OXFORD SQUARE CAPITAL CORP. Oxford Square Capital Corp.
Investor Presentation
Quarter Ended June 30, 2021
Disclaimer
This presentation is neither an offer to sell, nor a solicitation of an offer to purchase, any securities of Oxford Square Capital Corp. ("OXSQ" or the "Company").
This presentation and the summaries contained herein do not purport to be complete and no obligation to update or otherwise revise such information is being assumed. Nothing shall be relied upon as a promise or representation as to the future performance of the Company. Such information is qualified in its entirety by reference to the more detailed discussions contained elsewhere in the Company's public filings with the Securities and Exchange Commission.
There is no guarantee that any of the estimates, targets or projections illustrated in this presentation will be achieved. Any references herein to any of the Company's past or present investments or its past or present performance have been provided for illustrative purposes only. It should not be assumed that these investments were or will be profitable or that any future investments by the Company will be profitable or will equal the performance of past or present investments.
The information contained herein has been derived from financial statements and other documents provided by the portfolio companies and/or the third-party manager of such portfolio companies unless otherwise stated. Certain information discussed in this presentation (including information relating to portfolio companies) was derived from third-party sources and has not been independently verified and, accordingly, OXSQ makes no representation or warranty with respect to this information.
Past performance is not indicative of future results. In addition, there can be no assurance that unrealized gains/losses will be realized at the expected multiples shown since actual realized returns will depend on, among other factors, the future operating results of each of the Company's current portfolio companies, the value of the assets and economic conditions at the time of disposition, any related transaction costs, and the timing and manner of sale, all of which may differ from the assumptions on which the Company's expected returns are based. In many instances, the Company will not determine the timing or manner of sale of the Company's portfolio companies.
Statements included herein may constitute "forward-looking statements," which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties, including the impact of COVID-19 and related changes in base interest rates and significant market volatility on the Company's business, its portfolio companies, its industry and the global economy. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Company's public filings with the Securities and Exchange Commission. OXSQ undertakes no duty to update any forward-looking statements made herein, except as may be required by law.
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Financial Highlights
($ per share) | Q2-21 | Q1-21 | Q4-20 | Q3-20 | Q2-20 | |||||
GAAP net investment income1 | $ | 0.06 | $ | 0.10 | $ | 0.10 | $ | 0.09 | $ | 0.09 |
Distributions declared and paid | $ | 0.105 | $ | 0.105 | $ | 0.105 | $ | 0.105 | $ | 0.201 |
Net realized gains (losses) on investments1 | $ | 0.02 | $ | (0.28) | $ | (0.02) | $ | (0.09) | $ | (0.06) |
Net unrealized gains on investments1 | $ | 0.05 | $ | 0.63 | $ | 0.72 | $ | 0.42 | $ | 0.38 |
Net increase in net assets resulting from operations 1 | $ | 0.13 | $ | 0.44 | $ | 0.80 | $ | 0.42 | $ | 0.41 |
Net asset value | $ | 4.91 | $ | 4.88 | $ | 4.55 | $ | 3.85 | $ | 3.54 |
($ in millions) | Q2-21 | Q1-21 | Q4-20 | Q3-20 | Q2-20 |
Total fair value of investments | $ 404.8 | $ 320.6 | $ 294.7 | $ 295.3 | $ 270.8 |
Number of portfolio investments | 59 | 53 | 54 | 63 | 62 |
Net assets | $ 243.5 | $ 242.0 | $ 225.4 | $ 191.0 | $ 175.3 |
Principal amount of debt outstanding | $ 189.7 | $ 109.2 | $ 109.2 | $ 109.2 | $ 109.2 |
Debt to equity | 0.78x | 0.45x | 0.48x | 0.57x | 0.62x |
Note: Certain figures may not foot or tie to financial statements due to rounding.
1. Per share amounts based on weighted average shares outstanding for the respective quarter presented.
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Summary Portfolio Highlights
Portfolio Activity | ||||||||||
($ in millions) | Q2-21 | Q1-21 | Q4-20 | Q3-20 | Q2-20 | |||||
New investments | $ 99.5 | $ 32.9 | $ 46.9 | $ 18.3 | $ 21.3 | |||||
Exits | 3.7 | 18.3 | 76.5 | 8.9 | 26.2 | |||||
Net investment activity | $ 95.8 | $ 14.6 | $ (29.6) | $ 9.4 | $ (4.9) | |||||
Weighted average yield of debt investments at current cost | 1 | 7.6% | 7.7% | 8.0% | 8.3% | 8.1% | ||||
Weighted average effective yield of CLO equity investments at current cost | 10.4% | 9.4% | 8.0% | 7.7% | 7.1% | |||||
Weighted average yield of total investments at current cost | 9.0% | 8.5% | 8.0% | 8.0% | 7.6% | |||||
Weighted average cash distribution yield of debt investments at current cost | 2 | 5.9% | 6.8% | 6.1% | 6.6% | 7.2% | ||||
Weighted average cash distribution yield of cash income producing CLO equity investments at current cost | 3 | 18.8% | 4 | 17.9% | 4 | 19.2% | 11.7% | 11.6% | ||
Weighted average cash yield of cash income producing securities at current cost | 11.2% | 11.8% | 12.0% | 8.8% | 9.1% | |||||
Total Investments by Asset Type5,6 | ||||||||||
Q2-21 | Q1-21 | Q4-20 | Q3-20 | Q2-20 | ||||||
First-lien secured debt | 27% | 23% | 21% | 32% | 34% | |||||
Second-lien secured debt | 33% | 37% | 37% | 35% | 36% | |||||
CLO equity | 40% | 40% | 42% | 29% | 30% | |||||
CLO debt | 0% | 0% | 0% | 3% | <1% | |||||
7 | 0% | 0% | 0% | 0% | <1% | |||||
Other |
Note: Certain figures may not foot or tie to financial statements due to rounding.
- Represents accrued interest divided by amortized cost of interest earning debt investments held on 6/30/2021.
- Represents the cash interest received or entitled to be received and recognized as income on interest earning debt investments (excluding PIK interest and OID) in the respective quarter annualized, divided by the average of the total cost basis at the beginning and end of such respective quarter of total debt investments.
- This calculation includes CLO investments which have experienced either partial or full diversion.
- Excludes CLO investments which have been optionally redeemed.
- As a percentage of the total invested portfolio fair value as of quarter end. Excludes cash and equivalents.
6. | Due to rounding, totals may not add up to 100%. | 4 |
7. "Other" includes common stock and preferred equity.
CLO Equity & Initial Distribution Schedule
($ in millions) | |||
CLO equity which has made its initial distribution to OXSQ (at original cost) | 1 | ||
CLO equity which has not made its initial distribution to OXSQ (at original cost) | 1,2 | ||
Total CLO Equity | 1 | ||
Q2-21 | Q1-21 | Q4-20 | Q3-20 | Q2-20 |
$ 187.2 | $ 199.1 | $ 212.1 | $ 214.3 | $ 220.1 |
40.3 | 21.9 | 23.3 | 11.7 | 10.0 |
$ 227.5 | $ 221.0 | $ 235.5 | $ 226.0 | $ 230.1 |
1,2 | |
Timing of CLO Equity Making Initial Distributions at Original Cost as of June 30, 2021 | |
($ in millions) | |
CLO equity expected to make initial distribution to OXSQ by 9-30-21 (at original cost) | $ 6.9 |
CLO equity expected to make initial distribution to OXSQ by 12-31-21 (at original cost) | - |
CLO equity expected to make initial distribution to OXSQ by 3-31-22 (at original cost) | 33.5 |
Total initial distributions of CLO equity (at original cost) | $ 40.3 |
Cash Flow Diversion Amount | ||||||
($ in millions) | Q2-21 | Q1-21 | Q4-20 | Q3-20 | Q2-20 | |
Cash flow diversion amount | 3,4 | $ 0.0 | $ 0.3 | $ 0.8 | $ 0.9 | $ 2.3 |
Note: Totals may not sum due to rounding.
- This number represents total dollar value (at original cost) of those assets held at prior quarter end plus new investments purchased during the current period. Excludes called deals.
- Represents the amount of CLO equity investments (purchased in either the primary or secondary market) which had not yet made an initial distribution to OXSQ during the quarter. For newly issued CLOs, it can generally take up to three quarters from issuance to receive initial distribution payments from those respective CLO equity investments.
- These figures represent the total cash diverted from investments by the CLO vehicle as a result of failure to comply with their respective overcollateralization and/or interest diversion tests.
- As reported by Trustee, includes record date payments as of quarter-end.
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Oxford Square Capital Corp. published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2021 12:19:04 UTC.
