Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended June 30, 2024 and Declaration of Distributions on Common Stock for the Months Ending October 31, November 30, and December 31, 2024
13 Août 2024 - 2:00PM
Oxford Square Capital Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQZ)
(NasdaqGS: OXSQG) (the “Company,” “we,” “us” or “our”) announced
today its financial results and related information for the quarter
ended June 30, 2024.
- On August 8, 2024, our Board of Directors declared the
following distributions on our common stock:
Month Ending |
Record Date |
Payment Date |
Amount Per Share |
October 31, 2024 |
October 17, 2024 |
October 31, 2024 |
$0.035 |
November 30, 2024 |
November 15, 2024 |
November 29, 2024 |
$0.035 |
December 31, 2024 |
December 17, 2024 |
December 31, 2024 |
$0.035 |
|
|
|
|
- Net asset value (“NAV”) per share as of June 30, 2024 stood at
$2.43, compared with a NAV per share on March 31, 2024 of
$2.42.
- Net investment income (“NII”) was approximately $7.7 million,
or $0.13 per share, for the quarter ended June 30, 2024, compared
with approximately $6.5 million, or $0.11 per share, for the
quarter ended March 31, 2024.
- Total investment
income for the quarter ended June 30, 2024 amounted to
approximately $11.4 million, compared with approximately $10.7
million for the quarter ended March 31, 2024.
- For the quarter
ended June 30, 2024 we recorded investment income from our
portfolio as follows:
- $7.0 million from
our debt investments;
- $3.9 million from
our CLO equity investments; and
- $0.5 million from
other income.
- Our total
expenses for the quarter ended June 30, 2024 were approximately
$3.7 million, compared with total expenses of approximately $4.1
million for the quarter ended March 31, 2024.
- As of June 30, 2024, 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 13.7% at current cost, compared with 13.9% as
of March 31, 2024;
- The weighted average effective
yield of our CLO equity investments at current cost was 9.4%,
compared with 9.5% as of March 31, 2024; and
- The weighted average cash
distribution yield of our cash income producing CLO equity
investments at current cost was 16.2%, compared with 13.7% as of
March 31, 2024.
- For the quarter ended June 30, 2024, we recorded a net increase
in net assets resulting from operations of approximately $5.3
million, consisting of:
- NII of approximately $7.7 million;
- Net realized losses of approximately $30.4 million; and
- Net unrealized appreciation of approximately $28.0
million.
- During the
second quarter of 2024, we made investments of approximately $28.8
million and received approximately $19.2 million from sales and
repayments of investments.
- Our weighted
average credit rating was 2.3 based on total fair value and 2.7
based on total principal amount as of June 30, 2024, compared with
a weighted average credit rating of 2.3 based on total fair value
and 2.9 based on total principal amount as of March 31, 2024.
- As of
June 30, 2024, we had three debt investments in one portfolio
company on non-accrual status, with a combined fair value of
approximately $0.5 million. Also, as of June 30, 2024, our
preferred equity investments in one of our portfolio companies were
on non-accrual status, which had an aggregate fair value of
approximately $2.5 million.
- For the quarter ended June 30, 2024, we issued a total of
approximately 2.9 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 $8.9 million. As of June 30, 2024, we had
approximately 62.7 million shares of common stock outstanding.
We will hold a conference call to discuss second quarter results
today, Tuesday, August 13th, 2024 at 9:00 AM ET. The toll-free
dial-in number is 800-274-8461, verbal access code OXFORD. There
will be a recording available for 30 days. If you are interested in
hearing the recording, please dial 877-710-5302.
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 |
|
|
|
|
|
|
|
|
June 30, 2024 |
|
December 31, 2023 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Non-affiliated/non-control investments (cost: $397,523,375 and
$440,069,822, respectively) |
|
$ |
249,566,370 |
|
|
$ |
261,614,335 |
|
Affiliated investments (cost: $16,836,822 and $16,836,822,
respectively) |
|
|
2,543,665 |
|
|
|
5,276,092 |
|
Cash and cash equivalents |
|
|
30,014,406 |
|
|
|
5,740,553 |
|
Securities sold, not settled |
|
|
3,402,645 |
|
|
|
— |
|
Interest and distributions receivable |
|
|
3,274,499 |
|
|
|
3,976,408 |
|
Other assets |
|
|
1,383,299 |
|
|
|
1,060,384 |
|
Total assets |
|
$ |
290,184,884 |
|
|
$ |
277,667,772 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
Notes payable – 6.25% Unsecured Notes, net of deferred
issuance costs of $427,349 and $543,609, respectively |
|
|
44,363,401 |
|
|
|
44,247,141 |
|
Notes payable – 5.50% Unsecured Notes, net of deferred issuance
costs of $1,575,975 and $1,768,219, respectively |
|
|
78,924,025 |
|
|
|
78,731,781 |
|
Securities purchased, not settled |
|
|
10,852,405 |
|
|
|
— |
|
Base Fee and Net Investment Income Incentive Fee payable to
affiliate |
|
|
1,023,352 |
|
|
|
1,012,389 |
|
Accrued interest payable |
|
|
1,204,487 |
|
|
|
1,204,487 |
|
Accrued expenses |
|
|
1,405,182 |
|
|
|
1,163,349 |
|
Total liabilities |
|
|
137,772,852 |
|
|
|
126,359,147 |
|
|
|
|
|
|
|
|
|
|
NET
ASSETS |
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 100,000,000 shares authorized;
62,705,628 and 59,300,472 shares issued and outstanding,
respectively |
|
|
627,056 |
|
|
|
593,005 |
|
Capital in excess of par value |
|
|
468,341,856 |
|
|
|
458,121,381 |
|
Total distributable earnings/(accumulated losses) |
|
|
(316,556,880 |
) |
|
|
(307,405,761 |
) |
Total net assets |
|
|
152,412,032 |
|
|
|
151,308,625 |
|
Total liabilities and net assets |
|
$ |
290,184,884 |
|
|
$ |
277,667,772 |
|
Net asset value per common
share |
|
$ |
2.43 |
|
|
$ |
2.55 |
|
|
|
|
|
|
|
|
|
|
OXFORD SQUARE CAPITAL CORP. |
STATEMENTS OF OPERATIONS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2024 |
|
Three Months Ended June 30, 2023 |
|
Six Months Ended June 30, 2024 |
|
Six Months Ended June 30, 2023 |
INVESTMENT INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From
non-affiliated/non-control investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income – debt investments |
|
$ |
7,021,819 |
|
|
$ |
8,799,180 |
|
|
$ |
13,442,866 |
|
|
$ |
17,093,340 |
|
Income from securitization vehicles and investments |
|
|
3,885,916 |
|
|
|
4,329,300 |
|
|
|
7,818,290 |
|
|
|
8,708,795 |
|
Other income |
|
|
537,721 |
|
|
|
384,500 |
|
|
|
861,724 |
|
|
|
652,643 |
|
Total investment income from non-affiliated/non-control
investments |
|
|
11,445,456 |
|
|
|
13,512,980 |
|
|
|
22,122,880 |
|
|
|
26,454,778 |
|
Total investment income |
|
|
11,445,456 |
|
|
|
13,512,980 |
|
|
|
22,122,880 |
|
|
|
26,454,778 |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
1,960,984 |
|
|
|
3,087,951 |
|
|
|
3,921,966 |
|
|
|
6,173,317 |
|
Base Fee |
|
|
1,023,352 |
|
|
|
1,257,688 |
|
|
|
2,011,168 |
|
|
|
2,417,334 |
|
Professional fees |
|
|
491,037 |
|
|
|
281,928 |
|
|
|
802,784 |
|
|
|
617,808 |
|
Compensation expense |
|
|
174,482 |
|
|
|
190,159 |
|
|
|
381,380 |
|
|
|
457,124 |
|
General and administrative(1) |
|
|
447,519 |
|
|
|
430,149 |
|
|
|
794,144 |
|
|
|
803,322 |
|
Excise tax(1) |
|
|
(373,824 |
) |
|
|
300,000 |
|
|
|
(48,024 |
) |
|
|
300,000 |
|
Total expenses before incentive fees |
|
|
3,723,550 |
|
|
|
5,547,875 |
|
|
|
7,863,418 |
|
|
|
10,768,905 |
|
Net Investment Income Incentive Fees |
|
|
— |
|
|
|
1,299,324 |
|
|
|
— |
|
|
|
2,529,308 |
|
Capital gains incentive fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total incentive fees |
|
|
— |
|
|
|
1,299,324 |
|
|
|
— |
|
|
|
2,529,308 |
|
Total expenses(1) |
|
|
3,723,550 |
|
|
|
6,847,199 |
|
|
|
7,863,418 |
|
|
|
13,298,213 |
|
Net investment income |
|
|
7,721,906 |
|
|
|
6,665,781 |
|
|
|
14,259,462 |
|
|
|
13,156,565 |
|
NET CHANGE IN
UNREALIZED APPRECIATION/(DEPRECIATION) AND REALIZED GAINS/(LOSSES)
ON INVESTMENT TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized appreciation/(depreciation)
on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Affiliate/non-control investments |
|
|
30,353,371 |
|
|
|
4,900,785 |
|
|
|
30,498,482 |
|
|
|
3,957,995 |
|
Affiliated investments |
|
|
(2,376,310 |
) |
|
|
3,352,146 |
|
|
|
(2,732,427 |
) |
|
|
4,072,635 |
|
Total net change in unrealized appreciation/(depreciation) on
investments |
|
|
27,977,061 |
|
|
|
8,252,931 |
|
|
|
27,766,055 |
|
|
|
8,030,630 |
|
Net realized losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-affiliated/non-control investments |
|
|
(30,439,962 |
) |
|
|
(3,331,308 |
) |
|
|
(38,534,902 |
) |
|
|
(3,331,308 |
) |
Total net realized losses |
|
|
(30,439,962 |
) |
|
|
(3,331,308 |
) |
|
|
(38,534,902 |
) |
|
|
(3,331,308 |
) |
Net increase in net assets
resulting from operations |
|
$ |
5,259,005 |
|
|
$ |
11,587,404 |
|
|
$ |
3,490,615 |
|
|
$ |
17,855,887 |
|
Net increase in net assets
resulting from net investment income per common share (Basic and
Diluted): |
|
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.24 |
|
|
$ |
0.26 |
|
Net increase in net assets
resulting from operations per common share (Basic and
Diluted): |
|
$ |
0.09 |
|
|
$ |
0.23 |
|
|
$ |
0.06 |
|
|
$ |
0.36 |
|
Weighted average shares of
common stock outstanding (Basic and Diluted): |
|
|
60,654,421 |
|
|
|
50,542,374 |
|
|
|
60,146,853 |
|
|
|
50,202,259 |
|
Distributions per share |
|
$ |
0.105 |
|
|
$ |
0.105 |
|
|
$ |
0.210 |
|
|
$ |
0.210 |
|
____________
(1) Change in prior periods
was made to conform to the current period presentation.
FINANCIAL HIGHLIGHTS
|
|
Three Months Ended June 30, 2024 |
|
Three Months Ended June 30, 2023 |
|
Six Months Ended June 30, 2024 |
|
Six Months Ended June 30, 2023 |
Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning
of period |
|
$ |
2.42 |
|
|
$ |
2.80 |
|
|
$ |
2.55 |
|
|
$ |
2.78 |
|
Net investment income(1) |
|
|
0.13 |
|
|
|
0.13 |
|
|
|
0.24 |
|
|
|
0.26 |
|
Net realized and unrealized
(losses)/gains(2) |
|
|
(0.04 |
) |
|
|
0.10 |
|
|
|
(0.18 |
) |
|
|
0.09 |
|
Net (decrease)/increase in net
asset value from operations |
|
|
0.09 |
|
|
|
0.23 |
|
|
|
0.06 |
|
|
|
0.35 |
|
Distributions per share from
net investment income |
|
|
(0.11 |
) |
|
|
(0.11 |
) |
|
|
(0.21 |
) |
|
|
(0.21 |
) |
Tax return of capital
distributions(3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total distributions |
|
|
(0.11 |
) |
|
|
(0.11 |
) |
|
|
(0.21 |
) |
|
|
(0.21 |
) |
Effect of shares issued |
|
|
0.03 |
|
|
|
(0.04 |
) |
|
|
0.03 |
|
|
|
(0.04 |
) |
Net asset value at end of
period |
|
$ |
2.43 |
|
|
$ |
2.88 |
|
|
$ |
2.43 |
|
|
$ |
2.88 |
|
Per share market value at
beginning of period |
|
$ |
3.17 |
|
|
$ |
3.16 |
|
|
$ |
2.86 |
|
|
$ |
3.12 |
|
Per share market value at end
of period |
|
$ |
2.94 |
|
|
$ |
2.65 |
|
|
$ |
2.94 |
|
|
$ |
2.65 |
|
Total return based on Market
Value(4) |
|
|
(4.06 |
)% |
|
|
(13.00 |
)% |
|
|
9.98 |
% |
|
|
(9.15 |
)% |
Total return based on Net
Asset Value(5) |
|
|
4.75 |
% |
|
|
6.61 |
% |
|
|
3.53 |
% |
|
|
11.15 |
% |
Shares outstanding at end of
period |
|
|
62,705,628 |
|
|
|
56,395,751 |
|
|
|
62,705,628 |
|
|
|
56,395,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental
Data(8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period
(000’s) |
|
$ |
152,412 |
|
|
$ |
162,412 |
|
|
$ |
152,412 |
|
|
$ |
162,412 |
|
Average net assets
(000’s) |
|
$ |
146,781 |
|
|
$ |
144,439 |
|
|
$ |
147,520 |
|
|
$ |
141,852 |
|
Ratio of expenses to average
net assets(6) |
|
|
11.15 |
% |
|
|
18.96 |
% |
|
|
10.99 |
% |
|
|
18.75 |
% |
Ratio of net investment income
to average net assets(6) |
|
|
20.04 |
% |
|
|
18.46 |
% |
|
|
19.00 |
% |
|
|
18.55 |
% |
Portfolio turnover
rate(7) |
|
|
5.69 |
% |
|
|
1.48 |
% |
|
|
11.08 |
% |
|
|
2.60 |
% |
___________
(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
investment sales and debt repayments or year-to-date 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 six months ended June 30, 2024 and
2023:
|
|
Three Months Ended
June 30, 2024 |
|
Three Months Ended
June 30, 2023 |
|
Six Months Ended
June 30, 2024 |
|
Six Months Ended
June 30, 2023 |
Ratio of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses before incentive fees |
|
11.15 |
% |
|
15.36 |
% |
|
10.99 |
% |
|
15.18 |
% |
Net investment income incentive fees |
|
— |
% |
|
3.60 |
% |
|
— |
% |
|
3.57 |
% |
Ratio of expenses, excluding interest expense, to average net
assets |
|
5.81 |
% |
|
10.41 |
% |
|
5.68 |
% |
|
10.05 |
% |
About Oxford Square Capital Corp.
Oxford Square Capital Corp. is a publicly-traded business
development company principally investing in syndicated bank loans
and, to a lesser extent, 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
Oxford Square Capital (NASDAQ:OXSQZ)
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