SOURCE: Oxford Lane Capital Corp.

February 10, 2015 16:01 ET

Oxford Lane Capital Corp. Announces Net Asset Value and Selected Financial Results as of December 31, 2014

GREENWICH, CT--(Marketwired - Feb 10, 2015) - Oxford Lane Capital Corp. (NASDAQ: OXLC) ("Oxford Lane" or the "Company") announced today the following financial results and related information:

  • Unaudited net asset value per share of common stock as of December 31, 2014 was $14.09

  • In accordance with generally accepted accounting principles, net decrease in net assets from operations was approximately $13.5 million, equal to $0.86 per share of common stock, for the quarter ended December 31, 2014 including:

    • Net investment income was approximately $4.6 million, equal to $0.29 per share of common stock,
    • Net realized gains were approximately $528,000, equal to $0.03 per share of common stock, and
    • Net unrealized depreciation was approximately $18.6 million, equal to $1.18 per share of common stock.

  • On a non-GAAP basis, estimated distributable net investment income of approximately $15.9 million, equal to $1.01 per share of common stock, was generated for the quarter ended December 31, 2014.

  • Fourth fiscal quarter dividend:

    • Dividend of $0.60 per share of common stock
    • Payable on March 31, 2015 to stockholders of record as of March 17, 2015

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 net investment income for the nine-month period ended December 31, 2014 approximates $28.2 million, compared to dividend distributions of $28.0 million. We note that this figure excludes any effect from realized capital gains or losses. 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 may also choose to distribute, annually, net realized capital gains that are generated on a tax basis.

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   2015
Record Dates
  2015
Payable Dates
             
Series 2017   $0.17710   March 17, April 16 and May 15   March 31, April 30 and May 29
             
Series 2023   $0.15625   March 17, April 16 and May 15   March 31, April 30 and May 29
             
Series 2024   $0.16930   March 17, April 16 and May 15   March 31, April 30 and May 29
             

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 quarterly report on Form N-Q on or about February 10, 2015. The Company will post to its website a more detailed summary of our quarterly financials, as well as comparisons to prior quarters. 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 or is unrated.

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