Oxford Lane Capital (OXLC) 14 May 242024 Q4 Earnings call transcript

Good afternoon, ladies and gentlemen. Thank you for joining today's Oxford Lane Capital Corp. Fourth Fiscal Quarter 2024 Earnings Call. My name is Tia, and I will be your moderator for today's call.

[Operator Instructions]

to Rosenthal. call like your today now Saul host, would pass over the to I proceed. Please

a you, our Thank Earnings CEO, Cohen, everyone, Financial our Corp. would today hello, CLO Dean Bruce, Bruce is Officer; Fourth call Lane the by statements? please disclosure Note Senior you Fiscal traveling Capital and Oxford investment Brian regarding today. Quarter member our team. forward-looking our XXXX Rubin, Call. with Aleksa, joined and I'm open Chief welcome of to Jonathan that

Saul. conference Any the replay this earlier information release be of property rebroadcast XX Sure, Today's recorded. press unauthorized call An Capital this call is of issued Replay of available form afternoon. Oxford is Lane audio in Please days. is being our was any will included note in the that is Corp. call that call for inhibited. this

by At materially call events projections these this could press with attention performance. to with you important those forward-looking that the for recent law. to your current forward-looking statements cause our future from company's update to projections. in among regarding information. respect ask differ that the We forward-looking so refer financial in disclosure views to, includes other actual to customary current filings point, the reflect indicated We do factors the direct do things, results undertake to most our SEC Today's not and statements or conference release unless that and

this release non-GAAP the and earnings we'll also defined to terms measures. in During refer call, use

that, to our posted to refer presentation our back website over and release Saul. definitions For please the GAAP, at With www.oxfordlanecapital.com. turn to on I'll reconciliations earnings

of asset share XX, at compared On $X.XX XXXX, at share the net asset our March $X.XX Bruce. value quarter. you, previous value per per net to a stood Thank

of million investment million, For the prior we increase GAAP approximately $X.X approximately ended quarter. from income the March XX, of total recorded an $XX.X quarter representing

from million debt income income. and Lane investment from and and CLO our million our consisted of approximately million total recorded CLO quarter's equity other $X.XX investments ended GAAP investments warehouse net investment or for XX $X.X CLO for The income per GAAP $XX.X per Oxford the approximately million share compared approximately quarter XX. March approximately share to of $XX.X quarter the ended December or $X.XX $XX

net core the approximately million was with per or $XX.X compared per income Our million share $X.XX or investment quarter approximately the for $XX.X share for December quarter XX. ended $X.XX

net $XX.X from XX, or We on approximately and for March fiscal million. Quarter we of approximately share approximately net $X.X depreciation had investments increase ended a unrealized recorded net per million $XX.X in the quarter. assets fourth losses of $X.XX net million resulting of realized operations

note The XX, investments yield XX. cost up was yield XX.X% equity March following debt of applied, none average weighted as as CLO total of December current up at return XX.X% these XX.X%, XX. was a weighted and that from represent XX.X% investments the CLO effective average of metrics to of metrics current shareholders. from our of As we cost of at The December our

CLO of cash our respective entitled CLO our calculated were current XX.X%, XX% investments of And or from equity down to December based equity yield cost end. distribution cash each on are as yields we we on receive investments that average note weighted The distribution cash we the period which received at the XX. was distributions at

$XX.X proceeds of approximately XX, stock total approximately issued we million quarter common of aftermarket offering, of resulting XX.X in a the ended our net to March million. an During pursuant shares

repayments. million from sales quarter and During made approximately ended we XX, approximately the additional CLO we received investments million, March of $XXX.X and $XX

the September increase to stock months ending and I'll senior for XXXX. of member each XX.X% to call Directors per Board in turn distributions of July, share team. declared Brian our investment of August our monthly common Today, With over Aleksa, the $X.XX that, a

Saul. Thank you,

U.S. prior XX.XX% March quarter versus as During XX, as XXXX, values. XXXX, performance to prices of as approximate loan December market the to U.S. The from March U.S. in asset ended XX.XX% loan U.S. improved U.S. median XX, the defined CLO XX. increase prices, of Loan increased an net LSTA in by X-point Leveraged increase led quarter. Index Morningstar loan equity

within spreads across compared points median quarter. observed XXX we basis to XXX Additionally, decreased portfolios weighted basis CLO average loan points pools last to

principal note index at decreased that cited The X.X% at default quarter for captured remain December buybacks, rate rate of and XXXX. end restructurings, exchanges which XX-month trailing We not out-of-court by end elevated. are subpar the amount to loan the from default the X.X% the the of in

Additionally, the below XX% percentage quarter year's of of quarter a X.X% X.X% increase of billion the at setting distress end XXXX. ahead last price the issuance of ratio, an compared the the during approximately billion, ended to CLO December loans totaled with the throughout par, approximately issuance new the defined at tighten to liabilities CLO prior quarter. XX% as $XX $XX continued of from pace nearly the quarter. as

trading in and to million new issue X adding CLO secondary this equity notional equity CLO the of over primary continued in and market, quarter, Lane active Oxford market. investments be $XXX the junior debt

reinvestment this to average were April the equity CLO As lengthen quarter, of function of overall weighted XXXX Lane's in a able our we XXXX. activity period Oxford from markets July portfolio both to

Oxford was to the during equity portfolio. lengthen quarter Our average of engage period weighted strategy in investment trading relative Lane's value to CLO reinvestment the and

our look an market current strategy utilize towards and to total In as intend U.S. to debt opportunistic strategy. to been will call the across unconstrained we to and maximize as take to we and turn CLO view able historically equity, investment CLO our continue long-term environment, Saul. the a warehouses back With longer-term a investment return over I have that, capital vehicle, permanent we

Brian. Thank you,

uploaded Oxford now about that, www.oxfordlanecapital.com. take fourth website information we our operator, performance. Lane's with been quarter Additional And at has to will questions.

We will begin Q&A the session now

[Operator Instructions]

Schleien Mickey line with of from Ladenburg. The the first question comes

from A couple of questions me.

which economics liabilities, we've of rotate the year. period do the are With and market the now reinvestment positions, new the in secondary refinance primary the for beyond you versus opportunity and How the tightening positions. reset, CLO market this look seen into and to

Yes, very will Mickey. good it. Sure, Brian address question.

Yes.

Sorry, opportunity it to Mickey, and resets the liabilities, concerned. been of refis tightened good noted, are advantage take as you where a especially has

the deals As concerned, market so it refinance of to and primary push primary slightly while kind asset rising get the liabilities post far it Titan some obviously, challenging, asset advantage is rising liabilities, of prices push something pull the more is tightening as day. make and stated, easier tightening of have is restructure between market some liabilities of deals, pull make the a monitor reset reinvestment our we the every and prices and taken -- we you But as especially. that done to

spread understand. how of potential basis was about want market refinancing where last to deck points, I I where at those or sort positions, a were the And above quarter, positions? Obviously, about Okay. the describe which counted from chance haven't which impact that review investor results to to you I the AAA in for the the quarter is or period think the is I a had you? ask on the But sounds looking right would XXX presentation. Oxford of meaningfully if still resetting now. the I dozen and reinvestment their

can't resetting actively but majority, carefully monitoring. all hold positions liabilities Yes, for positions to Mickey, moneyness we're as of are are we speak very those something I individual in we any positions, those monitoring look where and go. as at as managers refi various we've as liabilities with possible. in to well dialogue been reset far of dealers active those where all and opportunities And an our CLO refining

all my are for this appreciate your Okay. questions Thank you Those I time. that. afternoon.

Thank you, Mickey.

There I Saul pass up Thank are this the at no back will call you. to additional questions Rosenthal. time.

today's and quarter you, results. you Thank listening to and for we everyone, soon. Tia, you, And forward fiscal our to call you. again speaking joining Thank thank look to fourth

you. Thank today's concludes That conference call.

may now disconnect your You lines.