GREENWICH, CT--(Marketwired - May 19, 2016) - Oxford Lane Capital Corp. ("Oxford Lane", "Fund", "we", "us" or "our") (
- Net asset value per share as of March 31, 2016 was $7.04.
- Net investment income, calculated in accordance with generally accepted accounting principles ("GAAP"), was approximately $6.6 million, or $0.36 per share, for the quarter ended March 31, 2016, and approximately $28.0 million, or $1.59 per share, for the year ended March 31, 2016.
- Total investment income, calculated in accordance with GAAP, amounted to approximately $13.7 million, or $0.75 per share, for the quarter ended March 31, 2016, and approximately $59.6 million, or $3.38 per share, for the year ended March 31, 2016.
- For the quarter ended March 31, 2016, we recorded GAAP investment income from our portfolio as follows:
- approximately $13.1 million from our CLO equity investments,
- approximately $0.3 million from our CLO debt investments,
- approximately $0.3 million from all other sources.
- approximately $13.1 million from our CLO equity investments,
- While reportable GAAP earnings from our CLO equity class investments for the three months ended March 31, 2016 was approximately $13.1 million, we received or were entitled to receive approximately $19.5 million in distribution payments. While our experience has been that cash flows have historically represented our view of a reasonable estimate of CLO equity investment taxable earnings, we believe there to be less certainty as to the final determination of taxable income with respect to our CLO equity investments in light of recent volatility in the corporate loan market. In general, we currently expect our annual taxable income to be higher than our GAAP earnings on the basis of the difference between cash distributions actually received (and record date distributions to be received) and the effective yield income.
- The weighted average GAAP yield of our CLO debt investments at current cost stood at approximately 9.0% as of March 31, 2016.
- The weighted average GAAP effective yield of CLO equity investments at current cost was approximately 14.3% as of March 31, 2016.
- The weighted average cash distribution yield of our cash income producing CLO equity investments at current cost was approximately 26.6% as of March 31, 2016.
- For the quarter ended March 31, 2016, we recorded GAAP investment income from our portfolio as follows:
- Our core net investment income ("Core NII") was approximately $13.0 million, or $0.71 per share, for the quarter ended March 31, 2016, and approximately $58.0 million, or $3.29 per share, for the year ended March 31, 2016.
- Core NII represents net investment income adjusted for additional cash distributions received, or entitled to be received (if any, in either case), on our CLO equity investments. (See additional information under "Supplemental Information Regarding Core Net Investment Income" below).
- Core NII represents net investment income adjusted for additional cash distributions received, or entitled to be received (if any, in either case), on our CLO equity investments. (See additional information under "Supplemental Information Regarding Core Net Investment Income" below).
- Net decrease in net assets from operations was approximately $9.4 million, or $0.52 per share, for the quarter ended March 31, 2016, and approximately $85.8 million, or $4.87 per share, for the year ended March 31, 2016, including:
- Net realized losses of approximately $20.6 million, or $1.13 per share, for the quarter ended March 31, 2016;
- Net unrealized appreciation of approximately $4.6 million, or $0.25 per share, for the quarter ended March 31, 2016;
- Net realized losses of approximately $24.0 million, or $1.36 per share, for the year ended March 31, 2016; and
- Net unrealized depreciation of approximately $89.8 million, or $5.10 per share, for the year ended March 31, 2016.
- Net realized losses of approximately $20.6 million, or $1.13 per share, for the quarter ended March 31, 2016;
- During the quarter ended March 31, 2016 we made one additional CLO equity investment of approximately $480,000.
- Also, during the quarter ended March 31, 2016, we recognized portfolio exits of approximately $34.9 million from sales of our investments.
- Also, during the quarter ended March 31, 2016, we recognized portfolio exits of approximately $34.9 million from sales of our investments.
- For the fiscal year ended March 31, 2016 the Fund paid total common stock distributions of approximately $43.3 million, or $2.40 per share, which were determined to be distributions from ordinary income.
- As of March 31, 2016, the Fund's asset coverage ratio was approximately 191% based on outstanding preferred stock of approximately $141.2 million, gross assets of approximately $272.5 million and non-debt liabilities of approximately $3.6 million. As of March 31, 2016, the Fund had cash and cash equivalents of approximately $20.4 million and distributions receivable of approximately $6.9 million.
- As announced previously, the Fund's Board of Directors declared a distribution for the first fiscal quarter 2017 of $0.60 per common share.
- Record date is June 16, 2016
- Payable on June 30, 2016
| Per Share Dividend Amount Declared | 2016 Record Dates |
2016 Payable Dates |
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| Series 2023 | $0.15625 | June 16, July 15, August 16 | June 30, July 29, August 31 | |||
| Series 2024 | $0.16930 | June 16, July 15, August 16 | June 30, July 29, August 31 | |||
The Fund'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:
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.
Supplemental Information Regarding Core Net Investment Income
On a supplemental basis, we provide information relating to core net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Our non-GAAP measure may differ from similar measures by other companies, even if similar terms are used to identify such measures. Core net investment income represents net investment income adjusted for additional cash distributions received, or entitled to be received (if any, in either case), on our CLO equity investments.
Income from investments in the "equity" class securities of CLO vehicles, for GAAP purposes, is recorded using the effective interest method based upon an effective yield to the expected redemption utilizing estimated cash flows, compared to the cost resulting in an effective yield for the investment; the difference between the actual cash received or distributions entitled to be received and the effective yield calculation is an adjustment to cost. Accordingly, investment income recognized on CLO equity securities in the GAAP statement of operations differs from the cash distributions actually received by us during the period, (referred to below as "CLO equity additional distributions").
Further, as the RIC requirements are to distribute taxable earnings, core net investment income may provide a better indication of estimated taxable income for a reporting period than does GAAP net investment income, although we can offer no assurance that will be the case as the ultimate tax character of our earnings cannot be determined until tax returns are prepared after the end of a fiscal year. We note that these non-GAAP measures may not be useful indicators of taxable earnings, particularly during periods of market disruption and volatility.
The following table provides a reconciliation of net investment income to Core NII for the three months ended March 31, 2016:
| Three Months Ended March 31, 2016 |
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| Amount | Per Share Amounts |
|||||
| Net investment income | $ | 6,635,937 | $ | 0.36 | ||
| CLO equity additional distributions | 6,353,930 | 0.35 | ||||
| Core net investment income | $ | 12,989,867 | $ | 0.71 | ||
The Fund expects to file its annual report on Form N-CSR on or about May 23, 2016. The Fund 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
We will hold a conference call to discuss our fourth fiscal quarter earnings on Thursday, May 19, 2016 at 9:00 AM. The toll free dial-in number will be 1-844-792-3730. There will be a recorded replay of the call available for 30 days after the call. If you are interested in hearing the recording, please dial 1-877-344-7529. The replay pass-code number is 10086422.
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