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
May 02 2023 - 8:00AM
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 Ending |
Record Date |
Payment Date |
Amount Per Share |
July 31, 2023 |
July 17, 2023 |
July 31, 2023 |
$0.035 |
August 31, 2023 |
August 17, 2023 |
August 31, 2023 |
$0.035 |
September 30, 2023 |
September 15, 2023 |
September 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 MonthsEndedMarch 31,2023 |
|
Three MonthsEndedMarch 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 MonthsEndedMarch 31,2023 |
|
Three MonthsEndedMarch 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 MonthsEndedMarch 31,2023 |
|
Three MonthsEndedMarch 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 Rubin203-983-5280
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