• Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended June 30, 2023

    Источник: Nasdaq GlobeNewswire / 10 авг 2023 08:00:02   America/New_York

    GREENWICH, Conn., Aug. 10, 2023 (GLOBE NEWSWIRE) -- 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 June 30, 2023.

    • On August 3, 2023, our Board of Directors declared the following distributions on our common stock:

    Month EndingRecord DatePayment DateAmount Per Share
    September 30, 2023*September 15, 2023September 29, 2023$0.120
    October 31, 2023October 17, 2023October 31, 2023$0.035
    November 30, 2023November 16, 2023November 30, 2023$0.035
    December 31, 2023December 15, 2023December 29, 2023$0.035

                    * Special Distribution.

    • Net asset value (“NAV”) per share as of June 30, 2023 stood at $2.88, compared with a NAV per share on March 31, 2023 of $2.80.

    • Net investment income (“NII”) was approximately $6.7 million, or $0.13 per share, for the quarter ended June 30, 2023, compared with approximately $6.5 million, or $0.13 per share, for the quarter ended March 31, 2023.

    • Total investment income for the quarter ended June 30, 2023 amounted to approximately $13.5 million, compared with approximately $12.9 million for the quarter ended March 31, 2023.
      • For the quarter ended June 30, 2023 we recorded investment income from our portfolio as follows:
        • $8.8 million from our debt investments; and
        • $4.7 million from our CLO equity investments and other income.
    • Our total expenses for the quarter ended June 30, 2023 were approximately $6.8 million, compared with total expenses of approximately $6.5 million for the quarter ended March 31, 2023.
    • As of June 30, 2023, 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 12.8% at current cost, compared with 12.4% as of March 31, 2023;
      • The weighted average effective yield of our CLO equity investments at current cost was 9.2%, compared with 9.1% as of March 31, 2023; and
      • The weighted average cash distribution yield of our cash income producing CLO equity investments at current cost was 18.4%, compared with 15.3% as of March 31, 2023.
    • For the quarter ended June 30, 2023, we recorded a net increase in net assets resulting from operations of approximately $11.6 million, consisting of:
      • NII of approximately $6.7 million;
      • Net realized losses of approximately $3.3 million; and
      • Net unrealized appreciation of approximately $8.3 million. 
    • During the second quarter of 2023, we did not make any new investments and received approximately $14.3 million from sales and repayments of investments.
    • Our weighted average credit rating was 2.2 based on total fair value and 2.5 based on total principal amount as of June 30, 2023, compared with a weighted average credit rating of 2.2 based on total fair value and 2.5 based on total principal amount as of March 31, 2023.
    • As of June 30, 2023, we had three debt investments (in one portfolio company) on non-accrual status, with a combined fair value of approximately $450,000. Also, as of June 30, 2023, our preferred equity investments in one of our portfolio companies were on non-accrual status, which had an aggregate fair value of approximately $8.4 million.

    We will hold a conference call to discuss second quarter results today, Thursday, August 10th, 2023 at 9:00 AM ET. The toll-free dial-in number is 1-833-470-1428, access code number 351878. 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 209713.

    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

      June 30,
    2023    		 December 31,
    2022
      (unaudited)  
    ASSETS        
    Non-affiliated/non-control investments (cost: $478,419,709 and $495,000,997, respectively) $297,723,804  $310,347,097 
    Affiliated investments (cost: $16,836,822 and $16,836,822, respectively)  8,422,453   4,349,818 
    Cash and cash equivalents  43,029,280   9,019,164 
    Interest and distributions receivable  4,122,925   3,492,716 
    Other assets  960,242   785,640 
    Total assets $354,258,704  $327,994,435 
    LIABILITIES        
    Notes payable – 6.50% Unsecured Notes, net of deferred issuance costs of $244,640 and $405,657, respectively $64,125,585  $63,964,568 
    Notes payable – 6.25% Unsecured Notes, net of deferred issuance costs of $661,146 and $776,766, respectively  44,129,604   44,013,984 
    Notes payable – 5.50% Unsecured Notes, net of deferred issuance costs of $1,962,575 and $2,153,762 respectively  78,537,425   78,346,238 
    Base Fee and Net Investment Income Incentive Fee payable to affiliate  2,557,012   1,323,573 
    Accrued interest payable  1,216,109   1,216,109 
    Accrued expenses  1,280,810   458,001 
    Total liabilities  191,846,545   189,322,473 
             
    NET ASSETS        
    Common stock, $0.01 par value, 100,000,000 shares authorized; 56,395,751 and 49,844,796 shares issued and outstanding, respectively  563,957   498,447 
    Capital in excess of par value  451,031,685   434,737,950 
    Total distributable earnings/(accumulated losses)  (289,183,483)  (296,564,435)
    Total net assets  162,412,159   138,671,962 
    Total liabilities and net assets $354,258,704  $327,994,435 
    Net asset value per common share $2.88  $2.78 

    OXFORD SQUARE CAPITAL CORP.
    STATEMENTS OF OPERATIONS – (unaudited)

      Three Months
    Ended
    June 30,
    2023    		 Three Months
    Ended
    June 30,
    2022    		 Six Months
    Ended
    June 30,
    2023    		 Six Months
    Ended
    June 30,
    2022
    INVESTMENT INCOME                
    From non-affiliated/non-control investments:                
    Interest income – debt investments $8,799,180  $5,674,538  $17,093,340  $10,924,687 
    Income from securitization vehicles and investments  4,329,300   4,062,469   8,708,795   8,503,664 
    Other income  384,500   202,544   652,643   377,070 
    Total investment income from non-affiliated/non-control investments  13,512,980   9,939,551   26,454,778   19,805,421 
    Total investment income  13,512,980   9,939,551   26,454,778   19,805,421 
    EXPENSES                
    Interest expense  3,087,951   3,087,952   6,173,317   6,173,318 
    Base Fee  1,257,688   1,565,181   2,417,334   3,171,684 
    Professional fees  281,928   310,931   617,808   655,453 
    Compensation expense  190,159   219,830   457,124   454,833 
    General and administrative  730,149   412,129   1,103,322   756,231 
    Total expenses before incentive fees  5,547,875   5,596,023   10,768,905   11,211,519 
    Net Investment Income Incentive Fees  1,299,324   —   2,529,308   — 
    Total expenses  6,847,199   5,596,023   13,298,213   11,211,519 
    Net investment income  6,665,781   4,343,528   13,156,565   8,593,902 
    Net change in unrealized appreciation/(depreciation) on investments:                
    Non-Affiliate/non-control investments  4,900,785   (46,845,141)  3,957,995   (60,535,837)
    Affiliated investments  3,352,146   602,253   4,072,635   803,100 
    Total net change in unrealized appreciation/(depreciation) on investments  8,252,931   (46,242,888)  8,030,630   (59,732,737)
    Net realized losses:                
    Non-affiliated/non-control investments  (3,331,308)  (1,536,051)  (3,331,308)  (493,765)
    Total net realized losses  (3,331,308)  (1,536,051)  (3,331,308)  (493,765)
    Net increase/(decrease) in net assets resulting from operations $11,587,404  $(43,435,411) $17,855,887  $(51,632,600)
    Net increase in net assets resulting from net investment income per common share (Basic and Diluted): $0.13  $0.09  $0.26  $0.17 
    Net increase/(decrease) in net assets resulting from operations per common share (Basic and Diluted): $0.23  $(0.87) $0.36  $(1.04)
    Weighted average shares of common stock outstanding (Basic and Diluted):  50,542,374   49,736,300   50,202,259   49,718,630 
    Distributions per share $0.105  $0.105  $0.210  $0.210 

    FINANCIAL HIGHLIGHTS – (unaudited)

      Three Months
    Ended
    June 30,
    2023    		 Three Months
    Ended
    June 30,
    2022    		 Six Months
    Ended
    June 30,
    2023    		 Six Months
    Ended
    June 30,
    2022
    Per Share Data                
    Net asset value at beginning of period $2.80  $4.65  $2.78  $4.92 
    Net investment income(1)  0.13   0.09   0.26   0.17 
    Net realized and unrealized gains/(losses)(2)  0.10   (0.96)  0.09   (1.21)
    Net increase/(decrease) in net asset value from operations  0.23   (0.87)  0.35   (1.04)
    Distributions per share from net investment income  (0.11)  (0.09)  (0.21)  (0.17)
    Tax return of capital distributions(3)  —   (0.02)  —   (0.04)
    Total distributions  (0.11)  (0.11)  (0.21)  (0.21)
    Effect of shares issued  (0.04)  —   (0.04)  — 
    Net asset value at end of period $2.88  $3.67  $2.88  $3.67 
    Per share market value at beginning of period $3.16  $4.19  $3.12  $4.08 
    Per share market value at end of period $2.65  $3.64  $2.65  $3.64 
    Total return based on Market Value(4)  (13.00)%  (10.75)%  (9.15)%  (6.00)%
    Total return based on Net Asset Value(5)  6.61%   (18.82)%  11.15%  (21.14)%
    Shares outstanding at end of period  56,395,751   49,761,360   56,395,751   49,761,360 
                     
    Ratios/Supplemental Data(8)                
    Net assets at end of period (000’s) $162,412  $182,793  $162,412  $182,793 
    Average net assets (000’s) $144,439  $207,048  $141,852  $222,414 
    Ratio of expenses to average net assets(6)  18.96%  10.81%  18.75%  10.08%
    Ratio of net investment income to average net assets(6)  18.46%  8.39%  18.55%  7.73%
    Portfolio turnover rate(7)  1.48%  1.79%  2.60%  12.19%

    __________

    (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.
    (7)      Portfolio turnover rate is calculated using the lesser of the year-to-date cash investment sales and debt repayments or year-to-date cash 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 and six months ended June 30, 2023 and 2022:

      Three Months
    Ended
    June 30,
    2023    		 Three Months
    Ended
    June 30,
    2022    		 Six Months
    Ended
    June 30,
    2023    		 Six Months
    Ended
    June 30,
    2022
    Ratio of expenses to average net assets:            
    Operating expenses before incentive fees 15.36% 10.81% 15.18% 10.08%
    Net investment income incentive fees 3.60% —% 3.57% —%
    Ratio of expenses, excluding interest expense            
    to average net assets 10.41% 4.85% 10.05% 4.53%

    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 Rubin
    203-983-5280


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