OXLC - Earnings call transcript Q1 2025 | Oxford Lane Capital Corp.

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Operator

Hello all, and welcome to Oxford Lane Capital Corp's First Fiscal Quarter Earnings Call. My name is Lydia, and I will be your operator today. After the prepared remarks, there will be an opportunity to ask questions. [Operator Instructions] I'll now hand you over to Jonathan Cohen, CEO, to begin.

Jonathan Cohen

Good morning, everyone, and welcome to the Oxford Lane Capital Corp.

Earnings XXXX Quarter Fiscal Call. First by I'm Rubin, Director. our Bruce Rosenthal, Chief joined Financial Managing today our our Officer; President; Kupka, Saul and Joe could regarding a call open statements. Bruce, disclosure you the forward-looking with

Bruce Rubin

current Capital call Jonathan. will call call this morning. included information. in Any Please earlier call for other among this Corp. attention customary prohibited. reflect includes any in is Sure, events press available views morning's Oxford future form performance. the is conference being An property things, that company's and of be information audio conference in Replay Today's days. of point, this this to financial release with rebroadcast strictly At note statements respect disclosure is forward-looking your please that this recorded. of forward-looking direct to, XX regarding our that the and replay is Lane unauthorized call press release issued Today's was projections the the

refer law. you those indicated recent could do to do statements from materially that unless important our filings differ update cause these by actual required ask projections. that to for SEC to so not in We factors We forward-looking the results with most undertake to our

release turn During that, Jonathan. on release definitions with to earnings back in non-GAAP refer our we and please And use measures. website presentation www.oxfordlanecapital.com. I'll reconciliations the this posted call, and over terms our defined to The will at earnings also refer the to to GAAP,

Jonathan Cohen

per $X.XX of asset compared a stood $X.XX quarter. On Bruce. to of value our June as value per asset you, XX, share prior net Thank XXXX, the net at share

income net $X.X investment income. CLO XX. of from representing of approximately GAAP ended compared share million an $XX from and quarter to the investment income for prior quarter's our or consisted GAAP $XX income we approximately recorded Lane warehouse debt the $XX.X of share of investments approximately million, investments million March investment June our equity $X.XX from per The Oxford from $XX or recorded total June million CLO $X.X quarter. ended and ended per approximately approximately quarter GAAP increase million For total CLO million XX, other approximately and quarter the the for $X.XX

Our income per for XX approximately million quarter or $XXX.X million core with net or the XX. share $X.XX ended for investment share approximately ended was $X.XX per compared $XX.X June March quarter the

the increase We unrealized operations gains and For $XX.X ended the quarter. $X.XX in investments share net million for $XX.X depreciation realized quarter of million first assets fiscal had net net a resulting net million. per or recorded $X.X approximately June, approximately approximately from we on of of

yield was XX.X%, from yield of XX. of the average current XX.X% effective none to at As at as March equity our average applied. XX. CLO of of current cash of The total was March metrics cost June up following of these investments down CLO The We of The XX, investments from XX. our weighted that equity metrics yield cost average represented weighted current return was as XX.X% shareholders. up XX.X%, debt CLO of cost distribution at March investments XX.X%, as a note XX.X% weighted from our

at equity which we We calculated or investments distribution entitled end. respective note our the received were we yields on each cash that the CLO receive based cash distributions period are on to

$XXX.X of a of ended XX.X stock we approximately June, in net million million. at-the-market our issued proceeds to of approximately an quarter total offering, resulting common the pursuant During shares

call the of share of our per XXXX. November Directors repayments. sales July months ended During $XX.X December On Managing the CLO over additional June, ending declared XX, approximately and of of distributions Board our made the quarter October, Joe we from Kupka. and investments of I'll approximately $XXX.X we for each received stock and million, $X.XX With from to million Joe? turn common Director, monthly that,

Joseph Kupka

Jonathan. Thanks,

ended quarter the in quarter in June an in loan price U.S. and X-point at U.S. ending XX.XX%. June loan in U.S. XX.XX% values. net the led XXXX, The before During asset the at market to mid-May XX, softening median XX.XX%, index reaching CLO decrease equity decrease opened prices approximate

at trailing subpar Additionally, in XXX spreads out-of-court to the for end quarter decreased elevated. that We of are compared the default XXXX. default elevated side weighted end pools loan basis -- index decreased exchanges the X.X% levels March X.X% The to we we amount which observed average points by and points rate loan CLO the buybacks, due to principal last of basis to restructuring portfolios of median note the activity, from repricing XXX at quarter. across within captured the XX-month not remain rate

CLO approximately defined totaled percentage the Additionally, end billion from second the the as an $XXX in marking ended increase quarterly tighten. new the at during distress resets over quarter million CLO equity while price notional of to ratio, liabilities continued market remained loans in junior CLO have quarter, par, approximately CLO quarter, with opportunistic a Oxford of $XX March. history below $X debt highest and trading the to as refinancings. X.X% Lane participating of prior quarter at issuance the the and compared XX% volume billion, active this of X.X%

to overall of XXXX July our were function the November to the CLO lengthen portfolio a reinvestment Lane's of Oxford activity able from we XXXX. average during weighted equity quarter, period As

long-term the vehicle, equity relative the environment, investment warehouses been back over total utilize debt turn longer-term we look unconstrained to a I'll as permanent and return. historically our strategy take our in CLO maximize U.S. the as strategy portfolio. of strategy. to across continue during able to value Jonathan. view CLO seek With have equity, investment the to current we investment engage lengthen capital towards Our weighted opportunistic And a that, to trading market and we call our Lane's to period to and average reinvestment intend In was quarter Oxford CLO

Jonathan Cohen

Joe. Thanks,

been Lane's Oxford has now will any website results about uploaded that, www.oxfordlanecapital.com. operator information at to questions. our quarter first with for And the poll Additional

Operator

with Mickey question Schleien [Operator comes Instructions] Ladenburg. Our first from today

Mickey Schleien

that been a morning, everyone. also expectations over see leveraged impact the spread par, spreads, the CLO average liability market higher about a declined do trend to Good in CLO your and were of which I Jonathan, trading Yes. that average spreads loan points, arbitrage. wave above soft the repricing equity can stable. I portfolio X/X with of landing. and loan AAA due your pressure can there's That And basis X equity see

much what So caused CLO quarter? this your to increase so yields cash

Joseph Kupka

January payments. that -- April to of lot due at so a so Mickey, was the you're looking versus

lag numbers. bit a of in there's those So

managers till a payments quarter. the to dip up spread continue seen the we've build from So July down this payments. did April take

hit. So to continue repricing see you'll wave that

lag a there's So there.

some first-time that which have for did bolstered we yield payments on, number cash this quarter. come Additionally,

Mickey Schleien

portfolio Okay. refinance That's CLO spread to or in helpful. equity remaining And ability liabilities what are expectations help, yields for reset seeing? loan against your your the defend to the we're compression

Jonathan Cohen

make Sure, pronouncements constructive Mickey. activities. state We forward-looking see public don't of those But generally liability looks the still. we projections kinds or to of certainly, about market, CLO be really which the

Mickey Schleien

the lower to or the available odds haven't Jonathan, landing the quality ratings of to seemed higher And amount capital accept soft the Okay. agencies borrowers. of

pressure buckets. Xx, still which So above can the upgrade downgrade meaningfully CCC ratio is

So dealing your portfolio managers are with trend? that how

Joseph Kupka

Yes.

anticipation data elevated a cleaning proactively the Managers looking in activity. one amount have up of just been CCC reset we've to deal. So point to baskets reset seen these cleaner actually of due is into

around But So CCC do to they for relatively healthy that even baskets, managers declining seen it's be bit. these sense, the remaining are cushions a if these in up we've battle going manage proactively VOC baskets CCC a they you're to have but against do limit, ratios bump right, healthy. still continuing OC

Mickey Schleien

fund carry the balance on recent particularly high my last Yes, offering. The that. I notes doesn't with leverage sheet. saw And question the even

capital? your So what's shares cost to appetite to average lower help or debt issue preferred weighted your of additional

Jonathan Cohen

on appetite, Mickey, principally is, moment, at Our predicated this pricing.

the we only extent we us, there's additional but pricing think selectively a looked that sufficiently available we to be at to additional debt, to to compelling. at robust look found arbitrage -- add would that So

Mickey Schleien

have of Okay. mind, in Jonathan? Any leverage you sort target that

Jonathan Cohen

at the with shared no. we've that large, Not world

Operator

question Zwick is Markets. Lucid with next Our Capital from Erik

Erik Zwick

Good and the on question just morning, it seen wanted the quarter. we've Was doing everyone. to on I start sales during that past I -- X. in over you're activity all highest well. hope repayment the the with a

I'm So factors. if just specific wondering that's market activity reflective portfolio some or of

Jonathan Cohen

Erik, has X. largely, that it's course the the just significantly think function grown substantially -- fund a year a last of I the or function of the or of over size

activity repayment more and activity. sales So begets larger more scale

significant and remain committed should which an have generate trading activity. been to portfolio, actively managed We running

unprecedented. quarter. You in about But saw we trading worth necessarily CLO $XXX either I of unusual notional million the wouldn't call that did or

Erik Zwick

a whether there, increase just regard expenses. or quarter-over-quarter the more And normal nature kind you kind creep provide just was inflationary in of kind in color here? with Any of of can anything to onetime there

Jonathan Cohen

percentage-based a or Are dollar-based increase, you Erik, a increase? referencing

Erik Zwick

increase, I A dollar-based I can... if recall, correctly,

Jonathan Cohen

Just -- an the the in the of preceding We capital just amount size of the raised size quarter, likely enormous but most only fund. the immediately not this fund of quarter.

likely was dollar-denominated that higher. to everything else So would constant, lead being that number

Erik Zwick

question And just then a credit. on

You mentioned that out-of-court restructurings remain elevated.

well. some prices in the seen market as increase in the You've distressed

but into weakness? Looking more a soft the where of are guess recession becoming you're concerns a there's have I It you I some of any like are stress broad any at seems at view U.S. still, areas. exposure, there point, in this or a economy. industry seeing slice areas probable your odds the think, certain landing,

portfolio, ability look manage So have to that? And see that areas you how seeking your from any point? you at are to this I are into where so, guess you some if the stress there

Jonathan Cohen

Nothing, the of Erik, outside now mainstream activity. that of about is perception right readily the apparent in sort economic

an isn't concern around on the a that the the economy of as of ongoing we economy got an got But of to. the sort mark behavior, think we've U.S. that of we're aware continued don't that the that within that do, U.S. outside consumer. of perspective in There's investing consumer we've popular insight terms the economy I the perception. state there's think about of of sensitive parts question result the certain I

Operator

you. Thank

the no further have in We questions queue.

to turn back any call Cohen Jonathan comments. So for the I'll closing now

Jonathan Cohen

all. appreciate all And you to you soon. very interest on again and Thank this Thank your much conference look participating. call. today time We you certainly for to forward your speaking we

Operator

call. This concludes for Thank joining. today's you

lines. You may disconnect now your

Oxford Lane Capital (OXLC) 26 Jul 242025 Q1 Earnings call transcript