SOURCE: Oxford Lane Capital Corp.

August 10, 2015 08:00 ET

Oxford Lane Capital Corp. Announces Net Asset Value and Selected Financial Results as of June 30, 2015 and Second Quarter 2016 Distribution of $0.60 per Common Share

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

  • Net asset value per share as of June 30, 2015 was $13.88
  • Net investment income, calculated in accordance with generally accepted accounting principles, was approximately $7.3 million or $0.44 per share for the quarter ended June 30, 2015.
  • Estimated distributable net investment income for the quarter ended June 30, 2015 was approximately $14.6 million or $0.89 per share
  • Net increase in net assets from operations was approximately $5.7 million or $0.35 per share for the quarter ended June 30, 2015:
    • Net realized gains were approximately $0.7 million or $0.04 per share for the quarter ended June 30, 2015
    • Net unrealized depreciation was approximately $2.3 million or $0.14 per share for the quarter ended June 30, 2015
  • Total assets stood at approximately $443.5 million as of June 30, 2015
  • The Company's board of directors has declared a second fiscal quarter 2016 dividend of $0.60 per common share
    • Record date is September 30, 2015
    • Payable on October 30, 2015

Oxford Lane's distribution policy is based primarily upon its estimates of the ultimate taxable earnings for each tax year, 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.

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 continue to be higher than its reportable GAAP earnings.

The Company's Board of Directors has also declared the required monthly dividends on its 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 2023   $0.15625   September 16, October 16, November 16   September 30, October 30, November 30
             
Series 2024   $0.16930   September 16, October 16, November 16   September 30, October 30, November 30
             

In accordance with their terms, each of the Series 2023 and Series 2024 Shares will pay a monthly dividend at a fixed rate of 7.50% and 8.125%, respectively, of the $25.00 per share liquidation preference, or $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 7.50% and 8.125% per year, respectively, for each of the Series 2023 and Series 2024 Shares.

The Company will file its quarterly report on Form N-Q on or about August 20, 2015. The Company is also posting to its website a more detailed summary of its 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 unrated or 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, unless required to do so by law.

Contact Information

  • Contact:
    Bruce Rubin
    203-983-5280