Oxford Lane Capital Corp. Q4 FY2025 earnings call

• On March 31, 2025, net asset value per share was $4.32 vs. $4.82 prior quarter.
• GAAP total investment income for the quarter was ~$121.2M, net investment income ~$75.4M or $0.18 per share.
• Core net investment income ~$95.8M or $0.23 per share.
• Held ~$639.1M in newly issued/acquired CLO equity investments not yet distributing.
• Net unrealized depreciation on investments ~$187.7M, net realized losses ~$8.5M.
• Issued ~60.7M shares of common stock in aftermarket offering, net proceeds ~$300.5M.
• Made ~$526.2M in additional CLO investments, received ~$136M from sales/repayments.
• Board declared monthly common stock distributions of $0.09 per share for July, August, September 2025.
• Awarded best public CLO fund by periodical credit flux.

For the quarter ended March, GAAP total investment income was approximately $121.2 million. This consisted of approximately $115.3 million from CLO equity and CLO warehouse investments and approximately $5.9 million from CLO debt investments and other income. GAAP net investment income was approximately $75.4 million or $0.18 per share for the quarter, compared to approximately $72.4 million or $0.20 per share in the prior quarter. Core net investment income was approximately $95.8 million or $0.23 per share for the quarter, down from $99.9 million or $0.28 per share in the prior quarter. As of March 31, weighted average yield of CLO debt investments at current cost was 15.9% (down from 16.6% prior), weighted average effective yield of CLO equity investments at current cost was 15.9% (down from 16.1% prior), and weighted average cash distribution yield of CLO equity investments at current cost was 20.5% (down from 23.9% prior).

• Intend to continue opportunistic and unconstrained CLO investment strategy across U.S. CLO equity, debt, and warehouses to maximize long-term total return.
• As a permanent capital vehicle, take longer-term view towards investment strategy.

• U.S. loan market performance weakened with loan price index decreasing and median U.S. CLO equity net asset values down.
• Elevated repricing activity led to decreased median weighted average spreads across loan pools in CLO portfolios.
• Market volatility and economic dislocation affecting CLO pricing and yields.

Q: Think about the share repurchase program, have you purchased any shares yet under that?

A: We haven't disclosed that information.

Q: Talk about pricing dynamics in the current quarter, understanding that yields were down in the quarter ended in March and maybe what you're expecting to see for this year.

A: Between end of 2024 and March 31, saw dramatic diminishment in CLO tranche pricing, significant illiquidity, and stress correlated with other markets. No specific point estimate on yields for remainder of year. Intend to reassess relative attractiveness of primary vs secondary markets constantly. Holding long-dated CLO equity during economic/financial dislocation historically provided strong returns.

Q: How you guys differentiate yourselves from peers.

A: Run completely unconstrained CLO investment strategy, can look at long-dated CLO equity, short-dated primary/secondary tranches, warehouse, are large market participants in primary and secondary, and rotate portfolio aggressively. View CLO asset class as appropriate for active portfolio management strategy.