SOURCE: Oxford Lane Capital Corp.

November 12, 2014 16:10 ET

Oxford Lane Capital Corp. Announces Dividend Declaration and Selected Financial Results as of September 30, 2014

GREENWICH, CT--(Marketwired - Nov 12, 2014) - Oxford Lane Capital Corp. (NASDAQ: OXLC) ("Oxford Lane" or the "Company") announced today that the Company's Board of Directors has declared a third fiscal quarter dividend of $0.60 per share, payable on December 31, 2014 to shareholders of record as of December 17, 2014. The Company also announced the following financial results and related information:

  • Unaudited net asset value per share as of September 30, 2014 was $15.54.

  • In accordance with generally accepted accounting principles, net increase in net assets from operations was approximately $1.1 million, equal to $0.07 per share, for the quarter ended September 30, 2014 including:

    • Net investment income was approximately $4.3 million, equal to $0.28 per share,
    • Net realized gains were approximately $6.1 million, equal to $0.39 per share, and
    • Net unrealized depreciation was approximately $9.3 million, equal to $0.60 per share.

  • On a non-GAAP basis, estimated distributable earnings of approximately $8.2 million, equal to $0.53 per share, were generated for the quarter ended September 30, 2014:

    • Including distributable net investment income of approximately $5.6 million, equal to $0.36 per share, and
    • Distributable realized gains of approximately $2.6 million, equal to $0.17 per share.

Oxford Lane's dividend distribution policy is based upon its estimates of the ultimate taxable earnings for each respective period, which are primarily (but not entirely) based upon the cash flows for each investment. The final taxable amounts cannot be known until the Company's tax return is filed, but the Company's experience has been that cash flows have historically represented a reasonable estimate of taxable earnings.

The Company estimates that its distributable earnings for the six-month period ended September 30, 2014 approximates $15.0 million, including $2.6 million of realized capital gains, compared to dividend distributions of $18.5 million. There have historically been significant differences between Oxford Lane's GAAP earnings and its taxable earnings and this is likely to continue, particularly related to CLO equity investments where the Company's taxable earnings are based upon distributable earnings while GAAP earnings are based upon an effective yield calculation. In general, the Company currently expects its near-term taxable earnings to be higher than its reportable GAAP earnings.

The Company's Board of Directors has also declared the required monthly dividends on its Series 2017, Series 2023 and Series 2024 Term Preferred Shares (each, a "Share"), as follows:

             
    Per Share Dividend Amount Declared   2014 / 2015
Record Dates
  2014 / 2015
Payable Dates
             
Series 2017   $0.17710   December 19, January 20 and February 16   December 31, January 30 and February 27
             
Series 2023   $0.15625   December 19, January 20 and February 16   December 31, January 30 and February 27
             
Series 2024   $0.16930   December 19, January 20 and February 16   December 31, January 30 and February 27
             

In accordance with their terms, each of the Series 2017, Series 2023 and Series 2024 Shares will pay a monthly dividend at a fixed rate of 8.50%, 7.50% and 8.125%, respectively, of the $25.00 per share liquidation preference, or $2.125, $1.875 and $2.03125 per share per year, respectively. This fixed annual dividend rate is subject to adjustment under certain circumstances, but will not in any case be lower than 8.50%, 7.50% and 8.125% per year, respectively, for each of the Series 2017, Series 2023 and Series 2024 Shares.

The Company expects to file its semi-annual report on Form N-CSR on or about November 20, 2014. The Company will post to its website a more detailed summary of our quarterly financials, as well as its investor presentation. This can be found at oxfordlanepresentation.

About Oxford Lane Capital Corp.

Oxford Lane Capital Corp. is a publicly-traded registered closed-end management investment company. It currently seeks to achieve its investment objective of maximizing total return by investing in securitization vehicles which, in turn, primarily invest in senior secured loans made to companies whose debt is rated below investment grade.

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. 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.

Contact Information

  • Contact:
    Bruce Rubin
    203-983-5280