Oxford Lane Capital Corp. announces its net asset value and

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GREENWICH, Conn., Aug. 02, 2022 (GLOBE NEWSWIRE) — Oxford Lane Capital Corp. (NasdaqGS: OXLC) (NasdaqGS: OXLCM) (NasdaqGS: OXLCP) (NasdaqGS: OXLCL) (NasdaqGS: OXLCO) (NasdaqGS: OXLCZ) (NasdaqGS: OXLCN) (“Oxford Lane”, the “Company”, “we” or “our”) today announced the following financial results and related information:

  • On July 28, 2022, our Board of Directors declared the following distributions on our common stock:
End of the month Registration Date Payment date Amount per share
October 31, 2022 October 17, 2022 October 31, 2022 $0.075
November 30, 2022 November 16, 2022 November 30, 2022 $0.075
December 31, 2022 December 16, 2022 December 30, 2022 $0.075
  • The net asset value (“NAV”) per share as of June 30, 2022 was $5.07, compared to a net asset value per share as of March 31, 2022 of $6.56.
  • Net investment income (“NII”), calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), was approximately $38.7 million, or $0.26 per share, for the quarter ended June 30, 2022.
  • Our core net investment income (“Core NII”) was approximately $82.1 million, or $0.55 per share, for the three months ended June 30, 2022.
    • Base NII represents the NII adjusted for applicable additional cash distributions received, or likely to be received (if applicable, in both cases), on our equity investments in secured loan obligations (“CLOs”). See additional information under “Additional Information Regarding Basic 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 considered as indicators of our taxable income.
  • Total investment income for the quarter ended June 30, 2022 was approximately $63.5 million, representing an increase of approximately $8.4 million from the quarter ended March 31, 2022.
    • For the three months ended June 30, 2022, we recorded investment income from our portfolio as follows:
      • Approximately $61.0 million from our investments in CLO shares and our CLO warehouses, and
      • Approximately $2.4 million from our investments in CLO debt and other income.
  • Our total expenses for the quarter ended June 30, 2022 were approximately $24.7 million, compared to total expenses of approximately $22.7 million for the quarter ended March 31, 2022.
  • As of June 30, 2022, the following measures apply (note that none of these measures represents total shareholder return):
    • The weighted average return on our current cost CLO debt investments was 13.1%, compared to 12.5% ​​as of March 31, 2022.
    • The weighted average effective return on our investments in CLO shares at current cost was 15.9%, compared to 16.2% as of March 31, 2022.
    • The weighted average yield of cash distributions from our investments in CLO shares at current cost was 29.4%, compared to 29.7% at March 31, 2022.
  • For the three months ended June 30, 2022, we recorded a net decrease in net assets from operations of approximately $189.4 million, or $1.28 per share, consisting of:
    • NII of approximately $38.7 million;
    • Net realized losses of approximately $7.5 million; and
    • Net unrealized amortization of approximately $220.6 million.
  • During the quarter ended June 30, 2022, we made additional investments of approximately $237.8 million and received approximately $119.3 million from sales and redemptions of our CLO investments.
  • For the quarter ended June 30, 2022, we issued a total of approximately 4.6 million common shares under an “in-the-market” offering. After sales agent commissions and offering fees, this resulted in net proceeds of approximately $30.9 million. As of June 30, 2022, we had approximately 149.9 million common shares outstanding.
  • On June 16, 2022, we completed an underwritten public offering of 2,400,000 shares of our newly designated 7.125% Series 2029 Term Preferred Shares at a public offering price of $25 per share, generating net proceeds of approximately $58.1 million. On July 6, 2022, an additional 150,000 shares were issued, generating additional net proceeds of approximately $3.6 million.
  • On July 28, 2022, our Board of Directors declared the required monthly dividends on our 6.75% Series 2024 Term Preferred Shares (the “Series 2024 Term Preferred Shares”) and our Series 2024 Term Preferred Shares. 2027 at 6.25% (the “2027 Series Term Preferred Shares”). , 6.00% Series 2029 Term Preferred Shares (“6.00% Series 2029 Term Preferred Shares”) and 7.125% Series 2029 Term Preferred Shares (“Series 2029 6.00% Term Preferred Shares”). 7.125%”) as follows:
Prefer
Type of actions
Per share
Dividend
Rising
Declared
Check-in dates Payment dates
6.75% – Series 2024 $0.14062500 September 16, 2022, October 17, 2022, November 16, 2022 September 30, 2022, October 31, 2022, November 30, 2022
6.25% – Series 2027 $0.13020833 September 16, 2022, October 17, 2022, November 16, 2022 September 30, 2022, October 31, 2022, November 30, 2022
6.00% – Series 2029 $0.12500000 September 16, 2022, October 17, 2022, November 16, 2022 September 30, 2022, October 31, 2022, November 30, 2022
7.125% – Series 2029 $0.14843750 September 16, 2022, October 17, 2022, November 16, 2022 September 30, 2022, October 31, 2022, November 30, 2022

In accordance with their terms, each of the Series 2024 Term Preferred Shares, Series 2027 Term Preferred Shares, Series 2029 6.00% Term Preferred Shares and Series 2029 7.125% 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 liquidation preference of $25.00 per share, or $1.6875, 1.5625 $, $1.5000 and $1.78125 per share per year, respectively. This fixed annual dividend rate is subject to adjustment in certain circumstances, but will in no event be less than 6.75%, 6.25%, 6.00% and 7.125% per annum, respectively, for each of the preferred shares to be Series 2024 Term Preferred Shares, Series 2027 Term Preferred Shares, 6.00% Series 2029 Term Preferred Shares and 7.125% Series 2029 Term Preferred Shares.

Additional information regarding basic 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 replacement for GAAP NII, but as a complement. Our non-GAAP measures may differ from similar measures of other companies, even though similar terms are used to identify these measures. Core NII represents GAAP NII adjusted for additional applicable cash distributions received, or entitled to be received (if applicable, in both cases), on our investments in CLO shares. Oxford Lane’s management uses this information in its internal analysis of results and believes that this information may be useful in assessing the quality of Oxford Lane’s financial performance, identifying trends in its results and providing meaningful comparisons of a period to another.

Income from investments in securities in the “equity” category of CLO vehicles, for GAAP purposes, is recorded using the effective interest rate method; this is based on actual yield versus expected redemption using estimated cash flows, at current cost, including investments in CLO shares that have not made their inaugural distribution for the relevant period end. The result is an effective return for the investment in which the cost base of the respective investment is adjusted quarterly based on the difference between the actual cash received, or distributions likely to be received, and the effective return calculation . Accordingly, the investment income recognized on the CLO equity securities in the GAAP statement of income differs from the cash distributions actually received by the Company during the period (referred to hereafter as “CLO equity adjustments”). ).

In addition, in order for the Company to continue to qualify as a regulated investment company for tax purposes, we are required, among other things, to distribute annually at least 90% of our investment company’s taxable income. Therefore, Core NII may provide a better indication of our estimated taxable income for a reporting period than GAAP NII; however, we cannot guarantee that this will be the case, as the ultimate tax character of our profits cannot be determined until after the preparation of tax returns at the end of a financial year. We note that this non-GAAP measure may not serve as a useful indicator of taxable profit, particularly during times of market disruption and volatility, and as such our taxable profit may differ materially from our Core NII. .

The following table provides a reconciliation of GAAP NII and Core NII for the three months ended June 30, 2022:

Three months completed
June 30, 2022
Per share
Rising
Net investment income under GAAP………………………………………… $38,749,603 $0.26
CLO equity adjustments………………………………………….……… 43,332,640 0.29
Basic net investment income…………………………………………… $82,082,243 $0.55

We will host a conference call to discuss our first quarter results today, Tuesday, August 2, 2022 at 9:00 a.m. ET. Please call 1-844-200-6205, access code number 216913 to participate. A recording of the conference call will be available for replay for approximately 30 days after the call. The replay number is 1-866-813-9403 and the replay code is 263889.

A presentation containing additional details regarding our quarterly operating results has been posted in the Investor Relations section of our website at www.oxfordlanecapital.com.

About Oxford Lane Capital Corp.

Oxford Lane Capital Corp. is a publicly traded closed-end management investment company that invests primarily in debt and equity tranches of CLO vehicles. CLO investments can also include warehouses, which are financing structures intended to pool loans that can be used to form the basis of a CLO vehicle.

Forward-looking statements

This press release contains forward-looking statements subject to the uncertainties inherent in predicting future results and conditions. All 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 as forward-looking statements. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties, including the impact of COVID-19 and related changes in base interest rates and the significant market volatility on our business, our CLO investments, our industry and the global economy. 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 these statements to reflect subsequent events, except as required by law.

Contact:
Bruce Rubin
203-983-5280

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