Oxford Lane Capital Corp (OXLC) 2025 Q4 法說會逐字稿

Good morning, and thank you all for attending the Oxford Lane Capital Corp. announces net asset value and selected financial results for the fourth fiscal quarter. My name is Breca, and I will be your moderator for today. (Operator Instructions)

早安，感謝大家參加 Oxford Lane Capital Corp. 宣布第四財季淨資產價值及部分財務表現。我叫 Breca，今天我將擔任你們的主持人。（操作員指示）

I would now like to pass the conference over to your host, Jonathan Cohen, CEO at Oxford Lane Capital Corp. Thank you. You may proceed, Jonathan.

現在，我想將會議交給主持人，Oxford Lane Capital Corp. 執行長 Jonathan Cohen。謝謝。你可以繼續，喬納森。

Thank you. Good morning, everyone, and welcome to the Oxford Lane Capital Corp. fourth fiscal quarter 2025 earnings conference call. I'm joined today by Saul Rosenthal, our President; Bruce Rubin, our CFO; and Joe Kupka, our Managing Director.

謝謝。大家早安，歡迎參加 Oxford Lane Capital Corp. 2025 財年第四季財報電話會議。今天和我一起出席的還有我們的總裁 Saul Rosenthal；我們的財務長 Bruce Rubin；以及我們的董事總經理喬·庫普卡 (Joe Kupka)。

Bruce, could you open the call with a disclosure regarding forward-looking statements?

布魯斯，您能否在電話會議開始時披露一些有關前瞻性陳述的資訊？

Sure, Jonathan. Today's conference call is being recorded. An audio replay of the call will be available for 30 days. Replay information is included in our press release that was issued earlier this morning. Please note that this call is the property of Oxford Lane Capital Corp. Any unauthorized rebroadcast of this call in any form is strictly prohibited.

當然，喬納森。今天的電話會議正在錄音。此次通話的音訊回放將保留 30 天。重播資訊包含在我們今天早上發布的新聞稿中。請注意，本次通話歸 Oxford Lane Capital Corp 所有。未經授權，嚴禁以任何形式轉播本次通話。

At this point, please direct your attention to the customary disclosure in this morning's press release regarding forward-looking information. Today's conference call includes forward-looking statements and projections that reflect the company's current views with respect to, among other things, future events and financial performance.

此時，請注意今天上午新聞稿中有關前瞻性資訊的常規披露。今天的電話會議包括前瞻性陳述和預測，反映了公司對未來事件和財務表現等的當前看法。

We ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from those indicated in these projections. We do not undertake to update our forward-looking statements unless required to do so by law. During this call, we will use terms defined by -- in the earnings release and also referred to non-GAAP measures. For definitions and reconciliations to GAAP, please refer to our earnings release provided on our website at www.oxfordlanecapital.com.

我們請您參考我們最近向美國證券交易委員會提交的文件，以了解可能導致實際結果與這些預測結果大不相同的重要因素。除非法律要求，否則我們不承諾更新我們的前瞻性陳述。在本次電話會議中，我們將使用收益報告中定義的術語，並參考非公認會計準則指標。有關定義和與 GAAP 的對賬，請參閱我們網站 www.oxfordlanecapital.com 上提供的收益報告。

With that, I'll turn the presentation back over to Jonathan.

說完這些，我會把演講交還給喬納森。

Thank you, Bruce. On March 31, 2025, our net asset value per share stood at $4.32 compared to a net asset value per share of $4.82 as of the previous quarter. For the quarter ended March, we recorded GAAP total investment income of approximately $121.2 million, representing an increase of approximately $6.7 million from the prior quarter.

謝謝你，布魯斯。2025 年 3 月 31 日，我們的每股淨值為 4.32 美元，而上一季的每股淨值為 4.82 美元。截至 3 月的季度，我們記錄的 GAAP 總投資收入約為 1.212 億美元，比上一季增加約 670 萬美元。

For the quarter ending March, we recorded -- excuse me, the quarter's GAAP total investment income consisted of approximately $115.3 million from our CLO equity and CLO warehouse investments and approximately $5.9 million from our CLO debt investments and from other income. Oxford Lane recorded GAAP net investment income of approximately $75.4 million or $0.18 per share for the quarter ended March compared to approximately $72.4 million or $0.20 per share for the quarter ended December 31.

截至 3 月的季度，我們記錄了 - 對不起，本季的 GAAP 總投資收入包括來自我們的 CLO 股權和 CLO 倉庫投資的約 1.153 億美元以及來自我們的 CLO 債務投資和其他收入的約 590 萬美元。牛津巷公司截至 3 月的季度的 GAAP 淨投資收入約為 7,540 萬美元或每股 0.18 美元，而截至 12 月 31 日的季度的 GAAP 淨投資收入約為 7,240 萬美元或每股 0.20 美元。

Our core net investment income was approximately $95.8 million or $0.23 per share for the quarter ended March compared with approximately $99.9 million or $0.28 per share for the quarter ended December 31. As of March 31, we held approximately $639.1 million in newly issued or newly acquired CLO equity investments that had not yet made initial equity distributions to Oxford Lane Capital Corp.

截至 3 月的季度，我們的核心淨投資收入約為 9,580 萬美元或每股 0.23 美元，而截至 12 月 31 日的季度，我們的核心淨投資收入約為 9,990 萬美元或每股 0.28 美元。截至 3 月 31 日，我們持有約 6.391 億美元的新發行或新收購的 CLO 股權投資，這些投資尚未向 Oxford Lane Capital Corp 進行初始股權分配。

For the quarter ended March, we recorded net unrealized depreciation on investments of approximately $187.7 million and net realized losses of approximately $8.5 million. We had a net decrease in net assets resulting from operations of approximately $120.8 million or $0.28 per share for the fourth fiscal quarter. As of March 31, the following metrics applied. We note that none of these metrics necessarily represented a total return to shareholders.

截至 3 月的季度，我們記錄的投資淨未實現折舊約為 1.877 億美元，淨已實現損失約 850 萬美元。第四季度，我們的經營性淨資產淨減少約 1.208 億美元，即每股 0.28 美元。截至 3 月 31 日，適用以下指標。我們注意到，這些指標不一定代表股東的總回報。

The weighted average yield of our CLO debt investments at current cost was 15.9%, down from 16.6% as of December 31. The weighted average effective yield of our CLO equity investments at current cost was 15.9%, down from 16.1% as of December 31. The weighted average cash distribution yield of our CLO equity investments at current cost was 20.5%, which was down from 23.9% as of December 31. We note that the cash distribution yields calculated on our CLO equity investments are based on the cash distributions we received or which we were entitled to receive at each respective period end.

以當前成本計算，我們的 CLO 債務投資的加權平均收益率為 15.9%，低於 12 月 31 日的 16.6%。以當前成本計算，我們的 CLO 股權投資的加權平均有效收益率為 15.9%，低於 12 月 31 日的 16.1%。以目前成本計算，我們的 CLO 股權投資的加權平均現金分配收益率為 20.5%，低於 12 月 31 日的 23.9%。我們注意到，我們 CLO 股權投資計算的現金分配收益率是基於我們收到的現金分配或我們在每個相應期間末有權收到的現金分配。

During the quarter ended March, we issued a total of approximately 60.7 million shares of our common stock pursuant to an aftermarket offering resulting in net proceeds of approximately $300.5 million. During the quarter ended March, we made additional CLO investments of approximately $526.2 million and we received approximately $136 million from sales and from repayments. As previously announced, on March 26, our Board of Directors declared monthly common stock distributions of $0.09 per share for each of the months ending July, August, and September of 2025.

在截至 3 月的季度中，我們根據售後市場發行共計約 6,070 萬股普通股，淨收益約為 3.005 億美元。在截至 3 月的季度中，我們額外投資了約 5.262 億美元的 CLO，並從銷售和還款中獲得了約 1.36 億美元的資金。如前所述，3 月 26 日，我們的董事會宣佈在截至 2025 年 7 月、8 月和 9 月的每個月，每月普通股分配額為每股 0.09 美元。

Finally, as previously announced on May 16, we were awarded Best Public Closed-End CLO fund by the periodical Creditflux at their London Conference. With that, I'll turn the call over to our Managing Director, Joe Kupka.

最後，正如 5 月 16 日宣布的那樣，我們在期刊 Creditflux 的倫敦會議上被授予「最佳公共封閉式 CLO 基金」稱號。說完這些，我將把電話轉給我們的董事總經理喬·庫普卡 (Joe Kupka)。

Thanks, Jonathan. During the quarter ended March 31, 2025, US loan market performance weakened versus the prior quarter. US loan price index decreased from 97.33% as of December 31, 2024, to 96.31% as of March 31.

謝謝，喬納森。截至 2025 年 3 月 31 日的季度中，美國貸款市場表現較上一季減弱。美國貸款物價指數從截至2024年12月31日的97.33%下降至截至3月31日的96.31%。

The decrease in US loan prices led to an approximate 12-point decrease in median US CLO equity net asset values. Additionally, due to elevated levels of repricing activity, we observed median weighted average spreads across loan pools within CLO portfolios decreased to 330 basis points compared to 334 basis points last quarter.

美國貸款價格的下降導緻美國CLO股權淨資產中位數下降約12個百分點。此外，由於重新定價活動水準上升，我們觀察到 CLO 投資組合內貸款池的中位數加權平均利差從上一季的 334 個基點下降至 330 個基點。

The 12-month trailing default rate for the loan index declined to 0.8% by principal amount at the end of the quarter from 0.9% at the end of December 2024. We note that out-of-court restructurings, exchanges, and subpar buybacks, which are not captured in the cited default rate remain elevated. CLO new issuance for the quarter totaled approximately $49 billion, reflecting a nearly $11 billion decline from the previous quarter, though issuance volume kept pace with the first quarter of 2024, a record-breaking year.

該貸款指數的 12 個月追蹤違約率以本金金額計算從 2024 年 12 月底的 0.9% 下降至本季末的 0.8%。我們注意到，庭外重組、債務交換和低於標準的回購等未包含在上述違約率中的項目仍然較高。本季 CLO 新發行總額約為 490 億美元，較上一季減少近 110 億美元，但發行量與創紀錄的 2024 年第一季保持同步。

Additionally, the US CLO market saw over $100 billion in reset and refinancing activity in Q1 '25 consistent with levels seen in the prior quarter. Oxford Lane remained active this quarter, investing over $520 million in CLO equity debt and warehouses, while participating in opportunistics, resets, and refinancings. As a function of our overall activity during the quarter, we were able to lengthen the weighted average reinvestment period of Oxford Lane CLO equity portfolio from February 2028 to November 2028.

此外，美國 CLO 市場在 2025 年第一季的重置和再融資活動超過 1,000 億美元，與上一季的水準一致。本季度，Oxford Lane 仍保持活躍，投資超過 5.2 億美元於 CLO 股權債務和倉庫，同時參與機會投資、重置和再融資。根據本季的整體活動，我們能夠將 Oxford Lane CLO 股票投資組合的加權平均再投資期間從 2028 年 2 月延長至 2028 年 11 月。

Our primary investment strategy during the quarter was to engage in relative value trading and seek to lengthen the weighted average reinvestment period of Oxford Lane CLO equity portfolio. In the current market environment, we intend to continue to utilize our opportunistic and unconstrained CLO investment strategy across US CLO equity debt and warehouses as we look to maximize our long-term total return, and as a permanent capital vehicle, we have historically been able to take a longer-term view towards our investment strategy.

我們本季的主要投資策略是進行相對價值交易，並尋求延長 Oxford Lane CLO 股票投資組合的加權平均再投資期間。在當前的市場環境下，我們打算繼續利用我們的機會主義和不受約束的 CLO 投資策略，投資於美國 CLO 股票債務和倉庫，以期最大化我們的長期總回報，並且作為永久資本工具，我們歷來能夠對我們的投資策略採取更長遠的眼光。

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

說完這些，我就把電話轉回喬納森。

Thanks very much, Joe. With that, operator, we're happy to open the call for any questions.

非常感謝，喬。接線員，我們很高興為您解答任何問題。

(Operator Instructions) We have a question from [Deija Sakon] with (inaudible) Private Investor.

（操作員指示）我們收到了（聽不清楚）私人投資者的 [Deija Sakon] 的問題。

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

想想股票回購計劃，你已經根據該計劃購買了任何股票嗎？

We haven't disclosed that information.

我們尚未透露該資訊。

Erik Zwick, Lucid Capital Markets.

Erik Zwick，Lucid Capital Markets。

This is Justin on for Erik today. So I was wondering if you guys could 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.

今天是賈斯汀 (Justin) 代替埃里克 (Erik) 節目。所以我想知道你們是否可以談談本季的定價動態，了解三月結束的季度收益率下降的情況，以及你們對今年的預期。

Joe?

喬？

Yeah. Are you referring to CLO equity trading levels in particular or the liability market, anything in particular you're looking up to go over?

是的。您指的是 CLO 股票交易水準還是負債市場，或者您想了解哪些具體內容？

I guess kind of just at a high level, where you guys are expecting yields to go for the investment portfolio.

我想這只是從高層次來看，你們都期望投資組合的收益。

Sure. We don't have a specific target, Justin, or projection in terms of anticipated yields. What we can say is that between the end of calendar 2024 and March 31, we saw a dramatic diminishment in CLO tranche pricing, significant illiquidity in the marketplace. And a general level of stress accompanying the levels of stress that we saw in public and private equity markets, the US syndicated corporate loan market, the public corporate bond market, all of those things were fairly tightly correlated during that period of economic dislocation.

當然。賈斯汀，我們沒有具體的目標，也沒有預期收益的預測。我們可以說的是，從 2024 年底到 3 月 31 日，我們看到 CLO 部分定價急劇下降，市場流動性嚴重不足。我們在公共和私人股權市場、美國銀團貸款市場、公共公司債市場中看到的壓力水平普遍存在，在經濟混亂時期，所有這些市場都緊密相關。

As we move forward to the end of April, we obviously saw that get worse. And then rebound very, very substantially between April 30 and May 16, last Friday. So as you know, we've obviously seen a fair amount of volatility across this and most other asset classes. But in terms of a specific point estimate of where we anticipate yields to reside for the remainder of this calendar year, we have none.

隨著四月底的臨近，我們明顯看到情況變得更糟。然後在 4 月 30 日至 5 月 16 日（上週五）之間出現大幅反彈。因此，如您所知，我們顯然已經看到該資產類別和大多數其他資產類別都存在相當大的波動。但就我們預計今年剩餘時間殖利率的具體點估計而言，我們還沒有。

Okay. All right. That's great. And then maybe if you guys could talk about the relative attractiveness in the primary versus secondary markets and kind of how the investment portfolio is positioned in terms of cyclicality in the companies that are invested in?

好的。好的。那太棒了。那麼，你們是否可以談談一級市場和二級市場的相對吸引力，以及投資組合在所投資公司的周期性方面的定位？

Yeah. So I think the answer to those questions kind of are linked. We're constantly reevaluating the relative attractiveness of the primary and the secondary. AAAs in particular, are still undergoing some price discovery. So that's a calculation we're reassessing every day. We're still seeing attractive opportunities in both the primary and secondary.

是的。所以我認為這兩個問題的答案是相互關聯的。我們不斷地重新評估主要和次要的相對吸引力。尤其是 AAA，仍在經歷一些價格發現。所以這是我們每天都在重新評估的計算。我們仍然看到小學和中學都存在著誘人的機會。

So depending on the particular offers or structures that we were able to create in the primary, we're active in both markets. In terms of the cyclicality part of the question, one thing we are focused on is just lengthening that reinvestment period as much as possible just to lessen that part of the risk spectrum. So that's one way we think of it, just lengthening the runway for our managers, allowing them to work out of any problems that arise.

因此，根據我們在初選中能夠創建的特定報價或結構，我們在兩個市場都活躍。就問題的周期性部分而言，我們關注的一件事就是盡可能延長再投資期，以減少這部分風險。所以這是我們想到的一個方法，只是延長我們管理人員的跑道，讓他們能夠解決任何出現的問題。

Sure. And in addition to what Joe just referenced, Justin, there's also the economic issue associated with holding long-dated CLO equity during periods of economic and financial dislocation, which we think has historically provided us with strong economic returns.

當然。賈斯汀，除了喬剛才提到的之外，在經濟和金融混亂時期持有長期 CLO 股權還存在經濟問題，我們認為這在歷史上為我們帶來了強勁的經濟回報。

Great. Okay. Thank you. That helps. And then just last one for me on sort of your strategy. Curious how you guys differentiate yourselves from peers. Any sort of qualitative or quantitative examples on your strategy and how you guys relate to any other peers would be helpful.

偉大的。好的。謝謝。這有幫助。最後我想問一下您的策略。好奇你們如何將自己與同行區分開來。任何有關您的策略以及您與其他同行的關係的定性或定量示例都會有所幫助。

Sure. Obviously, we don't track our peers with the precision that we track our own performance and we monitor our own portfolios. I think historically, Justin, we've differentiated ourselves in a couple of ways. Firstly, as you know, we run a completely unconstrained CLO investment strategy, meaning that we can look at long-dated CLO equity, short-dated CLO equity, primary tranches, secondary tranches, we warehouse, obviously, a fair amount. We are one of the largest market participants in both the primary and secondary markets and also, we rotate the portfolio aggressively.

當然。顯然，我們追蹤同行的精確度不如追蹤我們自己的表現和監控我們自己的投資組合。賈斯汀，我認為從歷史上看，我們在某些​​方面與眾不同。首先，如您所知，我們採用完全不受約束的 CLO 投資策略，這意味著我們可以專注於長期 CLO 股票、短期 CLO 股票、一級部分、二級部分，顯然，我們儲存了相當多的資金。我們是一級市場和二級市場最大的市場參與者之一，我們積極地輪換投資組合。

So again, I can't speak to the investment strategies of other firms, but we view this asset class as particularly appropriate for an active portfolio management strategy, which is very much what we engage in.

所以，我無法評論其他公司的投資策略，但我們認為這種資產類別特別適合積極的投資組合管理策略，而這正是我們所從事的。

Great. That's helpful. Thanks for taking my questions today. That's all for me.

偉大的。這很有幫助。感謝您今天回答我的問題。對我來說就這些了。

(Operator Instructions) I can see that we have no further questions. So I would like to hand it back to Jonathan for some final closing comments.

（操作員指示）我知道我們沒有其他問題了。因此，我想將其交還給喬納森，請他發表一些最後的總結評論。

Well, I'd like to thank everyone for their interest in Oxford Lane Capital and for their participation on this call or listening to the replay. And we look forward to speaking to you again soon. Thanks very much.

好吧，我想感謝大家對 Oxford Lane Capital 的關注以及參加這次電話會議或收聽重播。我們期待很快再次與您交談。非常感謝。

Thank you all for joining the Oxford Lane Capital Corp. call today. At this time, today's call has concluded. You may now disconnect, and thank you for your participation.

感謝大家今天參加 Oxford Lane Capital Corp. 電話會議。至此，今天的通話已經結束。現在您可以斷開連接了，感謝您的參與。