• Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended December 31, 2022 and Declaration of Distributions on Common Stock for the Months Ending April 30, May 31, and June 30, 2023

    ソース: Nasdaq GlobeNewswire / 21 3 2023 08:00:01   America/New_York

    GREENWICH, Conn., March 21, 2023 (GLOBE NEWSWIRE) -- 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 December 31, 2022.

    • On March 16, 2023, our Board of Directors declared the following distributions on our common stock:
    Month EndingRecord DatePayment DateAmount Per Share
    April 30, 2023April 14, 2023April 28, 2023$0.035
    May 31, 2023May 17, 2023May 31, 2023$0.035
    June 30, 2023June 16, 2023June 30, 2023$0.035
    • Net asset value (“NAV”) per share as of December 31, 2022 stood at $2.78, compared with a NAV per share on September 30, 2022 of $3.34.
    • 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 December 31, 2022, compared with approximately $5.6 million, or $0.11 per share, for the quarter ended September 30, 2022.
    • Total investment income for the quarter ended December 31, 2022 amounted to approximately $11.9 million, compared with approximately $11.4 million for the quarter ended September 30, 2022.
      • For the quarter ended December 31, 2022 we recorded investment income from our portfolio as follows:
        • $7.5 million from our debt investments; and
        • $4.4 million from our CLO equity investments and other income.
    • Our total expenses for the quarter ended December 31, 2022 were approximately $5.4 million, compared with total expenses of approximately $5.8 million for the quarter ended September 30, 2022.
    • As of December 31, 2022, 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 11.9% at current cost, compared with 10.4% as of September 30, 2022;
      • The weighted average effective yield of our CLO equity investments at current cost was 8.4%, compared with 9.0% as of September 30, 2022; and
      • The weighted average cash distribution yield of our cash income producing CLO equity investments at current cost was 13.0%, compared with 16.6% as of September 30, 2022.
    • For the quarter ended December 31, 2022, we recorded a net decrease in net assets resulting from operations of approximately $22.8 million, consisting of:
      • NII of approximately $6.5 million;
      • Net realized gains of approximately $98,000; and
      • Net unrealized depreciation of approximately $29.4 million. 
    • During the fourth quarter of 2022, we made investments of approximately $6.1 million, and received approximately $216,000 from sales and repayments of investments.
    • Our weighted average credit rating was 2.2 based on total fair value and 2.4 based on total principal amount as of December 31, 2022, 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 September 30, 2022.
    • As of December 31, 2022, we had three debt investments (in one portfolio company) on non-accrual status, with a combined fair value of approximately $172,000. Also, as of December 31, 2022, our preferred equity investments in one of our portfolio companies were on non-accrual status, which had an aggregate fair value of approximately $4.3 million.

    We will hold a conference call to discuss fourth quarter results today, Tuesday, March 21st, 2023 at 9:00 AM ET. The toll-free dial-in number is 1-844-200-6205, access code number 521933. 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 808708.

    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

     December 31,
    2022    		 December 31,
    2021
    ASSETS       
    Non-affiliated/non-control investments (cost: $495,000,997 and $495,212,632, respectively)$310,347,097  $420,038,717 
    Affiliated investments (cost: $16,836,822 and $16,836,822, respectively) 4,349,818   772,491 
    Cash and cash equivalents 9,019,164   9,015,700 
    Interest and distributions receivable 3,492,716   3,064,477 
    Other assets 785,640   615,109 
    Total assets$327,994,435  $433,506,494 
    LIABILITIES       
    Notes payable – 6.50% Unsecured Notes, net of deferred issuance costs of $405,657 and $730,361, respectively$63,964,568  $63,639,864 
    Notes payable – 6.25% Unsecured Notes, net of deferred issuance costs of $776,766 and $1,009,924, respectively 44,013,984   43,780,826 
    Notes payable – 5.50% Unsecured Notes, net of deferred issuance costs of $2,153,762 and $2,539,305, respectively 78,346,238   77,960,695 
    Base Fee and Net Investment Income Incentive Fee payable to affiliate 1,323,573   1,688,712 
    Accrued interest payable 1,216,109   1,216,109 
    Accrued expenses 458,001   625,163 
    Total liabilities 189,322,473   188,911,369 
    COMMITMENTS AND CONTINGENCIES       
    NET ASSETS       
    Common stock, $0.01 par value, 100,000,000 shares authorized; 49,844,796 and 49,690,059 shares issued and outstanding, respectively 498,447   496,900 
    Capital in excess of par value 434,737,950   434,462,322 
    Total distributable earnings/(accumulated losses) (296,564,435)  (190,364,097)
    Total net assets 138,671,962   244,595,125 
    Total liabilities and net assets$327,994,435  $433,506,494 
    Net asset value per common share$2.78  $4.92 



    OXFORD SQUARE CAPITAL CORP.
    STATEMENTS OF OPERATIONS

     Year Ended
    December 31,
    2022    		 Year Ended
    December 31,
    2021    		 Year Ended
    December 31,
    2020
    INVESTMENT INCOME           
    From non-affiliated/non-control investments:           
    Interest income – debt investments$25,234,315  $17,440,229  $20,252,055 
    Income from securitization vehicles and investments 17,093,203   18,691,631   15,014,000 
    Other income 790,594   1,043,153   676,450 
    Total investment income from non-affiliated/ non-control investments 43,118,112   37,175,013   35,942,505 
    Total investment income 43,118,112   37,175,013   35,942,505 
    EXPENSES           
    Interest expense 12,354,392   10,495,897   7,878,906 
    Base Fee 5,903,986   6,287,173   4,525,034 
    Professional fees 1,393,116   1,910,390   1,545,279 
    Compensation expense 915,583   723,931   708,350 
    Director’s fees 417,500   490,500   441,500 
    Insurance 378,804   422,805   330,746 
    Transfer agent and custodian fees 231,241   222,581   206,686 
    General and administrative 835,912   521,541   591,512 
    Total expenses before incentive fees 22,430,534   21,074,818   16,228,013 
    Net Investment Income Incentive Fees —   —   — 
    Capital gains incentive fees —   —   — 
    Total incentive fees —   —   — 
    Total expenses 22,430,534   21,074,818   16,228,013 
    Net investment income 20,687,578   16,100,195   19,714,492 
    Net change in unrealized (depreciation)/appreciation on investments:           
    Non-Affiliate/non-control investments (109,479,985)  37,699,436   (7,029,647)
    Affiliated investments 3,577,327   772,491   (2,816,790)
    Total net change in unrealized (depreciation)/appreciation on investments (105,902,658)  38,471,927   (9,846,437)
    Net realized losses:           
    Non-affiliated/non-control investments… (339,819)  (14,987,438)  (8,151,553)
    Extinguishment of debt —   —   (5,211)
    Total net realized losses (339,819)  (14,987,438)  (8,156,764)
    Net (decrease)/increase in net assets resulting from operations$(85,554,899) $39,584,684  $1,711,291 
    Net increase in net assets resulting from net investment income per common share (Basic and Diluted):$0.42  $0.32  $0.40 
    Net (decrease)/increase in net assets resulting from operations per common share (Basic and Diluted):$(1.72) $0.80  $0.03 
    Weighted average shares of common stock outstanding (Basic and Diluted): 49,757,122   49,624,851   49,477,215 



    FINANCIAL HIGHLIGHTS

     Year Ended
    December 31,
    2022    		 Year Ended
    December 31,
    2021    		 Year Ended
    December 31,
    2020    		 Year Ended
    December 31,
    2019    		 Year Ended
    December 31,
    2018
    Per Share Data                   
    Net asset value at beginning of year$4.92  $4.55  $5.12  $6.60  $7.55 
    Net investment income(1) 0.42   0.32   0.40   0.81   0.67 
    Net realized and unrealized (losses)/gains(2) (2.14)  0.47   (0.36)  (1.49)  (0.91)
    Net (decrease)/increase in net assets resulting from operations (1.72)  0.79   0.04   (0.68)  (0.24)
    Distributions per share from net investment income (0.42)  (0.42)  (0.61)  (0.80)  (0.73)
    Distributions based on weighted average share impact —   —   —   —   0.01 
    Tax return of capital distributions —   —   —   —   (0.07)
    Total distributions(3) (0.42)  (0.42)  (0.61)  (0.80)  (0.79)
    Effect of shares issued, net of offering expenses —   —   —   —   — 
    Effect of shares issued/repurchased, gross —   —   —   —   0.08 
    Net asset value at end of year$2.78  $4.92  $4.55  $5.12  $6.60 
    Per share market value at beginning of year$4.08  $3.05  $5.44  $6.47  $5.74 
    Per share market value at end of year$3.12  $4.08  $3.05  $5.44  $6.47 
    Total return based on Market Value(4) (14.11)%  47.38%  (31.75)%  (4.14)%  26.95%
    Total return based on Net Asset Value(5) (34.96)%  17.36%  0.82%  (10.26)%  (1.99)%
    Shares outstanding at end of year 49,844,796   49,690,059   49,589,607   48,448,987   47,650,959 
    Ratios/Supplemental Data(7)                   
    Net assets at end of year (000’s)$138,672  $244,595  $225,427  $247,999  $314,724 
    Average net assets (000’s)$192,785  $242,589  $192,137  $289,373  $369,258 
    Ratio of expenses to average net assets 11.64%  8.69%  8.45%  8.35%  6.17%
    Ratio of net investment income to average net assets 10.73%  6.64%  10.26%  13.30%  9.07%
    Portfolio turnover rate(6) 17.09%  11.09%  23.72%  12.75%  35.18%

    _____

    (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.
    (4)Total return based on market value equals the increase or decrease of ending market value over beginning market value, plus distributions, assuming distribution reinvestment prices obtained under the Company’s distribution reinvestment plan, excluding any discounts divided by the beginning market value per share.
    (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.
    (6)Portfolio turnover rate is calculated using the lesser of the annual cash investment sales and repayments of principal or annual cash investment purchases over the average of the total investments at fair value.
    (7)The following table provides supplemental performance ratios measured for the years ended December 31, 2022, 2021, 2020, 2019, and 2018:

     


      
    Year Ended December 31,
    2022    		 Year Ended December 31,
    2021    		 Year Ended December 31,
    2020    		 Year Ended December 31,
    2019    		 Year Ended December 31,
    2018
    Ratio of expenses to average net assets:                   
    Expenses before incentive fees 11.64%  8.69%  8.45%  7.14%  4.92%
    Net Investment Income Incentive Fees —%  —%  —%  1.21%  1.24%
    Capital Gains Incentive
    Fees    		 —%  —%  —%  —%  —%
    Ratio of expenses, excluding interest expense, to average net assets 5.23%  4.36%  4.35%  4.93%  4.21%

    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 Rubin
    203-983-5280

     


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