OXSQ - Earnings call transcript Q1 2021 | 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 First Quarter 2021 Earnings Call. [Operator Instructions]. Please note that this event is being recorded.

Now I'd like to turn the call over to Mr. Jonathan Cohen, CEO. ahead. go Please

Jonathan Cohen

Good Square much. and to welcome Thanks Corp. morning, Oxford Capital the very everyone,

First Conference Chief XXXX Manager. with our Yonon, Quarter the Earnings Managing Bruce, President; Saul today our forward-looking the Bruce Rosenthal, could by disclosure you Rubin, call and regarding our Director Financial open Kevin Call. Officer; Portfolio I'm today joined statements?

Bruce Rubin

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

Jonathan Cohen

Thanks, Bruce.

$X.XX or per prior or ended quarter of at a And per quarter. share share. per share net million asset investment income $X.X net $X.XX for was For share million compared $X.XX value net approximately $X.X of the share net Oxford asset income stood value per per to March our Square's approximately investment the XX, and $X.XX

share first $X.X approximately $X.XX to on to XXXX, In the recorded net $X.X In million or recorded prior compared recorded the realized accretion quarter approximately investment $X.XX quarter we quarter. quarter, $XXX,XXX of compared as losses compared the million net of per first prior or operations quarter. -- investments of from or $X.XX from net approximately of unrealized per $XX.X realized in the million in net total approximately share we XXXX, compared appreciation losses the a million investments total, approximately $X.XX of a per for $X.XX the of per for net For approximately or for had or $XX.X the on of million prior we in $XX.X the share we to increase of income share investments quarter. assets quarter. $XX per first operations million net for of assets share prior increase or per first quarter, of unrealized to appreciation $XX.X share In million $X.XX

of million, quarter investment our $XX.X approximately $XX.X During purchases of sales the first consisted million. of and of million XXXX, activity $X.X of approximately repayments approximately

Portfolio I'll record date to found market the regarding ending over XXXX. to The additional turn morning. August XX, Yonon, there cash of and $XX.X our be release that we April declared $X.XXX share and were equivalents As Directors $XX.X of of of for monthly our of payment which can loan each cash against call issued generally. and million in months this information press of Kevin that, in purchases held XXXX. XXXX, XX, settled distributions approximately discuss of March July, our the details was which million, September approximately April Manager, Board of the unsettled per On With

Kevin Yonon

Thank you, Jonathan.

the the XX, Loan loan prices, principal ended quarter, December after going XX-month XX.XX% to X.XX% starting credit the defined S&P/LSTA of the dispersion XX. During trailing Leveraged market XX, versus X.XX% quarter the quality the of for CCC-rated loan rate loan quarter March XX.XX% default Index, by amount quarter loan X.X%. the U.S. prices increased prices XX average. and pricing Loan December to increasing at on decreased as continued end the as X.XX% XXXX. related Index B-rated U.S. LCD, ended Leveraged quarter XX.XX% par XX The par increasing to X.XX%, BB-weighted According with prices increasing S&P/LSTA of after on at peaking of March during XXXX, February strengthened from to by at on

Additionally, par, ended the of at after price on compared a X.XX% ratio, XX% on as December of defined percentage the March with XX, below peaking XXXX. X.X% the distress at XX% to XX, quarter loans

and XXXX. of ended was comparable loan $X.XX quarter activities LBO fund billion M&A were This of refinancing, ended repricing, XX total as for quarter by measured versus Lipper, the quarter. by driven XX, approximately of the During well U.S. $XX inflows, billion $XXX March approximately outflows March in billion during the market $XX primary was during the XXXX. issuance approximately Moreover, strong billion quarter for ahead

investment total take return. focus portfolio a been have towards capital a historically as to to longer-term vehicle, able to our continue view our management We strategy. And strategies on we maximize designed current long-term

Jonathan Cohen

website information very quarter much. And with now thanks any Oxford additional we're been questions. to happy our we open to Corp.'s that, has up note performance Operator, that Capital at call about for Square www.oxfordsquarecapital.com. posted the first Kevin,

Operator

Instructions]. [Operator

First question with Ladenburg. Schleien comes from Mickey

Mickey Schleien

ask cash what from the first decline quarter I'd to fourth Jonathan, the CLO the yield given quarter. the strength like loan portfolio's Jonathan, in in the caused the to markets,

Jonathan Cohen

Certainly.

will that answer question. Our Deep portfolio COO, manager, Maji,

Debdeep Maji

we're know, experiencing some was asset that level as side, factor. you on spread so Mickey, of compression, the one

X that pay be a cash when as expenses the may refinancings so those There We for lower part for them of bit positions and to refinancings, period that pay Square little sizable. X refinancings also of controlled the very as case, And as know, first resets or you flow or as may on they're with holds portfolio. did expenses. majority resets. our often well affect there are associated be you resets Oxford X positions, very,

yield. fundamentals That being credit So seeing of cash on portfolio I diversion that said, these onetime our as as was the quarter-over-quarter in driver compression flow side experienced the slightly of significantly improvement market well we're strength combination the and events asset cash of of amount the fairly of the think in declined the broadly. the some that just spread across light lower

Mickey Schleien

returns versus do corporate characterize when you nonqualified limit? appreciate meaningfully assets continuing you I to And loans? in said, just we operate how above the portfolio about available envision That's CLOs And risk-adjusted that. what allocation, given think regulatory would helpful. with the you

Jonathan Cohen

with each to turn between structures similarities syndicated corporate points a they're loan in arbitrage of corporate overlap. associated and an risk both the proceeds tranche it the vehicles. capital levered rise have is and And difference terms vehicles is loan in the of the of in return ways. within market, the structure. Sure, of only parts CLO basis of of Mickey. risks The Square, in CLO specifically, market, investment market which is also on But we not the and also these differences those participate amongst various certain give certain CLO fundamental of Oxford and certain stated and fairly equity, the cost some profiles in returns between a different at CLO levered within fundamentally use the

they're So points but different. there are overlap, of also fundamentally

and asset intend In class continue we for Square, with CLO exposure asset class. our do terms of with to strategy investment the the Oxford to at

percentage the announced as haven't intending the We CLO we're or represented publicly by published specific to be investments. of any to tranche portfolio target

Mickey Schleien

What -- were the quarter's I or a realized main Okay. understand. more sort was main the drivers couple of what just more loss? housekeeping Jonathan, of questions. this

Jonathan Cohen

Mickey. in unrealized exited specifically were names Sure, as the quarter. reflected were previously that losses were There March realized that two that were

Mickey Schleien

those us you Can give names?

Jonathan Cohen

Solutions the Sure. other one? Kevin, and Imagine Print

Kevin Yonon

AMMC. AMMC.

Mickey Schleien

Jonathan, what Square? your And on debt-to-equity for Okay. view ratio Oxford the target is

Jonathan Cohen

haven't Mickey. specific discussed target, We or published publicly a

investing do take we've the the return essentially profile into a trying and is to come on we historically those out to that yet. both in side syndicated and publicly CLO haven't corporate we tranche particular and to account stated to us, think But we the and be loan reflects dynamics. risks and certainly the do leverage try portfolio's side available that tried are target way what run to to I the to market see what on responsive to opportunities now a

Mickey Schleien

undistributed All right. income? And lastly, status is of the what your taxable

Jonathan Cohen

figure hand. to We We'd revert back, to have don't have that Mickey.

Mickey Schleien

right. All

Jonathan Cohen

and So get we follow up separately you figures. can those

Mickey Schleien

this that that are I'll UTI Those to would all morning. in number today. later I your be Yes, my get touch And helpful. time. be questions appreciate

Operator

question-and-answer our concludes session. This

for back conference over Now Please like I'd turn go to closing Cohen remarks. to ahead. Mr. the

Jonathan Cohen

to their like Corp. who's everybody I'd to and to listening Square in interest and you. Capital soon. Oxford to replay the operator, Thank you, again look call you speaking the for on forward everybody thank Thank We

Operator

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

You disconnect. may now

Oxford Square Capital (OXSQ) 27 Apr 212021 Q1 Earnings call transcript