OXSQ - Earnings call transcript Q3 2020 | Oxford Square Capital Corp.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the Oxford Square Capital Corp Third Quarter 2020 Earnings Release and Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jonathan Cohen, CEO. Please go ahead.

Jonathan Cohen

welcome Oxford and Capital everyone, morning, to Square the Corp. Good XXXX earnings quarter conference third call. by our Director Saul our today joined I'm Rosenthal, Officer; Yonon, Manager. Chief President; Kevin our Portfolio Managing and Financial Rubin, Bruce could statements. forward-looking open disclosure call with today Bruce, a you regarding the

Bruce Rubin

to call of Oxford conference in statements Square information please so www.oxfordsquarecapital.com. conference our projections. regarding required latest release your this is in was do our unless to obtain prohibited. I'll turn by projections that, our and financial point, release Capital be this Jonathan. Corp. differ to included disclosure Any of things, Today's With recent factors the those to visit An unauthorized issued replay XX forward-looking press direct property with other of any the SEC At for to cause future that morning. forward-looking filings, is Company's that that that is rebroadcast of in copies call call We refer law. these information. please attention back call update Sure, customer morning's forward-looking strictly available SEC to Please earlier recorded. Today's in the included form our for that Jonathan. to being Web To audio at the conference will do Replay from note, is this days. undertake among ask not important this could includes statements and respect actual this call site events our press with presentation We the results views current materially filings the reflect most performance.

Jonathan Cohen

Thank you, Bruce.

share, investment per in was net Oxford investment per income value and quarter. value net share the shares the $X.XX $X.XX compared share September Square's ended per net income of XX, the asset prior $X.XX quarter at the stood our of to For to asset net per $X.XX

on of XXXX, quarter income prior as to total of unrealized the $X.XX $XX on third we investments compared or quarter. in quarter million recorded $X.XX share for For the approximately investments share, appreciation to $XX.X XXXX, unrealized approximately net of $X.X compared $X.X we of appreciation of recorded per investment the third approximately the In prior million million million net quarter. approximately or per

$XX.X third quarter. the to quarter, of compared realized losses recognized quarter, $X.X or share, a share prior in we the million per had In operations approximately compared For we $X.XX $X.X $X.XX or per the $X.XX from increase net for in quarter. or of realized increase of approximately total third million share, the on prior to per net a of $X.XX for operations losses million for net share million from per net investments assets or $XX.X assets

consisted million, quarter $XXX,XXX. we that We of activity non-accrual XX, on debt our third of status. to incomes repayments $X.X hold the and million investment sales note of continue as two September investment XXXX, $XX.X approximately of approximately During purchases of approximately of

of Directors investments On portfolio January, Board month of for the monthly March XX, one declared on companies equity our preferred non-accrual hold XXXX, XXXX. share status. also We and distributions October per of in $X.XXX our February of ended

to for Kevin. common our stock should believe particular distributions Portfolio level Kevin? placed that the call this including we COVID-XX as any found payment by for spread these on regarding conditions the press the result representing market global virus, light of be no that and Additional turn caused and be information morning. future. Manager, And of the economic in that, in issued periods was can crisis the current prospect the our with distributions I'll any record release details of earlier a date of reliance over In

Kevin Yonon

you, Thank Jonathan.

ended quarter XXXX, as during of the XX, versus par to September a quality September increased pricing by the default dispersion to rated on of The increasing the after by U.S. by loan of X.XX% with XX.XX% XX, XX.XX% amount principal related BB starting the S&P/LSTA prices at increased amount. to XX.XX% June loan S&P XX, prices high LCD X.XX% B on quarter June to XX. the the the end ended the X.X% During to increasing According rated quarter index leveraged XX-month as for the credit September on from LSTA loan before declining strengthened CCC loan loan continued rated loan XXXX. X.X% to crisis XX quarter loan defined at prices increasing U.S. index quarter and quarterly leveraged market average. trailing principal X.X% of rate

portfolio able view investment a outflows of strategy. In on as XX% distress XX.X% our XX% was on Lipper approximately designed measured for we issuance return management strategies the period below have billion as March year-to-date ratio market loans billion XX, billion with on to of continue price primary the fund this to below compared at approximately outflows loan June by September in take U.S. X.X the after moderated environment, the maximize into with have focus XX. X issuance ended total permanent of longer-term peaking a of to versus quarter XXX defined at capital for quarter long-term September we Additionally, ended the as quarter of approximately outflows June XX. X% been XX, to vehicle, our XXXX. Moreover, XX par percentage historically X% during towards and the comparable a

Jonathan Cohen

Kevin, much. thank you very

Additional quarter questions. any we're with Oxford third for open to our about Square’s has discussion the www.oxfordsquarecapital.com. And operator, been performance at posted happy to information Web that site

Operator

today Ladenburg. from begin question-and-answer question Instructions] Our session. [Operator Mickey first We comes Schleien will the with now

Mickey Schleien

what technical factors? introduced And high is equilibrium? in bonds. refinance, the loan that's it of and that fundamental the This the their financing which loans at began boosted after its to Feds some your And is Kevin. year, with for facilities were supply least and Question market. the dynamic allowed borrowers How pandemic for outlook of have markets yield terms demand affecting

Kevin Yonon

for I as sufficient is dynamic the the mean, you've Mickey. supply, for the markets, strategy, terms elements, out to terms both in is interplay that us in the in of there continue various in and in of execute we've may between future those wouldn't supply described available if in secondary things just difficult the seen to play speculate. primary we of extraordinarily terms it frankly to and how our investment we Sure, say feel

Mickey Schleien

you implying the price defaults at next optimistic? as of into the your about credit going more pessimistic, look you price, if investments? you X%, do make year. are Is assumption leveraged of that more market, Or X%. Generally, loan Jonathan, it's operating sort of you feel how

Jonathan Cohen

over a I to certain apply time. market return think we overall specificity, level of would then will level likely Mickey, of of default the rate higher say set period a a that

they're different I industries terms you will is, deviation see I think, of and to risk amongst between fairly But continue depending is, level of in we're prospects. where and on and these positioned tremendous companies, bifurcation various current of as and think individual amongst risk know and continuation what think a how and sector risk, a well The uncertain. realignment and we've operating. going companies are corporate a and their there world different depending be been the market there to and of has is I between thus seen which industries state far, on

Mickey Schleien

Oxford deals” bifurcation you are them? them taking that providing And good ultimately money opportunities think that advantage and you are Jonathan, let's of “distressed call and is

Jonathan Cohen

participated haven't looked We're as historically and at that you looking Mickey distressed have we But always distressed opportunities. be know, way opportunities, the meaningful would in we individual in characterized as markets. a

Mickey Schleien

Okay.

the of Jonathan, and which questions. Oxford what since and for equal? Just reduce couldn't debt Square capital, into balance improve sort place is could a increase credit couple facilities some the your put sheet your remaining else leverage back yield, your everything to of NII outlook ultimately of that cost

Jonathan Cohen

about specific wanting regularly. at Mickey, to we something that look Sure, fairly without that. That's be very

to of cost So the know, or our you And liabilities we've say, look aspects ability the continue baby lower certainly But capital. only kinds things. as at significant bonds, provide as of on you sheet this parts different those those different us are of balance may the to markets moment. credit at our we issued

Mickey Schleien

or on earnings? facilities at the time Oxford's do to in And accretive to you this other available point you think terms that be would those

Jonathan Cohen

accretive doing so. seriously to opportunity us take there an arise very would for issue or on debt accretive to Were look indebtedness, certainly we

Mickey Schleien

as Okay. to last you picture. any question, there And consider merging operating my two such Oxford companies? for relative Lane, for big expenses and reducing impediment Jonathan, Is have besides benefits approvals certain necessary Square which could the Oxford the

Jonathan Cohen

that address, able interesting really an I'm Mickey, question, not though. It's one to

Mickey Schleien

it for right. this All for time. That's Thanks morning. your me

Jonathan Cohen

remarks. closing turn Thanks for over Mickey. right, I'd it. questions, to Jonathan the very much. to further Seeing back any Cohen All no like call Appreciate

Jonathan Cohen

you and And operator. Thank to in Square much. Corp. right, look you we appreciate soon. interest All Oxford very everyone's We Well, much. to speaking thank time very forward Capital you again very

Operator

conference concluded. The for attending Thank today's has now presentation. you

You disconnect. may now

Oxford Square Capital (OXSQ) 27 Oct 202020 Q3 Earnings call transcript