• Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended December 31, 2020 and Declaration of Distributions of Common Stock for the Months Ending April 30, May 31, and June 30, 2021.

    Источник: Nasdaq GlobeNewswire / 22 мар 2021 07:30:00   America/Chicago

    GREENWICH, Conn., March 22, 2021 (GLOBE NEWSWIRE) -- Oxford Square Capital Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQL) (NasdaqGS: OXSQZ) (the “Company,” “we,” “us” or “our”) announced today its financial results and related information for the quarter ended December 31, 2020.

    • As of December 31, 2020, net asset value (“NAV”) per share was $4.55, compared with the NAV per share of $3.85 at the prior quarter end.
      • For the quarter ended December 31, 2020 we recorded GAAP net investment income of approximately $4.7 million, or $0.10 per share.
      • We recorded net unrealized appreciation of approximately $35.7 million and net realized losses on investments of approximately $0.7 million for the quarter ended December 31, 2020, compared to net unrealized appreciation of approximately $20.9 million and net realized losses on investments of approximately $4.4 million for the quarter ended September 30, 2020.
      • In total, we had a net increase in net assets from operations of approximately $39.7 million, or $0.80 per share, for the quarter ended December 31, 2020, compared with a net increase in net assets from operations of approximately $20.8 million, or $0.42 per share, for the quarter ended September 30, 2020.
    • Total investment income for the quarter ended December 31, 2020 amounted to approximately $8.6 million, compared with approximately $8.2 million for the quarter ended September 30, 2020. For the quarter ended December 31, 2020 the components of investment income were as follows:
      • $5.2 million from our debt investments,
      • $3.5 million from our CLO equity investments
    • Our total expenses for the quarter ended December 31, 2020 were approximately $3.9 million, compared with total expenses of approximately $4.0 million for the third quarter of 2020.
    • During the fourth quarter of 2020, we made investments of approximately $46.9 million and recognized proceeds of approximately $25.4 million from sales of investments, and $51.1 million from repayments and amortization payments on our debt investments.
    • As of December 31, 2020, the following metrics applied (note that none of these values represents a total return to shareholders):

      • The weighted average yield of our debt investments was 8.0% at current cost, compared with 8.3% as of September 30, 2020.
      • The weighted average effective yield of our CLO equity investments at current cost was 8.0%, compared with 7.7% as of September 30, 2020.
      • The weighted average cash distribution yield of our cash income producing CLO equity investments at current cost was 19.2%, compared with 11.7% as of September 30, 2020.
    • Our weighted average credit rating was 2.1 based on total fair value and 2.4 based on total principal amount as of December 31, 2020, compared to 2.3 based on total fair value and 2.5 based on total principal value as of September 30, 2020.
    • As of December 31, 2020, we had two debt investments on non-accrual status, with a combined fair value of $4.2 million. Also, as of December 31, 2020, our preferred equity investments in one of our portfolio companies were on non-accrual status, which had zero fair value.
    • On February 23, 2021, our Board of Directors declared the following distributions on our common stock:
     Month EndingRecord DatePayment DateAmount Per Share
    April 30, 2021April 16, 2021April 30, 2021$0.035
    May 31, 2021May 14, 2021May 28, 2021$0.035
    June 30, 2021June 16, 2021June 30, 2021$0.035

    In light of current economic and market conditions, including as a result of the global crisis caused by the spread of the COVID-19 virus, we believe that no reliance should be placed on these distributions representing the prospect for any particular level of common stock distributions for any periods in the future.

    We will hold a conference call to discuss fourth quarter 2020 earnings on Wednesday, March 24, 2021 at 9:00 AM Eastern time. The toll free dial-in number is 1-888-339-0740. There will be a recording available for 30 days. If you are interested in hearing the recording, please dial 1-877-344-7529. The replay pass-code number is 10153501.

    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.

    CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

     December 31,
    2020    		 December 31,
    2019
    ASSETS       
    Non-affiliated/non-control investments (cost: $407,547,351 and $467,828,907, respectively)$294,674,000  $361,985,203 
    Affiliated investments (cost: $16,836,822 and $16,836,822, respectively) —   2,816,790 
    Cash equivalents 59,137,284   14,410,486 
    Restricted cash —   2,050,452 
    Interest and distributions receivable 2,299,259   3,480,036 
    Securities sold not settled 950,000   — 
    Other assets 597,238   523,626 
    Total assets$357,657,781  $385,266,593 
    LIABILITIES       
    Notes payable – 6.50% Unsecured Notes, net of deferred issuance costs of $1,055,065 and $1,380,658, respectively$63,315,160  $62,989,567 
    Notes payable – 6.25% Unsecured Notes, net of deferred issuance costs of $1,243,082 and $1,476,878, respectively 43,547,668   43,313,872 
    Notes payable – Credit Facility, net of deferred issuance costs of $0 and $10,051, respectively —   28,080,550 
    Securities purchased not settled 23,156,556   — 
    Base Fee and Net Investment Income Incentive Fee payable to affiliate 1,159,703   1,480,653 
    Accrued interest payable 478,191   632,235 
    Accrued expenses 573,977   771,174 
    Total liabilities 132,231,255   137,268,051 
    COMMITMENTS AND CONTINGENCIES (Note 9)       
    NET ASSETS       
    Common stock, $0.01 par value, 100,000,000 shares authorized; 49,589,607 and 48,448,987 shares issued and outstanding, respectively 495,895   484,489 
    Capital in excess of par value 452,650,210   451,839,302 
    Total distributable earnings/(accumulated losses) (227,719,579)  (204,325,249)
    Total net assets 225,426,526   247,998,542 
    Total liabilities and net assets$357,657,781  $385,266,593 
    Net asset value per common share$4.55  $5.12 
            

    OXFORD SQUARE CAPITAL CORP.

    CONSOLIDATED STATEMENTS OF OPERATIONS

     Year Ended
    December 31,
    2020    		 Year Ended
    December 31,
    2019    		 Year Ended
    December 31,
    2018
    INVESTMENT INCOME           
    From non-affiliated/non-control investments:           
    Interest income – debt investments$20,252,055  $28,000,283  $25,183,547 
    Income from securitization vehicles and investments 15,014,000   25,244,866   27,837,032 
    Other income 676,450   1,694,434   2,984,773 
    Total investment income from non-affiliated/non-control investments 35,942,505   54,939,583   56,005,352 
    From affiliated investments:           
    Dividend income – non-cash —   7,710,805   — 
    Interest income – debt investments —   —   271,916 
    Total investment income from affiliated investments —   7,710,805   271,916 
    Total investment income 35,942,505   62,650,388   56,277,268 
    EXPENSES           
    Interest expense 7,878,906   9,901,426   7,181,009 
    Base Fee 4,525,034   6,704,467   7,309,435 
    Professional fees 1,545,279   1,454,942   1,227,296 
    Compensation expense 708,350   832,256   907,995 
    Director’s fees 441,500   417,500   441,501 
    Insurance 330,746   281,146   247,178 
    Transfer agent and custodian fees 206,686   239,323   227,381 
    General and administrative 591,512   829,476   644,104 
    Total expenses before incentive fees 16,228,013   20,660,536   18,185,899 
    Net investment income incentive fees —   3,511,493   4,585,151 
    Capital gains incentive fees —   —   — 
    Total incentive fees —   3,511,493   4,585,151 
    Total expenses 16,228,013   24,172,029   22,771,050 
    Net investment income 19,714,492   38,478,359   33,506,218 
    Net change in unrealized appreciation/depreciation on investments           
    Non-Affiliate/non-control investments (7,029,647)  (50,107,582)  (36,969,481)
    Affiliated investments (2,816,790)  (19,386,212)  (2,323,867)
    Total net change in unrealized appreciation/depreciation on investments (9,846,437)  (69,493,794)  (39,293,348)
    Net realized losses           
    Non-Affiliated/non-control investments (8,151,553)  (1,709,816)  (3,370,732)
    Affiliated investments —   —   5,241 
    Extinguishment of debt (5,211)  (72,666)  (60,752)
    Total net realized losses (8,156,764)  (1,782,482)  (3,426,243)
    Net increase/(decrease) in net assets resulting from operations 1,711,291   (32,797,917)  (9,213,373)


    Net increase in net assets resulting from net investment income per common share:          
    Basic and Diluted$0.40 $0.81  $0.67  
    Net increase/(decrease) in net assets resulting from operations per common share:          
    Basic$0.03 $(0.69) $(0.19) 
    Diluted$0.03 $(0.69) $(0.19) 
    Weighted average shares of common stock outstanding:          
    Basic 49,477,215  47,756,596   49,662,157  
    Diluted 49,477,215  47,756,596   49,662,157  
                

    FINANCIAL HIGHLIGHTS

      Year Ended
    December 31,
    2020    		 Year Ended
    December 31,
    2019    		 Year Ended
    December 31,
    2018    		 Year Ended
    December 31,
    2017    		 Year Ended
    December 31,
    2016
    Per Share Data                    
    Net asset value at beginning of year $5.12  $6.60  $7.55  $7.50  $6.40 
    Net investment income(1)  0.40   0.81   0.67   0.60   0.52 
    Net realized and unrealized gains (losses)(2)  (0.36)  (1.49)  (0.91)  0.25   1.62 
    Net change in net asset value from operations  0.04   (0.68)  (0.24)  0.85   2.14 
    Distributions per share from net investment income  (0.61)  (0.80)  (0.73)  (0.66)  (1.06)
    Distributions based on weighted average share impact  —   —   0.01   —   0.01 
    Tax return of capital distributions  —   —   (0.07)  (0.14)  (0.10)
    Total distributions(3)  (0.61)  (0.80)  (0.79)  (0.80)  (1.15)
    Effect of shares issued/repurchased, gross  —   —   0.08   —   0.11 
    Net asset value at end of year $4.55  $5.12  $6.60  $7.55  $7.50 
    Per share market value at beginning of year $5.44  $6.47  $5.74  $6.61  $6.08 
    Per share market value at end of year $3.05  $5.44  $6.47  $5.74  $6.61 
    Total return based on Market Value(4)  (31.75)%  (4.14)%  26.95%  (2.01)%  33.29%
    Total return based on Net Asset Value(5)  0.82%  (10.26)%  (1.99)%  11.33%  35.31%
    Shares outstanding at end of year  49,589,607   48,448,987   47,650,959   51,479,409   51,479,409 


    Ratios/Supplemental Data(7)               
    Net assets at end of period (000’s) 225,427  247,999  314,724  388,419  385,992 
    Average net assets (000’s) 191,137  289,373  369,258  385,947  343,328 
    Ratio of expenses to average net assets 8.45% 8.35% 6.17% 7.95% 12.38%
    Ratio of net investment income to average net assets 10.26% 13.30% 9.07% 7.96% 7.80%
    Portfolio turnover rate(6) 23.72% 12.75% 35.18% 43.02% 25.73%

    ____________

    (1)      Represents per share net investment income for the period, based upon weighted average shares outstanding.
    (2)      Net realized and unrealized gains 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 debt repayments 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, 2020, 2019, 2018, 2017 and 2016:

      Year Ended
    December 31,
    2020    		 Year Ended
    December 31,
    2019    		 Year Ended
    December 31,
    2018    		 Year Ended
    December 31,
    2017    		 Year Ended
    December 31,
    2016
    Ratio of expenses to average net assets:               
    Expenses before incentive fees 8.45% 7.14% 4.92% 6.95% 11.57%
    Net Investment Income Incentive Fees —% 1.21% 1.24% 1.00% 0.81%
    Capital Gains Incentive Fees —% —% —% —% —%
    Ratio of expenses, excluding interest expense, to average net assets 4.35% 4.93% 4.21% 4.61% 7.37%

    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, including the impact of COVID-19 and related changes in base interest rates and significant market volatility on our business, our portfolio companies, our industry and the global economy.  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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