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

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