Oxford Lane Capital Corp. Announces Net Asset Value and Selected Financial Results for the Second Fiscal Quarter and Declaration of Distributions on Common Stock for the Months Ending January, February, and March 2025
GREENWICH, Conn., Nov. 01, 2024 (GLOBE NEWSWIRE) -- Oxford Lane Capital Corp. (Nasdaq: OXLC) (NasdaqGS: OXLCP) (NasdaqGS: OXLCL) (NasdaqGS: OXLCO) (NasdaqGS: OXLCZ) (NasdaqGS: OXLCN) (NasdaqGS: OXLCI) ("Oxford Lane," the "Company," "we," "us" or "our") announced today the following financial results and related information:
-- On October 24, 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 $0.09
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February 28, 2025 February 14, 2025 February 28, 2025 $0.09
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March 31, 2025 March 17, 2025 March 31, 2025 $0.09
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-- Net asset value ("NAV") per share as of September 30, 2024 stood at
$4.76, compared with a NAV per share on June 30, 2024 of $4.91.
-- Net investment income ("NII"), calculated in accordance with U.S.
generally accepted accounting principles ("GAAP"), was approximately
$67.2 million, or $0.22 per share, for the quarter ended September 30,
2024.
-- Our core net investment income ("Core NII") was approximately $99.4
million, or $0.32 per share, for the quarter ended September 30, 2024.
-- 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, 2024 amounted
to approximately $105.1 million, which represented an increase of
approximately $15.4 million from the quarter ended June 30, 2024.
-- For the quarter ended September 30, 2024 we recorded investment
income as follows:
-- Approximately $98.3 million from our CLO equity and CLO
warehouse investments, and
-- Approximately $6.8 million from our CLO debt investments
and other income.
-- Our total expenses for the quarter ended September 30, 2024 were
approximately $37.9 million, compared with total expenses of
approximately $33.8 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 CLO debt investments at current
cost was 17.3%, down from 17.4% as of June 30, 2024.
-- The weighted average effective yield of our CLO equity investments
at current cost was 16.5%, down from 16.8% as of June 30, 2024.
-- The weighted average cash distribution yield of our CLO equity
investments at current cost was 24.1%, down from 26.9% as of June
30, 2024.
-- For the quarter ended September 30, 2024, we recorded a net increase in
net assets resulting from operations of approximately $17.9 million, or
$0.06 per share, comprised of:
-- NII of approximately $67.2 million;
-- Net realized gains of approximately $3.2 million; and
-- Net unrealized depreciation of approximately $52.5 million.
-- During the quarter ended September 30, 2024, we made additional
investments of approximately $540.0 million, and received approximately
$160.2 million from sales and repayments of our CLO investments.
-- For the quarter ended September 30, 2024, we issued a total of
approximately 48.1 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
$252.0 million. As of September 30, 2024, we had approximately 337.3
million shares of common stock outstanding.
-- On October 24, 2024, our Board of Directors declared the required monthly
dividends on our 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 Per Share Dividend Record Dates Payment Dates
Shares Type Amount Declared
---------------- -------------------------- --------------- ---------------
6.25% - Series $ 0.13020833 December 17, December 31,
2027 2024, January 2024, January
17, 2025, 31, 2025,
February 14, February 28,
2025 2025
---------------- --------- --------------- --------------- ---------------
6.00% - Series $ 0.12500000 December 17, December 31,
2029 2024, January 2024, January
17, 2025, 31, 2025,
February 14, February 28,
2025 2025
---------------- --------- --------------- --------------- ---------------
7.125% - $ 0.14843750 December 17, December 31,
Series 2029 2024, January 2024, January
17, 2025, 31, 2025,
February 14, February 28,
2025 2025
---------------- --------- --------------- --------------- ---------------
In accordance with their terms, each of the 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 6.25%, 6.00% and 7.125%, respectively, of the $25.00 per share liquidation preference, or $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 6.25%, 6.00% and 7.125% per year, respectively, for each of the 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.
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