OXSQ - Earnings call transcript Q3 2017 | Oxford Square Capital Corp.

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Operator

Good morning and welcome to the TICC Capital Corp.

Third Quarter 2017 Earnings Release and Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded. to conference like to now would turn over the Mr. I CEO. Cohen, Jonathan go Please ahead.

Jonathan Cohen

Good everyone Officer. a I'm statements? and Capital very Rubin, today and morning Thanks much. with and Officer; welcome you Saul our quarter Bruce open earnings Chief call Operating by Chief Corp. XXXX forward-looking to could conference discussion today call. Financial regarding joined our Rosenthal, President Bruce, third TICC the the

Bruce Rubin

call Jonathan. update forward-looking obtain will Jonathan. in also please at do replay cause and conference required statements, Sure, was call of The morning. forward-looking days. by projections. law. this and that, I'll customary SEC so regarding for forward-looking property recorded. is our the this to at note press of Please information. in do With Today's most factors to www.ticc.com. is is that morning included available audio An like back statements be this disclosure filings replay materially from projections, differ Today's being release that call To release results released your is XX this conference earlier that to unless could to call I'd for we form visit the to to presentation information press undertake attention in TICC unauthorized call copies Capital that our you the not the over Corp. latest our Any our any rebroadcast prohibited. website of strictly of important to recent SEC, filings, We our our refer actual includes the those call ask turn

Jonathan Cohen

the XXXX. for of distributions of end the paid We was the total second share per at approximately X.X% generated at book third of change book representing the of quarter the $X.XX of to value much share return third the $X.XX plus of to very shareholders per compared Bruce. quarter $X.XX We common our The the during share TICC's end paid in a shareholders. quarter per Thanks XXXX, third of distributions during value XXXX quarter.

million ended share. recorded reported GAAP approximately per $X.X third XXXX, quarter net quarter, In $X.XX we $X.X the share. $X.X associated investment with realized notes operations CLO TCCI of of the in and or from the approximately early per million, unrealized net million assets September losses $X of increase of optional of appreciation total, $X.XX repayment secured approximately million we For an costs had the net income net which or $X.X net of represented million. XXXX-X approximately a acceleration approximately of we XXth, In

reconciliation core for quarter $X.XX that on net we approximately continue of today investments income was earnings per approximately September status release investment XXXX. as of investment million XXth, have We September income with the we to non-accrual investment the of end the core net issued $X.X share. for or no see XXXX Please income. XXth, Our know

loans through focus to out loans into broadly syndicated investment in on the yielding the pre-marketing our Moreover, into execute During purchases our quarter, and continue corporate general of rotation to the activity the a more the we via syndicated secondary loans. syndications, portfolio strategy both of continues primary corporate and and rotating markets. narrowly third higher

the concurrently decreased of cost our with the our which which sales. opportunistic the continued average weighted instances, also certain those -- their of purchases in portfolio CLO period transactions, of rotation lengthened transactions CLOs executed of executed of reset liabilities, and respective refinancing the reinvestment also We and active CLO. Several

eliminated provides assets. redemption of us TCII the ability approximately our on loan yielding our our redemption, into of of CLO quarter, $XX.X secured During sheet. the redeemed XXXX-X million rotation portfolio that corporate we to voluntarily balance higher the The we the on with debt notes CLO. With continue that

on representing in $XX.X were full, repaid November senior in convertible matured XXXX and reduction our XXXX, our million X.X% leverage. a notes Xst, Additionally,

We to continue to return pursue our mandate of risk adjusted maximizing shareholders. the our total

XXXX. take We towards about focus maximize And with to third continued generating to has are permanent we our We and open have particular posted currently call been we believe vehicle been additional has management information portfolio that, us to as such well as a level able over our designed us a opposed view timeframe. investments. this view longer historically TCII's return to for the on quarter total strategies know at our term operator, to a performance income perspective served to of happy haven't the available www.ticc.com. market that as to We questions. opportunity website during capital As a any we certain strong

Operator

Thank you.

We session. ahead. will Christopher [Operator Instructions] first from comes Securities now Our Corporation. the question question-and-answer National with Testa Please go begin

Christopher Testa

Thanks equity cash guys. for decrease of have one-time release? costs out morning my press curious the other you taking in CLO things good refinancing backing yields noted Hey, just the been the and what questions. in the Jonathan, would

Jonathan Cohen

given reset Decently that, a associated precise was figure the that higher but don't a with certainly expenses drag the during these Chris. have various one-time for quarter. We refinancing and

loan in diminish The environment. we to during we capital an within have and other of certain cost these potential in reset. various diminishment refinance and structures realizing our yield instances our are ability change syndicated was the Against as quarter they a with corporate the CLO consistent spread tighter effective that,

Christopher Testa

on the because GAAP kind of as the causing is any generally if set it a on earning lead cash can. of as just GAAP this And level you thought question BII core in on said you're out under of income? high GAAP. recognize opposed asset that, from allowed in what what equity CLO to under the consistently Having class an a totally dividend excess does I it. appreciate changing there of Board's NAV and terms it you're basis. me in generating NII Is I to behalf it to to that's Got terms on

Jonathan Cohen

quarter and makes of along their looks Sure things. core cash our or of Chris. upon The GAAP proposition return our and and and those GAAP stream all both determination every at based income total all with of components other the Board Directors

So, as that's out -- you terms in is think additional I discussion. that considered. But be some put it, of leading something NAV, to worth I

last $X.XX. from of share a X.X%, course $X.XX XXXX, $X.XX quarter of the the per third approximately the end third the year the book increased end till -- value Over from about XXXX quarter to share of the has actually our

During out share that we've cash distributions. distributed $X.XX in per period,

So, representing return against value. side XX.X% net distribution asset the about on share $X.XX per the

an and certainly to maintaining good period value over fairly we've equity managed a course last while year, job strategy. the I think So, do of our book CLO over managing the extended investment

Operator

from And you. question Thank next comes ahead. our Schleien Please go Ladenburg. with Mickey

Mickey Schleien

Jonathan. morning Yes, good

Jonathan Cohen

Mickey. morning Good

Mickey Schleien

Oxford loans. thousands between if Jonathan lot of underlying of have Lane, insight investments the and a collateral not, into all individual these TICC you numbers hundreds, which CLO

the downturn? just that And question you in is track my if fairly or you any my so cycle, question not? reason into the if for I'm assume a will you statistically is are understand Are we're I perhaps So, seeing a all the slowdown long And at trying pickup collateral positioning signs portfolio closely. that these not, expansion for economy? to a persist or this of

Jonathan Cohen

U.S. default is decline the beginning highly probably or of structures answer of that part various CLO of consider would various CLO not the inside the any we a to The Mickey. look that be very, within that have equity activity. at an To collateral we relevant within aspect time. meaningful we the indicate your meaningful of we economic answer signs for relevant rates seen most remained default extended pools structures in own question, rates. Sure our things overall first signs that have all low now of the very period is And any

So, we're not seeing that.

syndicated loan agree the and bottom the the tightening rise loan in of the -- than tightening middle corporate you, terms to certainly of credit of of, top we sort in the agreement spreads closer In that we're, the corporate credit almost continues the cycle of in certainly. with we're spreads, the cycle prices and

question, against the second rates, widening and steps have insulate to economic part all of extent against answer your of an to of So, -- rising attempt those ourselves with against greatest the taken things spreads. possible the downturn, we to to

portfolio. things fairly to a It lower the XXXX deleveraging equity with of the end dramatic a quarter XX%. convert, the and in the our as or ago significant Some debt year portfolio of third levered included taken XXXX we've a to a ratio have towards step of stands of those at of obviously repayment XX%

the things a CMO portfolio. our are talked book, attempted things to priority equity within about those that certain more us. to past, some resilient architect we that but a do there of Additionally We've remains for in have

Mickey Schleien

thoughts that your road shock system? are could and to on And just LIBOR regulators Jon. and LIBOR regards helpful could institutions my doesn’t down That's and I get if that question handle replace follow-up how process, so financial going the the what

Jonathan Cohen

Sure you Mickey. LIBOR. the are -- eventually alternate in libel -- some mechanism CLO beginning allow U.S. replacement structures CLO indenture index with say, for alternate will, indenture to ultimate or already some to mechanisms build of that structures as replace

haven't the In speculated specific that. that index on will ultimately terms LIBOR's place, take of or really we mechanism the specific

question. in period Mickey still for seamless our that Thank hope that you, a represent is again over uncertainty fairly a market expectation the a think much that. and multi-year of But I will that is state transition. around very

Operator

this Okay. you. time, Thank have questions. no further At we

conclude to our question-and-answer over and conference to for turn like now back any session would I Mr. remarks. closing So, the Cohen

Jonathan Cohen

their like call who much. forward has you who our listens and to next for replay this Thank Capital Thank we call fourth on much. interest during to And the thank look very to I'd you Corp. year. the in TICC very quarter you or everyone in Great. early participated speaking

Operator

for has joining Thank for Thank now presentation. concluded. you. The you this conference us

You lines. your may now disconnect

Oxford Square Capital (OXSQ) 2 Nov 172017 Q3 Earnings call transcript