OXSQ - Earnings call transcript Q4 2021 | Oxford Square Capital Corp.

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

Jonathan Cohen

Good morning, everyone. Welcome to the Oxford Square Capital Corp. Fourth Quarter 2021 Earnings Conference Call. I'm joined today by Saul Rosenthal, our President; Bruce Rubin, our Chief Financial Officer; and Kevin Yonon, our Managing Director and Portfolio Manager. Bruce, could you open the call with a disclosure regarding forward-looking statements.

Bruce Rubin

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

Jonathan Cohen

you, Thank Bruce.

per ended compares net approximately share quarter. That Square's income or effective quarter net the prior value principally income lower asset net investment per and Oxford investment offset income This of in XX, driven by the million of and was share $X.X $X per our December $X.XX. income. partially asset to $X.XX was CLO value higher for at increase share, net $X.XX interest $X.XX a yield or million investment approximately stood net by income share per For

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

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

December million. On March $X.XXX cash months distributions XX, equivalents for declared XXXX. As Board of and monthly we of and of April, June of ending held the of May X, each our Directors of per XXXX, approximately share $X

payment details found can regarding loan that market. Additional Manager, record I release turn morning. information the our discuss issued to press our Kevin call With to be and this over date will in was Yonon, that, Portfolio Kevin? the

Kevin Yonon

Thank you, Jonathan.

prices, Index December September during XX.XX% September December related to from XX.XX% According quarter BB-rated decreasing par the rate XX prices basis points Leveraged and S&P/LSTA prices basis Loan points, the default basis trailing for loan on loan of loan credit market XXXX. U.S. U.S. CCC-rated decreasing The B-rated XX, as with XX-month decreasing loan by average. decreased LCD, points During increased the XX this rate low. prices S&P/LSTA X.XX% par all the as of end quarter, Loan stability of basis pricing XX. to Leveraged just XX, occurred X.XX%. the the the the of that as dispersion loan is quarter XX quality starting at of exhibited the by after XXXX, slightly principal time quarter defined ended the ended Note XX amount versus above points Index quarter at XXX to

X.X% December of quarter price compared the XX% to below at Additionally, a end the XXXX at the and at X.XX% end of of with X.XX% as par distress ratio, approximately defined loans December the of the percentage XXXX. ended

approximately $XX.X XX Moreover, approximately LBO $X.X $XX quarter December for total This M&A $XXX inflows billion issuance billion of versus strong were bringing during billion market billion approximately ended Lipper, and was ended driven December by $XXX to $XXX billion of the XXXX by to approximately market outflows XX, primary primary activity. XXXX. was as bringing measured all funds, refinancing, billion XXXX time quarter U.S. issuance XXXX. an approximately the During high loan during versus total

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

Jonathan Cohen

very from from that information to we're up quarter been please much, with about fourth ahead. at first Instructions] you. to today performance Oxford for Thanks The go the Square's [Operator Kevin. has Ladenberg. Thank that, note We Micky, call questions. Mickey operator, posted And Schleien website question any our comes happy additional www.oxfordsquarecapital.com. open

open. Your is line

Mickey Schleien

Jonathan. Yeah. Hope well. Good morning, doing you're

Jonathan Cohen

Thanks, Mickey?

Mickey Schleien

Jonathan, given -- good morning.

be cash your flows experience, of would helpful CLO think year? behaved market, have if for expected long coming investing describe I the experience which the in obviously rising could in rates, is historically interest in you it how your what's Given of equity CLO periods

Jonathan Cohen

returns overall Generically the the Mickey, component LIBOR what manifest equity That's you sort floors. historically happened to that which the the now of norm. the become SOFR is initially of on then of capital will the higher has lose begin historic floors, overtime, rates the benefit in structure. higher But

Mickey Schleien

you to past, a -- develop little fund digging seen in the have rates these Jonathan, in their deeper. to their service terms stress have any of risen debt? When the borrowers' abilities

Jonathan Cohen

Portfolio Sure, and investment a side. Mickey. the turn for call I'm our going moment our to to Maji, Chief Deep Manager who's over CLO

Deep Maji

are Hi, you? Mickey. How

Mickey Schleien

Deep. morning, Good

Deep Maji

potentially the they cost past, seen or when high, spread you'll finance see the choose rates to you've the too in themselves if instances borrowers Because market. coupon just to certain index the will above the the not is what rises decrease. loan in So in often all-in

So seen levels. all-in be different. of lower the higher periods, we've at that commensurately this but above the other could like cycle the were LIBOR that relatively at stable, kept much borrowers of often, kind And past in was cost when coupons LIBOR in previous levels, index

Mickey Schleien

they that over are to into exposed look I And of commodity seeing? understand. -- growth? in last in And Deep, they're and doing rising year. when Any margins the terms prices revenue revenues insight and you they the regard that year at how trend this can margin how borrowers' we're

Jonathan Cohen

new is a mean, relatively new rising the we're is I inflation of prospect to for that ready -- say, borrower broadly markets for to prices, in sure period how commodity that's rates, or this enough prospect rising quite phenomenon rising permeating the I'm manifesting at on difficult not level. comment prepared the terms very It's Mickey.

Mickey Schleien

couple questions, of A more Jonathan. Okay.

will floors. floors, portfolio? LIBOR portfolio loan give in Can CLO an which floors the mentioned become us in you the SOFR the You what idea are average and

Jonathan Cohen

bps. to I around it's mean broadly XX right Mickey, for probably the market, XX

Mickey Schleien

of I'm Oxford Okay. Lane, the those than And my yields. yields, CLO book at equity I'm other including asking related to versus to Square, the is last is X% in cash are Oxford of understand effective yields is yields which yield trying CLO the funds, at its XX%. less because well CLO around effective cash into half are over why And teens. question

effect the book as is, know the that and more So of to to less Square cost you to investment. Oxford income the

Jonathan Cohen

dates, mind, course, necessarily and across difference. different portfolios one different other. meaningful doesn't profile a mean to final portfolios. incept different in of effective levels Keep are different an superior But of or aging inferior is there is as you that with know, perspective the there Mickey. Sure, maturities those two It yield from

Mickey Schleien

anything it's else, idiosyncratic So than more Jonathan?

Jonathan Cohen

and age. more a timing function It's of

Mickey Schleien

that XX, effective yield yield to cash GAAP I overtime, follow tax of we and all see of X know can I up. just a and and to that when And an mean, combine than cash the yield effective long cash the that fact future? likely is does lower are yield time that yields down those happen. to a the much to over take so But come the imply cash have

Jonathan Cohen

I linear implication draw wouldn't necessarily a on basis. that

Mickey Schleien

your Those questions this time. Jonathan. appreciate morning. I for all are my Thanks, Okay.

Jonathan Cohen

Mickey. you, Thank

Thank Mickey. course, you. Of

Operator

Cohen, show CEO. I that, And will no call further Mr. the questions. turn to with Jonathan I back

Jonathan Cohen

I'd to Oxford everybody we speaking interest All soon. Thanks. your like Square Corp. for their right. forward to in interest and We participation thank Capital look appreciate call. And this in

Oxford Square Capital (OXSQ) 3 Mar 222021 Q4 Earnings call transcript