Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended September 30, 2021 and Declaration of Distributions of Common Stock for the Months Ending January 31, February 28, and March 31, 2022
October 26 2021 - 8:00AM
Oxford Square Capital Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQL)
(NasdaqGS: OXSQZ) (Nasdaq: OXSQG) (the “Company,” “we,” “us” or
“our”) announced today its financial results and related
information for the quarter ended September 30, 2021.
-
As of September 30, 2021, net asset value (“NAV”) per share was
$5.03, compared with the NAV per share of $4.91 at the prior
quarter end.
- For the quarter
ended September 30, 2021, we recorded GAAP net investment income of
approximately $4.0 million, or $0.08 per share.
- We recorded net
unrealized appreciation of approximately $5.6 million and net
realized gains on investments of approximately $1.7 million for the
quarter ended September 30, 2021, compared to net unrealized
appreciation of approximately $2.5 million and net realized gains
on investments of approximately $1.2 million for the quarter ended
June 30, 2021.
- In total, we had a
net increase in net assets from operations of approximately $11.3
million, or $0.23 per share, for the quarter ended September 30,
2021, compared with a net increase in net assets from operations of
approximately $6.5 million, or $0.13 per share, for the quarter
ended June 30, 2021.
-
Total investment income for the quarter ended September 30, 2021
amounted to approximately $9.8 million, compared with approximately
$7.8 million for the quarter ended June 30, 2021. For the quarter
ended September 30, 2021, the components of investment income were
as follows:
-
$4.5 million from our debt investments
-
$5.1 million from our CLO equity investments
-
$200,000 from other income
- Our total
expenses for the quarter ended September 30, 2021 were
approximately $5.8 million, compared with total expenses of
approximately $5.1 million for the second quarter of 2021.
- During the third
quarter of 2021, we made investments of approximately $23.1
million, received $5.7 million from repayments and amortization
payments on our debt investments, and recorded no proceeds from
sales of investments.
- As of September 30, 2021, the
following metrics applied (note that none of these values
represents a total return to shareholders):
- The weighted average yield of our
debt investments was 7.5% at current cost, compared with 7.6% as of
June 30, 2021.
- The weighted average effective
yield of our CLO equity investments at current cost was 9.1%,
compared with 10.4% as of June 30, 2021.
- The weighted average cash
distribution yield of our cash income producing CLO equity
investments at current cost was 19.6%, compared with 18.8% as of
June 30, 2021.
- Our weighted
average credit rating was 2.0 based on total fair value and 2.3
based on total principal amount as of September 30, 2021, compared
to 2.1 based on total fair value and 2.3 based on total principal
amount as of June 30, 2021.
- As of
September 30, 2021, we had three debt investments on non-accrual
status, with a combined fair value of $3.7 million. Also, as of
September 30, 2021, our preferred equity investments in one of our
portfolio companies were on non-accrual status, which had a fair
value of approximately $74,000.
- On October 22,
2021, our Board of Directors declared the following distributions
on our common stock:
Month Ending |
Record Date |
Payment Date |
Amount Per Share |
January 31, 2022 |
January 17, 2022 |
January 31, 2022 |
$0.035 |
February 28, 2022 |
February 14, 2022 |
February 28, 2022 |
$0.035 |
March 31, 2022 |
March 17, 2022 |
March 31, 2022 |
$0.035 |
We will hold a conference call to discuss third quarter results
today, Tuesday, October 26th, 2021 at 9:00 AM ET. The toll-free
dial-in number is 1-844-200-6205, access code number 468257. There
will be a recording available for 30 days. If you are interested in
hearing the recording, please dial 1-866-813-9403. The replay
pass-code number is 106418.
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.CONSOLIDATED STATEMENTS OF ASSETS AND
LIABILITIES
|
|
September 30, 2021 |
|
December 31, 2020 |
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Non-affiliated/non-control investments (cost: $494,745,225 and
$407,547,351, respectively) |
|
$ |
421,013,356 |
|
|
$ |
294,674,000 |
|
Affiliated investments (cost: $16,836,822 and $16,836,822,
respectively) |
|
|
73,571 |
|
|
|
— |
|
Cash equivalents |
|
|
19,541,086 |
|
|
|
59,137,284 |
|
Interest and distributions receivable |
|
|
3,278,404 |
|
|
|
2,299,259 |
|
Securities sold not settled |
|
|
— |
|
|
|
950,000 |
|
Other assets |
|
|
788,168 |
|
|
|
597,238 |
|
Total assets |
|
$ |
444,694,585 |
|
|
$ |
357,657,781 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
Notes payable – 6.50% Unsecured Notes, net of deferred issuance
costs of $812,204 and $1,055,065, respectively |
|
$ |
63,558,021 |
|
|
$ |
63,315,160 |
|
Notes payable – 6.25% Unsecured Notes, net of deferred issuance
costs of $1,068,693 and $1,243,082, respectively |
|
|
43,722,057 |
|
|
|
43,547,668 |
|
Notes payable – 5.50% Unsecured Notes, net of deferred issuance
costs of $2,636,484 and $0, respectively |
|
|
77,863,516 |
|
|
|
— |
|
Securities purchased not settled |
|
|
6,489,812 |
|
|
|
23,156,556 |
|
Base Fee and Net Investment Income Incentive Fee payable to
affiliate |
|
|
1,774,727 |
|
|
|
1,159,703 |
|
Accrued interest payable |
|
|
1,216,109 |
|
|
|
478,191 |
|
Accrued expenses |
|
|
425,627 |
|
|
|
573,977 |
|
Total liabilities |
|
|
195,049,869 |
|
|
|
132,231,255 |
|
COMMITMENTS AND
CONTINGENCIES (Note 13) |
|
|
|
|
|
|
|
|
NET
ASSETS |
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 100,000,000 shares authorized;
49,655,275 and 49,589,607 shares issued and outstanding,
respectively |
|
|
496,552 |
|
|
|
495,895 |
|
Capital in excess of par value |
|
|
452,938,551 |
|
|
|
452,650,210 |
|
Total distributable earnings/(accumulated losses) |
|
|
(203,790,387 |
) |
|
|
(227,719,579 |
) |
Total net assets |
|
|
249,644,716 |
|
|
|
225,426,526 |
|
Total liabilities and net assets |
|
$ |
444,694,585 |
|
|
$ |
357,657,781 |
|
Net asset value per common
share |
|
$ |
5.03 |
|
|
$ |
4.55 |
|
|
|
|
|
|
|
|
|
|
OXFORD SQUARE CAPITAL
CORP.CONSOLIDATED STATEMENTS OF
OPERATIONS(unaudited)
|
|
Three Months Ended
September 30, 2021 |
|
Three Months Ended
September 30, 2020 |
|
Nine Months Ended
September 30, 2021 |
|
Nine Months Ended
September 30, 2020 |
INVESTMENT INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From
non-affiliated/non-control investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income – debt investments |
|
$ |
4,527,514 |
|
$ |
4,492,647 |
|
|
$ |
12,351,940 |
|
|
$ |
15,020,284 |
|
Income from securitization vehicles and investments |
|
|
5,071,854 |
|
|
3,568,516 |
|
|
|
13,849,299 |
|
|
|
11,545,539 |
|
Other income |
|
|
198,263 |
|
|
163,976 |
|
|
|
798,088 |
|
|
|
738,625 |
|
Total investment income from non-affiliated/non-control
investments |
|
|
9,797,631 |
|
|
8,225,139 |
|
|
|
26,999,327 |
|
|
|
27,304,448 |
|
Total investment income |
|
|
9,797,631 |
|
|
8,225,139 |
|
|
|
26,999,327 |
|
|
|
27,304,448 |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
3,090,535 |
|
|
1,908,206 |
|
|
|
7,405,358 |
|
|
|
5,988,116 |
|
Base Fee |
|
|
1,774,728 |
|
|
1,123,450 |
|
|
|
4,598,462 |
|
|
|
3,365,332 |
|
Professional fees |
|
|
349,626 |
|
|
321,059 |
|
|
|
1,604,845 |
|
|
|
1,228,794 |
|
Compensation expense |
|
|
185,855 |
|
|
185,659 |
|
|
|
551,452 |
|
|
|
554,288 |
|
General and administrative |
|
|
414,919 |
|
|
416,486 |
|
|
|
1,258,609 |
|
|
|
1,195,166 |
|
Total expenses before incentive fees |
|
|
5,815,663 |
|
|
3,954,860 |
|
|
|
15,418,726 |
|
|
|
12,331,696 |
|
Net Investment Income Incentive Fees |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total expenses |
|
|
5,815,663 |
|
|
3,954,860 |
|
|
|
15,418,726 |
|
|
|
12,331,696 |
|
Net investment income |
|
|
3,981,968 |
|
|
4,270,279 |
|
|
|
11,580,601 |
|
|
|
14,972,752 |
|
Net change in unrealized
appreciation/(depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Affiliate/non-control investments |
|
|
5,558,192 |
|
|
21,580,813 |
|
|
|
39,141,482 |
|
|
|
(42,698,711 |
) |
Affiliated investments |
|
|
73,571 |
|
|
(634,089 |
) |
|
|
73,571 |
|
|
|
(2,816,790 |
) |
Total net change in unrealized appreciation/(depreciation) on
investments |
|
|
5,631,763 |
|
|
20,946,724 |
|
|
|
39,215,053 |
|
|
|
(45,515,501 |
) |
Net realized
gains/(losses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-affiliated/non-control investments |
|
|
1,651,408 |
|
|
(4,368,235 |
) |
|
|
(11,239,243 |
) |
|
|
(7,405,716 |
) |
Extinguishment of debt |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(5,211 |
) |
Total net realized gains/(losses) |
|
|
1,651,408 |
|
|
(4,368,235 |
) |
|
|
(11,239,243 |
) |
|
|
(7,410,927 |
) |
Net increase/(decrease) in net
assets resulting from operations |
|
$ |
11,265,139 |
|
$ |
20,848,768 |
|
|
$ |
39,556,411 |
|
|
$ |
(37,953,676 |
) |
Net increase in net assets
resulting from net investment income per common share (Basic and
Diluted): |
|
$ |
0.08 |
|
$ |
0.09 |
|
|
$ |
0.23 |
|
|
$ |
0.30 |
|
Net increase/(decrease) in net
assets resulting from operations per common share (Basic and
Diluted): |
|
$ |
0.23 |
|
$ |
0.42 |
|
|
$ |
0.80 |
|
|
$ |
(0.77 |
) |
Weighted average shares of
common stock outstanding (Basic and Diluted): |
|
|
49,634,535 |
|
|
49,589,607 |
|
|
|
49,610,734 |
|
|
|
49,439,478 |
|
Distributions per share |
|
$ |
0.105 |
|
$ |
0.105 |
|
|
$ |
0.315 |
|
|
$ |
0.507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL HIGHLIGHTS – (unaudited)
|
|
Three Months Ended September 30,
2021 |
|
Three Months EndedSeptember 30,
2020 |
|
Nine Months EndedSeptember 30,
2021 |
|
Nine Months EndedSeptember 30,
2020 |
Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning
of period |
|
$ |
4.91 |
|
|
$ |
3.54 |
|
|
$ |
4.55 |
|
|
$ |
5.12 |
|
Net investment income(1) |
|
|
0.08 |
|
|
|
0.09 |
|
|
|
0.23 |
|
|
|
0.30 |
|
Net realized and unrealized
(losses)/gains(2) |
|
|
0.15 |
|
|
|
0.33 |
|
|
|
0.57 |
|
|
|
(1.06 |
) |
Net (decrease)/increase in net
asset value from operations |
|
|
0.23 |
|
|
|
0.42 |
|
|
|
0.80 |
|
|
|
(0.76 |
) |
Distributions per share from
net investment income |
|
|
(0.09 |
) |
|
|
(0.09 |
) |
|
|
(0.26 |
) |
|
|
(0.42 |
) |
Tax return of capital
distributions(3) |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.06 |
) |
|
|
(0.09 |
) |
Total distributions |
|
|
(0.11 |
) |
|
|
(0.11 |
) |
|
|
(0.32 |
) |
|
|
(0.51 |
) |
Effect of shares
issued/repurchased, gross |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net asset value at end of
period |
|
$ |
5.03 |
|
|
$ |
3.85 |
|
|
$ |
5.03 |
|
|
$ |
3.85 |
|
Per share market value at
beginning of period |
|
$ |
4.91 |
|
|
$ |
2.80 |
|
|
$ |
3.05 |
|
|
$ |
5.44 |
|
Per share market value at end
of period |
|
$ |
4.05 |
|
|
$ |
2.47 |
|
|
$ |
4.05 |
|
|
$ |
2.47 |
|
Total return based on Market
Value(4) |
|
|
(15.52 |
)% |
|
|
(8.22 |
)% |
|
|
42.66 |
% |
|
|
(46.71 |
)% |
Total return based on Net
Asset Value(5) |
|
|
4.58 |
% |
|
|
11.72 |
% |
|
|
17.42 |
% |
|
|
(14.90 |
)% |
Shares outstanding at end of
period |
|
|
49,655,275 |
|
|
|
49,589,607 |
|
|
|
49,655,275 |
|
|
|
49,589,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental
Data(8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period
(000’s) |
|
$ |
249,645 |
|
|
$ |
190,968 |
|
|
$ |
249,645 |
|
|
$ |
190,968 |
|
Average net assets
(000’s) |
|
$ |
246,554 |
|
|
$ |
183,148 |
|
|
$ |
241,062 |
|
|
$ |
186,744 |
|
Ratio of expenses to average
net assets(6) |
|
|
9.44 |
% |
|
|
8.64 |
% |
|
|
8.53 |
% |
|
|
8.80 |
% |
Ratio of net investment income
to average net assets(6) |
|
|
6.46 |
% |
|
|
9.33 |
% |
|
|
6.41 |
% |
|
|
10.69 |
% |
Portfolio turnover
rate(7) |
|
|
1.39 |
% |
|
|
3.22 |
% |
|
|
8.20 |
% |
|
|
15.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________
(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.(7) Portfolio
turnover rate is calculated using the lesser of the year-to-date
cash investment sales and debt repayments or year-to-date cash
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 and nine
months ended September 30, 2021 and 2020:
|
|
Three Months
EndedSeptember 30,
2021 |
|
Three Months
EndedSeptember 30,
2020 |
|
Nine Months
EndedSeptember 30,
2021 |
|
Nine Months
EndedSeptember 30,
2020 |
Ratio of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses before incentive fees |
|
9.44 |
% |
|
8.64 |
% |
|
8.53 |
% |
|
8.80 |
% |
Net investment income incentive fees |
|
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
Ratio of expenses, excluding interest expense to average net
assets |
|
4.42 |
% |
|
4.47 |
% |
|
4.43 |
% |
|
4.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
About Oxford Square Capital Corp.
Oxford Square Capital Corp. is a publicly-traded business
development company principally investing in syndicated bank loans
and 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, including the impact of COVID-19 and
related changes in base interest rates and significant market
volatility on our business, our portfolio companies, our industry
and the global economy. 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 Rubin203-983-5280
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