• Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended March 31, 2023 and Declaration of Distributions on Common Stock for the Months Ending July 31, August 31, and September 30, 2023

    Источник: Nasdaq GlobeNewswire / 02 май 2023 07:00:02   America/Chicago

    GREENWICH, Conn., May 02, 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 March 31, 2023.

    • On April 25, 2023, our Board of Directors declared the following distributions on our common stock:
    Month EndingRecord DatePayment DateAmount Per Share
    July 31, 2023July 17, 2023July 31, 2023$0.035
    August 31, 2023August 17, 2023August 31, 2023$0.035
    September 30, 2023September 15, 2023September 29, 2023$0.035
     
    • Net asset value (“NAV”) per share as of March 31, 2023 stood at $2.80, compared with a NAV per share on December 31, 2022 of $2.78.
    • 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 March 31, 2023, compared with approximately $6.5 million, or $0.13 per share, for the quarter ended December 31, 2022.
    • Total investment income for the quarter ended March 31, 2023 amounted to approximately $12.9 million, compared with approximately $11.9 million for the quarter ended December 31, 2022.
      • For the quarter ended March 31, 2023 we recorded investment income from our portfolio as follows:
        • $8.3 million from our debt investments; and
        • $4.6 million from our CLO equity investments and other income.
    • Our total expenses for the quarter ended March 31, 2023 were approximately $6.5 million, compared with total expenses of approximately $5.4 million for the quarter ended December 31, 2022.
    • As of March 31, 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 12.4% at current cost, compared with 11.9% as of December 31, 2022;
      • The weighted average effective yield of our CLO equity investments at current cost was 9.1%, compared with 8.4% as of December 31, 2022; and
      • The weighted average cash distribution yield of our cash income producing CLO equity investments at current cost was 15.3%, compared with 13.0% as of December 31, 2022.
    • For the quarter ended March 31, 2023, we recorded a net increase in net assets resulting from operations of approximately $6.3 million, consisting of:
      • NII of approximately $6.5 million; and
      • Net unrealized depreciation of approximately $220,000. 
    • During the first quarter of 2023, we made investments of approximately $8.2 million, and received approximately $330,000 from 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 March 31, 2023, 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 December 31, 2022.
    • As of March 31, 2023, we had three debt investments (in one portfolio company) on non-accrual status, with a combined fair value of approximately $123,000. Also, as of March 31, 2023, our preferred equity investments in one of our portfolio companies were on non-accrual status, which had an aggregate fair value of approximately $5.1 million.

    We will hold a conference call to discuss first quarter results today, Tuesday, May 2nd, 2023 at 9:00 AM ET. The toll-free dial-in number is 1-833-470-1428, access code number 088518. 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 465308.

    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,
    2023    		 December 31,
    2022
      (unaudited)  
    ASSETS        
    Non-affiliated/non-control investments (cost: $500,195,807 and $495,000,997, respectively) $314,599,117  $310,347,097 
    Affiliated investments (cost: $16,836,822 and $16,836,822, respectively)  5,070,307   4,349,818 
    Cash and cash equivalents  10,763,167   9,019,164 
    Interest and distributions receivable  4,047,953   3,492,716 
    Other assets  736,375   785,640 
    Total assets. $335,216,919  $327,994,435 
    LIABILITIES        
    Notes payable – 6.50% Unsecured Notes, net of deferred issuance costs of $325,593 and $405,657, respectively $64,044,632  $63,964,568 
    Notes payable – 6.25% Unsecured Notes, net of deferred issuance costs of $719,276 and $776,766, respectively  44,071,474   44,013,984 
    Notes payable – 5.50% Unsecured Notes, net of deferred issuance costs of $2,058,696 and $2,153,762 respectively  78,441,304   78,346,238 
    Securities purchased not settled  4,657,500   — 
    Base Fee and Net Investment Income Incentive Fee payable to affiliate  2,389,630   1,323,573 
    Accrued interest payable  1,216,109   1,216,109 
    Accrued expenses  557,122   458,001 
    Total liabilities  195,377,771   189,322,473 
             
    NET ASSETS        
    Common stock, $0.01 par value, 100,000,000 shares authorized; 49,885,954 and 49,844,796 shares issued and outstanding, respectively  498,859   498,447 
    Capital in excess of par value  434,871,321   434,737,950 
    Total distributable earnings/(accumulated losses)  (295,531,032)  (296,564,435)
    Total net assets  139,839,148   138,671,962 
    Total liabilities and net assets $335,216,919  $327,994,435 
    Net asset value per common share $2.80  $2.78 


    OXFORD SQUARE CAPITAL CORP.

    STATEMENTS OF OPERATIONS
    (unaudited)

      Three Months
    Ended
    March 31,
    2023    		 Three Months
    Ended
    March 31,
    2022
    INVESTMENT INCOME        
    From non-affiliated/non-control investments:        
    Interest income – debt investments $8,294,160  $5,250,149 
    Income from securitization vehicles and investments  4,379,495   4,441,195 
    Other income  268,143   174,526 
    Total investment income from non-affiliated/non-control investments  12,941,798   9,865,870 
    Total investment income  12,941,798   9,865,870 
    EXPENSES        
    Interest expense  3,085,366   3,085,366 
    Base Fee  1,159,646   1,606,503 
    Professional fees  335,880   344,522 
    Compensation expense  266,965   235,003 
    General and administrative  373,173   344,102 
    Total expenses before incentive fees  5,221,030   5,615,496 
    Net Investment Income Incentive Fees  1,229,984   — 
    Total expenses  6,451,014   5,615,496 
    Net investment income  6,490,784   4,250,374 
    Net change in unrealized (depreciation)/appreciation on investments:        
    Non-Affiliate/non-control investments  (942,790)  (13,690,696)
    Affiliated investments  720,489   200,847 
    Total net change in unrealized depreciation on investments  (222,301)  (13,489,849)
    Net realized gains:        
    Non-affiliated/non-control investments  —   1,042,286 
    Total net realized gains  —   1,042,286 
    Net increase/(decrease) in net assets resulting from operations $6,268,483  $(8,197,189)
    Net increase in net assets resulting from net investment income per common share (Basic and Diluted): $0.13  $0.09 
    Net increase/(decrease) in net assets resulting from operations per common share (Basic and Diluted): $0.13  $(0.16)
    Weighted average shares of common stock outstanding (Basic and Diluted):  49,858,366   49,700,764 
    Distributions per share $0.105  $0.105 


    FINANCIAL HIGHLIGHTS

      Three Months
    Ended
    March 31,
    2023    		 Three Months
    Ended
    March 31,
    2022
    Per Share Data        
    Net asset value at beginning of period $2.78  $4.92 
    Net investment income(1)  0.13   0.09 
    Net realized and unrealized gains/(losses)(2)  (0.00)   (0.25)
    Net increase/(decrease) in net asset value from operations  0.13   (0.16)
    Distributions per share from net investment income  (0.11)  (0.09)
    Tax return of capital distributions(3)  —   (0.02)
    Total distributions  (0.11)  (0.11)
    Effect of shares issued/repurchased, gross  —   — 
    Net asset value at end of period $2.80  $4.65 
    Per share market value at beginning of period $3.12  $4.08 
    Per share market value at end of period $3.16  $4.19 
    Total return based on market value(4)  4.42%  5.31%
    Total return based on net asset value(5)  4.50%  (3.35)%
    Shares outstanding at end of period  49,885,954   49,721,642 
             
    Ratios/Supplemental Data(8)        
    Net assets at end of period (000’s) $139,839  $231,304 
    Average net assets (000’s) $139,235  $237,950 
    Ratio of expenses to average net assets(6)  18.53%  9.44%
    Ratio of net investment income to average net assets(6)  18.65%  7.14%
    Portfolio turnover rate(7)  0.10%  10.09%

    ____________

    (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 months ended March 31, 2023 and 2022:

      Three Months
    Ended
    March 31,
    2023    		 Three Months
    Ended
    March 31,
    2022
    Ratio of expenses to average net assets:      
    Operating expenses before incentive fees 15.00% 9.44%
    Net investment income incentive fees 3.53% —%
    Ratio of expenses, excluding interest expense to average net assets 9.67% 4.25%


    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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