access to matched book funding substantial majority of unencumbered assets weighting toward unsecured fixed rate debt avoidance of unfunded asset commitments and lack of near term maturities demonstrate both balance sheet strength as well as substantial liquidity to capitalize on attractive opportunities.
Our company has locked in a ladder of liabilities extending 30 years into the future.
Today, we have zero debt maturing until July 2022, with a sole maturity at $60 5 million then for all of calendar year 2022.
Our total unfunded eligible commitments to non controlled portfolio companies totals approximately $38 million, representing approximately 0.5% of our assets.
Our combined balance sheet cash and Undrawn revolving credit facility commitments currently stand at approximately $960 million.
We are a leader and innovator in our marketplace. We were the first company in our industry to issue a convertible bond develop a notes program issue under a bond and equity ATM acquire another BDC and many other lists of first.
In 2020, we also added our programmatic perpetual preferred issuance to that list of first.
Solid and 2021 by our listed perpetual preferred as another first in the industry.
Shareholders and unsecured creditors alike should appreciate the thoughtful approach differentiated in our industry, which we have taken toward construction of the right hand side of our balance sheet.
As of December 2021, we held approximately $4 99 billion of our assets as unencumbered assets, representing approximately 71% of our portfolio.
The remaining assets are pledged to prospect capital funding nonrecourse SPV, where in April 2021, we completed an upsizing and extension of our revolver to a refreshed five year maturity.
After another recently completed upsizing, we currently have $1 5 billion of commitments from 43 banks and.
An increase of 13 lenders from March 2021, and demonstrating strong support of our company from the lender community with a diversity unmatched by any other company in our industry.
The facility revolves until April 2025, followed by a year of amortization with interest distributions.
<unk> to be allowed to us.
Our drawn pricing is now LIBOR, plus 2.5% a decrease of 15 basis points from before.
Our undrawn pricing between 35% and 60% utilization.
Has been reduced by 30 basis points.
We also now have an improvement in our borrowing base due to a change in concentration baskets, which we estimate increased our borrowing base by approximately $150 million.
All of our floating rate assets 95, 2% have LIBOR floors with a weighted average LIBOR floor of one spot three 5%.
Outside of our revolver and benefiting from our unencumbered assets that we have issued at prospect Capital Corporation, including in the past few years multiple types of investment grade unsecured debt, including convertible bonds.
Institutional bonds baby bonds and program notes.
All of these types of unsecured debt have no financial covenants, no asset restrictions and no cross defaults with our revolver.
We enjoy an investment grade triple B negative rating from S&P and investment grade B double a three rating from Moody's.
And investment grade Triple B negative rating from Kroll and.
And investment grade Triple B rating from Egan Jones.
And in investment grade Triple B low rating from DB RF.
In 2021, we received the ladder investment grade rating, taking us to five investment grade ratings more than any other company in our industry. All of these ratings have stable outlooks.
We've now tapped the unsecured term debt market on multiple occasions to ladder, our maturities and to extend our liability duration out 30 years.
Our debt maturities extend through 2052.
With so many banks and debt investors across so many debt tranches, we substantially reduced our counterparty risk over the years.
And the December 2021 quarter, we completed successful redemptions tender offerings and repayments retiring $74 million of our Intranets and $69 million of our 2029 notes.
In the current March quarter, we have retired $60 million of our internet.
And the December 2021 quarter, we have continued to substitute more expensive term debt with significantly lower cost revolving credit with an incremental $1 four 7% cost.
We are also we also have continued with our weekly programmatic internet issuance on an efficient funding basis.
To date, we have raised over $515 million in aggregate issuance of perpetual preferred stock across our preferred programs and listed preferred.
We now have seven separate unsecured debt issuances aggregating $1 6 billion not including our program notes with maturities extending through October 2028.
As of December 2021, we had $341 million of program notes outstanding with staggered maturities through 2051.
At December 31, 2021, our weighted average cost of unsecured debt financing was $4 three 9% a decrease of 0.17% from September 32021, and a decrease of 111% from December 31 2020.
Including usage of our revolving credit facility at December 31, 2021, our weighted average cost of all debt financing with 395% a decrease of 0.51% from September 32021, and a decrease of 113% from December 31 2000.
'twenty.
In 2020, we added a shareholder liability loyalty benefit to our dividend reinvestment plan or drip that allows for a 5% discount to the market price for jet participants.
As many brokerage firms either do not make drips automatic or have their own synthetic drips with no such 5% discount benefit we encourage any shareholder interested in drip participation to contact your broker.
Make sure you specify that you wish to participate in the prospect Capital Corporation Chip plan through DTC at a 5% discount and obtain confirmation of steam from your program.
Our preferred holders can also elect to drip at a price per share of $25.
Now I'll turn the call back over to John .
Thank you Kristen.
We can now answer any questions.
Thank you for our Q&A, if you'd like to ask a question. Please press star one on your telephone keypad now.
Ask your question. Please ensure your devices on mute locally.
As a reminder, that star one on your telephone keypad now.
We have no further questions I'll now hand back to Mr. John Barry for any closing remarks.
Well, thank you very much.
Have a wonderful afternoon, and we'll see you in approximately 90 days.
Al.
Thank you all.
This concludes today's call. Thank you for joining you may now disconnect your lines.
Okay.
[music].