OXFORD LANE CAPITAL CORP. Oxford Lane Capital Corp.
Investor Presentation
Quarter Ended June 30, 2023
Disclaimer
This presentation is neither an offer to sell, nor a solicitation of an offer to purchase, an interest in Oxford Lane Capital Corp. ("Oxford Lane", "OXLC" or the "Fund").
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 Fund. Such information is qualified in its entirety by reference to the more detailed discussions contained elsewhere in the Fund's public filings with the Securities and Exchange Commission.
There is no guarantee that any of the estimates, targets or projections illustrated in this presentation will be achieved. Any references herein to any of the Fund's past or present investments or its past or present performance have been provided for illustrative purposes only. It should not be assumed that these investments were or will be profitable or that any future investments by the Fund will be profitable or will equal the performance of past or present investments.
The information contained herein has been derived from financial statements and other documents provided by the portfolio companies and/or the third- party manager of such portfolio companies unless otherwise stated. Certain information discussed in this presentation (including information relating to portfolio companies) was derived from third-party sources and has not been independently verified and, accordingly, the Fund makes no representation or warranty with respect to this information.
Past performance is not indicative of future results. In addition, there can be no assurance that unrealized gains/losses will be realized at the expected multiples shown since actual realized returns will depend on, among other factors, the future operating results of each of the Fund's current portfolio companies, the value of the assets and economic conditions at the time of disposition, any related transaction costs, and the timing and manner of any realization events, all of which may differ from the assumptions on which the Fund's expected returns are based. In certain instances, the Fund will not determine the timing or manner of disposition of the Fund's portfolio investments.
This presentation contains non-GAAP financial information. The Fund's management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of the Fund's financial performance, identifying trends in its results and providing meaningful period-to-period comparisons. See "Appendix - Reconciliation of Core Net Investment Income" in this presentation for more information.
Statements included herein may constitute "forward-looking statements," which relate to future events or the Fund's future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Fund's public filings with the Securities and Exchange Commission. The Fund undertakes no duty to update any forward-looking statements made herein, except as may be required by law.
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Financial Highlights
(FYE March 31, $ per share) 1 | Q1-24 | Q4-23 | Q3-23 | Q2-23 | Q1-23 |
GAAP net investment income | $ 0.24 | $ 0.22 | $ 0.26 | $ 0.23 | $ 0.26 |
GAAP realized losses | $ (0.01) | $ (0.03) | $ (0.01) | $ (0.04) | $ (0.05) |
GAAP unrealized depreciation | $ (0.32) | $ (0.02) | $ (0.34) | $ (0.17) | $ (1.49) |
Core net investment income2 | $ 0.43 | $ 0.22 | $ 0.31 | $ 0.33 | $ 0.55 |
Distributions paid | $ 0.2250 | $ 0.2250 | $ 0.2250 | $ 0.2250 | $ 0.2250 |
Net asset value | $ 4.34 | $ 4.61 | $ 4.63 | $ 4.93 | $ 5.07 |
(FYE March 31, $ in millions) | Q1-24 | Q4-23 | Q3-23 | Q2-23 | Q1-23 |
Total fair value of investments | $ 1,242.0 | $ 1,289.8 | $ 1,205.7 | $ 1,238.5 | $ 1,179.6 |
Number of portfolio investments3 | 236 | 223 | 222 | 221 | 209 |
Total company preferred stock and debt outstanding | $ 487.2 | $ 487.2 | $ 487.2 | $ 487.2 | $ 483.4 |
Note: Certain figures above may not tie out to financial statements or otherwise due to rounding.
- Per share amounts based on weighted average shares outstanding for the respective quarter presented.
- Refer to Appendix for reconciliation of GAAP net investment income to core net investment income.
- Includes CLO debt, CLO equity, warehouse equity, subordinated fee notes and other CLO equity related investments.
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Summary Portfolio Highlights
Portfolio Activity
(FYE March 31, $ in millions) New investments1
Sales / Repayments
Net investment activity
Q1-24 | Q4-23 | Q3-23 | Q2-23 | Q1-23 |
$ 111.9 | $ 117.4 | $ 82.2 | $ 119.4 | $ 237.8 |
69.7 | 24.8 | 49.5 | 12.0 | 119.3 |
$ 42.2 | $ 92.5 | $ 32.7 | $ 107.4 | $ 118.4 |
Investment Portfolio by Asset Type2
Q1-24 | Q4-23 | Q3-23 | Q2-23 | Q1-23 | |
CLO equity1 | 95% | 96% | 96% | 97% | 97% |
CLO debt | 5% | 4% | 4% | 3% | 3% |
Note: Certain figures above may not tie out to financial statements or otherwise due to rounding.
- Includes warehouse equity, subordinated fee notes and other CLO equity related investments.
- At fair value as of quarter end.
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CLO Equity / Warehouse & Initial Distribution Schedule
(FYE March 31, $ in millions) | Q1-24 | Q4-23 | Q3-23 | Q2-23 | Q1-23 |
CLO Equity
CLO equity which has made its initial distribution to OXLC (at original cost)1
CLO equity which has not made its initial distribution to OXLC (at original cost)2
Total CLO equity1
Warehouse Equity
$ 1,723.9 | $ 1,622.5 | $ 1,609.1 | $ 1,469.1 | $ 1,387.6 |
106.5 | 146.7 | 75.7 | 177.8 | 174.4 |
$ 1,830.5 | $ 1,769.2 | $ 1,684.8 | $ 1,646.9 | $ 1,562.0 |
Q1-24 | Q4-23 | Q3-23 | Q2-23 | Q1-23 |
Warehouse investments at original cost3 | 12.3 | 52.1 | 57.5 | 79.3 | 75.6 |
Total warehouse investments | $ 12.3 | $ 52.1 | $ 57.5 | $ 79.3 | $ 75.6 |
($ in millions)
CLO Equity
CLO Equity Holdings Making Initial Distributions as of the Dates Below2
CLO equity expected to make initial distribution to OXLC by 09-30-23 (at original cost)
CLO equity expected to make initial distribution to OXLC by 12-31-23 (at original cost)
CLO equity expected to make initial distribution to OXLC by 3-31-24 (at original cost)
Total
$ 71.2
35.4
-
$ 106.5
($ in millions)
Cash Flow Diversion Amount
Q1-24 | Q4-23 | Q3-23 | Q2-23 | Q1-23 | |
Cash flow diversion amount4 | 5.5 | 0.9 | 0.9 | - | - |
Note: Certain figures above may not tie out to financial statements or otherwise due to rounding.
- Excludes called deals.
- Represents the amount of CLO equity investments (purchased in either the primary or secondary market) which had not yet made an initial distribution to OXLC during the quarter. For newly issued CLOs, it can generally take up to three quarters from issuance to receive initial distribution payments from those respective CLO equity investments.
- For warehouse equity investments, any distribution will be paid at the time the warehouse equity investment is repaid (if applicable).
- These figures represent the total cash diverted from investments by the CLO vehicle as a result of failure to comply with their respective Overcollateralization and/or Interest Diversion tests.
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Disclaimer
Oxford Lane Capital Corp. published this content on 31 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2023 12:17:57 UTC.
