OXSQ - Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended March 31 2024 and Declaration of Distributions on Common Stock for the Months Ending July 31 August 31 and September 30 2024

May, 02 2024 08:00 AM Oxford Square Capital Corp.

GREENWICH, Conn., May 02, 2024 (GLOBE NEWSWIRE) -- 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 March 31, 2024.

On April 25, 2024, our Board of Directors declared the following distributions on our common stock:

Month Ending

Record Date

Payment Date

Amount Per Share

July 31, 2024

July 17, 2024

July 31, 2024

$0.035

August 31, 2024

August 16, 2024

August 30, 2024

$0.035

September 30, 2024

September 16, 2024

September 30, 2024

$0.035

Net asset value (“NAV”) per share as of March 31, 2024 stood at $2.42, compared with a NAV per share on December 31, 2023 of $2.55.
Net investment income (“NII”) was approximately $6.5 million, or $0.11 per share, for the quarter ended March 31, 2024, compared with approximately $7.8 million, or $0.13 per share, for the quarter ended December 31, 2023.
Total investment income for the quarter ended March 31, 2024 amounted to approximately $10.7 million, compared with approximately $12.3 million for the quarter ended December 31, 2023.
- For the quarter ended March 31, 2024 we recorded investment income from our portfolio as follows:
  - $6.4 million from our debt investments;
  - $3.9 million from our CLO equity investments; and
  - $324,000 from other income.
Our total expenses for the quarter ended March 31, 2024 were approximately $4.1 million, compared with total expenses of approximately $4.6 million for the quarter ended December 31, 2023.
As of March 31, 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 13.9% at current cost, compared with 13.3% as of December 31, 2023;
- The weighted average effective yield of our CLO equity investments at current cost was 9.5%, compared with 9.5% as of December 31, 2023; and
- The weighted average cash distribution yield of our cash income producing CLO equity investments at current cost was 13.7%, compared with 16.3% as of December 31, 2023.
For the quarter ended March 31, 2024, we recorded a net decrease in net assets resulting from operations of approximately $1.8 million, consisting of:
- NII of approximately $6.5 million;
- Net realized losses of approximately $8.1 million; and
- Net unrealized depreciation of approximately $211,000.
During the first quarter of 2024, we made investments of approximately $12.1 million and received approximately $19.3 million from sales and repayments of investments.
Our weighted average credit rating was 2.3 based on total fair value and 2.9 based on total principal amount as of March 31, 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 December 31, 2023.
As of March 31, 2024, we had six debt investments in three portfolio companies on non-accrual status, with a combined fair value of approximately $2.0 million. Also, as of March 31, 2024, our preferred equity investments in one of our portfolio companies were on non-accrual status, which had an aggregate fair value of approximately $4.9 million.
For the quarter ended March 31, 2024, we issued a total of approximately 324,000 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 $923,000. As of March 31, 2024, we had approximately 59.7 million shares of common stock outstanding.

We will hold a conference call to discuss first quarter results today, Thursday, May 2 ^nd , 2024 at 9:00 AM ET. The toll-free dial-in number is 1-800-445-7795, verbal access code OXFORD. There will be a recording available for 30 days. If you are interested in hearing the recording, please dial 1-877-693-4280. The replay verbal passcode is OXFORD.

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



March 31, 2024

December 31, 2023


(unaudited)


ASSETS








Non-affiliated/non-control investments (cost: $424,246,447 and $440,069,822, respectively)

$
245,936,071


$
261,614,335

Affiliated investments (cost: $16,836,822 and $16,836,822, respectively)


4,919,975



5,276,092

Cash and cash equivalents


20,906,690



5,740,553

Interest and distributions receivable


2,615,160



3,976,408

Other assets


910,124



1,060,384

Total assets

$
275,288,020


$
277,667,772

LIABILITIES








Notes payable – 6.25% Unsecured Notes, net of deferred issuance costs of $485,479 and $543,609, respectively

$
44,305,271


$
44,247,141

Notes payable – 5.50% Unsecured Notes, net of deferred issuance costs of $1,672,097 and $1,768,219 respectively


78,827,903



78,731,781

Securities purchased not settled


3,997,500



—

Base Fee and Net Investment Income Incentive Fee payable to affiliate


987,816



1,012,389

Accrued interest payable


1,204,487



1,204,487

Accrued expenses


1,552,652



1,163,349

Distributions payable


72,568



—

Total liabilities


130,948,197



126,359,147

COMMITMENTS AND CONTINGENCIES (Note 13)








NET ASSETS








Common stock, $0.01 par value, 100,000,000 shares authorized; 59,672,337 and 59,300,472 shares issued and outstanding, respectively


596,723



593,005

Capital in excess of par value


459,180,359



458,121,381

Total distributable earnings/(accumulated losses)


(315,437,259
)


(307,405,761
)
Total net assets


144,339,823



151,308,625

Total liabilities and net assets

$
275,288,020


$
277,667,772

Net asset value per common share

$
2.42


$
2.55

OXFORD SQUARE CAPITAL CORP.

STATEMENTS OF OPERATIONS
(unaudited)



Three Months Ended March 31, 2024

Three Months Ended March 31, 2023
INVESTMENT INCOME








From non-affiliated/non-control investments:








Interest income – debt investments

$
6,421,047


$
8,294,160

Income from securitization vehicles and investments


3,932,374



4,379,495

Other income


324,003



268,143

Total investment income from non-affiliated/non-control investments


10,677,424



12,941,798

Total investment income


10,677,424



12,941,798

EXPENSES








Interest expense


1,960,982



3,085,366

Base Fee


987,816



1,159,646

Professional fees


311,747



335,880

Compensation expense


206,898



266,965

General and administrative


346,625



373,173

Total expenses before incentive fees


3,814,068



5,221,030

Net Investment Income Incentive Fees


—



1,229,984

Capital gains incentive fees


—



—

Total incentive fees


—



1,229,984

Total expenses


3,814,068



6,451,014

Net investment income before taxes


6,863,356



6,490,784

Excise tax


325,800



—

Net investment income after taxes


6,537,556



6,490,784

NET UNREALIZED APPRECIATION/(DEPRECIATION) AND REALIZED GAINS/(LOSSES) ON INVESTMENT TRANSACTIONS








Net change in unrealized appreciation/(depreciation) on investments:








Non-Affiliate/non-control investments


145,111



(942,790
)
Affiliated investments


(356,117
)


720,489

Total net change in unrealized depreciation on investments


(211,006
)


(222,301
)
Net realized losses:








Non-affiliated/non-control investments


(8,094,940
)


—

Total net realized losses


(8,094,940
)


—

Net (decrease)/increase in net assets resulting from operations

$
(1,768,390
)

$
6,268,483

Net increase in net assets resulting from net investment income per common share (Basic and Diluted):

$
0.11


$
0.13

Net (decrease)/increase in net assets resulting from operations per common share (Basic and Diluted):

$
(0.03
)

$
0.13

Weighted average shares of common stock outstanding (Basic and Diluted):


59,639,285



49,858,366

Distributions per share

$
0.105


$
0.105

FINANCIAL HIGHLIGHTS



Three Months Ended March 31, 2024

Three Months Ended March 31, 2023
Per Share Data








Net asset value at beginning of period

$
2.55


$
2.78

Net investment income ⁽¹⁾


0.11



0.13

Net realized and unrealized (losses)/gains ⁽²⁾


(0.13
)


(0.00
)
Net (decrease)/increase in net asset value from operations


(0.02



0.13
)
Distributions per share from net investment income


(0.11
)


(0.11
)
Tax return of capital distributions ⁽³⁾


—



—

Total distributions


(0.11
)


(0.11
)
Effect of shares issued/repurchased, gross


—



—

Net asset value at end of period

$
2.42


$
2.80

Per share market value at beginning of period

$
2.86


$
3.12

Per share market value at end of period

$
3.17


$
3.16

Total return based on Market Value ⁽⁴⁾


14.63
%


4.42
%
Total return based on Net Asset Value ⁽⁵⁾


(0.98
)%


4.50
%
Shares outstanding at end of period


59,672,337



49,885,954










Ratios/Supplemental Data ⁽⁸⁾








Net assets at end of period (000’s)

$
144,340


$
139,839

Average net assets (000’s)

$
148,260


$
139,235

Ratio of expenses to average net assets ⁽⁶⁾


11.17
%


18.53
%
Ratio of net investment income to average net assets ⁽⁶⁾


17.64
%


18.65
%
Portfolio turnover rate ⁽⁷⁾


3.09
%


0.10
%
____________

(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 and includes excise tax.
(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 months ended March 31, 2024 and 2023:



Three Months Ended March 31, 2024

Three Months Ended March 31, 2023
Ratio of expenses to average net assets:






Operating expenses, including excise tax, before incentive fees

11.17
%

15.00
%
Net investment income incentive fees

—
%

3.53
%
Ratio of expenses, including excise tax and excluding interest expense, to average net assets

5.88
%

9.67
%

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 Rubin
203-983-5280

Company Name:	Oxford Square Capital Corp.
Stock Symbol:	OXSQ
Market:	NASDAQ

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