Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended September 30, 2024 and Declaration of Distributions on Common Stock for the Months Ending January 31, February 28, and March 31, 2025
05 Noviembre 2024 - 7:00AM
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 September 30, 2024.
- On October 31, 2024, our Board of Directors declared the
following distributions on our common stock:
Month Ending |
Record Date |
Payment Date |
Amount Per Share |
January 31, 2025 |
January 17, 2025 |
January 31, 2025 |
$0.035 |
February 28, 2025 |
February 14, 2025 |
February 28, 2025 |
$0.035 |
March 31, 2025 |
March 17, 2025 |
March 31, 2025 |
$0.035 |
|
|
|
|
- Net asset value (“NAV”) per share as of September 30, 2024
stood at $2.35, compared with a NAV per share on June 30, 2024 of
$2.43.
- Net investment income (“NII”) was approximately $6.2 million,
or $0.10 per share, for the quarter ended September 30, 2024,
compared with approximately $7.7 million, or $0.13 per share, for
the quarter ended June 30, 2024.
- Total investment
income for the quarter ended September 30, 2024 amounted to
approximately $10.3 million, compared with approximately $11.4
million for the quarter ended June 30, 2024.
- For the quarter
ended September 30, 2024 we recorded investment income from our
portfolio as follows:
- $6.1 million from
our debt investments;
- $3.5 million from
our CLO equity investments; and
- $0.7 million from
other income.
- Our total
expenses for the quarter ended September 30, 2024 were
approximately $4.2 million, compared with total expenses of
approximately $3.7 million for the quarter ended June 30,
2024.
- As of September 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 14.5% at current cost, compared with 13.7% as
of June 30, 2024;
- The weighted average effective
yield of our CLO equity investments at current (start of quarter
for existing investments) cost was 9.6%, which was approximately
the same as of June 30, 2024; and
- The weighted average cash
distribution yield of our cash income producing CLO equity
investments at current cost was 15.3%, compared with 16.2% as of
June 30, 2024.
- For the quarter ended September 30, 2024, we recorded a net
decrease in net assets resulting from operations of approximately
$0.9 million, consisting of:
- NII of approximately $6.2 million;
- Net realized losses of approximately $12.9 million; and
- Net unrealized appreciation of approximately $5.8 million.
- During the third
quarter of 2024, we made investments of approximately $47.7 million
and received approximately $27.9 million from sales and repayments
of investments.
- Our weighted
average credit rating was 2.4 based on total fair value and 2.8
based on total principal amount as of September 30, 2024, compared
with a weighted average credit rating of 2.3 based on total fair
value and 2.7 based on total principal amount as of June 30,
2024.
- As of
September 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 September 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 $4.8 million.
- For the quarter ended September 30, 2024, we issued a total of
approximately 5.1 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 $14.5 million. As of September 30, 2024, we had
approximately 67.9 million shares of common stock outstanding.
We will hold a conference call to discuss third quarter results
today, Tuesday, November 5th, 2024 at 9:00 AM ET. The toll-free
dial-in number is 800-445-7795 and the conference identification is
“Oxford”. There will be a recording available for 30 days. If you
are interested in hearing the recording, please dial 800-945-1517.
The replay pass-code number is 25209.
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 |
|
|
September 30, 2024 |
|
December 31, 2023 |
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Non-affiliated/non-control investments (cost: $402,457,630 and
$440,069,822, respectively) |
|
$ |
258,043,987 |
|
|
$ |
261,614,335 |
|
Affiliated investments (cost: $16,836,822 and $16,836,822,
respectively) |
|
|
4,843,596 |
|
|
|
5,276,092 |
|
Cash and cash equivalents |
|
|
43,187,807 |
|
|
|
5,740,553 |
|
Unsettled repayment of principal |
|
|
2,450,000 |
|
|
|
— |
|
Interest and distributions receivable |
|
|
3,106,032 |
|
|
|
3,976,408 |
|
Other assets |
|
|
1,291,851 |
|
|
|
1,060,384 |
|
Total assets |
|
$ |
312,923,273 |
|
|
$ |
277,667,772 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
Notes payable – 6.25% Unsecured Notes, net of deferred issuance
costs of $368,581 and $543,609, respectively |
|
|
44,422,169 |
|
|
|
44,247,141 |
|
Notes payable – 5.50% Unsecured Notes, net of deferred issuance
costs of $1,478,797 and $1,768,219, respectively |
|
|
79,021,203 |
|
|
|
78,731,781 |
|
Securities purchased, not settled |
|
|
26,690,837 |
|
|
|
— |
|
Base Fee and Net Investment Income Incentive Fee payable to
affiliate |
|
|
1,083,351 |
|
|
|
1,012,389 |
|
Accrued interest payable |
|
|
1,204,487 |
|
|
|
1,204,487 |
|
Accrued expenses |
|
|
1,030,392 |
|
|
|
1,163,349 |
|
Total liabilities |
|
|
153,452,439 |
|
|
|
126,359,147 |
|
|
|
|
|
|
|
|
|
|
NET ASSETS |
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 100,000,000 shares authorized;
67,869,056 and 59,300,472 shares issued and outstanding,
respectively |
|
|
678,691 |
|
|
|
593,005 |
|
Capital in excess of par value |
|
|
483,021,043 |
|
|
|
458,121,381 |
|
Total distributable earnings/(accumulated losses) |
|
|
(324,228,900 |
) |
|
|
(307,405,761 |
) |
Total net assets |
|
|
159,470,834 |
|
|
|
151,308,625 |
|
Total liabilities and net assets |
|
$ |
312,923,273 |
|
|
$ |
277,667,772 |
|
Net asset value per common share |
|
$ |
2.35 |
|
|
$ |
2.55 |
|
OXFORD SQUARE CAPITAL CORP.STATEMENTS OF
OPERATIONS(Unaudited) |
|
|
Three Months Ended
September 30,2024 |
|
Three Months Ended
September 30, 2023 |
|
Nine Months Ended
September 30, 2024 |
|
Nine Months Ended
September 30, 2023 |
INVESTMENT INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From non-affiliated/non-control investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income – debt investments |
|
$ |
6,121,942 |
|
|
$ |
8,453,240 |
|
|
$ |
19,564,808 |
|
|
$ |
25,546,580 |
|
Income from securitization vehicles and investments |
|
|
3,526,850 |
|
|
|
4,106,071 |
|
|
|
11,345,140 |
|
|
|
12,814,866 |
|
Other income |
|
|
692,132 |
|
|
|
486,043 |
|
|
|
1,553,856 |
|
|
|
1,138,686 |
|
Total investment income from non-affiliated/non-control
investments |
|
|
10,340,924 |
|
|
|
13,045,354 |
|
|
|
32,463,804 |
|
|
|
39,500,132 |
|
Total investment income |
|
|
10,340,924 |
|
|
|
13,045,354 |
|
|
|
32,463,804 |
|
|
|
39,500,132 |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
1,962,676 |
|
|
|
2,530,321 |
|
|
|
5,884,642 |
|
|
|
8,703,638 |
|
Base Fee |
|
|
1,083,351 |
|
|
|
1,183,941 |
|
|
|
3,094,519 |
|
|
|
3,601,275 |
|
Professional fees |
|
|
359,275 |
|
|
|
478,833 |
|
|
|
1,162,059 |
|
|
|
1,096,641 |
|
Compensation expense |
|
|
209,473 |
|
|
|
205,348 |
|
|
|
590,853 |
|
|
|
662,472 |
|
General and administrative |
|
|
395,259 |
|
|
|
458,328 |
|
|
|
1,189,403 |
|
|
|
1,261,650 |
|
Excise tax |
|
|
143,735 |
|
|
|
573,686 |
|
|
|
95,711 |
|
|
|
873,686 |
|
Total expenses before incentive fees |
|
|
4,153,769 |
|
|
|
5,430,457 |
|
|
|
12,017,187 |
|
|
|
16,199,362 |
|
Net Investment Income Incentive Fees |
|
|
— |
|
|
|
1,176,079 |
|
|
|
— |
|
|
|
3,705,387 |
|
Capital gains incentive fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total incentive fees |
|
|
— |
|
|
|
1,176,079 |
|
|
|
— |
|
|
|
3,705,387 |
|
Total expenses |
|
|
4,153,769 |
|
|
|
6,606,536 |
|
|
|
12,017,187 |
|
|
|
19,904,749 |
|
Net investment income |
|
|
6,187,155 |
|
|
|
6,438,818 |
|
|
|
20,446,617 |
|
|
|
19,595,383 |
|
NET UNREALIZED APPRECIATION/(DEPRECIATION)
AND REALIZED GAINS/(LOSSES) ON INVESTMENT
TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized appreciation/(depreciation) on
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Affiliate/non-control investments |
|
|
3,543,362 |
|
|
|
14,613,632 |
|
|
|
34,041,844 |
|
|
|
18,571,627 |
|
Affiliated investments |
|
|
2,299,931 |
|
|
|
(712,830 |
) |
|
|
(432,496 |
) |
|
|
3,359,805 |
|
Total net change in unrealized appreciation on investments |
|
|
5,843,293 |
|
|
|
13,900,802 |
|
|
|
33,609,348 |
|
|
|
21,931,432 |
|
Net realized losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-affiliated/non-control investments |
|
|
(12,904,989 |
) |
|
|
(13,480,114 |
) |
|
|
(51,439,891 |
) |
|
|
(16,811,422 |
) |
Total net realized losses |
|
|
(12,904,989 |
) |
|
|
(13,646,784 |
) |
|
|
(51,439,891 |
) |
|
|
(16,978,092 |
) |
Net (decrease)/increase in net assets resulting from
operations |
|
$ |
(874,541 |
) |
|
$ |
6,692,836 |
|
|
$ |
2,616,074 |
|
|
$ |
24,548,723 |
|
Net increase in net assets resulting from net investment income per
common share (Basic and Diluted): |
|
$ |
0.10 |
|
|
$ |
0.11 |
|
|
$ |
0.33 |
|
|
$ |
0.37 |
|
Net (decrease)/increase in net assets resulting from operations per
common share (Basic and Diluted): |
|
$ |
(0.01 |
) |
|
$ |
0.12 |
|
|
$ |
0.04 |
|
|
$ |
0.47 |
|
Weighted average shares of common stock outstanding (Basic and
Diluted): |
|
|
64,796,212 |
|
|
|
56,764,866 |
|
|
|
61,707,951 |
|
|
|
52,413,834 |
|
Distributions per share |
|
$ |
0.105 |
|
|
$ |
0.225 |
|
|
$ |
0.315 |
|
|
$ |
0.435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL HIGHLIGHTS
|
|
Three Months Ended
September 30, 2024 |
|
Three Months Ended
September 30, 2023 |
|
Nine Months Ended
September 30, 2024 |
|
Nine Months Ended
September 30, 2023 |
Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
2.43 |
|
|
$ |
2.88 |
|
|
$ |
2.55 |
|
|
$ |
2.78 |
|
Net investment income(1) |
|
|
0.10 |
|
|
|
0.11 |
|
|
|
0.33 |
|
|
|
0.37 |
|
Net realized and unrealized (losses)/gains(2) |
|
|
(0.10 |
) |
|
|
0.01 |
|
|
|
(0.28 |
) |
|
|
0.10 |
|
Net (decrease)/increase in net asset value from operations |
|
|
(0.00 |
) |
|
|
0.12 |
|
|
|
0.05 |
|
|
|
0.47 |
|
Distributions per share from net investment income |
|
|
(0.11 |
) |
|
|
(0.23 |
) |
|
|
(0.32 |
) |
|
|
(0.44 |
) |
Tax return of capital distributions(3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total distributions |
|
|
(0.11 |
) |
|
|
(0.23 |
) |
|
|
(0.32 |
) |
|
|
(0.44 |
) |
Effect of shares issued |
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.07 |
|
|
|
(0.03 |
) |
Net asset value at end of period |
|
$ |
2.35 |
|
|
$ |
2.78 |
|
|
$ |
2.35 |
|
|
$ |
2.78 |
|
Per share market value at beginning of period |
|
$ |
2.94 |
|
|
$ |
2.65 |
|
|
$ |
2.86 |
|
|
$ |
3.12 |
|
Per share market value at end of period |
|
$ |
2.83 |
|
|
$ |
3.01 |
|
|
$ |
2.83 |
|
|
$ |
3.01 |
|
Total return based on market value(4) |
|
|
(0.25 |
)% |
|
|
22.17 |
% |
|
|
9.71 |
% |
|
|
10.99 |
% |
Total return based on net asset value(5) |
|
|
1.03 |
% |
|
|
4.34 |
% |
|
|
4.51 |
% |
|
|
15.65 |
% |
Shares outstanding at end of period |
|
|
67,869,056 |
|
|
|
57,958,446 |
|
|
|
67,869,056 |
|
|
|
57,958,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental
Data(8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s) |
|
$ |
159,471 |
|
|
$ |
160,895 |
|
|
$ |
159,471 |
|
|
$ |
160,895 |
|
Average net assets (000’s) |
|
$ |
154,529 |
|
|
$ |
160,397 |
|
|
$ |
149,873 |
|
|
$ |
148,132 |
|
Ratio of expenses to average net assets(6) |
|
|
10.71 |
% |
|
|
15.40 |
% |
|
|
10.75 |
% |
|
|
17.72 |
% |
Ratio of net investment income to average net assets(6) |
|
|
16.06 |
% |
|
|
17.13 |
% |
|
|
18.13 |
% |
|
|
17.83 |
% |
Portfolio turnover rate(7) |
|
|
10.95 |
% |
|
|
— |
% |
|
|
25.86 |
% |
|
|
2.64 |
% |
___________
(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 nine months ended September 30, 2024 and
2023:
|
|
Three Months Ended
September 30, 2024 |
|
Three Months Ended
September 30, 2023 |
|
Nine Months Ended
September 30, 2024 |
|
Nine Months Ended
September 30, 2023 |
Ratio of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses before incentive fees |
|
10.71 |
% |
|
12.47 |
% |
|
10.75 |
% |
|
14.38 |
% |
Net investment income incentive fees |
|
— |
% |
|
2.93 |
% |
|
— |
% |
|
3.34 |
% |
Ratio of expenses, excluding interest expense, to average net
assets |
|
5.63 |
% |
|
9.09 |
% |
|
5.52 |
% |
|
9.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Oxford Square Capital (NASDAQ:OXSQG)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Oxford Square Capital (NASDAQ:OXSQG)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024