• Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended September 30, 2023 and Declaration of Distributions on Common Stock for the Months Ending January 31, February 29, and March 31, 2024

    Источник: Nasdaq GlobeNewswire / 07 ноя 2023 08:00:01   America/New_York

    GREENWICH, Conn., Nov. 07, 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 September 30, 2023.

    • On November 2, 2023, our Board of Directors declared the following distributions on our common stock:

    Month EndingRecord DatePayment DateAmount Per Share
    January 31, 2024January 17, 2024January 31, 2024$0.035
    February 29, 2024February 15, 2024February 29, 2024$0.035
    March 31, 2024March 15, 2024March 29, 2024$0.035
    • Net asset value (“NAV”) per share as of September 30, 2023 stood at $2.78, compared with a NAV per share on June 30, 2023 of $2.88.
    • Net investment income (“NII”) was approximately $6.4 million, or $0.11 per share, for the quarter ended September 30, 2023, compared with approximately $6.7 million, or $0.13 per share, for the quarter ended June 30, 2023.
    • Total investment income for the quarter ended September 30, 2023 amounted to approximately $13.0 million, compared with approximately $13.5 million for the quarter ended June 30, 2023.
      • For the quarter ended September 30, 2023 we recorded investment income from our portfolio as follows:
        • $8.5 million from our debt investments;
        • $4.1 million from our CLO equity investments; and
        • $0.5 million from other income.
    • Our total expenses for the quarter ended September 30, 2023 were approximately $6.6 million, compared with total expenses of approximately $6.8 million for the quarter ended June 30, 2023.
    • As of September 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 13.1% at current cost, compared with 12.8% as of June 30, 2023;
      • The weighted average effective yield of our CLO equity investments at current cost was 9.7%, compared with 9.2% as of June 30, 2023; and
      • The weighted average cash distribution yield of our cash income producing CLO equity investments at current cost was 20.1%, compared with 18.4% as of June 30, 2023.

    • For the quarter ended September 30, 2023, we recorded a net increase in net assets resulting from operations of approximately $6.7 million, consisting of:
      • NII of approximately $6.4 million;
      • Net realized losses of approximately $13.6 million; and
      • Net unrealized appreciation of approximately $13.9 million. 

    • During the third quarter of 2023, we did not make any new investments and received approximately $16.1 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 September 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 June 30, 2023.
    • As of September 30, 2023, we had three debt investments (in one portfolio company) on non-accrual status, with a combined fair value of approximately $490,000. Also, as of September 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 $7.7 million.
    • For the quarter ended September 30, 2023, we issued a total of approximately 1.4 million 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 $4.4 million. The common stock issuance resulted in net accretion to shareholders of approximately $0.01 per share of NAV for the quarter. As of September 30, 2023, we had approximately 58.0 million shares of common stock outstanding.

    We will hold a conference call to discuss third quarter results today, Tuesday, November 7th, 2023 at 9:00 AM ET. The toll-free dial-in number is 1-833-470-1428, access code number 495860. 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 176763.

    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
     September 30,
    2023    		 December 31,
    2022
     (unaudited)  
    ASSETS       
    Non-affiliated/non-control investments (cost: $443,889,440 and
    $495,000,997, respectively)    		$277,807,167  $310,347,097 
    Affiliated investments (cost: $16,836,822 and $16,836,822, respectively) 7,709,623   4,349,818 
    Cash and cash equivalents 12,410,909   9,019,164 
    Interest and distributions receivable 4,036,483   3,492,716 
    Other assets 1,031,723   785,640 
    Total assets$302,995,905  $327,994,435 
    LIABILITIES       
    Notes payable – 6.50% Unsecured Notes, net of deferred issuance costs of $36,343 and $405,657, respectively$14,333,882  $63,964,568 
    Notes payable – 6.25% Unsecured Notes, net of deferred issuance costs of $602,377 and $776,766, respectively 44,188,373   44,013,984 
    Notes payable – 5.50% Unsecured Notes, net of deferred issuance costs of $1,865,397 and $2,153,762 respectively 78,634,603   78,346,238 
    Base Fee and Net Investment Income Incentive Fee payable to affiliate 2,360,018   1,323,573 
    Accrued interest payable 1,207,082   1,216,109 
    Accrued expenses 1,376,886   458,001 
    Total liabilities 142,100,844   189,322,473 
            
    NET ASSETS       
    Common stock, $0.01 par value, 100,000,000 shares authorized; 57,958,446 and 49,844,796 shares issued and outstanding, respectively 579,584   498,447 
    Capital in excess of par value 455,703,275   434,737,950 
    Total distributable earnings/(accumulated losses) (295,387,798)  (296,564,435)
    Total net assets 160,895,061   138,671,962 
    Total liabilities and net assets$302,995,905  $327,994,435 
    Net asset value per common share$2.78  $2.78 


    OXFORD SQUARE CAPITAL CORP.

    STATEMENTS OF OPERATIONS
    (unaudited)
     Three Months
    Ended
    September 30,
    2023    		 Three Months
    Ended
    September 30,
    2022    		 Nine Months
    Ended
    September 30,
    2023    		 Nine Months
    Ended
    September 30,
    2022
    INVESTMENT INCOME               
    From non-affiliated/non-control investments:               
    Interest income – debt investments$8,453,240  $6,805,339  $25,546,580  $17,730,026 
    Income from securitization vehicles and investments 4,106,071   4,402,463   12,814,866   12,906,127 
    Other income 486,043   190,330   1,138,686   567,400 
    Total investment income from non-affiliated/non-control investments 13,045,354   11,398,132   39,500,132   31,203,553 
    Total investment income 13,045,354   11,398,132   39,500,132   31,203,553 
    EXPENSES               
    Interest expense 2,530,321   3,090,535   8,703,638   9,263,853 
    Base Fee 1,183,941   1,408,729   3,601,275   4,580,413 
    Professional fees 478,833   417,390   1,096,641   1,072,843 
    Compensation expense 205,348   234,517   662,472   689,350 
    General and administrative 458,328   438,943   1,261,650   1,195,174 
    Excise tax 573,686   252,172   873,686   252,172 
    Total expenses before incentive fees 5,430,457   5,842,286   16,199,362   17,053,805 
    Net Investment Income Incentive Fees 1,176,079   —   3,705,387   — 
    Total expenses 6,606,536   5,842,286   19,904,749   17,053,805 
    Net investment income 6,438,818   5,555,846   19,595,383   14,149,748 
    Net change in unrealized appreciation/(depreciation) on investments:               
    Non-Affiliate/non-control investments 14,613,632   (17,373,881)  18,571,627   (77,909,718)
    Affiliated investments (712,830)  615,332   3,359,805   1,418,432 
    Total net change in unrealized appreciation/(depreciation) on investments 13,900,802   (16,758,549)  21,931,432   (76,491,286)
    Net realized (losses)/gains:               
    Non-affiliated/non-control investments (13,480,114)  55,787   (16,811,422)  (437,978)
    Extinguishment of debt (166,670)  —   (166,670)  — 
    Total net realized (losses)/gains (13,646,784)  55,787   (16,978,092)  (437,978)
    Net increase/(decrease) in net assets
    resulting from operations    		$6,692,836  $(11,146,916) $24,548,723  $(62,779,516)
    Net increase in net assets resulting from net investment income per common share (Basic and Diluted):$0.11  $0.11  $0.37  $0.28 
    Net increase/(decrease) in net assets
    resulting from operations per common share (Basic and Diluted):    		$0.12  $(0.22) $0.47  $(1.26)
    Weighted average shares of common stock outstanding (Basic and Diluted): 56,764,866   49,773,782   52,413,834   49,737,216 
    Distributions per share$0.225  $0.105  $0.435  $0.315 

    FINANCIAL HIGHLIGHTS – (unaudited)

     Three Months
    Ended
    September 30,
    2023    		 Three Months
    Ended
    September 30,
    2022    		 Nine Months
    Ended
    September 30,
    2023    		 Nine Months
    Ended
    September 30,
    2022
    Per Share Data               
    Net asset value at beginning of period$2.88  $3.67  $2.78  $4.92 
    Net investment income(1) 0.11   0.11   0.37   0.28 
    Net realized and unrealized gains/(losses)(2) 0.01   (0.33)  0.10   (1.54)
    Net increase/(decrease) in net asset value from operations 0.12   (0.22)  0.47   (1.26)
    Distributions per share from net investment income (0.23)  (0.15)  (0.44)  (0.32)
    Tax return of capital distributions(3) —   0.04   —   — 
    Total distributions (0.23)  (0.11)  (0.44)  (0.32)
    Effect of shares issued, gross 0.01   —   (0.03)  — 
    Net asset value at end of period$2.78  $3.34  $2.78  $3.34 
    Per share market value at beginning of period$2.65  $3.64  $3.12  $4.08 
    Per share market value at end of period$3.01  $3.01  $3.01  $3.01 
    Total return based on Market Value(4) 22.17%  (14.79)%  10.99%  (19.90)%
    Total return based on Net Asset Value(5) 4.34%  (6.13)%  15.65%  (25.71)%
    Shares outstanding at end of period 57,958,446   49,800,274   57,958,446   49,800,274 
                    
    Ratios/Supplemental Data(8)               
    Net assets at end of period (000’s)$160,895  $166,548  $160,895  $166,548 
    Average net assets (000’s)$160,397  $174,670  $148,132  $206,324 
    Ratio of expenses to average net assets(6) 15.40%  12.95%  17.72%  10.98%
    Ratio of net investment income to average net assets(6) 17.13%  13.16%  17.83%  9.18%
    Portfolio turnover rate(7) —%  3.53%  2.64%  16.42%

    ____________

    (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)Ratios for the three and nine months ended September 30, 2023 are annualized and include non-recurring expenses, including excise tax of 0.36% and 0.59% of average net assets, respectively, which are not 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 nine months ended September 30, 2023 and 2022:

     

     Three Months
    Ended
    September 30,
    2023    		Three Months
    Ended
    September 30,
    2022    		Nine Months
    Ended
    September 30,
    2023    		Nine Months
    Ended
    September 30,
    2022
    Ratio of expenses to average net assets:    
    Operating expenses before incentive fees12.47%12.95%14.38%10.98%
    Net investment income incentive fees2.93%—%3.34%—%
    Ratio of expenses, excluding interest expense to average net assets9.09%5.87%9.89%4.99%

    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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