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OXSQ - Oxford Square Capital News Story

$5 0.1  1.0%

Last Trade - 07/05/21

Sector
Financials
Size
Small Cap
Market Cap £177.5m
Enterprise Value £225.6m
Revenue £24.7m
Position in Universe 4342nd / 6858

Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended December 31, 2020 and Declaration of Distributions of Common Stock for the Months Ending April 30, May 31, and June 30, 2021.

Mon 22nd March, 2021 12:30pm
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GREENWICH, Conn., March 22, 2021 (GLOBE NEWSWIRE) -- Oxford Square Capital
Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQL) (NasdaqGS: OXSQZ) (the “Company,”
“we,” “us” or “our”) announced today its financial results and
related information for the quarter ended December 31, 2020.
* As of December 31, 2020, net asset value (“NAV”) per share was $4.55,
compared with the NAV per share of $3.85 at the prior quarter end. * For the
quarter ended December 31, 2020 we recorded GAAP net investment income of
approximately $4.7 million, or $0.10 per share.
* We recorded net unrealized appreciation of approximately $35.7 million and
net realized losses on investments of approximately $0.7 million for the
quarter ended December 31, 2020, compared to net unrealized appreciation of
approximately $20.9 million and net realized losses on investments of
approximately $4.4 million for the quarter ended September 30, 2020.
* In total, we had a net increase in net assets from operations of
approximately $39.7 million, or $0.80 per share, for the quarter ended
December 31, 2020, compared with a net increase in net assets from operations
of approximately $20.8 million, or $0.42 per share, for the quarter ended
September 30, 2020.
 
* Total investment income for the quarter ended December 31, 2020 amounted to
approximately $8.6 million, compared with approximately $8.2 million for the
quarter ended September 30, 2020. For the quarter ended December 31, 2020 the
components of investment income were as follows: * $5.2 million from our debt
investments,
* $3.5 million from our CLO equity investments
 
* Our total expenses for the quarter ended December 31, 2020 were
approximately $3.9 million, compared with total expenses of approximately $4.0
million for the third quarter of 2020.
* During the fourth quarter of 2020, we made investments of approximately
$46.9 million and recognized proceeds of approximately $25.4 million from
sales of investments, and $51.1 million from repayments and amortization
payments on our debt investments.
* As of December 31, 2020, 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 8.0% at current
cost, compared with 8.3% as of September 30, 2020.

* The weighted average effective yield of our CLO equity investments at
current cost was 8.0%, compared with 7.7% as of September 30, 2020.

* The weighted average cash distribution yield of our cash income producing
CLO equity investments at current cost was 19.2%, compared with 11.7% as of
September 30, 2020.
 
* Our weighted average credit rating was 2.1 based on total fair value and 2.4
based on total principal amount as of December 31, 2020, compared to 2.3 based
on total fair value and 2.5 based on total principal value as of September 30,
2020.
* As of December 31, 2020, we had two debt investments on non-accrual status,
with a combined fair value of $4.2 million. Also, as of December 31, 2020, our
preferred equity investments in one of our portfolio companies were on
non-accrual status, which had zero fair value.
* On February 23, 2021, our Board of Directors declared the following
distributions on our common stock:
 Month Ending    Record Date     Payment Date    Amount Per Share      
 April 30, 2021  April 16, 2021  April 30, 2021  $0.035                
 May 31, 2021    May 14, 2021    May 28, 2021    $0.035                
 June 30, 2021   June 16, 2021   June 30, 2021   $0.035                

In light of current economic and market conditions, including as a result of
the global crisis caused by the spread of the COVID-19 virus, we believe that
no reliance should be placed on these distributions representing the prospect
for any particular level of common stock distributions for any periods in the
future.

We will hold a conference call to discuss fourth quarter 2020 earnings on
Wednesday, March 24, 2021 at 9:00 AM Eastern time. The toll free dial-in
number is 1-888-339-0740. There will be a recording available for 30 days. If
you are interested in hearing the recording, please dial 1-877-344-7529. The
replay pass-code number is 10153501.

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

                                                                                                                                      December 31, 2020               December 31, 2019             
 ASSETS                                                                                                                                                                                             
 Non-affiliated/non-control investments (cost: $407,547,351 and $467,828,907, respectively)                                           $       294,674,000             $       361,985,203           
 Affiliated investments (cost: $16,836,822 and $16,836,822, respectively)                                                                     —                               2,816,790             
 Cash equivalents                                                                                                                             59,137,284                      14,410,486            
 Restricted cash                                                                                                                              —                               2,050,452             
 Interest and distributions receivable                                                                                                        2,299,259                       3,480,036             
 Securities sold not settled                                                                                                                  950,000                         —                     
 Other assets                                                                                                                                 597,238                         523,626               
 Total assets                                                                                                                         $       357,657,781             $       385,266,593           
 LIABILITIES                                                                                                                                                                                        
 Notes payable – 6.50% Unsecured Notes, net of deferred issuance costs of $1,055,065 and $1,380,658, respectively                     $       63,315,160              $       62,989,567            
 Notes payable – 6.25% Unsecured Notes, net of deferred issuance costs of $1,243,082 and $1,476,878, respectively                             43,547,668                      43,313,872            
 Notes payable – Credit Facility, net of deferred issuance costs of $0 and $10,051, respectively                                              —                               28,080,550            
 Securities purchased not settled                                                                                                             23,156,556                      —                     
 Base Fee and Net Investment Income Incentive Fee payable to affiliate                                                                        1,159,703                       1,480,653             
 Accrued interest payable                                                                                                                     478,191                         632,235               
 Accrued expenses                                                                                                                             573,977                         771,174               
 Total liabilities                                                                                                                            132,231,255                     137,268,051           
 COMMITMENTS AND CONTINGENCIES (Note 9)                                                                                                                                                             
 NET ASSETS                                                                                                                                                                                         
 Common stock, $0.01 par value, 100,000,000 shares authorized; 49,589,607 and 48,448,987 shares issued and outstanding, respectively          495,895                         484,489               
 Capital in excess of par value                                                                                                               452,650,210                     451,839,302           
 Total distributable earnings/(accumulated losses)                                                                                            (227,719,579  )                 (204,325,249  )       
 Total net assets                                                                                                                             225,426,526                     247,998,542           
 Total liabilities and net assets                                                                                                     $       357,657,781             $       385,266,593           
 Net asset value per common share                                                                                                     $       4.55                    $       5.12                  
                                                                                                                                                                                                    

OXFORD SQUARE CAPITAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                          Year Ended December 31, 2020          Year Ended December 31, 2019           Year Ended December 31, 2018         
 INVESTMENT INCOME                                                                                                                                                                          
 From non-affiliated/non-control investments:                                                                                                                                               
 Interest income – debt investments                                       $           20,252,055                $           28,000,283                 $           25,183,547               
 Income from securitization vehicles and investments                                  15,014,000                            25,244,866                             27,837,032               
 Other income                                                                         676,450                               1,694,434                              2,984,773                
 Total investment income from non-affiliated/non-control investments                  35,942,505                            54,939,583                             56,005,352               
 From affiliated investments:                                                                                                                                                               
 Dividend income – non-cash                                                           —                                     7,710,805                              —                        
 Interest income – debt investments                                                   —                                     —                                      271,916                  
 Total investment income from affiliated investments                                  —                                     7,710,805                              271,916                  
 Total investment income                                                              35,942,505                            62,650,388                             56,277,268               
 EXPENSES                                                                                                                                                                                   
 Interest expense                                                                     7,878,906                             9,901,426                              7,181,009                
 Base Fee                                                                             4,525,034                             6,704,467                              7,309,435                
 Professional fees                                                                    1,545,279                             1,454,942                              1,227,296                
 Compensation expense                                                                 708,350                               832,256                                907,995                  
 Director’s fees                                                                      441,500                               417,500                                441,501                  
 Insurance                                                                            330,746                               281,146                                247,178                  
 Transfer agent and custodian fees                                                    206,686                               239,323                                227,381                  
 General and administrative                                                           591,512                               829,476                                644,104                  
 Total expenses before incentive fees                                                 16,228,013                            20,660,536                             18,185,899               
 Net investment income incentive fees                                                 —                                     3,511,493                              4,585,151                
 Capital gains incentive fees                                                         —                                     —                                      —                        
 Total incentive fees                                                                 —                                     3,511,493                              4,585,151                
 Total expenses                                                                       16,228,013                            24,172,029                             22,771,050               
 Net investment income                                                                19,714,492                            38,478,359                             33,506,218               
 Net change in unrealized appreciation/depreciation on investments                                                                                                                          
 Non-Affiliate/non-control investments                                                (7,029,647  )                         (50,107,582  )                         (36,969,481  )           
 Affiliated investments                                                               (2,816,790  )                         (19,386,212  )                         (2,323,867   )           
 Total net change in unrealized appreciation/depreciation on investments              (9,846,437  )                         (69,493,794  )                         (39,293,348  )           
 Net realized losses                                                                                                                                                                        
 Non-Affiliated/non-control investments                                               (8,151,553  )                         (1,709,816   )                         (3,370,732   )           
 Affiliated investments                                                               —                                     —                                      5,241                    
 Extinguishment of debt                                                               (5,211      )                         (72,666      )                         (60,752      )           
 Total net realized losses                                                            (8,156,764  )                         (1,782,482   )                         (3,426,243   )           
 Net increase/(decrease) in net assets resulting from operations                      1,711,291                             (32,797,917  )                         (9,213,373   )           



 Net increase in net assets resulting from net investment income per common share:                                                           
 Basic and Diluted                                                                  $  0.40          $  0.81             $  0.67             
 Net increase/(decrease) in net assets resulting from operations per common share:                                                           
 Basic                                                                              $  0.03          $  (0.69       )    $  (0.19       )    
 Diluted                                                                            $  0.03          $  (0.69       )    $  (0.19       )    
 Weighted average shares of common stock outstanding:                                                                                        
 Basic                                                                                 49,477,215       47,756,596          49,662,157       
 Diluted                                                                               49,477,215       47,756,596          49,662,157       
                                                                                                                                             

FINANCIAL HIGHLIGHTS

                                                         Year Ended December 31, 2020          Year Ended December 31, 2019          Year Ended December 31, 2018          Year Ended December 31, 2017          Year Ended December 31, 2016        
 Per Share Data                                                                                                                                                                                                                                      
 Net asset value at beginning of year                    $           5.12                      $           6.60                      $           7.55                      $           7.50                      $           6.40                    
 Net investment income (()(1))                                       0.40                                  0.81                                  0.67                                  0.60                                  0.52                    
 Net realized and unrealized gains (losses) (()(2))                  (0.36       )                         (1.49       )                         (0.91       )                         0.25                                  1.62                    
 Net change in net asset value from operations                       0.04                                  (0.68       )                         (0.24       )                         0.85                                  2.14                    
 Distributions per share from net investment income                  (0.61       )                         (0.80       )                         (0.73       )                         (0.66       )                         (1.06       )           
 Distributions based on weighted average share impact                —                                     —                                     0.01                                  —                                     0.01                    
 Tax return of capital distributions                                 —                                     —                                     (0.07       )                         (0.14       )                         (0.10       )           
 Total distributions (()(3))                                         (0.61       )                         (0.80       )                         (0.79       )                         (0.80       )                         (1.15       )           
 Effect of shares issued/repurchased, gross                          —                                     —                                     0.08                                  —                                     0.11                    
 Net asset value at end of year                          $           4.55                      $           5.12                      $           6.60                      $           7.55                      $           7.50                    
 Per share market value at beginning of year             $           5.44                      $           6.47                      $           5.74                      $           6.61                      $           6.08                    
 Per share market value at end of year                   $           3.05                      $           5.44                      $           6.47                      $           5.74                      $           6.61                    
 Total return based on Market Value (()(4))                          (31.75      )%                        (4.14       )%                        26.95       %                         (2.01       )%                        33.29       %           
 Total return based on Net Asset Value (()(5))                       0.82        %                         (10.26      )%                        (1.99       )%                        11.33       %                         35.31       %           
 Shares outstanding at end of year                                   49,589,607                            48,448,987                            47,650,959                            51,479,409                            51,479,409              



 Ratios/Supplemental Data (()(7))                                                                                            
 Net assets at end of period (000’s)                     225,427       247,999       314,724       388,419       385,992     
 Average net assets (000’s)                              191,137       289,373       369,258       385,947       343,328     
 Ratio of expenses to average net assets                 8.45     %    8.35     %    6.17     %    7.95     %    12.38    %  
 Ratio of net investment income to average net assets    10.26    %    13.30    %    9.07     %    7.96     %    7.80     %  
 Portfolio turnover rate (()(6))                         23.72    %    12.75    %    35.18    %    43.02    %    25.73    %  

____________

(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 cash investment sales and debt repayments or annual cash 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, 2020, 2019, 2018, 2017 and 2016:

                                                                         Year Ended December 31, 2020        Year Ended December 31, 2019        Year Ended December 31, 2018        Year Ended December 31, 2017        Year Ended December 31, 2016      
 Ratio of expenses to average net assets:                                                                                                                                                                                                                  
 Expenses before incentive fees                                          8.45             %                  7.14             %                  4.92             %                  6.95             %                  11.57            %                
 Net Investment Income Incentive Fees                                    —                %                  1.21             %                  1.24             %                  1.00             %                  0.81             %                
 Capital Gains Incentive Fees                                            —                %                  —                %                  —                %                  —                %                  —                %                
 Ratio of expenses, excluding interest expense, to average net assets    4.35             %                  4.93             %                  4.21             %                  4.61             %                  7.37             %                

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 Rubin
203-983-5280



GlobeNewswire, Inc. 2021
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