Oxford Lane Capital Corp. announces net asset value and certain financial results for the first fiscal quarter and declaration of distributions on common shares for the months ending October 31, November 30 and December 31, 2021

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GREENWICH, CT, July 30, 2021 (GLOBE NEWSWIRE) – Oxford Lane Capital Corp. (NasdaqGS: OXLC) (NasdaqGS: OXLCM) (NasdaqGS: OXLCP) (NasdaqGS: OXLCL) (“Oxford Lane”, the “Company”, “we”, “our” or “our”) today announced the results following financial and related information:

End of the month

Registration Date

Payment date

Amount per share

October 31, 2021

October 15, 2021

October 29, 2021

$ 0.0675

November 30, 2021

November 16, 2021

November 30, 2021

$ 0.0675

December 31, 2021

December 17, 2021

December 31, 2021

$ 0.0675

  • The net asset value (“NAV”) per share as at June 30, 2021 was $ 6.56, compared to a NAV per share as at March 31, 2021 of $ 5.94.

  • Net investment income (“NII”), calculated in accordance with generally accepted accounting principles (“GAAP”), was approximately $ 25.3 million, or $ 0.25 per share, for the quarter ended June 30. 2021.

  • Our basic net investment income (“Core NII”) was approximately $ 42.4 million, or $ 0.41 per share, for the quarter ended June 30, 2021.

    • The Basic NII represents the adjusted NII of any applicable additional cash distributions received, or which may be received (if any, in either case), on our Equity Loan Guaranteed Investments (“CLO”). See additional information under “Additional Information Regarding Net Income from Core Investments” below.

    • We point out 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 on as indicators of our taxable income.

  • Total investment income for the first fiscal quarter was approximately $ 41.7 million, which is an increase of approximately $ 5.6 million from the quarter ended March 31, 2021.

  • Our total expenses for the quarter ended June 30, 2021 were approximately $ 16.4 million, compared to total expenses of approximately $ 14.5 million for the quarter ended March 31, 2021.

  • As of June 30, 2021, the following metrics applied (note that none of these metrics represented total shareholder return):

    • The weighted average return on our CLO debt investments at current cost was 13.6%, compared to 11.2% at March 31, 2021.

    • The weighted average effective return on our investments in CLO shares at current cost was 16.3%, compared to 15.7% as at March 31, 2021.

    • The weighted average return on cash distributions from our investments in CLO shares at current cost was 27.7%, compared to 23.8% as at March 31, 2021.

  • For the quarter ended June 30, 2021, we recorded a net increase in net assets from operations of approximately $ 80.2 million, or $ 0.78 per share, consisting of:

    • NII of approximately $ 25.3 million;

    • Net realized losses of approximately $ 4.3 million; and

    • Unrealized net capital gain of approximately $ 59.2 million.

  • During the quarter ended June 30, 2021, we made additional investments of approximately $ 244.3 million and received approximately $ 187.2 million from sales and repayments of our investments in CLOs.

  • For the quarter ended June 30, 2021, we issued a total of approximately 7.6 million common shares under a “to market” offering. After deducting the sales agent’s commissions and offering fees, this generated net proceeds of approximately $ 53.8 million. As of June 30, 2021, we had approximately 108.5 million common shares outstanding.

  • On April 15, 2021 (the “Redemption Date”), the Company redeemed all of the outstanding 7.50% Series 2023 Term Preferred Shares (the “Series 2023 Term Preferred Shares”) for approximately 57, $ 2 million, which included an amount equal to all unpaid dividends and distributions accrued up to (but excluding) the repayment date.

  • On July 29, 2021, 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 “Series 2027 Forward Preferred Shares”) (each, one “Share”) as follows:

Prefer
Type of actions

Amount of dividend declared per share

Registration dates

Payment dates

2024 series

$

0.140625

September 16, 2021, October 15, 2021, November 16, 2021

September 30, 2021, October 29, 2021, November 30, 2021

2027 series

$

0.130208

September 16, 2021, October 15, 2021, November 16, 2021

September 30, 2021, October 29, 2021, November 30, 2021

In accordance with their terms, each of the Series 2024 Forward Preferred Shares and Series 2027 Forward Preferred Shares will pay a monthly dividend at a fixed rate of 6.75% and 6.25%, respectively, of the liquidation preference of $ 25.00 per share, or $ 1.6875 and $ 1.5625. per share per year, respectively. This fixed annual dividend rate may be adjusted in certain circumstances, but in no event will be less than 6.75% and 6.25% per annum, respectively, for each of the Term Preferred Shares Series 2024 and the Preferred Shares Series 2024. series term 2027.

Additional Information Regarding Basic Net Investment Income

We provide information relating to Core NII (a non-GAAP measure) on an additional basis. This measure is not provided as a replacement for GAAP NII, but in addition to it. Our non-GAAP measures may differ from similar measures of other companies, although similar terms are used to identify such measures. The Core NII represents GAAP NII, adjusted for any applicable additional cash distributions received, or receivable (if any, in either case), on our investments in CLO shares. OXLC’s management uses this information in its internal analysis of results and believes that this information may be informative in assessing the quality of OXLC’s financial performance, identifying trends in its results and providing meaningful comparisons from period to period. ‘other.

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 an actual return on expected redemption using estimated cash flows, at current cost, including investments in CLO shares that have not made their inaugural distribution by the end of the relevant period. The result is an effective return for the investment in which the difference between the cash actually received, or distributions that can be received, and the calculation of the effective return is adjusted to cost. Accordingly, investment income recognized on CLO equity securities in the GAAP income statement differs from cash distributions actually received by the Company during the period (hereinafter referred to 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 at least 90% of the taxable income of our investment company each year. 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 can only be determined after the preparation of the 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 presents a reconciliation of GAAP NII and Core NII for the three months ended June 30, 2021:

Three months ended

June 30, 2021

Per share

Rising

Rising

GAAP Net investment income

$ 25,293,936

$ 0.25

CLO equity adjustments

$ 17,130,665

$ 0.16

Basic net investment income

$ 42,424,601

$ 0.41

We will host a conference call to discuss our fiscal first quarter results today, Friday, July 30, 2021 at 9 a.m.ET. Please dial 1-844-792-3730 to participate. A recording of the conference call will be available for replay for approximately 30 days after the call. The replay number is 1-877-344-7529, and the replay access code is 10159101.

A presentation containing further 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 registered and publicly traded closed-end management investment company that invests primarily in debt and equity securities of guaranteed loan bond (“CLO”) vehicles. CLO investments can also include warehouses, which are financing structures intended to aggregate 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 “belief”, “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, including the impact of COVID-19 and related changes in base interest rates and the significant market volatility in 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 assume 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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