Oxford Lane Capital (OXLC) 1 Nov 242025 Q2 Earnings call transcript

Hello, everyone, and welcome to Oxford Lane Capital Corp. announcing the net asset value and selected financial results for the second fiscal quarter. My name is Lydia, and I will be your operator today. After the prepared remarks, there will be an opportunity to ask questions.

[Operator Instructions]

over Cohen, you to hand now to CEO, Jonathan begin. I'll ahead. go Please

very and Capital everyone, Good to Thanks morning, Lane welcome much. the Oxford Corp.

by open and statements? Joe XXXX I'm our regarding Managing Bruce Quarter forward-looking Conference could Kupka, today our Saul you with Bruce, today disclosure please Rubin, Officer; Fiscal President; call Rosenthal, Financial Second Chief Director. our our Earnings joined Call. the

point, recorded. this days. to customary An be the with call Sure, that events information please audio among call of direct note Oxford this company's is press any Jonathan. morning's Corp. includes unauthorized financial of projections other Today's our views performance. will things, XX call information. in conference your disclosures forward-looking the that Lane property this the was form this Any in available Today's in included reflect rebroadcast regarding being for as current prohibited. At issued Replay is call forward-looking is call release this release morning. of and a conference and to, Capital statements replay press attention respect future is strictly earlier Please

statements filings ask required materially in that to We refer most the unless so We do to our projections. law. factors update these you for forward-looking SEC to from to important could recent our results that actual indicated cause with differ those undertake by not do

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

please posted our www.oxfordlanecapital.com. on to reconciliations release GAAP, website and refer to definitions earnings our For at

the to turn back presentation I'll that, With Jonathan.

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

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

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

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

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

as As debt XX, We from weighted down current following at of The note our down of investments yield was of at represented was these XX.X% CLO our of down applied. XX.X%, return as our XX.X% total CLO at average that as equity investments metrics to CLO the metrics weighted XX.X%, yield June investments necessarily cost cash average of September yield June shareholders. none average equity of was cost cost June XX. The from of XX. weighted current effective distribution The a XX.X% from of current XX.X%, XX.

end. to the distribution based the we equity receive are yields entitled we on cash our which investments calculated were each cash or at We that CLO on received period note distributions respective

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

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

Managing the Director, share stock and distributions January, declared for XXXX. turn March that, Directors $X.XX Kupka. the of of over Board of February With Joe our to of months I'll XX, October each common our per On monthly ending call

Thanks, Jonathan.

June the loan ended median increased in XX from XX, XX.XX% of U.S. The as loan to an improved the loan of quarter. market prices CLO performance to led in point quarter approximate asset XX.XX% basis increase price XX. increase U.S. equity prior index U.S. The XXXX, During net XX September U.S. versus as September values.

to of due XXX quarter. compared median activity, XXX repricing we across spreads Additionally, observed elevated points loan to basis CLO portfolios points last weighted pools within levels to average decrease basis

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

$XX during issuance quarter. at billion new has from as billion to CLO U.S. new XX, this approximately $XX $XXX billion approximately of XXXX. year-to-date billion, the issuance prior September approximately decrease quarter $XX totaled a in of compared totaled point the

marking time. all reset the volume The in monthly month second billion highest billion U.S. including has CLO $XX of market refinancing over and in the $XXX seen activity August, approximately of year-to-date,

active million warehouses, Oxford investing over of resets and refinancings. participating opportunistic CLO debt in Lane equity, remained proceeds and $XXX this in quarter, while

of the function of period weighted quarter, XXXX. were As XXXX we our reinvestment able activity Oxford equity Lane's to during average September a the portfolio from overall to lengthen November

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

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

the call that, turn With back Jonathan. over to I'll

the That up very to call We're any happy, questions. open presentation. operator, our Joe, for much. concludes thanks

from question Zwick with Lucid comes Our Capital. Instructions] Erik [Operator first

primary a in active I sales think, during provide just in active and of most just forward going present curious, kind And of attractiveness secondary, quarter sources the potential of if versus the you at I'm recent market risk/reward both the you comments, were of You of was little Joe, perspective? the and just investments, a weigh how investments first in from CLO very new repayments. what commentary new terms kind in market how kind the of was one, investments mentioned X could purchase new your quarter. split those his between terms and of

Sure.

the split. about First,

[ activity. and by was So the improve advantage We've driven it of primary, primary arbitrage took seen a the we ] mainly continue that. to in

warehouse So we in million invested about $XXX million in $XXX and primary. investments, about

these especially see warehouses what the some So you of converted primary sales being CLO repayments into and that, were investments. in

from apart also the secondary. secondary that, in active in the we about And million were $XX investing

the the primary, I warehouses and to and top-tier especially spectrum. continue going spreads the forward, we in up managers across investments new see tenor manager liability opening far as secondary As think kind both the can with of and command attractive who opportunities secondary tightest

We continue value. find good to

And really That's just thinking helpful. about interest the rate then environment.

of think Fed I guess for additional funds cuts, that kind will market's be rate the pretty on magnitude timing that target out is I set still and the there debate.

But in going rate interest how as you terms impact your well to a of manage you how as that short-term environment, portfolio it at lower expect maybe forward? looking do potentially change

with that most by a of be interest risk is syndicated associated likely, the that the near-term the how it I consistently meaningful meaningful Erik, the managing XXXX. But in the with likely the reduction implication be rates inception to fund the We've issues manage of of with portfolio. think any to refinancing loan terms of Sure. pretty in associated in been associated diminishing change sense our risk default in in change the diminishment with we since virtue is U.S. in base don't rates, rates, there's possibilities.

probably the So from our of there perspective, implications, one. but principal lots and lots are other that's smaller

That's question to that good I and point leads into actually a another ask wanted about.

of the restructuring. not incredibly is that now, rate mentioned but default it's You low out-of-court reflective

the think that why than these are to resolution some of credits there? stressed rather more out-of-court maybe any you being tripping thoughts loans guys covenants courts, if of an have are curious you Just or to going or

Yes.

I relatively that's recent So phenomenon. think a

I think or X. of the kind year recently flipped that in past

Before say there I these out-of-court of would more it's lot factors. I a now it's restructurings. of it payment more -- was mean, are defaults,

more, kind it. a see do companies cuts one down default, I and is to a to can coming. payment little rate the to off is think They of kick the try road to want them of way try this the stave

think there's of lot a with lender factor. interplay one that's consortiums. think I But I So

Erik. right, managing of the context at same portfolio. the this something in of Exactly aware time, But Right. very it's that we're

Makes sense. And me. last X then for

could talk the you If of the factors million $XX.X that drove just maybe the of about unrealized quarter. some during depreciation

Yes. Sure. Sure.

GAAP measures. accounting of -- it's an that's lot a So of interplay

flows -- then it of the account into value positive current into the fair we reduction by the current CLO, quarter, decrease it the of a cost. offset had account the so even So takes takes fair and GAAP cash though

it's a GAAP measure. really accounting So

than item, you if in in And terms to pleasure. Erik. through of to happy happy, accountings it other go line off-line, like. Thank the we're It's Any more applied with depth this GAAP And Erik. questions, a operator? of you, vagaries we're you'd more

show I questions. further no

over So the turn Jonathan, call you. to I'll back

you on to soon. Thank forward participation again their we speaking much. this Thank call. and right. like their you We'd very thank All and to everybody interest much. Thanks look for you, to very

for concludes your This very you you. our today. Thank Thank participation. much call

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