Oxford Lane Capital Corp. Highlights Q2 Financial Achievements
Oxford Lane Capital Corp. Reports Strong Quarterly Outcomes
In an exciting update from Oxford Lane Capital Corp. (NASDAQ: OXLC), the company has announced its recent net asset value (NAV) and outstanding financial results. During the latest announcement, made in early November, Oxford Lane showcased a strong financial performance for the quarter ended September 30, 2024, reflecting its continued commitment to deliver value to its shareholders.
Quarterly Financial Summary
The financial highlights reveal a NAV per share that stood at $4.76, showing a slight decrease from $4.91 reported at the end of June 2024. This shift in NAV is reflective of broader market trends but remains a focal point for current and potential investors alike.
Net Investment Income
In terms of net investment income (NII), the company achieved approximately $67.2 million, translating to $0.22 per share for the quarter. Meanwhile, Oxford Lane's core net investment income took an impressive leap to about $99.4 million or $0.32 per share. This financial metric includes all relevant cash distributions associated with its collateralized loan obligation (CLO) equity investments.
Investment Income Growth
Moreover, the total investment income for the quarter reached an estimated $105.1 million, marking a significant increase of around $15.4 million from the previous quarter. The breakdown of this income highlights around $98.3 million derived from CLO equity and warehouse investments, underscoring the company’s strategic focus on high-yield CLOs as a principal source of revenue.
Dividend Declarations for Shareholders
On October 24, 2024, the Board of Directors of Oxford Lane Capital Corp. declared attractive distributions on its common stock. The monthly dividends have been set at $0.09 per share for the months ending in January, February, and March of the upcoming fiscal year. This demonstrates the company’s ongoing dedication to returning value to its shareholders and illustrates a strong cash flow position.
Overview of Preferred Shares Dividends
Also noteworthy are the declared dividends on preferred shares, including the 6.25% Series 2027 Term Preferred Shares, which will pay a monthly dividend amounting to $0.13020833, and the 6.00% Series 2029 Term Preferred Shares, with a dividend of $0.12500000 per share. The 7.125% Series 2029 Term Shares will deliver a per-share dividend of $0.14843750, reflecting the company’s strong earnings and commitment to maintaining competitive yields for its preferred shareholders.
Operational Insights and Investments
During the last quarter, Oxford Lane Capital Corp. made additional investments totalling approximately $540 million and received around $160.2 million from the sale and repayment of its CLO investments. These activities are key components in maintaining the company’s investment strategy, which primarily focuses on maximizing shareholder value through strategic asset allocations.
Expenses and Performance Metrics
Notably, total expenses for the quarter reported were around $37.9 million, which is an increase compared to about $33.8 million in the previous quarter. Analysis of operational metrics reveals that the weighted average yield of CLO debt investments decreased slightly to 17.3% from 17.4%, while the cash distribution yield from CLO equity investments saw a decline from 26.9% to 24.1%. These metrics are crucial for assessing the financial health and performance sustainability of the firm.
Invitation to the Investor Call
The management team will host a conference call to delve deeper into these results, scheduled for November 1, 2024, at 9:00 AM ET. Interested parties can join by calling 1-833-470-1428 and entering access code 436588. A recording of the call will be accessible for replay over the following month, allowing stakeholders to stay informed about all developments at Oxford Lane Capital Corp.
About Oxford Lane Capital Corp.
Oxford Lane Capital Corp. is a recognized leader in the investment industry, focusing on a diverse portfolio of debt and equity tranches within collateralized loan obligation vehicles. This specialized investment approach positions the firm to capitalize on market opportunities, contributing substantially to its revenue and growth metrics.
Frequently Asked Questions
What is the NAV of Oxford Lane Capital Corp. as of September 30, 2024?
The NAV per share was $4.76 as of September 30, 2024.
How much was the declared dividend for common stock?
The declared dividend was $0.09 per share for the months ending in January, February, and March.
What were the total investments made during the quarter?
Oxford Lane made additional investments of approximately $540 million during the quarter.
What was the core net investment income for the quarter?
The core net investment income stood at approximately $99.4 million, or $0.32 per share.
When will the investor call take place?
The investor call is scheduled for November 1, 2024, at 9:00 AM ET.
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