Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended June 30, 2023
10 Agosto 2023 - 7:00AM
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 June 30, 2023.
- On August 3, 2023, our Board of Directors declared the
following distributions on our common stock:
Month Ending |
Record Date |
Payment Date |
Amount Per Share |
September 30, 2023* |
September 15, 2023 |
September 29, 2023 |
$ |
0.120 |
October 31, 2023 |
October 17, 2023 |
October 31, 2023 |
$ |
0.035 |
November 30, 2023 |
November 16, 2023 |
November 30, 2023 |
$ |
0.035 |
December 31, 2023 |
December 15, 2023 |
December 29, 2023 |
$ |
0.035 |
*
Special Distribution.
- Net asset value (“NAV”) per share as of June 30, 2023 stood at
$2.88, compared with a NAV per share on March 31, 2023 of
$2.80.
- Net investment income (“NII”) was approximately $6.7 million,
or $0.13 per share, for the quarter ended June 30, 2023, compared
with approximately $6.5 million, or $0.13 per share, for the
quarter ended March 31, 2023.
- Total investment
income for the quarter ended June 30, 2023 amounted to
approximately $13.5 million, compared with approximately $12.9
million for the quarter ended March 31, 2023.
- For the quarter
ended June 30, 2023 we recorded investment income from our
portfolio as follows:
- $8.8 million from
our debt investments; and
- $4.7 million from
our CLO equity investments and other income.
- Our total
expenses for the quarter ended June 30, 2023 were approximately
$6.8 million, compared with total expenses of approximately $6.5
million for the quarter ended March 31, 2023.
- As of June 30, 2023, 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 12.8% at current cost, compared with 12.4% as
of March 31, 2023;
- The weighted average effective
yield of our CLO equity investments at current cost was 9.2%,
compared with 9.1% as of March 31, 2023; and
- The weighted average cash
distribution yield of our cash income producing CLO equity
investments at current cost was 18.4%, compared with 15.3% as of
March 31, 2023.
- For the quarter ended June 30, 2023, we recorded a net increase
in net assets resulting from operations of approximately $11.6
million, consisting of:
- NII of approximately $6.7 million;
- Net realized losses of approximately $3.3 million; and
- Net unrealized appreciation of approximately $8.3
million.
- During the
second quarter of 2023, we did not make any new investments and
received approximately $14.3 million from sales and repayments of
investments.
- Our weighted
average credit rating was 2.2 based on total fair value and 2.5
based on total principal amount as of June 30, 2023, compared with
a weighted average credit rating of 2.2 based on total fair value
and 2.5 based on total principal amount as of March 31, 2023.
- As of
June 30, 2023, we had three debt investments (in one portfolio
company) on non-accrual status, with a combined fair value of
approximately $450,000. Also, as of June 30, 2023, our preferred
equity investments in one of our portfolio companies were on
non-accrual status, which had an aggregate fair value of
approximately $8.4 million.
We will hold a conference call to discuss second quarter results
today, Thursday, August 10th, 2023 at 9:00 AM ET. The toll-free
dial-in number is 1-833-470-1428, access code number 351878. 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 209713.
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, 2023 |
|
December 31, 2022 |
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Non-affiliated/non-control investments (cost: $478,419,709 and
$495,000,997, respectively) |
|
$ |
297,723,804 |
|
|
$ |
310,347,097 |
|
Affiliated investments (cost: $16,836,822 and $16,836,822,
respectively) |
|
|
8,422,453 |
|
|
|
4,349,818 |
|
Cash and cash equivalents |
|
|
43,029,280 |
|
|
|
9,019,164 |
|
Interest and distributions receivable |
|
|
4,122,925 |
|
|
|
3,492,716 |
|
Other assets |
|
|
960,242 |
|
|
|
785,640 |
|
Total assets |
|
$ |
354,258,704 |
|
|
$ |
327,994,435 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
Notes payable – 6.50% Unsecured Notes, net of deferred
issuance costs of $244,640 and $405,657, respectively |
|
$ |
64,125,585 |
|
|
$ |
63,964,568 |
|
Notes payable – 6.25% Unsecured Notes, net of deferred
issuance costs of $661,146 and $776,766, respectively |
|
|
44,129,604 |
|
|
|
44,013,984 |
|
Notes payable – 5.50% Unsecured Notes, net of deferred
issuance costs of $1,962,575 and $2,153,762 respectively |
|
|
78,537,425 |
|
|
|
78,346,238 |
|
Base Fee and Net Investment Income Incentive Fee payable to
affiliate |
|
|
2,557,012 |
|
|
|
1,323,573 |
|
Accrued interest payable |
|
|
1,216,109 |
|
|
|
1,216,109 |
|
Accrued expenses |
|
|
1,280,810 |
|
|
|
458,001 |
|
Total liabilities |
|
|
191,846,545 |
|
|
|
189,322,473 |
|
|
|
|
|
|
|
|
|
|
NET ASSETS |
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 100,000,000 shares authorized;
56,395,751 and 49,844,796 shares issued and outstanding,
respectively |
|
|
563,957 |
|
|
|
498,447 |
|
Capital in excess of par value |
|
|
451,031,685 |
|
|
|
434,737,950 |
|
Total distributable earnings/(accumulated losses) |
|
|
(289,183,483 |
) |
|
|
(296,564,435 |
) |
Total net assets |
|
|
162,412,159 |
|
|
|
138,671,962 |
|
Total liabilities and net assets |
|
$ |
354,258,704 |
|
|
$ |
327,994,435 |
|
Net asset value per common share |
|
$ |
2.88 |
|
|
$ |
2.78 |
|
OXFORD SQUARE CAPITAL
CORP.STATEMENTS OF OPERATIONS –
(unaudited)
|
|
Three MonthsEndedJune 30,2023 |
|
Three MonthsEndedJune 30,2022 |
|
Six MonthsEndedJune 30,2023 |
|
Six MonthsEndedJune 30,2022 |
INVESTMENT INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From non-affiliated/non-control investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income – debt investments |
|
$ |
8,799,180 |
|
|
$ |
5,674,538 |
|
|
$ |
17,093,340 |
|
|
$ |
10,924,687 |
|
Income from securitization vehicles and investments |
|
|
4,329,300 |
|
|
|
4,062,469 |
|
|
|
8,708,795 |
|
|
|
8,503,664 |
|
Other income |
|
|
384,500 |
|
|
|
202,544 |
|
|
|
652,643 |
|
|
|
377,070 |
|
Total investment income from non-affiliated/non-control
investments |
|
|
13,512,980 |
|
|
|
9,939,551 |
|
|
|
26,454,778 |
|
|
|
19,805,421 |
|
Total investment income |
|
|
13,512,980 |
|
|
|
9,939,551 |
|
|
|
26,454,778 |
|
|
|
19,805,421 |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
3,087,951 |
|
|
|
3,087,952 |
|
|
|
6,173,317 |
|
|
|
6,173,318 |
|
Base Fee |
|
|
1,257,688 |
|
|
|
1,565,181 |
|
|
|
2,417,334 |
|
|
|
3,171,684 |
|
Professional fees |
|
|
281,928 |
|
|
|
310,931 |
|
|
|
617,808 |
|
|
|
655,453 |
|
Compensation expense |
|
|
190,159 |
|
|
|
219,830 |
|
|
|
457,124 |
|
|
|
454,833 |
|
General and administrative |
|
|
730,149 |
|
|
|
412,129 |
|
|
|
1,103,322 |
|
|
|
756,231 |
|
Total expenses before incentive fees |
|
|
5,547,875 |
|
|
|
5,596,023 |
|
|
|
10,768,905 |
|
|
|
11,211,519 |
|
Net Investment Income Incentive Fees |
|
|
1,299,324 |
|
|
|
— |
|
|
|
2,529,308 |
|
|
|
— |
|
Total expenses |
|
|
6,847,199 |
|
|
|
5,596,023 |
|
|
|
13,298,213 |
|
|
|
11,211,519 |
|
Net investment income |
|
|
6,665,781 |
|
|
|
4,343,528 |
|
|
|
13,156,565 |
|
|
|
8,593,902 |
|
Net change in unrealized appreciation/(depreciation) on
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Affiliate/non-control investments |
|
|
4,900,785 |
|
|
|
(46,845,141 |
) |
|
|
3,957,995 |
|
|
|
(60,535,837 |
) |
Affiliated investments |
|
|
3,352,146 |
|
|
|
602,253 |
|
|
|
4,072,635 |
|
|
|
803,100 |
|
Total net change in unrealized appreciation/(depreciation) on
investments |
|
|
8,252,931 |
|
|
|
(46,242,888 |
) |
|
|
8,030,630 |
|
|
|
(59,732,737 |
) |
Net realized losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-affiliated/non-control investments |
|
|
(3,331,308 |
) |
|
|
(1,536,051 |
) |
|
|
(3,331,308 |
) |
|
|
(493,765 |
) |
Total net realized losses |
|
|
(3,331,308 |
) |
|
|
(1,536,051 |
) |
|
|
(3,331,308 |
) |
|
|
(493,765 |
) |
Net increase/(decrease) in net assets resulting from
operations |
|
$ |
11,587,404 |
|
|
$ |
(43,435,411 |
) |
|
$ |
17,855,887 |
|
|
$ |
(51,632,600 |
) |
Net increase in net assets resulting from net investment income per
common share (Basic and Diluted): |
|
$ |
0.13 |
|
|
$ |
0.09 |
|
|
$ |
0.26 |
|
|
$ |
0.17 |
|
Net increase/(decrease) in net assets resulting from
operations per common share (Basic and Diluted): |
|
$ |
0.23 |
|
|
$ |
(0.87 |
) |
|
$ |
0.36 |
|
|
$ |
(1.04 |
) |
Weighted average shares of common stock outstanding (Basic and
Diluted): |
|
|
50,542,374 |
|
|
|
49,736,300 |
|
|
|
50,202,259 |
|
|
|
49,718,630 |
|
Distributions per share |
|
$ |
0.105 |
|
|
$ |
0.105 |
|
|
$ |
0.210 |
|
|
$ |
0.210 |
|
FINANCIAL HIGHLIGHTS – (unaudited)
|
|
Three MonthsEndedJune 30,2023 |
|
Three MonthsEndedJune 30,2022 |
|
Six MonthsEndedJune 30,2023 |
|
Six MonthsEndedJune 30,2022 |
Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
2.80 |
|
|
$ |
4.65 |
|
|
$ |
2.78 |
|
|
$ |
4.92 |
|
Net investment income(1) |
|
|
0.13 |
|
|
|
0.09 |
|
|
|
0.26 |
|
|
|
0.17 |
|
Net realized and unrealized gains/(losses)(2) |
|
|
0.10 |
|
|
|
(0.96 |
) |
|
|
0.09 |
|
|
|
(1.21 |
) |
Net increase/(decrease) in net asset value from operations |
|
|
0.23 |
|
|
|
(0.87 |
) |
|
|
0.35 |
|
|
|
(1.04 |
) |
Distributions per share from net investment income |
|
|
(0.11 |
) |
|
|
(0.09 |
) |
|
|
(0.21 |
) |
|
|
(0.17 |
) |
Tax return of capital distributions(3) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.04 |
) |
Total distributions |
|
|
(0.11 |
) |
|
|
(0.11 |
) |
|
|
(0.21 |
) |
|
|
(0.21 |
) |
Effect of shares issued |
|
|
(0.04 |
) |
|
|
— |
|
|
|
(0.04 |
) |
|
|
— |
|
Net asset value at end of period |
|
$ |
2.88 |
|
|
$ |
3.67 |
|
|
$ |
2.88 |
|
|
$ |
3.67 |
|
Per share market value at beginning of period |
|
$ |
3.16 |
|
|
$ |
4.19 |
|
|
$ |
3.12 |
|
|
$ |
4.08 |
|
Per share market value at end of period |
|
$ |
2.65 |
|
|
$ |
3.64 |
|
|
$ |
2.65 |
|
|
$ |
3.64 |
|
Total return based on Market Value(4) |
|
|
(13.00 |
)% |
|
|
(10.75 |
)% |
|
|
(9.15 |
)% |
|
|
(6.00 |
)% |
Total return based on Net Asset Value(5) |
|
|
6.61 |
% |
|
|
(18.82 |
)% |
|
|
11.15 |
% |
|
|
(21.14 |
)% |
Shares outstanding at end of period |
|
|
56,395,751 |
|
|
|
49,761,360 |
|
|
|
56,395,751 |
|
|
|
49,761,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data(8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s) |
|
$ |
162,412 |
|
|
$ |
182,793 |
|
|
$ |
162,412 |
|
|
$ |
182,793 |
|
Average net assets (000’s) |
|
$ |
144,439 |
|
|
$ |
207,048 |
|
|
$ |
141,852 |
|
|
$ |
222,414 |
|
Ratio of expenses to average net assets(6) |
|
|
18.96 |
% |
|
|
10.81 |
% |
|
|
18.75 |
% |
|
|
10.08 |
% |
Ratio of net investment income to average net assets(6) |
|
|
18.46 |
% |
|
|
8.39 |
% |
|
|
18.55 |
% |
|
|
7.73 |
% |
Portfolio turnover rate(7) |
|
|
1.48 |
% |
|
|
1.79 |
% |
|
|
2.60 |
% |
|
|
12.19 |
% |
__________
(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
cash investment sales and debt repayments or year-to-date cash
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,
2023 and 2022:
|
|
Three MonthsEndedJune 30,2023 |
|
Three MonthsEndedJune 30,2022 |
|
Six MonthsEndedJune 30,2023 |
|
Six MonthsEndedJune 30,2022 |
Ratio of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses before incentive fees |
|
15.36 |
% |
|
10.81 |
% |
|
15.18 |
% |
|
10.08 |
% |
Net investment income incentive fees |
|
3.60 |
% |
|
— |
% |
|
3.57 |
% |
|
— |
% |
Ratio of expenses, excluding interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
to average net assets |
|
10.41 |
% |
|
4.85 |
% |
|
10.05 |
% |
|
4.53 |
% |
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 Rubin203-983-5280
Oxford Square Capital (NASDAQ:OXSQG)
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