Oxford Lane Capital Corp. Q4 FY2025 earnings call

• On March 31, 2025, net asset value per share was $4.32 vs $4.82 prior quarter. - Issued ~60.7 million shares of common stock in aftermarket offering, net proceeds ~$300.5M. - Made additional CLO investments of ~$526.2M, received ~$136M from sales/repayments. - Board declared monthly common stock distributions of $0.09 per share for July, August, September 2025. - Awarded best public CLO fund by Periodical Credit Flux. - U.S. loan market performance weakened: loan price index decreased, median CLO equity NAV decreased, median weighted average spreads decreased, 12-month trailing default rate declined. - CLO new issuance ~$49B, down from prior quarter but pace with Q1 2024. - Invested over $520M in CLO equity, debt, warehouses, lengthened weighted average reinvestment period of CLO equity portfolio from February 2028 to November 2028.

For the quarter ended March, GAAP total investment income was approximately $121.2 million. This consisted of approximately $115.3 million from CLO equity and CLO warehouse investments and approximately $5.9 million from CLO debt investments and other income. GAAP net investment income was approximately $75.4 million or $0.18 per share for the quarter, compared to approximately $72.4 million or $0.20 per share in the prior quarter. Core net investment income was approximately $95.8 million or $0.23 per share, down from $99.9 million or $0.28 per share in the prior quarter. The weighted average yield of CLO debt investments at current cost was 15.9% (down from 16.6% previously), the weighted average effective yield of CLO equity investments at current cost was 15.9% (down from 16.1% previously), and the weighted average cash distribution yield of CLO equity investments at current cost was 20.5% (down from 23.9% previously).

• No specific target or projection for yields mentioned. - Focus on continuing opportunistic and unconstrained CLO investment strategy to maximize long-term total return.

• Market volatility and economic dislocation could affect CLO tranche pricing and investment performance. - Elevated out-of-court restructurings, exchanges, and subpar buybacks not captured in default rates could impact performance.

Q: Think about the share repurchase program, have you purchased any shares yet under that?

A: We haven't disclosed that information.

Q: Talk about pricing dynamics in the current quarter and expectations for this year.

A: Discussed CLO tranche pricing volatility, no specific yield projection. Mentioned market stress and volatility across asset classes, no specific point estimate for yields remaining this year.

Q: Relative attractiveness in primary vs secondary markets and cyclicality.

A: Reassessing primary/secondary attractiveness, focusing on lengthening reinvestment period to lessen risk spectrum. Highlighted economic returns from holding long-dated CLO equity during economic dislocation.

Q: Differentiate from peers.

A: Unconstrained CLO investment strategy, active portfolio management, large market participant in primary/secondary, ability to rotate portfolio aggressively