Oxford Lane Capital Corp. Announces Net Asset Value and Selected Financial Results as of March 31, 2018
17 May 2018 - 10:00PM
Oxford Lane Capital Corp. (“Oxford Lane”, "Fund", “we”, “us” or
“our”) (NasdaqGS:OXLC) (NasdaqGS:OXLCO) (NasdaqGS:OXLCM) announced
today the following financial results and related information:
- Net asset value per share as of
March 31, 2018 stood at $10.08 compared with a net asset value per
share at December 31, 2017 of $10.02.
- Net investment income (“NII”),
calculated in accordance with generally accepted accounting
principles (“GAAP”), was approximately $11.0 million, or
approximately $0.40 per share, for the quarter ended March 31,
2018.
- Our core net investment income (“Core NII”) was approximately
$8.6 million, or approximately $0.31 per share, for the quarter
ended March 31, 2018.
- Core NII represents net investment
income adjusted for additional cash income distributions received,
or entitled to be received (if any, in either case), on our
collateralized loan obligation (“CLO”) equity investments
(excluding those cash distributions believed to represent a return
of capital). (See additional information under
“Supplemental Information Regarding Core Net Investment Income”
below).
- While our experience has been that
cash flow distributions have historically represented useful
indicators of our CLO equity investments’ annual taxable income
during certain periods, we believe that current and future cash
flow distributions may represent less accurate indicators of
taxable income with respect to our CLO equity investments than they
have in the past. Accordingly, our taxable income may be
materially different than either NII or Core NII.
- Total investment income, calculated
in accordance with GAAP, amounted to approximately $20.4 million
for the quarter ended March 31, 2018.
- For the quarter ended March 31, 2018, we recorded total
investment income from our portfolio as follows:
- approximately $19.7 million from our CLO equity investments,
and
- approximately $0.7 million from our CLO debt investments, and
other income.
- As of March 31, 2018, the following
weighted average yields were calculated:
- the weighted average yield of our CLO debt investments at
current cost was approximately 10.9%, compared with 10.1% as of
December 31, 2017;
- the weighted average (GAAP) effective yield of our CLO equity
investments at current cost was approximately 17.2%, compared with
17.1% as of December 31, 2017;
- the weighted average cash yield of our CLO equity investments
at current cost was approximately 17.3%, compared with 20.2% as of
December 31, 2017.
- Net increase in net assets from
operations was approximately $12.9 million, or approximately $0.47
per share, for the quarter ended March 31, 2018, including:
- Net investment income of approximately $11.0
million;
- Net realized gains of approximately $1.0 million;
and
- Net unrealized appreciation of approximately $0.9 million.
- During the quarter ended March 31,
2018, we made additional CLO investments of approximately $136.0
million and we received approximately $86.9 million from sales and
repayments of our CLO investments.
- During the quarter ended March 31,
2018, we issued a total of 1,859,343 shares of common stock
pursuant to an “at-the-market” offering, resulting in net proceeds
of approximately $18.6 million after deducting the sales agent’s
commissions and offering expenses.
- On January 2, 2018, we announced
that we entered into a repurchase transaction with Nomura
Securities International, Inc. (“Nomura”) pursuant to which we sold
CLO securities to Nomura with a market value of approximately
$106.2 million for a sale price of approximately $42.5
million. On April 25, 2018, we entered into an amended and
restated repurchase transaction facility with Nomura. Under
the restated agreement, the term of the facility was extended by 3
months until January 2, 2019. In addition, effective April 2,
2018, the facility pricing rate was reduced from 3-month LIBOR plus
3.35 percent per annum to 3-month LIBOR plus 3.15 percent per
annum.
- Our Board of Directors has declared the following distributions
on our common stock:
Month Ending |
Record Date |
Payment Date |
Amount Per Share |
July 31, 2018 |
July 23, 2018 |
July 31, 2018 |
$0.135 |
August 31, 2018 |
August 23, 2018 |
August 31, 2018 |
$0.135 |
September 30, 2018 |
September 20, 2018 |
September 28, 2018 |
$0.135 |
Our Board of Directors has also declared the
required monthly dividends on our Series 2023 Term Preferred Shares
and Series 2024 Term Preferred Shares (each, a “Share”), as
follows:
Preferred Shares Type |
Per ShareDividendAmountDeclared |
Record Dates |
Payment Dates |
Series 2023 |
$ 0.156250 |
June 21, July 23, August 23 |
June 29, July 31, August 31 |
Series 2024 |
$ 0.140625 |
June 21, July 23, August 23 |
June 29, July 31, August 31 |
In accordance with their terms, each of the
Series 2023 Term Preferred Shares and Series 2024 Term Preferred
Shares will pay a monthly dividend at a fixed rate of 7.50% and
6.75%, respectively, of the $25.00 per share liquidation
preference, or $1.875 and $1.6875 per share per year, respectively.
This fixed annual dividend rate is subject to adjustment under
certain circumstances, but will not in any case be lower than 7.50%
and 6.75% per year, respectively, for each of the Series 2023 Term
Preferred Shares and Series 2024 Term Preferred Shares.
Supplemental Information Regarding Core
Net Investment Income
On a supplemental basis, we provide information
relating to core net investment income, which is a non-GAAP
measure. This measure is provided in addition to, but not as a
substitute for, net investment income determined in accordance with
GAAP. Our non-GAAP measures may differ from similar measures by
other companies, even if similar terms are used to identify such
measures. Core net investment income represents net investment
income adjusted for additional cash income distributions received,
or entitled to be received (if any, in either case), on our CLO
equity investments.
Income from investments in the “equity” class
securities of CLO vehicles, for GAAP purposes, is recorded using
the effective interest method based upon an effective yield to the
expected redemption utilizing estimated cash flows compared to the
cost, resulting in an effective yield for the investment; the
difference between the actual cash received or distributions
entitled to be received and the effective yield calculation is an
adjustment to cost. Accordingly, investment income recognized on
CLO equity securities in the GAAP statement of operations differs
from the cash distributions actually received by us during the
period (referred to below as “CLO equity adjustments”).
Further, in order to continue to qualify to be
taxed as a regulated investment company, we are required, among
other things, to distribute at least 90% of our investment company
taxable income annually. Therefore, core net investment income may
provide a better indication of estimated taxable income for a
reporting period than does GAAP net investment income, although we
can offer no assurance that will be the case as the ultimate tax
character of our earnings cannot be determined until tax returns
are prepared after the end of a fiscal year. We note that these
non-GAAP measures may not be useful indicators of taxable earnings,
particularly during periods of market disruption and volatility and
our taxable income may differ materially from our core net
investment income.
The following table provides a reconciliation of NII to Core NII
for the three months and year ended March 31, 2018:
|
Three Months Ended |
|
Year Ended |
March 31, 2018 |
|
March 31, 2018 |
|
Amount |
|
Per Share |
|
Amount |
|
Per Share |
Amounts |
|
Amounts |
Net investment
income |
$ |
10,964,185 |
|
|
$ |
0.399 |
|
|
$ |
40,353,995 |
|
|
$ |
1.606 |
|
CLO equity
adjustments |
|
(2,348,103 |
) |
|
|
(0.085 |
) |
|
|
(106,802 |
) |
|
|
(0.004 |
) |
Core net investment
income |
$ |
8,616,082 |
|
|
$ |
0.314 |
|
|
$ |
40,247,193 |
|
|
$ |
1.602 |
|
A presentation containing further detail
regarding our quarterly results of operations has been posted to
our website under the Investor Relations section at Oxford
Lane Presentation.
We will host a conference call to discuss our
fourth fiscal quarter results today, Thursday, May 17, 2018 at
10:00 AM ET. The toll free dial-in number will be
1-844-792-3730. There will be a recorded replay of the call
available for 30 days after the call. If you are interested
in hearing the recording, please dial 1-877-344-7529. The
replay pass-code number is 10120400.
About Oxford Lane Capital
Corp.
Oxford Lane Capital Corp. is a publicly-traded
registered closed-end management investment company. It currently
seeks to achieve its investment objective of maximizing
risk-adjusted total return by investing in debt and equity tranches
of 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. 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, unless required to do so
by law.
Contact: Bruce Rubin 203-983-5280
Source: Oxford Lane Capital Corp.
Oxford Lane Capital (NASDAQ:OXLC)
Historical Stock Chart
From Apr 2024 to May 2024
Oxford Lane Capital (NASDAQ:OXLC)
Historical Stock Chart
From May 2023 to May 2024