Prospect Floating Rate & Alternative Income Fund, Inc. 8-K

What Happened

• On January 23, 2026, Prospect Floating Rate & Alternative Income Fund, Inc. filed an 8-K announcing a monthly cash distribution for January 2026. The Board set a distribution of $0.03970 per share for both PFLOAT Class A and Class I shares, payable February 6, 2026, to shareholders of record as of January 30, 2026.
• The distribution reflects a targeted annualized distribution rate of 10.0% based on the Company’s net asset value per share for the first fiscal quarter ended September 30, 2025.

Key Details

• Record date: January 30, 2026 (close of business); Payment date: February 6, 2026.
• Distribution amount: $0.03970 per share for PFLOAT Class A and PFLOAT Class I.
• Targeted annualized rate: 10.0% based on NAV for fiscal quarter ended Sept 30, 2025.
• Tax reporting: tax attributes are determined annually; shareholders will receive final characterization on Form 1099-DIV. The Company will provide quarterly estimates of the portion from taxable ordinary income.

Why It Matters

• Income: This is a regular cash distribution that provides monthly income to shareholders; the announced per‑share amount and the stated 10.0% annualized target give investors a sense of yield relative to NAV.
• Tax and sustainability: The Company may fund distributions from multiple sources (net investment income, capital sales, borrowings, offering proceeds, and expense reimbursements from Prospect Capital Management, L.P.). If distributions exceed net investment income, some payments may be a return of capital for tax purposes. There is no guarantee future distributions will be made at this rate or at all, as payments are subject to Board discretion and legal limits.