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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
ソース: Nasdaq GlobeNewswire / 13 8 2024 07:00:01 America/Chicago
GREENWHICH, Conn., Aug. 13, 2024 (GLOBE NEWSWIRE) -- 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.
- For the quarter ended June 30, 2024 we recorded investment income from our portfolio as follows:
- 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,
2024December 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, 2024Three Months
Ended
June 30, 2023Six Months
Ended
June 30, 2024Six Months
Ended
June 30, 2023INVESTMENT 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,
2024Three Months
Ended
June 30,
2023Six Months
Ended
June 30,
2024Six Months
Ended
June 30,
2023Per 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,
2024Three Months
Ended
June 30,
2023Six Months
Ended
June 30,
2024Six Months
Ended
June 30,
2023Ratio 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 Rubin
203-983-5280
- On August 8, 2024, our Board of Directors declared the following distributions on our common stock: