Prospect Capital Corporation (PSEC) has entered into an equity distribution agreement with A.G.P./Alliance Global Partners to sell up to $400 million in aggregate liquidation preference of its 5.35% Series A Fixed Rate Cumulative Perpetual Preferred Stock. The offering will be conducted on an 'at-the-market' (ATM) basis, allowing the company to sell shares from time to time at prevailing market prices. The company has reclassified 16,000,000 authorized but unissued common shares into Series A Preferred Stock to facilitate this offering. The sales agents will receive a commission of up to 2.0% of the gross sales price for any shares sold under the agreement. The company is under no obligation to sell any specific amount of shares and may suspend the offering at any time.