Oxford Square Capital Corp. Q3 FY2025 earnings call

• Bruce Rubin disclosed forward-looking statements and provided information on accessing SEC filings.
• Jonathan Cohen discussed net investment income, net asset value, distributions, investment income, losses, investment activity, share issuance, note issuance, and repayment.
• Kevin Yonon noted U.S. loan market performance was stable, loan prices changed, default rates fluctuated, primary market issuance increased, fund outflows occurred, and the focus on portfolio management strategies for long-term total return.

For the quarter ended September, Oxford Square's net investment income was approximately $5.6 million or $0.07 per share compared with approximately $5.5 million or $0.08 per share in the prior quarter. Net asset value per share stood at $1.95 compared to $2.06 for the prior quarter. Total investment income was approximately $10.2 million in the third quarter vs approximately $9.5 million in the prior quarter. Combined net unrealized and realized losses on investments were approximately $7.5 million or $0.09 per share in the third quarter vs approximately $1.1 million or $0.01 per share for the prior quarter. Investment activity during the quarter included purchases of approximately $58.1 million and repayments of approximately $31.3 million. The company issued approximately 5.4 million shares of common stock via an at-the-market offering, resulting in net proceeds of approximately $11.8 million. It also issued $74.8 million of 7.75% unsecured notes due July 2030 and fully repaid $34.8 million of 6.25% unsecured notes due April 2026. The Board declared monthly distributions of $0.035 per share for January, February, and March 2026.

• Jonathan mentioned considering leveraging the portfolio more within statutory limitations as a lever to improve NII run rate.
• Kevin emphasized focusing on portfolio management strategies designed to maximize long-term total return as a permanent capital vehicle.

Q: Erik Zwick asked about attractive investments during the quarter, specifically on CLO and leveraged loan sides.

A: Joseph Kupka said they purchased long-dated, top-tier CLO equity pieces for steady cash flow. Kevin Yonon mentioned active quarter on higher-quality credits with lower spreads and opportunistic trades in less liquid names.

Q: Erik Zwick inquired about cash and equivalents balance and reverse stock split.

A: Jonathan Cohen said cash balance was mainly timing due to ATM issuances and noted they consider viable ideas continuously.

Q: Erik Zwick asked about levers to improve NII run rate.

A: Jonathan Cohen mentioned considering leveraging the portfolio more within statutory limitations as one element.