Earnings call transcript Q1 2023

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Operator

Good morning or good afternoon, and welcome to the Oxford Square Capital Corp’s First Quarter 2023 Earnings Conference Call. My name is Adam, and I'll be your operator for today. [Operator Instructions].

I will now hand the floor over to Saul Rosenthal to begin.

So Saul, please go ahead when you are ready.

Saul Rosenthal

good and operator, you, morning, everyone. Thank the conference call. to Oxford Square earnings XXXX quarter first Capital Welcome I'm by Portfolio Kevin Yonon, joined Officer our Financial today Managing Bruce Rubin, Director and Manager. Chief our and

our First, would looking Sure, with disclosure regarding statements? call you forward a open please

Bruce Rubin

Square At property the attention Saul. information rebroadcast being please an Oxford the looking is this our release in and of of Capital call included audio form forward available for morning. unauthorized is will regarding disclosure issued that is your conference information. of in call be Corp. any conference this this Please XX Today's replay Sure, recorded, the in is days. direct call release morning's to customary this this call the note Replay strictly press prohibited. press point,

in refer Today's with events conference current cause indicated financial ask materially company's of at do looking filings visit and by call things unless statements for to filings future important to other you that projections. looking our includes reflect We can and We factors projections the that to with differ our the www.oxfordsquarecapital.com. forward from our statements to respect required performance. most those not our forward obtain To latest actual copies law. so update do SEC SEC results among recent website to undertake views that please these

Saul. over back With call to that, turn I'll the

Saul Rosenthal

Bruce. Thank you,

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

driven in our we interest recorded principally prior approximately investment investment the an approximately portfolio. For quarter. million $XX.X $XX.X increase million loan the income income of increase was That from as by total in compared to in first income quarter, total

on depreciation unrealized were or $XXX,XXX per events we $X.XX during $XX.X realization the first compared less recorded than share In on of There net per share prior or depreciation approximately million investments quarter, quarter. quarter. no first investments unrealized approximately of the net for this $X.XX to

purchases investment first of there the the quarter, quarter. consisted our no million of repayments activity sales approximately were approximately and $X.X of $XXX,XXX During during

As and equivalents of approximately million. XX, March we held cash cash of $XX.X

of On and Directors August each of Board declared per distributions April September $X.XXX XXXX, XX, share the monthly our months ending XXXX. of for July,

this record date in be details and press morning. period can information found was that our Additional issued regarding release

our to turn will market. Portfolio to Yonon call loan Manager, discuss the Kevin over I the

Kevin Yonon

Thank you, Saul.

During quarter X, the average. as by quarter end as XX.XX% par or The X.XX% Loan the points Index principal ended B-rated quality basis to on amount there the or some credit defined prices points basis points to and XXXX, par XX rate Index Loan prior the Morningstar of increased the end before U.S. increased of quarter. December XXXX. XX-month of March LSTA of U.S. performance February trailing Leveraged default the U.S. as March December at LCD XX.XX% X.XX% for from pricing versus at X.XX% of increasing the Morningstar basis LSTA related XX. market XX U.S. BB-rated to increasing loan the prices with of XXX of or loan XX.XX% prices X.XX%, loan increasing CCC-rated prices loan XXX X.XX% XX, par as by Leveraged the According from quarter, loan were dispersion to of to dropping during improved

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

and Lipper, This issuance outflows, measured U.S. approximately XXXX, a quarter XX% LBO lower March by March representing decline offset versus XX, activity fund XXXX. XX, March was XXXX. M&A partly ended higher time, quarter as ended same ended refinancing approximately activity. the were the At driven quarter billion billion the primary loan the $X.X During XX, market $XX by by was for

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

With that, will turn the over to, I call Saul. back

Saul Rosenthal

Thank Kevin. you,

been first Oxford quarter information Square www.oxfordsquarecapital.com. Additional to our about Capital posted Corp’s performance at website has

operator, And the discussion for now will open with we that, questions.

Operator

Ladenburg. comes from [Operator you. please first Thank And our from Mickey, ahead. go Mickey Instructions]. today question Schleien

line open. Your is

Mickey Schleien

Yes, percentage ask half weighted period. to And it good those your test? average reinvestment understand are morning, also their like their looks about Saul, are life beyond what of and everyone. like I'd of CLO failing investments

Saul Rosenthal

of Hang follow-up offline. with second, one on a have happy We here I'm team actually that have readily investment we're that our we information. members up handy, statistic to Actually, us. don't sorry, senior but let's Mickey. punch

Mickey Schleien

CLOs with the equal? CLOs, think beyond my average looking follow-up average that weighted meaning is how their do developing test, flows are reset But number wide, the those about When I'll life assuming and limited. to With liability and to refinancing buy significant CLO you. a CLO, weighted the life managers opportunity cash meet short their period everything Okay. else those reinvestment we spread, understanding quite market duration you is for loans test. remains see the those still failing of overall,

Saul Rosenthal

our the turn member going team Hooman investment I'm that. to call of senior address to to Banafsheha, Right.

Hooman Banafsheha

Hi, Mickey, right.

noted, part that of CLO As the structure. is you

CLO to of a indentures, profiles that managers is of within average reinvestment However, outside being life failing. despite the period, also there's if the weighted to different lot reinvest, continue success the allow

fail tests where improve. them they and of as long Some touch they as maintain could one are

criteria speaking and to them kind buy are current in we're that and loans fit market, continue managers the secondary seeing that And to their to ample build given let of portfolios. conditions opportunities out the reinvest

Mickey Schleien

X% funds that about relationship? of I help only cash that cash but see the junior flow have which also us total looks $XXX,XXX for CLOs Could understand Okay, only out segment. four cushions, the that's negative diverted you OC flow helpful. of XX like of was that

Hooman Banafsheha

Right.

So, diversions partial roughly two as XXK for a I number. think total there's only

period. some of deals And tests their after of reinvestment out apply those won't the are

Mickey Schleien

helpful. Okay. That's

Saul Rosenthal

Mickey one, -- Another

Mickey Schleien

morning. it for me That's this

Saul Rosenthal

Thank you, okay. Yes, Mickey.

Mickey Schleien

No, Saul. go ahead,

Saul Rosenthal

to I test was be OC would the not the In the and may post still say words, have just -- be test applicable. selling saying, yet as, that full test they was Hooman, other reinvestment going payment. a period

important. I think that was

Mickey Schleien

Okay. That's you this time. me for helpful. it That's your morning. for Thank

Saul Rosenthal

you, Thank any Great. Mickey. questions? Operator, other

Operator

this present. to, And Nothing in concluding hand the no we queue back as Instructions]. further at Saul, I'll questions for at remarks. further any have time, [Operator

Saul Rosenthal

thank forward Square you everyone Thank Well, conference you quarter our Oxford XXXX this for first morning next call. updating operator. you. Capital’s Thank on call earnings joining for you, we look to us and

Operator

call. much today's concludes you attendance. This your Thank for very

You may now disconnect your lines.

Oxford Square Capital (OXSQ) 2 May 232023 Q1 Earnings call transcript