GREENWICH, CT--(Marketwired - May 27, 2014) - Oxford Lane Capital Corp. ("Oxford Lane" or "Company") (NASDAQ: OXLC) (NASDAQ: OXLCP) (NASDAQ: OXLCO) announced today the following financial results and related information:
- Net asset value per share as of March 31, 2014 was $16.26
- Net investment income, calculated in accordance with generally accepted accounting principles, was approximately $2.8 million or $0.29 per share and $10.1 million or $1.24 per share for the quarter and year ended March 31, 2014, respectively
- Net increase in net assets from operations was approximately $6.2 million or $0.64 per share and $22.7 million or $2.79 per share for the quarter and year ended March 31, 2014, respectively:
- Net realized gains were approximately $0.9 million and $8.0 million, respectively, and
- Net unrealized appreciation was approximately $2.5 million and $4.6 million, respectively
- Estimated distributable net investment income for the quarter ended March 31, 2014 was $6.3 million or approximately $0.66 per share
- For the fiscal year ended March 31, 2014 the Company paid total dividends of $23.2 million ($2.35 per share) which was characterized as approximately $20.2 million from ordinary income and approximately $3.0 million from capital gains
- Total assets stood at approximately $352.4 million as of March 31, 2014
- The Company's board of directors has declared a first fiscal quarter 2015 dividend of $0.60 per common share
- Record date is June 16, 2014
- Payable on June 30, 2014
Oxford Lane's dividend 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 2017 and Series 2023 Term Preferred Shares (each, a "Share") of $0.1771 and $0.15625 per Share, respectively, for the months of June 2014, July 2014 and August 2014. The dividends are payable on June 30, 2014 (record date June 18, 2014), July 31, 2014 (record date July 18, 2014), and August 29, 2014 (record date August 18, 2014), respectively.
In accordance with their terms, each of the Series 2017 and Series 2023 Shares will pay a monthly dividend at a fixed rate of 8.50% and 7.50%, respectively, of the $25.00 per share liquidation preference, or $2.125 and $1.875 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% and 7.50% per year, respectively, for each of the Series 2017 and Series 2023 Shares.
The Company filed its annual report on Form N-CSR on May 27, 2014. 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.
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.