Oxford Lane Capital Corp. Announces Net Asset Value and Selected Financial Results as of June 30, 2017
August 11 2017 - 8:00AM
Oxford Lane Capital Corp. (“Oxford Lane”, "Fund", “we”, “us” or
“our”) (Nasdaq:OXLC) (Nasdaq:OXLCO) (Nasdaq:OXLCM) announced today
the following financial results and related information:
- Net asset value per share as of June 30, 2017 stood at $10.18
compared with a net asset value per share at March 31, 2017 of
$10.20.
- Net investment income, calculated in accordance with generally
accepted accounting principles (“GAAP”), was approximately $9.8
million, or approximately $0.42 per share, for the quarter ended
June 30, 2017.
- Our core net investment income (“Core NII”) was approximately
$12.1 million, or approximately $0.52 per share, for the quarter
ended June 30, 2017.• Core NII represents net investment
income adjusted for additional cash income distributions received,
or entitled to be received (if any, in either case), on our
collateralized loan obligation (“CLO”) equity investments.
(See additional information under “Supplemental Information
Regarding Core Net Investment Income” below).• While
our experience has been that cash flow distributions have
historically represented useful indicators of our CLO equity
investments’ annual taxable income, we believe that current and
future cash flow distributions may represent less accurate
indicators of taxable income with respect to our CLO equity
investments than they have in the past.
- Total investment income, calculated in accordance with GAAP,
amounted to approximately $17.9 million for the quarter ended June
30, 2017.• For the quarter ended June 30, 2017, we recorded
GAAP investment income from our portfolio as follows: •
approximately $17.0 million from our CLO equity
investments, • approximately $0.3 million from our CLO
debt investments, and • approximately $0.6 million from
other sources.• The weighted average yield of our CLO debt
investments at current cost was approximately 9.4% as of June 30,
2017.• The weighted average effective yield of our CLO equity
investments at current cost was approximately 18.7% as of June 30,
2017.• The weighted average cash yield of our CLO equity
investments at current cost was approximately 26.4% as of June 30,
2017.
- Net increase in net assets from operations was approximately
$8.5 million, or approximately $0.37 per share, for the quarter
ended June 30, 2017, including:• Net investment income of
approximately $9.8 million for the quarter ended June 30, 2017;•
Net realized gains of approximately $1.5 million for the
quarter ended June 30, 2017; and• Net unrealized depreciation
of approximately $2.8 million for the quarter ended June 30,
2017.
- During the quarter ended June 30, 2017, we made additional CLO
investments of approximately $95.7 million.
- During the quarter ended June 30, 2017, we received
approximately $39.1 million from sales of our CLO investments.
Additionally, we received cash proceeds of approximately $7.0
million from the repayment of a CLO warehouse facility.
- During the quarter ended June 30, 2017, we issued a total of
1,369,519 shares of common stock pursuant to an “at-the-market”
offering, resulting in net proceeds of approximately $14.6 million
after deducting the sales agent’s commissions and offering
expenses.
- On June 14, 2017, we sold 2,729,415 shares of our newly
designated 6.75% Series 2024 Term Preferred Shares at a public
offering price of $25 per share, raising approximately $66.0
million in net proceeds, after deducting underwriting commissions
and offering expenses. These shares are currently traded on the
NASDAQ Global Select Market under the symbol OXLCM.
- On July 14, 2017 (the “Redemption Date”), we redeemed all
of the issued and outstanding shares (an aggregate of 2,020,179
shares) of our 8.125% Series 2024 Term Preferred Stock, which was
traded on the NASDAQ Global Select Market under the symbol OXLCN,
for a redemption price of $25 per share plus $0.07336 in accrued
but unpaid dividends per share to the Redemption Date, for an
aggregate redemption price of $25.07336 per share.
- Our Board of Directors has previously declared the following
distribution on our common stock:
|
|
|
|
Quarter Ending |
Record Date |
Payment Date |
Amount Per Share |
September 30, 2017 |
September 15, 2017 |
September 29, 2017 |
$0.40 |
|
|
|
|
Our Board of Directors has also declared the
required monthly dividends on our Series 2023 Term Preferred Shares
and Series 2024 Term Preferred Shares (each, a “Share”), as
follows:
|
|
|
|
|
|
|
|
|
Per ShareDividendAmountDeclared |
|
Record Dates |
|
Payment Dates |
|
|
|
|
|
|
|
Series
2023 |
|
$0.15625 |
|
September 15, October 17, November 16 |
|
September 29, October 31, November 30 |
|
|
|
|
|
|
|
Series
2024 |
|
$0.140625 |
|
September 15, October 17, November 16 |
|
September 29, October 31, November 30 |
|
|
|
|
|
|
|
In accordance with their terms, each of the
Series 2023 Term Preferred Shares and Series 2024 Term Preferred
Shares will pay a monthly dividend at a fixed rate of 7.50% and
6.75%, respectively, of the $25.00 per share liquidation
preference, or $1.875 and $1.6875 per share per year, respectively.
This fixed annual dividend rate is subject to adjustment under
certain circumstances, but will not in any case be lower than 7.50%
and 6.75% per year, respectively, for each of the Series 2023 Term
Preferred Shares and Series 2024 Term Preferred Shares.
Supplemental Information Regarding Core
Net Investment Income
On a supplemental basis, we provide information
relating to core net investment income, which is a non-GAAP
measure. This measure is provided in addition to, but not as a
substitute for, net investment income determined in accordance with
GAAP. Our non-GAAP measures may differ from similar measures by
other companies, even if similar terms are used to identify such
measures. Core net investment income represents net investment
income adjusted for additional cash income distributions received,
or entitled to be received (if any, in either case), on our CLO
equity investments.
Income from investments in the “equity” class
securities of CLO vehicles, for GAAP purposes, is recorded using
the effective interest method based upon an effective yield to the
expected redemption utilizing estimated cash flows compared to the
cost, resulting in an effective yield for the investment; the
difference between the actual cash received or income distributions
entitled to be received and the effective yield calculation is an
adjustment to cost. Accordingly, investment income recognized on
CLO equity securities in the GAAP statement of operations differs
from the cash distributions actually received by us during the
period (referred to below as “CLO equity adjustments”).
Further, in order to continue to qualify to be
taxed as a regulated investment company (“RIC”), we are required,
among other things, to distribute at least 90% of our investment
company taxable income annually. Therefore, core net investment
income may provide a better indication of estimated taxable income
for a reporting period than does GAAP net investment income,
although we can offer no assurance that will be the case as the
ultimate tax character of our earnings cannot be determined until
tax returns are prepared after the end of a fiscal year. We note
that these non-GAAP measures may not be useful indicators of
taxable earnings, particularly during periods of market disruption
and volatility.
The following table provides a reconciliation of
net investment income to core net investment income for the three
months ended June 30, 2017:
|
|
|
|
|
|
Three Months Ended |
|
|
June 30, 2017 |
|
|
|
Amount |
|
Per Share |
|
|
Amount |
|
Net investment
income |
|
$ |
9,782,326 |
|
$ |
0.424 |
|
CLO equity
adjustments |
|
|
2,311,291 |
|
|
0.100 |
|
Core net investment
income |
|
$ |
12,093,617 |
|
$ |
0.524 |
|
|
|
|
|
|
|
|
|
A presentation containing further detail
regarding our quarterly results of operations has been posted to
our website under the Investor Relations section at Oxford
Lane Presentation.
We will host a conference call to discuss our
first fiscal quarter results today, Friday, August 11, 2017 at
10:00 AM ET. The toll free dial-in number will be
1-844-792-3730. There will be a recorded replay of the call
available for 30 days after the call. If you are interested
in hearing the recording, please dial 1-877-344-7529. The
replay pass-code number is 10111298.
About Oxford Lane Capital
Corp.
Oxford Lane Capital Corp. is a publicly-traded
registered closed-end management investment company. It currently
seeks to achieve its investment objective of maximizing
risk-adjusted total return by investing in securitization vehicles
which, in turn, primarily invest in senior secured loans made to
companies whose debt is unrated or is rated below investment
grade.
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. 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, unless required to do so
by law.
Source: Oxford Lane Capital Corp.
Contact:
Bruce Rubin
203-983-5280
Oxford Lane Capital (NASDAQ:OXLC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Oxford Lane Capital (NASDAQ:OXLC)
Historical Stock Chart
From Sep 2023 to Sep 2024