Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended December 31, 2024 and Declaration of Distributions on Common Stock for the Months Ending April 30, May 31, and June 30, 2025
GREENWICH, Conn., Feb. 28, 2025 (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 December 31, 2024.
-- On February 27, 2025, our Board of Directors declared the following
distributions on our common stock:
Month Ending Record Date Payment Date Amount Per Share
--------------- --------------- --------------- ----------------
April 30, 2025 April 16, 2025 April 30, 2025 $0.035
--------------- --------------- --------------- ----------------
May 31, 2025 May 16, 2025 May 30, 2025 $0.035
--------------- --------------- --------------- ----------------
June 30, 2025 June 16, 2025 June 30, 2025 $0.035
--------------- --------------- --------------- ----------------
-- Net asset value ("NAV") per share as of December 31, 2024 stood at $2.30,
compared with a NAV per share on September 30, 2024 of $2.35.
-- Net investment income ("NII") was approximately $6.0 million, or $0.09
per share, for the quarter ended December 31, 2024, compared with
approximately $6.2 million, or $0.10 per share, for the quarter ended
September 30, 2024.
-- Total investment income for the quarter ended December 31, 2024 amounted
to approximately $10.2 million, compared with approximately $10.3 million
for the quarter ended September 30, 2024.
-- For the quarter ended December 31, 2024 we recorded investment
income from our portfolio as follows:
-- $5.4 million from our debt investments;
-- $4.1 million from our CLO equity investments; and
-- $0.8 million from other income.
-- Our total expenses for the quarter ended December 31, 2024 were
approximately $4.2 million, which was approximately the same as the
quarter ended September 30, 2024.
-- As of December 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 15.8% at
current cost, compared with 14.5% as of September 30, 2024;
-- The weighted average effective yield of our CLO equity investments
at current (start of quarter for existing investments) cost was
8.8%, compared with 9.6% as of September 30, 2024; and
-- The weighted average cash distribution yield of our cash income
producing CLO equity investments at current cost was 16.2%,
compared with 15.3% as of September 30, 2024.
-- For the quarter ended December 31, 2024, we recorded a net increase in
net assets resulting from operations of approximately $3.3 million,
consisting of:
-- NII of approximately $6.0 million;
-- Net realized losses of approximately $44.8 million; and
-- Net unrealized appreciation of approximately $42.1 million.
-- During the fourth quarter of 2024, we made investments of approximately
$25.1 million and received approximately $22.0 million from sales and
repayments of investments.
-- Our weighted average credit rating was 2.3 based on total fair value and
2.4 based on total principal amount as of December 31, 2024, compared
with a weighted average credit rating of 2.4 based on total fair value
and 2.8 based on total principal amount as of September 30, 2024.
-- As of December 31, 2024, we had one debt investment in one portfolio
company on non-accrual status, with a fair value of approximately $0.5
million. Also, as of December 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 $4.6 million.
-- For the quarter ended December 31, 2024, we issued a total of
approximately 1.8 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
$5.0 million. As of December 31, 2024, we had approximately 69.8 million
shares of common stock outstanding.
We will hold a conference call to discuss fourth quarter results today, Friday, February 28(th) , 2025 at 9:00 AM ET. The toll-free dial-in number is 1-800-549-8228. There will be a recording available for 30 days. If you are interested in hearing the recording, please dial 1-888-660-6264. The replay pass-code number is 06523#.
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
December 31, December 31,
2024 2023
--------------------------------- -------------- ----------------
(Unaudited)
--------------------------------- -------------- ----------------
ASSETS
Non-affiliated/non-control
investments (cost:
$358,356,496 and $440,069,822,
respectively) $ 256,238,759 $ 261,614,335
Affiliated investments (cost:
$16,836,822 and $16,836,822,
respectively) 4,614,100 5,276,092
Cash and cash equivalents 34,926,468 5,740,553
Interest and distributions
receivable 2,724,049 3,976,408
Other assets 1,227,598 1,060,384
------------ ------------
Total assets $ 299,730,974 $ 277,667,772
============ ============
LIABILITIES
Notes payable -- 6.25%
Unsecured Notes, net of
deferred issuance costs of
$309,812 and $543,609,
respectively 44,480,938 44,247,141
Notes payable -- 5.50%
Unsecured Notes, net of
deferred issuance costs of
$1,381,619 and $1,768,219,
respectively 79,118,381 78,731,781
Securities purchased, not
settled 12,027,463 --
Base Fee and Net Investment
Income Incentive Fee payable
to affiliate 1,215,964 1,012,389
Accrued interest payable 1,204,487 1,204,487
Accrued expenses 1,018,261 1,163,349
------------ ------------
Total liabilities 139,065,494 126,359,147
------------ ------------
NET ASSETS
Common stock, $0.01 par value,
100,000,000 shares authorized;
69,758,938 and 59,300,472
shares issued and outstanding,
respectively 697,590 593,005
Capital in excess of par value 487,943,476 458,121,381
Total distributable
earnings/(accumulated losses) (327,975,586) (307,405,761)
------------ ------------
Total net assets 160,665,480 151,308,625
------------ ------------
Total liabilities and net
assets $ 299,730,974 $ 277,667,772
============ ============
Net asset value per common share $ 2.30 $ 2.55
OXFORD SQUARE CAPITAL CORP.
STATEMENTS OF OPERATIONS
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
2024 2023 2022
---------------------------------- ------------- ------------- ----------------
(Unaudited)
---------------------------------- ----------- ----------- ------------
INVESTMENT INCOME
From non-affiliated/non-control
investments:
Interest income -- debt
investments $ 24,929,287 $ 33,592,166 $ 25,234,315
Income from securitization
vehicles and investments 15,403,586 16,796,699 17,093,203
Other income 2,350,332 1,435,316 790,594
----------- ----------- ------------
Total investment income from
non-affiliated/non-control
investments 42,683,205 51,824,181 43,118,112
----------- ----------- ------------
Total investment income 42,683,205 51,824,181 43,118,112
----------- ----------- ------------
EXPENSES
Interest expense 7,847,320 10,825,877 12,354,392
Base Fee 4,310,484 4,613,664 5,903,986
Professional fees 1,537,434 1,426,098 1,393,116
Compensation expense 746,762 825,226 915,583
Director's fees 417,500 429,500 417,500
Insurance expense 308,552 329,892 378,804
Transfer agent and custodian
fees 260,330 246,562 231,241
Excise tax 216,528 1,423,686 252,172
General and administrative 597,883 638,350 583,740
----------- ----------- ------------
Total expenses before
incentive fees 16,242,793 20,758,855 22,430,534
----------- ----------- ------------
Net Investment Income
Incentive Fees -- 3,705,387 --
Capital gains incentive fees -- -- --
----------- ----------- ------------
Total incentive fees -- 3,705,387 --
----------- ----------- ------------
Total expenses 16,242,793 24,464,242 22,430,534
----------- ----------- ------------
Net investment income 26,440,412 27,359,939 20,687,578
----------- ----------- ------------
NET UNREALIZED
APPRECIATION/(DEPRECIATION) AND
REALIZED LOSSES ON INVESTMENT
TRANSACTIONS
Net change in unrealized
appreciation/(depreciation)
on investments:
Non-Affiliate/non-control
investments 76,337,750 6,198,413 (109,479,985)
Affiliated investments (661,992) 926,274 3,577,327
----------- ----------- ------------
Total net change in
unrealized
appreciation/(depreciation)
on investments 75,675,758 7,124,687 (105,902,658)
----------- ----------- ------------
Net realized losses:
Non-affiliated/non-control
investments (96,236,489) (17,056,245) (339,819)
Extinguishment of debt -- (190,353) --
----------- ----------- ------------
Total net realized losses (96,236,489) (17,246,598) (339,819)
----------- ----------- ------------
Net unrealized and realized
losses (20,560,731) (10,121,911) (106,242,477)
----------- ----------- ------------
Net increase/(decrease) in
net assets resulting from
operations $ 5,879,681 $ 17,238,028 $ (85,554,899)
=========== =========== ============
Net increase in net assets
resulting from net
investment income per common
share (Basic and Diluted): $ 0.42 $ 0.51 $ 0.42
Net increase/(decrease) in
net assets resulting from
operations per common share
(Basic and Diluted): $ 0.09 $ 0.32 $ (1.72)
Weighted average shares of
common stock outstanding
(Basic and Diluted): 63,465,255 53,919,104 49,757,122
FINANCIAL HIGHLIGHTS
Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31,
2024 2023 2022 2021 2020
-------------------- --------------- --------------- --------------- --------------- --------------
(Unaudited)
-------------------- --------------- --------------- --------------- --------------- --------------
Per Share Data
Net asset value at
beginning of year $ 2.55 $ 2.78 $ 4.92 $ 4.55 $ 5.12
---------- ---------- ---------- ---------- ----------
Net investment
income(1) 0.42 0.51 0.42 0.32 0.40
Net realized and
unrealized gains
(losses)(2) (0.33) (0.19) (2.14) 0.47 (0.36)
---------- ---------- ---------- ---------- ----------
Net change in net
asset value from
operations 0.09 0.32 (1.72) 0.79 0.04
---------- ---------- ---------- ---------- ----------
Distributions per
share from net
investment income (0.42) (0.54) (0.42) (0.42) (0.61)
Distributions based
on weighted average
share impact -- (0.01) -- -- --
Tax return of
capital
distributions -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total
distributions(3) (0.42) (0.55) (0.42) (0.42) (0.61)
Effect of shares
issued, net of
offering expenses 0.08 -- -- -- --
Effect of shares
issued/repurchased,
gross -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value at
end of year $ 2.30 $ 2.55 $ 2.78 $ 4.92 $ 4.55
========== ========== ========== ========== ==========
Per share market
value at beginning
of year $ 2.86 $ 3.12 $ 4.08 $ 3.05 $ 5.44
Per share market
value at end of
year $ 2.44 $ 2.86 $ 3.12 $ 4.08 $ 3.05
Total return based on
Market Value(4) (1.64)% 9.34% (14.11)% 47.38% (31.75)%
Total return based on
Net Asset Value(5) 6.67% 11.15% (34.96)% 17.36% 0.82%
Shares outstanding at
end of year 69,758,938 59,300,472 49,844,796 49,690,059 49,589,607
Ratios/Supplemental
Data(7)
--------------------
Net assets at end of
year (000's) $ 160,665 $ 151,309 $ 138,672 $ 244,595 $ 225,427
Average net assets
(000's) $ 152,362 $ 149,944 $ 192,785 $ 242,589 $ 192,137%
Ratio of expenses to
average net assets 10.66% 16.32% 11.64% 8.69% 8.45%
Ratio of net
investment income to
average net assets 17.35% 18.25% 10.73% 6.64% 10.26%
Portfolio turnover
rate(6) 33.66% 3.85% 17.09% 11.09% 23.72%
(1) Represents per share net investment income for
the period, based upon weighted average shares outstanding.
(2) Net realized and unrealized gains 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.
(4) Total return based on market value equals the
increase or decrease of ending market value over beginning
market value, plus distributions, assuming distribution
reinvestment prices obtained under the Company's distribution
reinvestment plan, excluding any discounts divided
by the beginning market value per share.
(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.
(6) Portfolio turnover rate is calculated using the
lesser of the annual investment sales and repayments
of principal or annual investment purchases over the
average of the total investments at fair value.
(7) The following table provides supplemental performance
ratios measured for the years ended December 31, 2024,
2023, 2022, 2021, and 2020:
Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December December December December
2024 31, 2023 31, 2022 31, 2021 31, 2020
----------- ------------- ---------- ---------- ---------- ----------
(Unaudited)
----------- ------------- ---------- ---------- ---------- ----------
Ratio of
expenses to
average net
assets:
Expenses
before
incentive
fees 10.66% 13.84% 11.64% 8.69% 8.45%
Net
Investment
Income
Incentive
Fees --% 2.47% --% --% --%
Capital
Gains
Incentive
Fees --% --% --% --% --%
Ratio of
expenses,
excluding
interest
expense, to
average net
assets 5.51% 9.10% 5.23% 4.36% 4.35%
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
(END) Dow Jones Newswires
February 28, 2025 08:00 ET (13:00 GMT)
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