Oxford Square Capital Corp. Q4 FY2023 earnings call

• Jonathan Cohen noted net investment income, net asset value per share at $2.55 (down from $2.78 prior quarter), and a distribution of $0.105 per share. - Kevin Yonon discussed U.S. loan market performance improvement, with loan prices increasing, pricing dispersion among rating categories, a 12-month trailing default rate increase, and a distress ratio change. He also mentioned U.S. leverage loan primary market issuance increase, fund outflows, and focus on portfolio management strategies for long-term total return.

For the quarter ended December, Oxford Square's net investment income was approximately $7.8 million or $0.13 per share compared with $6.4 million or $0.11 per share for the prior quarter. Total investment income for the fourth quarter was approximately $12.3 million compared to approximately $13 million in the prior quarter. Net unrealized depreciation on investments was approximately $14.8 million or $0.25 per share in the fourth quarter, compared to net unrealized appreciation of approximately $13.9 million or $0.24 per share in the prior quarter. Realized losses in the fourth quarter were approximately $270,000, versus realized losses of approximately $13.6 million or $0.24 per share in the prior quarter. Investment activity during the quarter included sales of approximately $3.7 million, repayments of approximately $800,000, and purchases of approximately $3.5 million. Approximately 1.3 million shares of common stock were issued pursuant to an at-the-market offering, resulting in net proceeds of approximately $3.7 million.

• On March 14, 2024, the Board of Directors declared monthly distributions of $0.035 per share for each of the months ending April, May, and June of 2024.

• The call included forward-looking statements and projections, with a note to refer to most recent SEC filings for factors that could cause actual results to differ materially from projections. No specific operational failures or detailed risks were discussed in the transcript.

Q: What can you tell us about the new nonaccrual status investment?

A: Certainly. Thank you very much for your question. The nonaccrual is related to an investment in a private company, where we're not, unfortunately, allowed to disclose any further details beyond what's in the press release.