Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended December 31, 2022 and Declaration of Distributions on Common Stock for the Months Ending April 30, May 31, and June 30, 2023
21 Março 2023 - 9:00AM
Oxford Square Capital Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQL)
(NasdaqGS: OXSQZ) (NasdaqGS: OXSQG) (the “Company,” “we,” “us” or
“our”) announced today its financial results and related
information for the quarter ended December 31, 2022.
- On March 16, 2023, our Board of Directors declared the
following distributions on our common stock:
Month Ending |
Record Date |
Payment Date |
Amount Per Share |
April 30, 2023 |
April 14, 2023 |
April 28, 2023 |
$0.035 |
May 31, 2023 |
May 17, 2023 |
May 31, 2023 |
$0.035 |
June 30, 2023 |
June 16, 2023 |
June 30, 2023 |
$0.035 |
- Net asset value (“NAV”) per share as of December 31, 2022 stood
at $2.78, compared with a NAV per share on September 30, 2022 of
$3.34.
- Net investment income (“NII”), calculated in accordance with
U.S. generally accepted accounting principles, was approximately
$6.5 million, or $0.13 per share, for the quarter ended December
31, 2022, compared with approximately $5.6 million, or $0.11 per
share, for the quarter ended September 30, 2022.
- Total investment
income for the quarter ended December 31, 2022 amounted to
approximately $11.9 million, compared with approximately $11.4
million for the quarter ended September 30, 2022.
- For the quarter
ended December 31, 2022 we recorded investment income from our
portfolio as follows:
- $7.5 million from
our debt investments; and
- $4.4 million from
our CLO equity investments and other income.
- Our total
expenses for the quarter ended December 31, 2022 were approximately
$5.4 million, compared with total expenses of approximately $5.8
million for the quarter ended September 30, 2022.
- As of December 31, 2022, the following metrics applied (note
that none of these metrics represented a total return to
shareholders):
- The weighted average yield of our
debt investments was 11.9% at current cost, compared with 10.4% as
of September 30, 2022;
- The weighted average effective
yield of our CLO equity investments at current cost was 8.4%,
compared with 9.0% as of September 30, 2022; and
- The weighted average cash
distribution yield of our cash income producing CLO equity
investments at current cost was 13.0%, compared with 16.6% as of
September 30, 2022.
- For the quarter ended December 31, 2022, we recorded a net
decrease in net assets resulting from operations of approximately
$22.8 million, consisting of:
- NII of approximately $6.5 million;
- Net realized gains of approximately $98,000; and
- Net unrealized depreciation of approximately $29.4
million.
- During the
fourth quarter of 2022, we made investments of approximately $6.1
million, and received approximately $216,000 from sales and
repayments of investments.
- Our weighted
average credit rating was 2.2 based on total fair value and 2.4
based on total principal amount as of December 31, 2022, compared
with a weighted average credit rating of 2.2 based on total fair
value and 2.4 based on total principal amount as of September 30,
2022.
- As of
December 31, 2022, we had three debt investments (in one portfolio
company) on non-accrual status, with a combined fair value of
approximately $172,000. Also, as of December 31, 2022, our
preferred equity investments in one of our portfolio companies were
on non-accrual status, which had an aggregate fair value of
approximately $4.3 million.
We will hold a conference call to discuss fourth quarter results
today, Tuesday, March 21st, 2023 at 9:00 AM ET. The toll-free
dial-in number is 1-844-200-6205, access code number 521933. There
will be a recording available for 30 days. If you are interested in
hearing the recording, please dial 1-866-813-9403. The replay
pass-code number is 808708.
A presentation containing further detail regarding our quarterly
results of operations has been posted under the Investor Relations
section of our website at www.oxfordsquarecapital.com.
OXFORD SQUARE CAPITAL
CORP.STATEMENTS OF ASSETS AND
LIABILITIES
|
December 31,2022 |
|
December 31,2021 |
ASSETS |
|
|
|
|
|
|
|
Non-affiliated/non-control investments (cost: $495,000,997 and
$495,212,632, respectively) |
$ |
310,347,097 |
|
|
$ |
420,038,717 |
|
Affiliated investments (cost: $16,836,822 and $16,836,822,
respectively) |
|
4,349,818 |
|
|
|
772,491 |
|
Cash and cash equivalents |
|
9,019,164 |
|
|
|
9,015,700 |
|
Interest and distributions receivable |
|
3,492,716 |
|
|
|
3,064,477 |
|
Other assets |
|
785,640 |
|
|
|
615,109 |
|
Total assets |
$ |
327,994,435 |
|
|
$ |
433,506,494 |
|
LIABILITIES |
|
|
|
|
|
|
|
Notes payable – 6.50% Unsecured Notes, net of deferred issuance
costs of $405,657 and $730,361, respectively |
$ |
63,964,568 |
|
|
$ |
63,639,864 |
|
Notes payable – 6.25% Unsecured Notes, net of deferred issuance
costs of $776,766 and $1,009,924, respectively |
|
44,013,984 |
|
|
|
43,780,826 |
|
Notes payable – 5.50% Unsecured Notes, net of deferred issuance
costs of $2,153,762 and $2,539,305, respectively |
|
78,346,238 |
|
|
|
77,960,695 |
|
Base Fee and Net Investment Income Incentive Fee payable to
affiliate |
|
1,323,573 |
|
|
|
1,688,712 |
|
Accrued interest payable |
|
1,216,109 |
|
|
|
1,216,109 |
|
Accrued expenses |
|
458,001 |
|
|
|
625,163 |
|
Total liabilities |
|
189,322,473 |
|
|
|
188,911,369 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
NET ASSETS |
|
|
|
|
|
|
|
Common stock, $0.01 par value, 100,000,000 shares authorized;
49,844,796 and 49,690,059 shares issued and outstanding,
respectively |
|
498,447 |
|
|
|
496,900 |
|
Capital in excess of par value |
|
434,737,950 |
|
|
|
434,462,322 |
|
Total distributable earnings/(accumulated losses) |
|
(296,564,435 |
) |
|
|
(190,364,097 |
) |
Total net assets |
|
138,671,962 |
|
|
|
244,595,125 |
|
Total liabilities and net assets |
$ |
327,994,435 |
|
|
$ |
433,506,494 |
|
Net asset value per common share |
$ |
2.78 |
|
|
$ |
4.92 |
|
OXFORD SQUARE CAPITAL
CORP.STATEMENTS OF OPERATIONS
|
Year EndedDecember 31,2022 |
|
Year EndedDecember 31,2021 |
|
Year EndedDecember 31,2020 |
INVESTMENT INCOME |
|
|
|
|
|
|
|
|
|
|
|
From non-affiliated/non-control investments: |
|
|
|
|
|
|
|
|
|
|
|
Interest income – debt investments |
$ |
25,234,315 |
|
|
$ |
17,440,229 |
|
|
$ |
20,252,055 |
|
Income from securitization vehicles and investments |
|
17,093,203 |
|
|
|
18,691,631 |
|
|
|
15,014,000 |
|
Other income |
|
790,594 |
|
|
|
1,043,153 |
|
|
|
676,450 |
|
Total investment income from non-affiliated/ non-control
investments |
|
43,118,112 |
|
|
|
37,175,013 |
|
|
|
35,942,505 |
|
Total investment income |
|
43,118,112 |
|
|
|
37,175,013 |
|
|
|
35,942,505 |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
12,354,392 |
|
|
|
10,495,897 |
|
|
|
7,878,906 |
|
Base Fee |
|
5,903,986 |
|
|
|
6,287,173 |
|
|
|
4,525,034 |
|
Professional fees |
|
1,393,116 |
|
|
|
1,910,390 |
|
|
|
1,545,279 |
|
Compensation expense |
|
915,583 |
|
|
|
723,931 |
|
|
|
708,350 |
|
Director’s fees |
|
417,500 |
|
|
|
490,500 |
|
|
|
441,500 |
|
Insurance |
|
378,804 |
|
|
|
422,805 |
|
|
|
330,746 |
|
Transfer agent and custodian fees |
|
231,241 |
|
|
|
222,581 |
|
|
|
206,686 |
|
General and administrative |
|
835,912 |
|
|
|
521,541 |
|
|
|
591,512 |
|
Total expenses before incentive fees |
|
22,430,534 |
|
|
|
21,074,818 |
|
|
|
16,228,013 |
|
Net Investment Income Incentive Fees |
|
— |
|
|
|
— |
|
|
|
— |
|
Capital gains incentive fees |
|
— |
|
|
|
— |
|
|
|
— |
|
Total incentive fees |
|
— |
|
|
|
— |
|
|
|
— |
|
Total expenses |
|
22,430,534 |
|
|
|
21,074,818 |
|
|
|
16,228,013 |
|
Net investment income |
|
20,687,578 |
|
|
|
16,100,195 |
|
|
|
19,714,492 |
|
Net change in unrealized (depreciation)/appreciation on
investments: |
|
|
|
|
|
|
|
|
|
|
|
Non-Affiliate/non-control investments |
|
(109,479,985 |
) |
|
|
37,699,436 |
|
|
|
(7,029,647 |
) |
Affiliated investments |
|
3,577,327 |
|
|
|
772,491 |
|
|
|
(2,816,790 |
) |
Total net change in unrealized (depreciation)/appreciation on
investments |
|
(105,902,658 |
) |
|
|
38,471,927 |
|
|
|
(9,846,437 |
) |
Net realized losses: |
|
|
|
|
|
|
|
|
|
|
|
Non-affiliated/non-control investments… |
|
(339,819 |
) |
|
|
(14,987,438 |
) |
|
|
(8,151,553 |
) |
Extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(5,211 |
) |
Total net realized losses |
|
(339,819 |
) |
|
|
(14,987,438 |
) |
|
|
(8,156,764 |
) |
Net (decrease)/increase in net assets resulting from
operations |
$ |
(85,554,899 |
) |
|
$ |
39,584,684 |
|
|
$ |
1,711,291 |
|
Net increase in net assets resulting from net investment income per
common share (Basic and Diluted): |
$ |
0.42 |
|
|
$ |
0.32 |
|
|
$ |
0.40 |
|
Net (decrease)/increase in net assets resulting from operations per
common share (Basic and Diluted): |
$ |
(1.72 |
) |
|
$ |
0.80 |
|
|
$ |
0.03 |
|
Weighted average shares of common stock outstanding (Basic and
Diluted): |
|
49,757,122 |
|
|
|
49,624,851 |
|
|
|
49,477,215 |
|
FINANCIAL HIGHLIGHTS
|
Year
EndedDecember 31,2022 |
|
Year
EndedDecember 31,2021 |
|
Year
EndedDecember 31,2020 |
|
Year
EndedDecember 31,2019 |
|
Year
EndedDecember 31,2018 |
Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning
of year |
$ |
4.92 |
|
|
$ |
4.55 |
|
|
$ |
5.12 |
|
|
$ |
6.60 |
|
|
$ |
7.55 |
|
Net investment income(1) |
|
0.42 |
|
|
|
0.32 |
|
|
|
0.40 |
|
|
|
0.81 |
|
|
|
0.67 |
|
Net realized and unrealized
(losses)/gains(2) |
|
(2.14 |
) |
|
|
0.47 |
|
|
|
(0.36 |
) |
|
|
(1.49 |
) |
|
|
(0.91 |
) |
Net (decrease)/increase in net
assets resulting from operations |
|
(1.72 |
) |
|
|
0.79 |
|
|
|
0.04 |
|
|
|
(0.68 |
) |
|
|
(0.24 |
) |
Distributions per share from
net investment income |
|
(0.42 |
) |
|
|
(0.42 |
) |
|
|
(0.61 |
) |
|
|
(0.80 |
) |
|
|
(0.73 |
) |
Distributions based on
weighted average share impact |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Tax return of capital
distributions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.07 |
) |
Total distributions(3) |
|
(0.42 |
) |
|
|
(0.42 |
) |
|
|
(0.61 |
) |
|
|
(0.80 |
) |
|
|
(0.79 |
) |
Effect of shares issued, net
of offering expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Effect of shares
issued/repurchased, gross |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.08 |
|
Net asset value at end of
year |
$ |
2.78 |
|
|
$ |
4.92 |
|
|
$ |
4.55 |
|
|
$ |
5.12 |
|
|
$ |
6.60 |
|
Per share market value at
beginning of year |
$ |
4.08 |
|
|
$ |
3.05 |
|
|
$ |
5.44 |
|
|
$ |
6.47 |
|
|
$ |
5.74 |
|
Per share market value at end
of year |
$ |
3.12 |
|
|
$ |
4.08 |
|
|
$ |
3.05 |
|
|
$ |
5.44 |
|
|
$ |
6.47 |
|
Total return based on Market
Value(4) |
|
(14.11 |
)% |
|
|
47.38 |
% |
|
|
(31.75 |
)% |
|
|
(4.14 |
)% |
|
|
26.95 |
% |
Total return based on Net
Asset Value(5) |
|
(34.96 |
)% |
|
|
17.36 |
% |
|
|
0.82 |
% |
|
|
(10.26 |
)% |
|
|
(1.99 |
)% |
Shares outstanding at end of
year |
|
49,844,796 |
|
|
|
49,690,059 |
|
|
|
49,589,607 |
|
|
|
48,448,987 |
|
|
|
47,650,959 |
|
Ratios/Supplemental
Data(7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year
(000’s) |
$ |
138,672 |
|
|
$ |
244,595 |
|
|
$ |
225,427 |
|
|
$ |
247,999 |
|
|
$ |
314,724 |
|
Average net assets
(000’s) |
$ |
192,785 |
|
|
$ |
242,589 |
|
|
$ |
192,137 |
|
|
$ |
289,373 |
|
|
$ |
369,258 |
|
Ratio of expenses to average
net assets |
|
11.64 |
% |
|
|
8.69 |
% |
|
|
8.45 |
% |
|
|
8.35 |
% |
|
|
6.17 |
% |
Ratio of net investment income
to average net assets |
|
10.73 |
% |
|
|
6.64 |
% |
|
|
10.26 |
% |
|
|
13.30 |
% |
|
|
9.07 |
% |
Portfolio turnover
rate(6) |
|
17.09 |
% |
|
|
11.09 |
% |
|
|
23.72 |
% |
|
|
12.75 |
% |
|
|
35.18 |
% |
_____
(1) |
Represents per
share net investment income for the period, based upon weighted
average shares outstanding. |
(2) |
Net realized and unrealized gains/(losses) include rounding
adjustments to reconcile change in net asset value per share. |
(3) |
Management monitors available taxable earnings, including net
investment income and realized capital gains, to determine if a tax
return of capital may occur for the year. To the extent the
Company’s taxable earnings fall below the total amount of the
Company’s distributions for that fiscal year, a portion of those
distributions may be deemed a tax return of capital to the
Company’s stockholders. The ultimate tax character of the Company’s
earnings cannot be determined until tax returns are prepared after
the end of the fiscal year. |
(4) |
Total return based on market value equals the increase or
decrease of ending market value over beginning market value, plus
distributions, assuming distribution reinvestment prices obtained
under the Company’s distribution reinvestment plan, excluding any
discounts divided by the beginning market value per share. |
(5) |
Total return based on net asset value equals the increase or
decrease of ending net asset value over beginning net asset value,
plus distributions, divided by the beginning net asset value. |
(6) |
Portfolio turnover rate is calculated using the lesser of the
annual cash investment sales and repayments of principal or annual
cash investment purchases over the average of the total investments
at fair value. |
(7) |
The following table provides supplemental performance ratios
measured for the years ended December 31, 2022, 2021,
2020, 2019, and 2018: |
|
|
Year Ended December 31,2022 |
|
Year Ended December 31,2021 |
|
Year Ended December 31,2020 |
|
Year Ended December 31,2019 |
|
Year Ended December 31,2018 |
Ratio of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses before incentive
fees |
|
11.64 |
% |
|
|
8.69 |
% |
|
|
8.45 |
% |
|
|
7.14 |
% |
|
|
4.92 |
% |
Net Investment Income
Incentive Fees |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
1.21 |
% |
|
|
1.24 |
% |
Capital Gains
IncentiveFees |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Ratio of expenses, excluding
interest expense, to average net assets |
|
5.23 |
% |
|
|
4.36 |
% |
|
|
4.35 |
% |
|
|
4.93 |
% |
|
|
4.21 |
% |
About Oxford Square Capital Corp.
Oxford Square Capital Corp. is a publicly-traded business
development company principally investing in syndicated bank loans
and debt and equity tranches of collateralized loan obligation
(“CLO”) vehicles. CLO investments may also include warehouse
facilities, which are financing structures intended to aggregate
loans that may be used to form the basis of a CLO vehicle.
Forward-Looking Statements
This press release contains forward-looking statements subject
to the inherent uncertainties in predicting future results and
conditions. Any statements that are not statements of historical
fact (including statements containing the words “believes,”
“plans,” “anticipates,” “expects,” “estimates” and similar
expressions) should also be considered to be forward-looking
statements. These statements are not guarantees of future
performance, conditions or results and involve a number of risks
and uncertainties. Certain factors could cause actual results and
conditions to differ materially from those projected in these
forward-looking statements. These factors are identified from time
to time in our filings with the Securities and Exchange Commission.
We undertake no obligation to update such statements to reflect
subsequent events, except as may be required by law.
Contact:Bruce Rubin203-983-5280
Oxford Square Capital (NASDAQ:OXSQZ)
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