Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended March 31, 2024 and Declaration of Distributions on Common Stock for the Months Ending July 31, August 31, and September 30, 2024
02 Maio 2024 - 9:00AM
Oxford Square Capital Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQZ)
(NasdaqGS: OXSQG) (the “Company,” “we,” “us” or “our”) announced
today its financial results and related information for the quarter
ended March 31, 2024.
- On April 25, 2024, our Board of
Directors declared the following distributions on our common
stock:
Month Ending |
Record Date |
Payment Date |
Amount Per Share |
July 31, 2024 |
July 17, 2024 |
July 31, 2024 |
$0.035 |
August 31, 2024 |
August 16, 2024 |
August 30, 2024 |
$0.035 |
September 30, 2024 |
September 16, 2024 |
September 30, 2024 |
$0.035 |
|
|
|
|
- Net asset value (“NAV”) per share
as of March 31, 2024 stood at $2.42, compared with a NAV per share
on December 31, 2023 of $2.55.
- Net investment income (“NII”) was
approximately $6.5 million, or $0.11 per share, for the quarter
ended March 31, 2024, compared with approximately $7.8 million, or
$0.13 per share, for the quarter ended December 31, 2023.
- Total investment income for the
quarter ended March 31, 2024 amounted to approximately $10.7
million, compared with approximately $12.3 million for the quarter
ended December 31, 2023.
- For the quarter ended March 31,
2024 we recorded investment income from our portfolio as follows:
- $6.4 million from our debt
investments;
- $3.9 million from our CLO equity
investments; and
- $324,000 from other income.
- Our total expenses for the quarter
ended March 31, 2024 were approximately $4.1 million, compared with
total expenses of approximately $4.6 million for the quarter ended
December 31, 2023.
- As of March 31, 2024, 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 13.9% at current cost, compared with 13.3% as
of December 31, 2023;
- The weighted average effective
yield of our CLO equity investments at current cost was 9.5%,
compared with 9.5% as of December 31, 2023; and
- The weighted average cash
distribution yield of our cash income producing CLO equity
investments at current cost was 13.7%, compared with 16.3% as of
December 31, 2023.
- For the quarter ended March 31,
2024, we recorded a net decrease in net assets resulting from
operations of approximately $1.8 million, consisting of:
- NII of approximately $6.5
million;
- Net realized losses of
approximately $8.1 million; and
- Net unrealized depreciation of
approximately $211,000.
- During the first quarter of 2024,
we made investments of approximately $12.1 million and received
approximately $19.3 million from sales and repayments of
investments.
- Our weighted average credit rating
was 2.3 based on total fair value and 2.9 based on total principal
amount as of March 31, 2024, compared with a weighted average
credit rating of 2.3 based on total fair value and 2.7 based on
total principal amount as of December 31, 2023.
- As of March 31, 2024, we had six
debt investments in three portfolio companies on non-accrual
status, with a combined fair value of approximately $2.0 million.
Also, as of March 31, 2024, our preferred equity investments in one
of our portfolio companies were on non-accrual status, which had an
aggregate fair value of approximately $4.9 million.
- For the quarter ended March 31,
2024, we issued a total of approximately 324,000 shares of common
stock pursuant to an “at-the-market” offering. After deducting the
sales agent’s commissions and offering expenses, this resulted in
net proceeds of approximately $923,000. As of March 31, 2024,
we had approximately 59.7 million shares of common stock
outstanding.
We will hold a conference call to discuss first
quarter results today, Thursday, May 2nd, 2024 at 9:00 AM ET. The
toll-free dial-in number is 1-800-445-7795, verbal access code
OXFORD. There will be a recording available for 30 days. If you are
interested in hearing the recording, please dial 1-877-693-4280.
The replay verbal passcode is OXFORD.
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
|
|
March 31,2024 |
|
December 31,2023 |
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Non-affiliated/non-control investments (cost: $424,246,447 and
$440,069,822, respectively) |
|
$ |
245,936,071 |
|
|
$ |
261,614,335 |
|
Affiliated investments (cost: $16,836,822 and $16,836,822,
respectively) |
|
|
4,919,975 |
|
|
|
5,276,092 |
|
Cash and cash equivalents |
|
|
20,906,690 |
|
|
|
5,740,553 |
|
Interest and distributions receivable |
|
|
2,615,160 |
|
|
|
3,976,408 |
|
Other assets |
|
|
910,124 |
|
|
|
1,060,384 |
|
Total assets |
|
$ |
275,288,020 |
|
|
$ |
277,667,772 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
Notes payable – 6.25% Unsecured Notes, net of deferred
issuance costs of $485,479 and $543,609, respectively |
|
$ |
44,305,271 |
|
|
$ |
44,247,141 |
|
Notes payable – 5.50% Unsecured Notes, net of deferred
issuance costs of $1,672,097 and $1,768,219 respectively |
|
|
78,827,903 |
|
|
|
78,731,781 |
|
Securities purchased not settled |
|
|
3,997,500 |
|
|
|
— |
|
Base Fee and Net Investment Income Incentive Fee payable to
affiliate |
|
|
987,816 |
|
|
|
1,012,389 |
|
Accrued interest payable |
|
|
1,204,487 |
|
|
|
1,204,487 |
|
Accrued expenses |
|
|
1,552,652 |
|
|
|
1,163,349 |
|
Distributions payable |
|
|
72,568 |
|
|
|
— |
|
Total liabilities |
|
|
130,948,197 |
|
|
|
126,359,147 |
|
COMMITMENTS AND
CONTINGENCIES (Note 13) |
|
|
|
|
|
|
|
|
NET
ASSETS |
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 100,000,000 shares authorized;
59,672,337 and 59,300,472 shares issued and outstanding,
respectively |
|
|
596,723 |
|
|
|
593,005 |
|
Capital in excess of par value |
|
|
459,180,359 |
|
|
|
458,121,381 |
|
Total distributable earnings/(accumulated losses) |
|
|
(315,437,259 |
) |
|
|
(307,405,761 |
) |
Total net assets |
|
|
144,339,823 |
|
|
|
151,308,625 |
|
Total liabilities and net assets |
|
$ |
275,288,020 |
|
|
$ |
277,667,772 |
|
Net asset value per common
share |
|
$ |
2.42 |
|
|
$ |
2.55 |
|
|
|
|
|
|
|
|
|
|
OXFORD SQUARE CAPITAL CORP.
STATEMENTS OF
OPERATIONS(unaudited)
|
|
Three MonthsEndedMarch 31,2024 |
|
Three MonthsEndedMarch 31,2023 |
INVESTMENT INCOME |
|
|
|
|
|
|
|
|
From
non-affiliated/non-control investments: |
|
|
|
|
|
|
|
|
Interest income – debt investments |
|
$ |
6,421,047 |
|
|
$ |
8,294,160 |
|
Income from securitization vehicles and investments |
|
|
3,932,374 |
|
|
|
4,379,495 |
|
Other income |
|
|
324,003 |
|
|
|
268,143 |
|
Total investment income from non-affiliated/non-control
investments |
|
|
10,677,424 |
|
|
|
12,941,798 |
|
Total investment income |
|
|
10,677,424 |
|
|
|
12,941,798 |
|
EXPENSES |
|
|
|
|
|
|
|
|
Interest expense |
|
|
1,960,982 |
|
|
|
3,085,366 |
|
Base Fee |
|
|
987,816 |
|
|
|
1,159,646 |
|
Professional fees |
|
|
311,747 |
|
|
|
335,880 |
|
Compensation expense |
|
|
206,898 |
|
|
|
266,965 |
|
General and administrative |
|
|
346,625 |
|
|
|
373,173 |
|
Total expenses before incentive fees |
|
|
3,814,068 |
|
|
|
5,221,030 |
|
Net Investment Income Incentive Fees |
|
|
— |
|
|
|
1,229,984 |
|
Capital gains incentive fees |
|
|
— |
|
|
|
— |
|
Total incentive fees |
|
|
— |
|
|
|
1,229,984 |
|
Total expenses |
|
|
3,814,068 |
|
|
|
6,451,014 |
|
Net investment income before taxes |
|
|
6,863,356 |
|
|
|
6,490,784 |
|
Excise tax |
|
|
325,800 |
|
|
|
— |
|
Net investment income after taxes |
|
|
6,537,556 |
|
|
|
6,490,784 |
|
NET UNREALIZED
APPRECIATION/(DEPRECIATION) AND REALIZED GAINS/(LOSSES) ON
INVESTMENT TRANSACTIONS |
|
|
|
|
|
|
|
|
Net change in unrealized appreciation/(depreciation) on
investments: |
|
|
|
|
|
|
|
|
Non-Affiliate/non-control investments |
|
|
145,111 |
|
|
|
(942,790 |
) |
Affiliated investments |
|
|
(356,117 |
) |
|
|
720,489 |
|
Total net change in unrealized depreciation on investments |
|
|
(211,006 |
) |
|
|
(222,301 |
) |
Net realized losses: |
|
|
|
|
|
|
|
|
Non-affiliated/non-control investments |
|
|
(8,094,940 |
) |
|
|
— |
|
Total net realized losses |
|
|
(8,094,940 |
) |
|
|
— |
|
Net (decrease)/increase in net
assets resulting from operations |
|
$ |
(1,768,390 |
) |
|
$ |
6,268,483 |
|
Net increase in net assets
resulting from net investment income per common share (Basic and
Diluted): |
|
$ |
0.11 |
|
|
$ |
0.13 |
|
Net (decrease)/increase in net
assets resulting from operations per common share (Basic and
Diluted): |
|
$ |
(0.03 |
) |
|
$ |
0.13 |
|
Weighted average shares of
common stock outstanding (Basic and Diluted): |
|
|
59,639,285 |
|
|
|
49,858,366 |
|
Distributions per share |
|
$ |
0.105 |
|
|
$ |
0.105 |
|
|
|
|
|
|
|
|
|
|
FINANCIAL HIGHLIGHTS
|
|
Three MonthsEndedMarch 31,2024 |
|
Three MonthsEndedMarch 31,2023 |
Per Share Data |
|
|
|
|
|
|
|
|
Net asset value at beginning
of period |
|
$ |
2.55 |
|
|
$ |
2.78 |
|
Net investment income(1) |
|
|
0.11 |
|
|
|
0.13 |
|
Net realized and unrealized
(losses)/gains(2) |
|
|
(0.13 |
) |
|
|
(0.00 |
) |
Net (decrease)/increase in net
asset value from operations |
|
|
(0.02 |
|
|
|
0.13 |
) |
Distributions per share from
net investment income |
|
|
(0.11 |
) |
|
|
(0.11 |
) |
Tax return of capital
distributions(3) |
|
|
— |
|
|
|
— |
|
Total distributions |
|
|
(0.11 |
) |
|
|
(0.11 |
) |
Effect of shares
issued/repurchased, gross |
|
|
— |
|
|
|
— |
|
Net asset value at end of
period |
|
$ |
2.42 |
|
|
$ |
2.80 |
|
Per share market value at
beginning of period |
|
$ |
2.86 |
|
|
$ |
3.12 |
|
Per share market value at end
of period |
|
$ |
3.17 |
|
|
$ |
3.16 |
|
Total return based on Market
Value(4) |
|
|
14.63 |
% |
|
|
4.42 |
% |
Total return based on Net
Asset Value(5) |
|
|
(0.98 |
)% |
|
|
4.50 |
% |
Shares outstanding at end of
period |
|
|
59,672,337 |
|
|
|
49,885,954 |
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental
Data(8) |
|
|
|
|
|
|
|
|
Net assets at end of period
(000’s) |
|
$ |
144,340 |
|
|
$ |
139,839 |
|
Average net assets
(000’s) |
|
$ |
148,260 |
|
|
$ |
139,235 |
|
Ratio of expenses to average
net assets(6) |
|
|
11.17 |
% |
|
|
18.53 |
% |
Ratio of net investment income
to average net assets(6) |
|
|
17.64 |
% |
|
|
18.65 |
% |
Portfolio turnover
rate(7) |
|
|
3.09 |
% |
|
|
0.10 |
% |
____________ |
|
|
|
|
|
|
|
|
(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. The amounts and sources of
distributions reported are only estimates (based on an average of
the reported tax character historically) and are not being provided
for U.S. tax reporting purposes. |
(4) |
Total return based on market value equals the increase or decrease
of ending market value over beginning market value, plus
distributions, divided by the beginning market value, assuming
distribution reinvestment prices obtained under the Company’s
distribution reinvestment plan, excluding any discounts. Total
return is not annualized. |
(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. Total
return is not annualized. |
(6) |
Annualized and includes excise tax. |
(7) |
Portfolio turnover rate is calculated using the lesser of the
year-to-date investment sales and debt repayments or year-to-date
investment purchases over the average of the total investments at
fair value. |
(8) |
The following table provides supplemental performance ratios
(annualized) measured for the three months ended
March 31, 2024 and 2023: |
|
|
Three MonthsEndedMarch 31,2024 |
|
Three MonthsEndedMarch 31,2023 |
Ratio of expenses to average net assets: |
|
|
|
|
|
|
Operating expenses, including
excise tax, before incentive fees |
|
11.17 |
% |
|
15.00 |
% |
Net investment income
incentive fees |
|
— |
% |
|
3.53 |
% |
Ratio of expenses, including
excise tax and excluding interest expense, to average net
assets |
|
5.88 |
% |
|
9.67 |
% |
|
|
|
|
|
|
|
About Oxford Square Capital
Corp.
Oxford Square Capital Corp. is a publicly-traded
business development company principally investing in syndicated
bank loans and, to a lesser extent, 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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