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Financials
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Market Cap £177.5m
Enterprise Value £212.0m
Revenue £26.0m
Position in Universe 4348th / 6850

Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended September 30, 2020 and Declaration of Distributions of Common Stock for the Months Ending January 31, February 28, and March 31, 2021

Tue 27th October, 2020 12:00pm
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GREENWICH, Conn., Oct. 27, 2020 (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 September 30, 2020.

• As of September 30, 2020, net asset value (“NAV”) per share was $3.85,
compared with the NAV per share of $3.54 at the prior quarter end.
* For the quarter ended September 30, 2020 we recorded GAAP net investment
income of approximately $4.3 million, or $0.09 per share, which was
approximately equal to the net investment income earned during the second
quarter of 2020.
* We recorded 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, compared to net unrealized appreciation of
approximately $19.0 million and net realized losses on investments of
approximately $2.8 million for the quarter ended June 30, 2020.
* In total, we had 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, compared with a net increase in net assets from operations
of approximately $20.6 million, or $0.41 per share, for the quarter ended June
30, 2020.
• Total investment income for the quarter ended September 30, 2020 amounted
to approximately $8.2 million, compared with approximately $8.3 million for
the quarter ended June 30, 2020. For the quarter ended September 30, 2020 the
components of investment income were as follows:
* $4.5 million from our debt investments,
* $3.6 million from our CLO equity investments, and
* $0.2 million from all other sources.
• Our total expenses for the quarter ended September 30, 2020 were
approximately $4.0 million, compared with total expenses of approximately $3.9
million for the second quarter of 2020.

• During the third quarter of 2020, we made investments of approximately
$18.3 million and received proceeds of approximately $8.3 million from sales
of investments, and $0.6 million from repayments and amortization payments on
our debt investments.

• As of September 30, 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 8.3% at current cost,
compared with 8.1% as of June 30, 2020.
* The weighted average effective yield of our CLO equity investments at
current cost was 7.7%, compared with 7.1% as of June 30, 2020.
* The weighted average cash distribution yield of our cash income producing
CLO equity investments at current cost was 11.7%, compared with 11.6% as of
June 30, 2020.
• Our weighted average credit rating was 2.3 based on total fair value and
2.5 based on total principal value as of September 30, 2020, which is
unchanged compared to June 30, 2020.

• As of September 30, 2020, we had two debt investments on non-accrual
status, with a combined fair value of $5.7 million. Also, as of September 30,
2020, our preferred equity investments in one of our portfolio companies were
on non-accrual status, which had zero fair value.

• On October 22, 2020, our Board of Directors declared the following
distributions on our common stock:

 Month Ending       Record Date        Payment Date       Amount Per Share      
 January 31, 2021   January 15, 2021   January 29, 2021   $0.035                
 February 28, 2021  February 12, 2021  February 26, 2021  $0.035                
 March 31, 2021     March 17, 2021     March 31, 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 host a conference call to discuss our third quarter results today,
Tuesday, October 27, 2020 at 9:00 AM ET. Please call 1-888-339-0740 to
participate. A recording of the conference call will be available to replay
for approximately 30 days following the call. The replay number is
1-877-344-7529, and the replay passcode is 10149450.

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, 2020                December 31, 2019             
                                                                                                                                        (unaudited)                                                     
 ASSETS                                                                                                                                                                                                 
 Non-affiliated/non-control investments (cost: $443,810,054 and $467,828,907, respectively)                                             $        295,267,639              $       361,985,203           
 Affiliated investments (cost: $16,836,822 and $16,836,822, respectively)                                                                        —                                2,816,790             
 Cash equivalents                                                                                                                                2,220,960                        14,410,486            
 Restricted cash                                                                                                                                 —                                2,050,452             
 Interest and distributions receivable                                                                                                           1,539,157                        3,480,036             
 Other assets                                                                                                                                    690,468                          523,626               
 Total assets                                                                                                                           $        299,718,224              $       385,266,593           
 LIABILITIES                                                                                                                                                                                            
 Notes payable – 6.50% Unsecured Notes (net of deferred issuance costs of $1,136,908 and $1,380,658, respectively)                      $        63,233,317               $       62,989,567            
 Notes payable – 6.25% Unsecured Notes (net of deferred issuance costs of $1,301,850 and $1,476,878, respectively)                               43,488,900                       43,313,872            
 Notes payable – Credit Facility (net of deferred issuance costs of $0 and $10,051)                                                              —                                28,080,550            
 Base management fee and net investment income incentive fee payable to affiliate                                                                1,123,449                        1,480,653             
 Accrued interest payable                                                                                                                        481,261                          632,235               
 Accrued expenses                                                                                                                                422,828                          771,174               
 Total liabilities                                                                                                                               108,749,755                      137,268,051           
 COMMITMENTS AND CONTINGENCIES (Note 13)                                                                                                                                                                
 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                                                                                                                  457,810,322                      451,839,302           
 Total distributable earnings/(accumulated losses)                                                                                               (267,337,748  )                  (204,325,249  )       
 Total net assets                                                                                                                                190,968,469                      247,998,542           
 Total liabilities and net assets                                                                                                       $        299,718,224              $       385,266,593           
 Net asset value per common share                                                                                                       $        3.85                     $       5.12                  

OXFORD SQUARE CAPITAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

                                                                                                         Three Months Ended September 30, 2020          Three Months Ended September 30, 2019          Nine Months Ended September 30, 2020           Nine Months Ended September 30, 2019         
 INVESTMENT INCOME                                                                                                                                                                                                                                                                                 
 From non-affiliated/non-control investments:                                                                                                                                                                                                                                                      
 Interest income – debt investments                                                                      $              4,492,647                       $              7,114,678                       $              15,020,284                      $              21,695,535                    
 Income from securitization vehicles and investments                                                                    3,568,516                                      6,131,870                                      11,545,539                                     19,628,276                    
 Other income                                                                                                           163,976                                        162,796                                        738,625                                        887,662                       
 Total investment income from non-affiliated/non-control investments                                                    8,225,139                                      13,409,344                                     27,304,448                                     42,211,473                    
 From affiliated investments:                                                                                                                                                                                                                                                                      
 Dividend income – non-cash                                                                                             —                                              673,706                                        —                                              7,009,592                     
 Total investment income from affiliated investments                                                                    —                                              673,706                                        —                                              7,009,592                     
 Total investment income                                                                                                8,225,139                                      14,083,050                                     27,304,448                                     49,221,065                    
 EXPENSES                                                                                                                                                                                                                                                                                          
 Interest expense                                                                                                       1,908,206                                      2,522,451                                      5,988,116                                      7,478,451                     
 Base management fees                                                                                                   1,123,450                                      1,729,152                                      3,365,332                                      5,223,813                     
 Professional fees                                                                                                      321,059                                        349,564                                        1,228,794                                      1,071,633                     
 Compensation expense                                                                                                   185,659                                        195,034                                        554,288                                        622,937                       
 General and administrative                                                                                             416,486                                        349,662                                        1,195,166                                      1,232,254                     
 Total expenses before incentive fees                                                                                   3,954,860                                      5,145,863                                      12,331,696                                     15,629,088                    
 Net investment income incentive fees                                                                                   —                                              —                                              —                                              3,511,493                     
 Total expenses                                                                                                         3,954,860                                      5,145,863                                      12,331,696                                     19,140,581                    
 Net investment income                                                                                                  4,270,279                                      8,937,187                                      14,972,752                                     30,080,484                    
 Net change in unrealized appreciation/(depreciation) on investments:                                                                                                                                                                                                                              
 Non-affiliated/non-control investments                                                                                 21,580,813                                     (34,478,523    )                               (42,698,711    )                               (42,201,632    )              
 Affiliated investments                                                                                                 (634,089       )                               (7,131,376     )                               (2,816,790     )                               (14,009,646    )              
 Total net change in unrealized appreciation/(depreciation) on investments                                              20,946,724                                     (41,609,899    )                               (45,515,501    )                               (56,211,278    )              
 Net realized gains/(losses):                                                                                                                                                                                                                                                                      
 Non-affiliated/non-control investments                                                                                 (4,368,235     )                               (432,246       )                               (7,405,716     )                               (1,709,816     )              
 Extinguishment of debt                                                                                                 —                                              (5,506         )                               (5,211         )                               (56,592        )              
 Total net realized losses                                                                                              (4,368,235     )                               (437,752       )                               (7,410,927     )                               (1,766,408     )              
 Net increase/(decrease) in net assets resulting from operations                                         $              20,848,768                      $              (33,110,464    )                $              (37,953,676    )                $              (27,897,202    )              
 Net increase in net assets resulting from net investment income per common share (Basic and Diluted)    $              0.09                            $              0.19                            $              0.30                            $              0.63                          
 Net increase/(decrease) in net assets resulting from operations per common share (Basic and Diluted)    $              0.42                            $              (0.69          )                $              (0.77          )                $              (0.59          )              
 Weighted average shares of common stock outstanding (Basic and Diluted)                                                49,589,607                                     47,740,799                                     49,439,478                                     47,681,235                    
 Distributions per share                                                                                 $              0.105                           $              0.201                           $              0.507                           $              0.602                         

FINANCIAL HIGHLIGHTS – (unaudited)

Financial highlights for the three and nine months ended September 30, 2020
and 2019, respectively, are as follows:

 Per Share Data                                                Three Months Ended September 30, 2020          Three Months Ended September 30, 2019          Nine Months Ended September 30, 2020           Nine Months Ended September 30, 2019         
 Net asset value as of beginning of period                     $              3.54                            $              6.31                            $              5.12                            $              6.60                          
 Net investment income (()(1))                                                0.09                                           0.19                                           0.30                                           0.63                          
 Net realized and unrealized gains/(losses) (()(2))                           0.33                                           (0.88          )                               (1.06          )                               (1.21          )              
 Net increase/(decrease) in net asset value from operations                   0.42                                           (0.69          )                               (0.76          )                               (0.58          )              
 Distributions per share from net investment income                           (0.09          )                               (0.17          )                               (0.42          )                               (0.51          )              
 Tax return of capital distributions (()(3))                                  (0.02          )                               (0.03          )                               (0.09          )                               (0.09          )              
 Total distributions                                                          (0.11          )                               (0.20          )                               (0.51          )                               (0.60          )              
 Effect of shares issued/repurchased, gross                                   —                                              —                                              —                                              —                             
 Net asset value at end of period                              $              3.85                            $              5.42                            $              3.85                            $              5.42                          
 Per share market value at beginning of period                 $              2.80                            $              6.40                            $              5.44                            $              6.47                          
 Per share market value at end of period                       $              2.47                            $              6.23                            $              2.47                            $              6.23                          
 Total return based on Market Value (()(4))                                   (8.22          )%                              0.46           %                               (46.71         )%                              5.69           %              
 Total return based on Net Asset Value (()(5))                                11.72          %                               (10.92         )%                              (14.90         )%                              (8.76          )%             
 Shares outstanding at end of period                                          49,589,607                                     47,790,071                                     49,589,607                                     47,790,071                    
                                                                                                                                                                                                                                                         
 Ratios/Supplemental Data ((8))                                                                                                                                                                                                                          
 Net assets at end of period (000’s)                           $              190,968                         $              258,960                         $              190,968                         $              258,960                       
 Average net assets (000’s)                                                   183,148                                        279,978                                        186,744                                        301,766                       
 Ratio of operating expenses to average net assets ((6))                      8.64           %                               7.35           %                               8.80           %                               8.46           %              
 Ratio of net investment income to average net assets ((6))                   9.33           %                               12.77          %                               10.69          %                               13.29          %              
 Portfolio turnover rate ((7))                                                3.22           %                               1.18           %                               15.71          %                               9.07           %              

____________

((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, 2020
and 2019:

                                                       Three Months Ended September 30, 2020       Three Months Ended September 30, 2019       Nine Months Ended September 30, 2020        Nine Months Ended September 30, 2019      
 Ratio of operating expenses to average net assets:                                                                                                                                                                                  
 Operating expenses before incentive fees              8.64                 %                      7.35                 %                      8.80                 %                      6.91                 %                    
 Net investment income incentive fees                  —                    %                      —                    %                      —                    %                      1.55                 %                    
 Ratio of expenses, excluding interest expense         4.47                 %                      3.75                 %                      4.53                 %                      5.15                 %                    

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



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