Hello and welcome to today's Prospect Capital Second Fiscal Quarter Earnings Release and Conference Call. My name is Elliott and I will be coordinating your call today. I would now like to hand over to our host, Mr. John Barry, Chairman and CEO of Prospect Capital. Please go ahead.

Thank you, Elliott. Good morning everyone. Joining on the call today are Grier Eliasek, our President and Chief Operating Officer, and Kristin Van Dask, our Chief Financial Officer. Kristin?

Thank you, John. This call 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. 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. For additional disclosure, please see our earnings press release, and 10-Q filed previously and available on our website, prospectstreet.com. Now, I'll turn the call back over to John.

Thank you, Kristin. In the December quarter, our Net Investment Income or NII was $85.6 million or $0.22 per common share, exceeding our distribution rate for common share by $0.04. Our basic net income attributable to common stockholders was $246.4 million or $0.63 per common share, 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. Our net asset value stood at $10.60 per common share in December up $0.48 and 4.7% from the prior quarter and representing our 7th quarter in a row with NAV growth. Our NAV per common share is now at the highest level since September 2015 over six years ago. We have outperformed our peers during the past multiple quarters of macro volatility, as a direct result of our previous de-risking, not chasing leverage, as well as other risk management controls. We are staying true to the strategy that has served us well since 1988, controlling and reducing portfolio and balance sheet risk, both to protect the capital entrusted to us and to protect the ability of such capital to generate earnings for our shareholders. In the December quarter, our net debt-to-equity ratio was 51.3% down 22.8 percentage points from March 2020 and up 3.1 percentage points from the September quarter as we continue to run an under leveraged balance sheet, which has been the case for us for multiple quarters. In May 2020, we moved our minimum 1940 Act Regulatory Asset Coverage to 150%, equivalent to 200% debt-to-equity, which not only increased our cushion, but 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 by our rating agencies. We have no…

Thank you, John. Our scale platform with nearly $8 billion of assets and undrawn credit at Prospect Capital Corporation continues to deliver solid performance in the current dynamic environment. Our experienced team consists of over 100 professionals 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, private equity sponsor related lending, direct non-sponsor lending, Prospect sponsored operating and financial buyouts, structured credit and real estate yield investing. Consistent with past cycles, we expect during the next downturn to see an increase in secondary opportunities, coupled with wider spread primary opportunities, with a pullback 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 deemed to be the most attractive on a risk adjusted basis. Our team typically evaluates 1,000s 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 comprise 46.7% secured first-lien debt, 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, resulting in 76.8% of our investments being assets with underlying secured debt benefiting from borrower pledged collateral. Prospect's approach is one that generates attractive…

Thank you, Grier. 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 maturities demonstrate both balance sheet strengths 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 of $60.5 million then for all of calendar year 2022. Our total unfunded eligible commitments to non-control 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 firsts. In 2020, we also added our programmatic perpetual preferred issuance to that list of first. Followed in 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 a non-recourse 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 commitment from 43 banks, an increase of 13 lenders from March 2021 and demonstrating…

Thank you, Kristin. We can now answer any questions.

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.

This concludes today's call. And thank you for joining. You may now disconnect your lines.