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Oxford Square Capital (OXSQ) - 2023 Q4 - Annual Results
2024-03-15 12:31
Exhibit 99.1 Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended December 31, 2023 and Declaration of Distributions on Common Stock for the Months Ending April 30, May 31, and June 30, 2024. GREENWICH, CT – 3/15/2024 –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, 2023. · On March 14, 202 ...
Oxford Square Capital (OXSQ) - 2023 Q3 - Quarterly Report
2023-11-08 21:55
Investment Portfolio - As of September 30, 2023, the fair value of the Company's investment portfolio was approximately $285.5 million[232]. - The total fair value of the investment portfolio decreased to approximately $285.5 million as of September 30, 2023, down from $314.7 million as of December 31, 2022, primarily due to $15.0 million in debt repayments, $15.8 million in sales of investments, and net realized losses of $16.8 million[250]. - As of September 30, 2023, the company had investments in debt securities of 19 portfolio companies valued at approximately $193.7 million, CLO equity investments of approximately $84.1 million, and other equity investments of approximately $7.7 million[256]. - The company acquired approximately $8.2 million in portfolio investments during the nine months ended September 30, 2023, including $3.5 million in existing portfolio companies and $4.7 million in new portfolio companies[253]. - The portfolio had a weighted average credit grade of 2.2 as of September 30, 2023, consistent with the grade as of December 31, 2022[264]. - Senior secured notes represented 67.8% of the total portfolio as of September 30, 2023, while CLO equity investments accounted for 29.5%[260]. Investment Income - Investment income for Q3 2023 was approximately $13.0 million, up from $11.4 million in Q3 2022, representing a 14.0% increase[269]. - For the nine months ended September 30, 2023, total investment income was approximately $39.5 million, compared to $31.2 million for the same period in 2022, reflecting a 26.5% increase[269]. - Net investment income for the three months ended September 30, 2023, was approximately $6.4 million, compared to $5.6 million for the same period in 2022[290]. - The total distributions for the third quarter of fiscal 2023 reached $0.225 per share, with a GAAP net investment income of $0.11 per share, resulting in a shortfall of $0.12[307]. - The company has declared a consistent distribution of $0.035 per share across multiple payment dates in fiscal 2023 and 2024[316]. Debt Investments - The weighted average annualized yield on debt investments was approximately 13.10% as of September 30, 2023[226]. - Debt investments had stated interest rates ranging from 9.18% to 17.00% with maturity dates between 0 and 77 months[226]. - The total principal value of income-producing debt investments decreased to approximately $260.2 million as of September 30, 2023, from $272.7 million as of September 30, 2022[270]. - The weighted average yield on debt investments increased to approximately 13.10% as of September 30, 2023, compared to approximately 10.41% as of September 30, 2022[270]. - As of September 30, 2023, the company has approximately $290.4 million in principal debt investments at variable interest rates, with all but three being income-producing[317]. Expenses and Fees - Total expenses for Q3 2023 were approximately $6.6 million, an increase from $5.8 million in Q3 2022, marking a 13.8% rise[273]. - Net investment income incentive fees for Q3 2023 were approximately $1.2 million, with no fees recorded in Q3 2022, indicating a significant increase due to exceeding performance requirements[276][282]. - Interest expense for Q3 2023 was approximately $2.5 million, down from $3.1 million in Q3 2022, reflecting a 19.4% decrease[277]. - The base management fee for Q3 2023 was approximately $1.2 million, down from $1.4 million in Q3 2022, indicating a 14.3% reduction[275]. Realized and Unrealized Gains/Losses - For the three months ended September 30, 2023, the company recognized net realized losses on investments of approximately $13.5 million, primarily due to the sale of multiple CLO equity investments[285]. - For the nine months ended September 30, 2023, the company recognized net realized losses on investments of approximately $16.8 million, reflecting the sale of multiple CLO equity investments and an extinguishment of one CLO equity investment[288]. - The company reported net unrealized appreciation on its investment portfolio of approximately $21.9 million for the nine months ended September 30, 2023[250]. - The net change in unrealized appreciation for the three months ended September 30, 2023, was approximately $13.9 million, consisting of $8.4 million in gross unrealized appreciation and $10.2 million in gross unrealized depreciation[286]. - The net change in unrealized appreciation for the nine months ended September 30, 2023, was approximately $21.9 million, composed of $20.5 million in gross unrealized appreciation and $17.8 million in gross unrealized depreciation[289]. Regulatory and Compliance - The Company operates as a closed-end management investment company and is regulated as a BDC under the Investment Company Act of 1940[223]. - The company is subject to a written policy regarding the allocation of investment opportunities among its related entities, which may affect investment strategies[311]. - The company has implemented policies to avoid conflicts of interest in related party transactions, ensuring compliance with regulatory standards[313]. - The company’s Code of Business Conduct and Ethics requires all employees and directors to disclose any potential conflicts of interest[314]. Interest Rate Sensitivity - Interest rate risk sensitivity indicates that a hypothetical increase of 300 basis points in SOFR could lead to a 15.0% increase in net investment income, while a decrease of 300 basis points could result in a 15.0% decrease[322]. - Changes in interest rates can significantly impact the company's net interest income, which is the difference between interest income earned and interest expense incurred[318]. - The company’s variable rate investments are subject to different re-pricing intervals, with bilateral investments generally resetting annually and non-bilateral investments resetting quarterly[317]. - The company may utilize hedging instruments such as futures, options, and forward contracts to mitigate interest rate fluctuations, although this may limit benefits from lower rates[319]. - The hypothetical calculations regarding interest rate changes are based on a model of the investments held as of September 30, 2023, and are indicative of existing interest rate sensitivity[320].
Oxford Square Capital (OXSQ) - 2023 Q3 - Earnings Call Transcript
2023-11-07 15:52
Oxford Square Capital Corp. (NASDAQ:OXSQ) Q3 2023 Earnings Conference Call November 7, 2023 9:00 AM ET Company Participants Jonathan Cohen - CEO Saul Rosenthal - President Bruce Rubin - CFO Kevin Yonon - Managing Director and Portfolio Manager Conference Call Participants Operator Good morning, ladies and gentlemen. Welcome to the Oxford Square Capital Corp. Third Quarter 2023 Earnings Conference Call. My name is Jo Peter [ph]. I'll be the moderator for today's call. All lines will be muted on a presentatio ...
Oxford Square Capital (OXSQ) - 2023 Q3 - Earnings Call Presentation
2023-11-07 14:17
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 of the Company. Such information is qualified in its entirety by reference to the more detailed discussions contained elsewhere in the Company's public filings with the Securities and Exchange Commission. Statements included herein may constitute "forward-l ...
Oxford Square Capital (OXSQ) - 2023 Q2 - Quarterly Report
2023-08-10 20:09
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________ FORM 10-Q _______________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-00638 _______________________________ OXFORD SQUARE CAPITAL CORP. (Exact name of registrant as specif ...
Oxford Square Capital (OXSQ) - 2023 Q2 - Earnings Call Transcript
2023-08-10 14:53
Oxford Square Capital Corp. (NASDAQ:OXSQ) Q2 2023 Earnings Conference Call August 10, 2023 9:00 AM ET Company Participants Jonathan Cohen - CEO Bruce Rubin - CFO Kevin Yonon - MD and Portfolio Manager Conference Call Participants Operator Hello everyone and welcome to the Oxford Square Capital Corp’s Second Quarter 2023 Earnings Conference Call. My name is Bruno, and I'll be your operator for today. [Operator Instructions] I will now hand over to your host and CEO, Jonathan Cohen. Please go ahead. Jonathan ...
Oxford Square Capital (OXSQ) - 2023 Q1 - Quarterly Report
2023-05-02 20:47
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________ FORM 10-Q _______________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-00638 _______________________________ OXFORD SQUARE CAPITAL CORP. (Exact name of registrant as speci ...
Oxford Square Capital (OXSQ) - 2023 Q1 - Earnings Call Transcript
2023-05-02 14:48
Oxford Square Capital Corp. (NASDAQ:OXSQ) Q1 2023 Earnings Conference Call May 2, 2023 9:00 AM ET Company Participants Saul Rosenthal - President Bruce Rubin - Chief Financial Officer Kevin Yonon - Managing Director and Portfolio Manager Hooman Banafsheha - Principal Conference Call Participants Mickey Schleien - Ladenburg Operator Good morning or good afternoon, and welcome to the Oxford Square Capital Corp’s First Quarter 2023 Earnings Conference Call. My name is Adam, and I'll be your operator for today. ...
Oxford Square Capital (OXSQ) - 2022 Q4 - Annual Report
2023-03-23 20:13
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________ FORM 10-K _______________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-00638 _______________________________ OXFORD SQUARE CAPITAL CORP. (Exact name of registrant as specified in its c ...
Oxford Square Capital (OXSQ) - 2022 Q4 - Earnings Call Transcript
2023-03-21 16:34
Financial Data and Key Metrics Changes - For Q4 2022, the company's net investment income was approximately $6.5 million or $0.13 per share, compared to $5.6 million or $0.11 per share in the prior quarter [6] - The net asset value per share decreased to $2.78 from $3.34 in the previous quarter [6] - Total investment income for the fourth quarter was approximately $11.9 million, up from $11.4 million in the prior quarter, driven by increased interest income from the loan portfolio [6] Business Line Data and Key Metrics Changes - The company reported net unrealized depreciation on investments of approximately $29.4 million or $0.59 per share, compared to $16.8 million or $0.34 per share in the prior quarter [7] - Realized gains on investments were approximately $100,000, an increase from $50,000 in the prior quarter [8] - Investment activity included purchases of approximately $6.1 million and sales and repayments of approximately $200,000 [9] Market Data and Key Metrics Changes - The U.S. loan market experienced volatility, with loan prices increasing from 91.92% of par to 93.06% before dropping to 92.44% by the end of December [11] - The 12-month trailing default rate for the Morningstar LSTA U.S. Leveraged Loan Index decreased to 0.72% from 0.9% at the end of September 2022 [11] - Primary market issuance was approximately $33 billion, representing a 70.8% decline compared to the same quarter in 2021 [12] Company Strategy and Development Direction - The company focuses on portfolio management strategies designed to maximize long-term total return, taking a longer-term view towards investment strategy [12] - The management is targeting companies with revenues in the hundreds of millions and EBITDA typically north of $50 million, avoiding very small companies [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that interest coverage has been maintained despite rising interest rates, with portfolio companies able to support required amortization and cash interest [18] - Concerns were raised regarding the refinancing of CLOs as many have their reinvestment periods ending, but management expects to manage this risk through selective refinancing and extensions [19] Other Important Information - The company declared monthly distributions of $0.035 per share for April, May, and June of 2023 [9] - Cash and cash equivalents stood at approximately $9 million as of December 31 [9] Q&A Session Summary Question: Size and performance of companies in the portfolio - The company targets companies with revenues in the hundreds of millions and EBITDA typically over $50 million, avoiding very small companies [17] Question: Interest coverage performance - Interest coverage has been maintained, and portfolio companies continue to generate cash to support required amortization and cash interest [18] Question: Managing CLO refinancing risks - Management expects to refinance or reset select deals and has flexibility for reinvestment post-reinvestment period [19] Question: CLO cash yield trends - The decline in CLO cash yield was primarily due to the spread between one-month and three-month rates, with expectations for improvement starting in Q1 [20] Question: CLO distributions comparison - CLO distributions were roughly flat to down slightly from October, but are expected to pick up in April [21]