Oxford Lane Capital Corp. Announces Net Asset Value and Selected Financial Results for the Second Fiscal Quarter and Notes its Previously Announced Distributions on Common Stock for the Months Ending January 31, February 29, and March 31, 2024
November 01 2023 - 7:00AM
Oxford Lane Capital Corp. (NasdaqGS: OXLC) (NasdaqGS: OXLCM)
(NasdaqGS: OXLCP) (NasdaqGS: OXLCL) (NasdaqGS: OXLCO) (NasdaqGS:
OXLCZ) (NasdaqGS: OXLCN) (“Oxford Lane,” the “Company,” “we,” “us”
or “our”) announced today the following financial results and
related information:
- As previously announced, on October 26, 2023, our Board of
Directors declared the following distributions on our common
stock:
Month Ending |
Record Date |
Payment Date |
Amount Per Share |
January 31, 2024 |
January 17, 2024 |
January 31, 2024 |
$0.08 |
February 29, 2024 |
February 15, 2024 |
February 29, 2024 |
$0.08 |
March 31, 2024 |
March 15, 2024 |
March 29, 2024 |
$0.08 |
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- Net asset value (“NAV”) per share as of September 30, 2023
stood at $4.81, compared with a NAV per share on June 30, 2023 of
$4.34.
- Net investment income (“NII”), calculated in accordance with
U.S. generally accepted accounting principles (“GAAP”), was
approximately $44.8 million, or $0.23 per share, for the quarter
ended September 30, 2023.
- Our core net investment income (“Core NII”) was approximately
$79.7 million, or $0.41 per share, for the quarter ended September
30, 2023.
- Core NII incorporates all applicable cash distributions
received, or entitled to be received (if any, in either case), on
our collateralized loan obligation (“CLO”) equity investments.
See additional information under “Supplemental Information
Regarding Core Net Investment Income” below.
- We emphasize that our taxable income may differ materially from
our GAAP NII and/or our Core NII, and that neither GAAP NII nor
Core NII should be relied upon as indicators of our taxable
income.
- Total investment
income for the quarter ended September 30, 2023 amounted to
approximately $74.4 million, which represented an increase of
approximately $3.9 million from the quarter ended June 30, 2023.
- For the quarter
ended September 30, 2023 we recorded investment income from our
portfolio as follows:
- Approximately $69.3
million from our CLO equity and CLO warehouse investments, and
- Approximately $5.1
million from our CLO debt investments and other income.
- Our total
expenses for the quarter ended September 30, 2023 were
approximately $29.6 million, compared with total expenses of
approximately $28.5 million for the quarter ended June 30,
2023.
- As of September 30, 2023, the following metrics applied (note
that none of these metrics represented a total return to
shareholders):
- The weighted average yield of our CLO debt investments at
current cost was 18.5%, up from 18.1% as of June 30, 2023.
- The weighted average effective yield of our CLO equity
investments at current cost was 16.3%, up from 16.0% as of June 30,
2023.
- The weighted average cash distribution yield of our CLO equity
investments at current cost was 25.0%, up from 24.6% as of June 30,
2023.
- For the quarter ended September 30, 2023, we recorded a net
increase in net assets resulting from operations of approximately
$130.1 million, or $0.67 per share, comprised of:
- NII of approximately $44.8 million;
- Net realized losses of approximately $10.5 million; and
- Net unrealized appreciation of approximately $95.8
million.
- During the quarter ended September 30, 2023, we made additional
investments of approximately $171.7 million, and received
approximately $11.8 million from sales and repayments of our CLO
investments.
- For the quarter ended September 30, 2023, we issued a total of
approximately 20.8 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 $104.8 million. The common stock issuance
resulted in net accretion to shareholders of approximately $0.07
per share of NAV for the quarter. As of September 30, 2023, we had
approximately 207.4 million shares of common stock
outstanding.
- On October 26, 2023, our Board of Directors declared the
required monthly dividends on our 6.75% Series 2024 Term Preferred
Shares, 6.25% Series 2027 Term Preferred Shares, 6.00% Series 2029
Term Preferred Shares, and 7.125% Series 2029 Term Preferred Shares
as follows:
Preferred Shares Type |
Per Share Dividend Amount Declared |
Record Dates |
Payment Dates |
6.75% - Series 2024 |
$ |
0.14062500 |
December 15, 2023, January 17, 2024, February 15, 2024 |
December 29, 2023, January 31, 2024, February 29, 2024 |
6.25% - Series 2027 |
$ |
0.13020833 |
December 15, 2023, January 17, 2024, February 15, 2024 |
December 29, 2023, January 31, 2024, February 29, 2024 |
6.00% - Series 2029 |
$ |
0.12500000 |
December 15, 2023, January 17, 2024, February 15, 2024 |
December 29, 2023, January 31, 2024, February 29, 2024 |
7.125% - Series 2029 |
$ |
0.14843750 |
December 15, 2023, January 17, 2024, February 15, 2024 |
December 29, 2023, January 31, 2024, February 29, 2024 |
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In accordance with their terms, each of the 6.75% Series 2024
Term Preferred Shares, 6.25% Series 2027 Term Preferred Shares,
6.00% Series 2029 Term Preferred Shares, and 7.125% Series 2029
Term Preferred Shares will pay a monthly dividend at a fixed rate
of 6.75%, 6.25%, 6.00% and 7.125%, respectively, of the $25.00 per
share liquidation preference, or $1.6875, $1.5625, $1.5000 and
$1.78125 per share per year, respectively. This fixed annual
dividend rate is subject to adjustment under certain circumstances,
but will not, in any case, be lower than 6.75%, 6.25%, 6.00% and
7.125% per year, respectively, for each of the 6.75% Series 2024
Term Preferred Shares, 6.25% Series 2027 Term Preferred Shares,
6.00% Series 2029 Term Preferred Shares and 7.125% Series 2029 Term
Preferred Shares.
Supplemental Information Regarding Core Net Investment
Income
We provide information relating to Core NII (a non-GAAP measure)
on a supplemental basis. This measure is not provided as a
substitute for GAAP NII, but in addition to it. Our non-GAAP
measures may differ from similar measures by other companies, even
in the event of similar terms being utilized to identify such
measures. Core NII represents GAAP NII adjusted for additional
applicable cash distributions received, or entitled to be received
(if any, in either case), on our CLO equity investments. Oxford
Lane’s management uses this information in its internal analysis of
results and believes that this information may be informative in
assessing the quality of Oxford Lane’s financial performance,
identifying trends in its results and providing meaningful
period-to-period comparisons.
Income from investments in the “equity” class securities of CLO
vehicles, for GAAP purposes, is recorded using the effective
interest method; this is based on an effective yield to the
expected redemption utilizing estimated cash flows, at current
cost, including those CLO equity investments that have not made
their inaugural distribution for the relevant period end. The
result is an effective yield for the investment in which the
respective investment’s cost basis is adjusted quarterly based on
the difference between the actual cash received, or distributions
entitled to be received, and the effective yield calculation.
Accordingly, investment income recognized on CLO equity securities
in the GAAP statement of operations differs from the cash
distributions actually received by the Company during the period
(referred to below as “CLO equity adjustments”).
Furthermore, in order for the Company to continue qualifying as
a regulated investment company for tax purposes, we are required,
among other things, to distribute at least 90% of our investment
company taxable income annually. While Core NII may provide a
better indication of our estimated taxable income than GAAP NII
during certain periods, we can offer no assurance that will be the
case, however, as the ultimate tax character of our earnings cannot
be determined until after tax returns are prepared at the close of
a fiscal year. We note that this non-GAAP measure may not serve as
a useful indicator of taxable earnings, particularly during periods
of market disruption and volatility, and, as such, our taxable
income may differ materially from our Core NII.
The following table provides a reconciliation of GAAP NII to
Core NII for the three months ended September 30, 2023:
|
Three Months Ended |
|
September 30, 2023 |
|
|
Amount |
|
Per ShareAmount |
|
|
GAAP net investment income |
$ 44,848,623 |
|
$ 0.23 |
|
CLO equity adjustments |
|
34,848,966 |
|
|
0.18 |
|
Core net investment income |
$ 79,697,589 |
|
$ 0.41 |
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We will host a conference call to discuss our second quarter
results today, Wednesday, November 1, 2023 at 9:00 AM ET. Please
call 1-833-470-1428, access code number 094949 to participate. A
recording of the conference call will be available for replay for
approximately 30 days following the call. The replay number is
1-866-813-9403, and the replay passcode is 325383.
A presentation containing additional details regarding our
quarterly results of operations has been posted under the Investor
Relations section of our website
at www.oxfordlanecapital.com.
About Oxford Lane Capital Corp.
Oxford Lane Capital Corp. is a publicly-traded registered
closed-end management investment company principally investing in
debt and equity tranches of 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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