Company Overview - Oxford Square Capital Corp. is a publicly-traded business development company that primarily invests in syndicated bank loans and, to a lesser extent, in debt and equity tranches of collateralized loan obligation (CLO) vehicles [2] - 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 [2] Upcoming Earnings Call - The company will hold a conference call to discuss first quarter 2025 earnings on April 25, 2025, at 9:00 AM Eastern time [1] - The toll-free dial-in number for the call is 1-800-549-8228, and the conference identification number is 26294 [1] - A recording of the call will be available for 30 days after the event, accessible by dialing 1-888-660-6264 with the replay pass-code number 26294 [1]

Investment Portfolio - As of December 31, 2024, the outstanding investment in OCP CLO 2024-37, Ltd. is approximately $27.0 million[51] - As of December 31, 2024, the outstanding investment in Dryden 43 Senior Loan Fund is approximately $47.3 million[52] - As of December 31, 2024, the outstanding investment in Carlyle Global Market Strategies CLO 2021-6, Ltd. is approximately $29.6 million[53] - As of December 31, 2024, the outstanding investment in Verifone Systems, Inc. is approximately $14.8 million[54] - As of December 31, 2024, the outstanding investment in HealthChannels, Inc. is approximately $18.6 million[55] - As of December 31, 2024, the outstanding investment in Octagon Investment Partners 49, Ltd. is approximately $26.4 million[56] - As of December 31, 2024, the outstanding investment in Convergint Technologies, LLC is approximately $11.0 million[57] - As of December 31, 2024, the outstanding investment in Dodge Data & Analytics, LLC includes approximately $2.2 million in first lien first out senior secured notes, $3.0 million in first lien second out senior secured notes, and $15.0 million in second lien senior secured notes[58] - As of December 31, 2024, the outstanding investment in Access CIG, LLC is approximately $10.1 million[59] - As of December 31, 2024, the outstanding investment in Nielsen Consumer, LLC is approximately $10.0 million[60] Income and Fees - Pre-Incentive Fee Net Investment Income for the quarter is 1.925%[77] - The Total Return Requirement is met, allowing for a Net Investment Income Incentive Fee calculation[77] - The income-related incentive fee is calculated at 0.175% based on the Pre-Incentive Fee Net Investment Income exceeding the hurdle rate[77] - Quarterly investment income, including interest and dividends, is reported at 4.00%[78] - Pre-Incentive Fee Net Investment Income after expenses is 3.425%[78] - The income-related incentive fee is calculated at 0.685% when Pre-Incentive Fee Net Investment Income exceeds both the hurdle rate and 2.1875%[79] - Capital Gains Incentive Fee is determined as 20% of realized capital gains net of losses for the year[81] - In Year 2, the Total Capital Gains Incentive Fee paid is 1.6% based on 8% realized capital gains[83] - In Year 3, the Total Capital Gains Incentive Fee paid is 2% based on 10% realized capital gains[83] Operating Expenses and Risks - The company bears all operating expenses, including advisory fees and various administrative costs[84] - The company is permitted to borrow money, allowing for potential gains or losses on investments, which increases investment risk[101] - The asset coverage requirement for senior securities was changed from 200% to 150%, allowing the company to borrow $2 for investment purposes for every $1 of investor equity[117] - The company must distribute at least 90% of its investment company taxable income to qualify as a RIC, avoiding U.S. federal income tax on ordinary income and capital gains[103] - A 4% nondeductible U.S. federal excise tax applies on certain undistributed income unless specific distribution requirements are met[105] - The company may face significant risks due to potential conflicts of interest between itself and its management team[101] - The lack of liquidity in the company's investments may adversely affect its business operations[101] - The company's common stock price may be volatile and has traded at a discount from net asset value[101] - The company may incur risks from investments in CLO vehicles, which are less transparent than direct investments in senior loans[101] Management and Compliance - The company has no employees; its day-to-day operations are managed by Oxford Square Management[102] - The company may be forced to curtail or cease new lending and investment activities if it cannot obtain additional capital due to regulatory or market constraints[101] - The company may sell its common stock below net asset value per share under specific circumstances, including rights offerings to existing stockholders[119] - As a Business Development Company (BDC), at least 70% of the company's total assets must consist of qualifying assets at the time of acquisition[120] - The company is subject to compliance examinations by the SEC under the 1940 Act, which governs its operations[120] - The company must provide significant managerial assistance to portfolio companies, except in certain controlled circumstances[123] - The company has adopted a Code of Ethics to prevent conflicts of interest and restrict certain transactions by its personnel[124] Interest Rate and Reporting - As of December 31, 2024, all but one of the company's variable rate investments were income-producing, with rates based on the five-year U.S. Treasury note, the Prime rate, or SOFR[443] - A hypothetical increase of 300 basis points in floating interest rates could lead to a 14.6% increase in net investment income[447] - The company may hedge against interest rate fluctuations using standard hedging instruments, although this may limit benefits from lower interest rates[445] - The company is required to file annual and quarterly reports with the SEC, including audited financial statements[135] - The company has implemented compliance policies and procedures to prevent violations of federal securities laws and reviews them annually[125]

Financial Performance - As of December 31, 2024, the net asset value (NAV) per share was $2.30, a decrease from $2.35 as of September 30, 2024[1] - Net investment income (NII) for the quarter ended December 31, 2024, was approximately $6.0 million, or $0.09 per share, down from $6.2 million, or $0.10 per share, for the previous quarter[1] - Total investment income for the quarter was approximately $10.2 million, slightly down from $10.3 million in the prior quarter[1] - The company recorded a net increase in net assets resulting from operations of approximately $3.3 million, which included net realized losses of approximately $44.8 million and net unrealized appreciation of approximately $42.1 million[1] - Net asset value at the end of 2024 is $2.30, down from $2.55 in 2023, reflecting a decrease of 9.80%[8] - Net investment income for 2024 is $0.42 per share, compared to $0.51 per share in 2023, a decline of 17.65%[8] - Total distributions per share decreased to $0.42 in 2024 from $0.55 in 2023, a reduction of 23.64%[8] - Total return based on market value for 2024 is (1.64)%, compared to 9.34% in 2023, indicating a significant decline[8] - Total return based on net asset value for 2024 is 6.67%, down from 11.15% in 2023, a decrease of 40.56%[8] Investment Activities - During the fourth quarter of 2024, the company made investments totaling approximately $25.1 million and received approximately $22.0 million from sales and repayments of investments[1] - The company is focused on investing in syndicated bank loans and collateralized loan obligation (CLO) vehicles, indicating a strategic emphasis on these areas[14] Shareholder Information - As of December 31, 2024, the company had approximately 69.8 million shares of common stock outstanding[2] - The company issued approximately 1.8 million shares of common stock during the quarter, resulting in net proceeds of approximately $5.0 million[2] - Shares outstanding at the end of 2024 increased to 69,758,938 from 59,300,472 in 2023, an increase of 17.73%[8] Expense Management - The total expenses for the quarter were approximately $4.2 million, consistent with the previous quarter[1] - The ratio of expenses to average net assets improved to 10.66% in 2024 from 13.84% in 2023[13] Portfolio Management - The weighted average yield of debt investments increased to 15.8% at current cost, compared to 14.5% as of September 30, 2024[1] - The portfolio turnover rate increased to 33.66% in 2024 from 3.85% in 2023, indicating a more active management strategy[8] - Average net assets for 2024 were $152,362,000, compared to $149,944,000 in 2023, an increase of 1.00%[8]

Financial Data and Key Metrics Changes - For the quarter ended December 2024, the company's net investment income was approximately $6 million or $0.09 per share, compared to $6.2 million or $0.10 per share for the prior quarter [7] - The net asset value per share decreased to $2.30 from $2.35 in the previous quarter [7] - Total investment income for the fourth quarter was approximately $10.2 million, slightly down from $10.3 million in the prior quarter [8] - The company recorded combined net unrealized and realized losses on investments of approximately $2.7 million or $0.04 per share, a decrease from $7.1 million or $0.11 per share in the prior quarter [8] Business Line Data and Key Metrics Changes - During the quarter, the company engaged in investment activities that included purchases of approximately $25.1 million, sales of $7 million, and repayments of approximately $15 million [9] - The company issued approximately 1.8 million shares of common stock through an at-the-market offering, resulting in net proceeds of approximately $5 million [9] Market Data and Key Metrics Changes - The U.S. loan market performance improved, with U.S. loan prices increasing from 96.71% of par as of September 30 to 97.33% of par as of December 31 [11] - The 12-month trailing default rate for the loan index increased to 0.91% by principal amount at the end of the quarter, up from 0.80% at the end of September [12] - The distressed ratio, defined as the percentage of loans with prices below 80% of par, decreased to 3.02% from 3.43% at the end of the third quarter [12] - U.S. Leveraged Loan primary market issuance was $96.7 billion, representing a 75% increase compared to the same quarter in the previous year [13] Company Strategy and Development Direction - The company continues to focus on portfolio management strategies designed to maximize long-term total return, leveraging its position as a permanent capital vehicle to adopt a longer-term investment strategy [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. loan market showed improvement, indicating a positive trend in market conditions [11] - The company highlighted the increase in loan prices and issuance, suggesting a favorable environment for investment activities [12][13] Other Important Information - The Board of Directors declared monthly distributions of $0.035 per share for each of the months ending April, May, and June of 2025 [10] Q&A Session Summary Question: No questions were raised during the call - The operator indicated that there were no questions from participants [16]

Oxford Square Capital Corp. Investor Presentation Quarter Ended December 31, 2024 Disclaimer "Company"). This presentation is neither an offer to sell, nor a solicitation of an offer to purchase, any securities of Oxford Square Capital Corp. ("OXSQ" or the This presentation and the summaries contained herein do not purport to be complete and no obligation to update or otherwise revise such information is being assumed. Nothing shall be relied upon as a promise or representation as to the future performance ...

Core Viewpoint - Oxford Square Capital Corp. reported its financial results for the quarter ended December 31, 2024, highlighting a decrease in net asset value and net investment income compared to the previous quarter [1][2]. Financial Performance - Net asset value (NAV) per share as of December 31, 2024, was $2.30, down from $2.35 on September 30, 2024 [2]. - Net investment income (NII) for the quarter was approximately $6.0 million, or $0.09 per share, compared to $6.2 million, or $0.10 per share, for the previous quarter [2]. - Total investment income for the quarter was approximately $10.2 million, slightly down from $10.3 million in the prior quarter [2]. - Total expenses for the quarter were approximately $4.2 million, consistent with the previous quarter [2]. Investment Breakdown - Investment income for the quarter included $5.4 million from debt investments, $4.1 million from CLO equity investments, and $0.8 million from other income [2]. - The weighted average yield of debt investments increased to 15.8% from 14.5% as of September 30, 2024 [2]. - The weighted average effective yield of CLO equity investments decreased to 8.8% from 9.6% [2]. - The weighted average cash distribution yield of cash income-producing CLO equity investments increased to 16.2% from 15.3% [2]. Asset and Liability Overview - Total assets as of December 31, 2024, were approximately $299.7 million, up from $277.7 million as of December 31, 2023 [5]. - Total liabilities were approximately $139.1 million, compared to $126.4 million a year earlier [5]. - The company had one debt investment and preferred equity investments in non-accrual status, with fair values of approximately $0.5 million and $4.6 million, respectively [2]. Shareholder Information - The company declared distributions of $0.035 per share for April, May, and June 2025 [2]. - Approximately 1.8 million shares of common stock were issued during the quarter, resulting in net proceeds of approximately $5.0 million [2]. - As of December 31, 2024, there were approximately 69.8 million shares of common stock outstanding [2].

Company Overview - Oxford Square Capital Corp. is a publicly-traded business development company that primarily invests in syndicated bank loans and, to a lesser extent, in debt and equity tranches of collateralized loan obligation (CLO) vehicles [2] - CLO investments may also include warehouse facilities, which are financing structures designed to aggregate loans that can be used to form the basis of a CLO vehicle [2] Upcoming Earnings Call - The company will hold a conference call to discuss its fourth quarter 2024 earnings on February 28, 2025, at 9:00 AM Eastern time [1] - The toll-free dial-in number for the call is 1-800-549-8228, and a recording will be available for 30 days after the call [1] - For those interested in the recording, the replay number is 1-888-660-6264, with a pass-code of 06523 [1]

Investment Portfolio - As of September 30, 2024, the fair value of the Company's investment portfolio was approximately $262.9 million[193]. - As of September 30, 2024, the total fair value of the investment portfolio was approximately $262.9 million, down from $266.9 million as of December 31, 2023, reflecting a decrease of about 1.5%[204]. - The company had investments in debt securities or loans to 18 portfolio companies, with a fair value of approximately $152.7 million, compared to 19 companies valued at $179.5 million as of December 31, 2023[209][210]. - The company's CLO equity investments increased to approximately $103.5 million as of September 30, 2024, representing 39.3% of the total portfolio, up from $82.2 million (30.8%) at the end of 2023[211]. - The company held qualifying assets that represented 64.1% of total assets as of September 30, 2024, down from 70.6% at the end of 2023[211]. Investment Activity - The Company generally expects to invest between $5 million and $50 million in each portfolio company[186]. - The company purchased approximately $88.7 million in portfolio investments during the nine months ended September 30, 2024, compared to $11.7 million in the same period of 2023, indicating a significant increase in investment activity[206]. - During the nine months ended September 30, 2024, the company experienced net realized losses of approximately $51.4 million and debt repayments of approximately $61.6 million[204][208]. - The company had loan principal repayments of approximately $61.6 million during the nine months ended September 30, 2024, compared to $15.8 million in the same period of 2023, indicating increased repayment activity[208]. Financial Performance - Investment income for the three months ended September 30, 2024, was approximately $10.3 million, a decrease of 20.8% compared to $13.0 million for the same period in 2023[217]. - Total investment income for the nine months ended September 30, 2024, was approximately $32.5 million, down 17.7% from $39.5 million in 2023[219]. - The net change in unrealized appreciation on investments was approximately $33.6 million for the nine months ended September 30, 2024, compared to $7.1 million in the same period of 2023[206]. - For the three months ended September 30, 2024, the company recognized net realized losses on investments of approximately $12.9 million, primarily due to the extinguishment of two senior secured loans in a single portfolio company[235]. - The net increase in net assets resulting from operations for the three months ended September 30, 2024, was approximately $0.9 million, compared to a net increase of approximately $6.7 million for the same period in 2023[242]. Debt Investments - The weighted average annualized yield on debt investments was approximately 14.50% as of September 30, 2024[187]. - The debt investments had stated interest rates ranging from 8.71% to 13.26% with maturity dates between 0 and 76 months[187]. - The weighted average yield on debt investments increased to approximately 14.50% as of September 30, 2024, compared to approximately 13.10% as of September 30, 2023[220]. - The weighted average stated interest rate on all of the company's debt outstanding as of September 30, 2024, was 5.77%[252]. Expenses and Distributions - Total expenses for the three months ended September 30, 2024, were approximately $4.2 million, a decrease of 36.4% from $6.6 million in 2023[222]. - Interest expense for the three months ended September 30, 2024, was approximately $2.0 million, down from $2.5 million in the same period of 2023[226]. - Professional fees for the three months ended September 30, 2024, were approximately $359,000, compared to approximately $479,000 for the same period in 2023[227]. - General and administrative expenses for the three months ended September 30, 2024, were approximately $395,000, a decrease from approximately $458,000 in 2023[229]. - The company declared a total of $0.225 per share in distributions for the third quarter of 2023, with a GAAP net investment income of $0.11[260]. - The total distributions for the fourth quarter of 2023 are $0.105 per share, with a GAAP net investment income of $0.13, indicating a shortfall of $0.03[259]. Risk Management - The Company is exposed to leverage risks due to borrowing funds for investments, which may magnify potential gains and losses[189]. - Interest rate risk affects the company's net interest income, which is the difference between interest income earned and interest expense incurred[274]. - The company may hedge against interest rate fluctuations using standard instruments like futures, options, and forward contracts[275]. - A hypothetical increase of 300 basis points in interest rates could lead to a 15.2% increase in investment income[277]. - A hypothetical increase of 200 basis points could result in a 10.1% increase in investment income[277]. - A hypothetical increase of 100 basis points could lead to a 5.1% increase in investment income[277]. - Conversely, a hypothetical decrease of 100 basis points could result in a 5.1% decrease in investment income[277]. - The company acknowledges that actual results may differ materially from hypothetical analyses due to various factors[276]. Governance and Compliance - The company has established an Investment Advisory Agreement with Oxford Square Management, which is controlled by Oxford Funds[261]. - Related party transactions are subject to a written policy for allocation of investment opportunities among affiliated entities[267]. - The company has implemented policies to screen transactions for potential conflicts of interest with related parties[268]. - A Code of Business Conduct and Ethics is in place, requiring disclosure of any conflicts of interest by employees and directors[269]. - The Audit Committee is responsible for reviewing and approving transactions with related parties as per NASDAQ corporate governance standards[269].

Financial Data and Key Metrics Changes - For the quarter ended September 30, 2024, the company's net investment income was approximately $6.2 million or $0.10 per share, a decrease from $7.7 million or $0.13 per share in the prior quarter [7] - The net asset value per share decreased to $2.35 from $2.43 in the prior quarter [7] - Total investment income for the third quarter was approximately $10.3 million, down from approximately $11.4 million in the prior quarter [8] - The company recorded combined net unrealized and realized losses on investments of approximately $7.1 million or $0.11 per share, compared to losses of approximately $2.5 million or $0.04 per share in the prior quarter [8] Business Line Data and Key Metrics Changes - The company purchased approximately $47.7 million in investments and received repayments of approximately $27.9 million during the quarter [8] - The company issued approximately 5.1 million shares of common stock through an at-the-market offering, resulting in net proceeds of approximately $14.5 million [9] Market Data and Key Metrics Changes - U.S. loan market performance modestly improved, with U.S. loan prices increasing from 96.54% of par to 96.71% of par [11] - The 12-month trailing default rate for the loan index decreased to 0.8% from 0.9% at the end of June [12] - The distress ratio ended the quarter at 3.43%, down from 4.42% at the end of the second quarter [12] - U.S. Leveraged Loan primary market issuance was $109.8 billion, representing a 45% increase compared to the same quarter in the previous year [13] - U.S. loan fund outflows were approximately $3.5 billion for the quarter [14] Company Strategy and Development Direction - The company focuses on portfolio management strategies designed to maximize long-term total return, leveraging its status as a permanent capital vehicle to take a longer-term view towards investment strategy [14] Management's Comments on Operating Environment and Future Outlook - Management noted that while the loan market showed some improvement, out-of-court restructurings and exchanges remain elevated, indicating ongoing challenges in the market [12] - The company is optimistic about the long-term investment strategy despite short-term fluctuations in the market [14] Other Important Information - The company declared monthly distributions of $0.035 per share for January, February, and March of 2025 [9] - Additional information about the company's third quarter performance is available on its website [15] Q&A Session Summary - No questions were posed during the Q&A session, and the call concluded with closing remarks from management [15][16]

Financial Performance - As of September 30, 2024, the net asset value (NAV) per share was $2.35, down from $2.43 as of June 30, 2024[2] - Net investment income (NII) for the quarter ended September 30, 2024, was approximately $6.2 million, or $0.10 per share, compared to $7.7 million, or $0.13 per share, for the previous quarter[3] - Total investment income for the quarter was approximately $10.3 million, a decrease from approximately $11.4 million in the prior quarter[3] - Total expenses for the quarter were approximately $4.2 million, up from approximately $3.7 million for the quarter ended June 30, 2024[4] - The company recorded a net decrease in net assets resulting from operations of approximately $0.9 million, which included net realized losses of approximately $12.9 million[6] - Net asset value at the end of the period decreased to $2.35 from $2.78 year-over-year, representing a decline of 15.5%[16] - Net investment income for the three months ended September 30, 2024, was $0.10 per share, down from $0.11 in the same period last year[16] - Total distributions for the three months ended September 30, 2024, were $(0.11) per share, compared to $(0.23) per share in the prior year[16] - The total return based on market value for the three months ended September 30, 2024, was (0.25)%, compared to 22.17% in the prior year[16] - Average net assets for the three months ended September 30, 2024, were $154,529,000, down from $160,397,000 in the same period last year[17] Investment Activities - During the third quarter of 2024, the company made investments of approximately $47.7 million and received approximately $27.9 million from sales and repayments of investments[6] - The weighted average yield of debt investments was 14.5% as of September 30, 2024, compared to 13.7% as of June 30, 2024[5] - The portfolio turnover rate for the nine months ended September 30, 2024, was 25.86%, compared to 2.64% in the prior year[16] - The company is focused on investing in syndicated bank loans and collateralized loan obligation (CLO) vehicles[18] Shareholder Information - As of September 30, 2024, the company had approximately 67.9 million shares of common stock outstanding after issuing approximately 5.1 million shares[9] - Shares outstanding at the end of the period increased to 67,869,056 from 57,958,446 year-over-year[16] - The company declared distributions of $0.035 per share for the months ending January 31, February 28, and March 31, 2025[2] Risk Factors - Forward-looking statements indicate potential risks and uncertainties that could affect future performance[19] Expense Management - The ratio of expenses to average net assets improved to 10.71% for the three months ended September 30, 2024, from 12.47% in the same period last year[17]