Oxford Lane Capital Corp. Announces Net Asset Value and Selected Financial Results as of December 31, 2017
February 08 2018 - 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 December 31, 2017 stood at
$10.02 compared with a net asset value per share at September 30,
2017 of $9.71.
- Net investment income (“NII”), calculated in accordance with
generally accepted accounting principles (“GAAP”), was
approximately $10.5 million, or approximately $0.41 per share, for
the quarter ended December 31, 2017.
- Our core net investment income (“Core NII”) was approximately
$8.4 million, or approximately $0.33 per share, for the quarter
ended December 31, 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 (excluding those cash
distributions believed to represent a return of capital).
(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 during certain periods, 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.
Accordingly, our taxable income may be materially different than
either NII or Core NII.
- Total investment income, calculated in accordance with GAAP,
amounted to approximately $19.0 million for the quarter ended
December 31, 2017.
- For the quarter ended December 31, 2017, we recorded total
investment income from our portfolio as follows:
- approximately $18.0 million from our CLO equity investments,
and
- approximately $1.0 million from our CLO debt investments, and
other income.
- The weighted average yield of our CLO debt investments at
current cost was approximately 10.1% as of December 31,
2017.
- The weighted average effective yield of our CLO equity
investments at current cost was approximately 17.1% as of December
31, 2017.
- The weighted average cash yield of our CLO equity investments
at current cost was approximately 20.2% as of December 31, 2017.
- Net increase in net assets from operations was approximately
$18.7 million, or approximately $0.73 per share, for the quarter
ended December 31, 2017, including:
- Net investment income of approximately $10.5
million;
- Net realized losses of approximately $0.5 million;
and
- Net unrealized appreciation of approximately $8.7
million.
- During the quarter ended December 31, 2017, we made additional
CLO investments of approximately $123.1 million.
- During the quarter ended December 31, 2017, we received
approximately $88.9 million from sales and repayments of our CLO
investments.
- During the quarter ended December 31, 2017, we issued a total
of 1,697,116 shares of common stock pursuant to an “at-the-market”
offering, resulting in net proceeds of approximately $16.8 million
after deducting the sales agent’s commissions and offering
expenses.
- Our Board of Directors has declared the following distributions
on our common stock:
Month Ending |
Record Date |
Payment Date |
Amount Per Share |
April 30, 2018 |
April 20, 2018 |
April 30, 2018 |
$0.135 |
May 31, 2018 |
May 23, 2018 |
May 31, 2018 |
$0.135 |
June 30, 2018 |
June 21, 2018 |
June 29, 2018 |
$0.135 |
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:
Preferred Shares Type |
Per ShareDividendAmountDeclared |
Record Dates |
Payment Dates |
Series 2023 |
$ 0.156250 |
March 22, April 20, May 23 |
March 30, April 30, May 31 |
Series 2024 |
$ 0.140625 |
March 22, April 20, May 23 |
March 30, April 30, May 31 |
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 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, 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 and
our taxable income may differ materially from our core net
investment income.
The following table provides a reconciliation of net investment
income to core net investment income for the three months ended
December 31, 2017:
|
|
|
|
Three Months Ended |
|
December 31, 2017 |
|
|
Amount |
|
Per Share |
|
Amount |
|
Net investment
income |
$ |
10,525,153 |
|
|
$ |
0.410 |
|
|
CLO equity
adjustments |
|
(2,154,364 |
) |
|
|
(0.084 |
) |
|
Core net investment
income |
$ |
8,370,789 |
|
|
$ |
0.326 |
|
|
|
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
third fiscal quarter results today, Thursday, February 8, 2018 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 10116880.
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.
Contact: Bruce Rubin 203-983-5280
Source: Oxford Lane Capital Corp.
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