Oxford Square Capital Corp (OXSQ) 2024 Q2 法說會逐字稿

Good day, everyone, and welcome to the Oxford Square Capital Corp., second-quarter 2024 earnings conference call. (Operator Instructions)

大家好，歡迎參加 Oxford Square Capital Corp. 2024 年第二季財報電話會議。（操作員說明）

Please note today's call will be recorded. (Operator Instructions)

請注意，今天的通話將會被錄音。（操作員說明）

It is now my pleasure to turn the call over to Jonathan Cohen, CEO. Please go ahead.

現在我很高興將電話轉給執行長喬納森·科恩 (Jonathan Cohen)。請繼續。

Thanks very much. Good morning, everyone. Welcome to the Oxford Square Capital Corp., second-quarter 2024 earnings conference call. I'm joined today by Saul Rosenthal, our President; Bruce Rubin, our Chief Financial Officer; and Kevin Yonon, our Managing Director and Portfolio Manager.

非常感謝。大家早安。歡迎參加 Oxford Square Capital Corp. 2024 年第二季財報電話會議。今天我們的總統索爾·羅森塔爾也加入了我的行列。 Bruce Rubin，我們的財務長；以及我們的董事總經理兼投資組合經理 Kevin Yonon。

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

布魯斯，您能在電話會議開始時討論一下前瞻性陳述嗎？

Sure, Jonathan. Today's conference call is being recorded. A note of a replay of the conference call will be available for 30 days. Replay information is included in our press release that was issued this morning.

當然，喬納森。今天的電話會議正在錄音。電話會議重播記錄將保留 30 天。重播資訊包含在我們今天早上發布的新聞稿中。

Please note that this call is the property of Oxford Square Capital Corp. Any unauthorized rebroadcast of this call in any form is strictly prohibited.

請注意，本次電話會議屬於 Oxford Square Capital Corp. 的財產。

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. We ask that you refer to our most recent filings with the SEC for important factors that can cause actual results to differ materially from those indicated in these projections.

此時，請注意今天上午新聞稿中有關前瞻性資訊的慣例披露。今天的電話會議包括前瞻性陳述和預測，反映了公司目前對未來事件和財務表現等方面的看法。我們要求您參考我們最近向 SEC 提交的文件，以了解可能導致實際結果與這些預測中所示結果有重大差異的重要因素。

We do not undertake to update our forward-looking statements unless required to do so by law. To obtain copies of our latest SEC filings, please visit our website at www.oxfordsquarecapital.com.

除非法律要求，否則我們不承諾更新我們的前瞻性陳述。要獲取我們最新的 SEC 文件副本，請訪問我們的網站 www.oxfordsquarecapital.com。

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

接下來，我將把演示轉回給喬納森。

Thanks, Bruce. For the quarter ended June, Oxford Square's net investment income was approximately $7.7 million or $0.13 per share compared with $6.5 million or $0.11 per share in the prior quarter. Our net asset value per share stood at $2.43 compared to a net asset value of $2.42 for the prior quarter. During the quarter, we distributed $0.105 per share in common stock distributions.

謝謝，布魯斯。截至 6 月的季度，Oxford Square 的淨投資收益約為 770 萬美元或每股 0.13 美元，而上一季為 650 萬美元或每股 0.11 美元。我們的每股淨資產值為 2.43 美元，而上一季的淨資產值為 2.42 美元。本季度，我們派發了每股 0.105 美元的普通股。

For the second quarter, we recorded total investment income of approximately $11.4 million as compared to approximately $10.7 million in the prior quarter. In the second quarter, we recorded net unrealized and realized losses on investments of approximately $2.5 million or $0.04 per share compared to net unrealized and realized losses on investments of approximately $8.3 million or $0.14 in the per share in the prior quarter.

第二季度，我們的總投資收入約為 1,140 萬美元，而上一季約為 1,070 萬美元。第二季度，我們記錄的未實現和已實現投資淨損失約為250 萬美元，即每股0.04 美元，而上一季未實現和已實現投資淨損失約為830 萬美元，即每股0.14 美元。

During the quarter, our investment activity consisted of purchases of approximately $28.8 million, sales of approximately $3.4 million, and repayments of approximately $15.8 million. During the quarter ended June, we issued a total of approximately 2.9 million shares of our common stock pursuant to an at-the-market offering, resulting in net proceeds of approximately $8.9 million.

本季度，我們的投資活動包括約 2880 萬美元的購買、約 340 萬美元的銷售以及約 1580 萬美元的償還。在截至 6 月的季度中，我們根據市場發行總共發行了約 290 萬股普通股，淨收益約為 890 萬美元。

On August 8, our Board of Directors declared monthly distributions of $0.035 per share for each of the months ending November, October and December of 2024. Additional details regarding record of payment date information can be found in our release that was issued this morning.

8 月 8 日，我們的董事會宣布截至 2024 年 11 月、10 月和 12 月的每月股息為每股 0.035 美元。有關付款日期資訊記錄的更多詳細信息，請參閱我們今天上午發布的新聞稿。

With that, I'll turn the call over to our Portfolio Manager, Kevin Yonon. Kevin?

接下來，我會將電話轉給我們的投資組合經理 Kevin Yonon。凱文？

Thank you, Jonathan. During the quarter ended June 30, 2024, US loan market performance modestly weakened versus the prior quarter. US loan prices, as defined by the Morningstar LSTA US Leveraged Loan Index, decreased from 96.69% of par as of March 28, 2024, to 96.54% of par as of June 28, 2024.

謝謝你，喬納森。截至 2024 年 6 月 30 日的季度，美國貸款市場表現較上一季略有減弱。根據晨星 LSTA 美國槓桿貸款指數定義，美國貸款價格從截至 2024 年 3 月 28 日的面額 96.69% 降至截至 2024 年 6 月 28 日的面額 96.54%。

According to LCD, during the quarter, there was some pricing dispersion with BB-rated loan prices decreasing 19 basis points, B-rated loan prices decreasing 18 basis points, and CCC-rated loan prices increasing 187 basis points on average. The 12-month trailing market default rate for the Morningstar LSTA US Leveraged Loan Index decreased to 0.92% by principal amount at the end of the quarter from 1.14% at the end of March 2024.

LCD數據顯示，本季有一定的定價離散，BB級貸款價格平均下降19個基點，B級貸款價格下降18個基點，CCC級貸款價格平均上漲187個基點。以本金計算，晨星 LSTA 美國槓桿貸款指數 12 個月追蹤市場違約率從 2024 年 3 月底的 1.14% 降至本季末的 0.92%。

The 12-month trailing market default rate increased to 4.31% as of the end of June 2024, when including out-of-court liability management transactions. Additionally, the distress ratio, defined as the percentage of loans with prices below 80% of par, ended the quarter at 4.42% compared to 3.51% at the end of March 2024.

截至 2024 年 6 月底，12 個月追蹤市場違約率增至 4.31%，其中包括庭外負債管理交易。此外，不良率（定義為價格低於面額 80% 的貸款百分比）截至本季為 4.42%，而 2024 年 3 月底為 3.51%。

During the quarter ended June 30, 2024, US Leveraged Loan primary market issuance, excluding amendments and repricing transactions, was $145 billion representing a 204% increase versus the quarter ended June 30, 2023.

截至 2024 年 6 月 30 日的季度，美國槓桿貸款一級市場發行量（不包括修訂和重新定價交易）為 1,450 億美元，較截至 2023 年 6 月 30 日的季度增長 204%。

This was driven by opportunistic activity, including refinancings and add-ons, while M&A and LBO activity remained relatively limited. At the same time, US loan fund inflows, as measured by Lipper, were approximately $4.6 billion for the quarter ended June 30, 2024.

這是由再融資和附加業務等機會主義活動推動的，而併購和槓桿收購活動仍然相對有限。同時，根據理柏的統計，截至 2024 年 6 月 30 日的季度美國貸款資金流入約 46 億美元。

We continue to focus on portfolio management strategies designed to maximize our long-term total return. As a permanent capital vehicle, we historically have been able to take a longer-term view towards our investment strategy.

我們繼續專注於旨在實現長期總回報最大化的投資組合管理策略。作為永久資本工具，我們歷來能夠以更長遠的眼光來制定我們的投資策略。

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

這樣，我會將電話轉回喬納森。

Thanks, Kevin. We note that additional information about Oxford Square's second-quarter performance has been posted to our website at www.oxfordsquarecapital.com.

謝謝，凱文。我們注意到，有關 Oxford Square 第二季度業績的更多資訊已發佈在我們的網站 www.oxfordsquarecapital.com 上。

And operator, we're happy to now poll for any questions.

運營商，我們很高興現在就任何問題進行民意調查。

(Operator Instructions) At this time, I show no questions in queue. I would like to turn the call back to Mr. Jonathan Cohen, CEO. Please go ahead.

（操作員說明） 此時，我在隊列中沒有顯示任何問題。我想將電話轉回給執行長喬納森·科恩先生。請繼續。

Thanks very much. We'd like to thank everybody for their interest in Oxford Square, and we look forward to speaking again soon. Thank you very much.

非常感謝。我們要感謝大家對牛津廣場的興趣，我們期待很快能再次發言。非常感謝。

Thank you. This does conclude today's Oxford Square Capital Corp.'s second-quarter 2024 earnings conference call. You may disconnect your line at this time and have a wonderful day.

謝謝。今天牛津廣場資本公司 (Oxford Square Capital Corp.) 的 2024 年第二季財報電話會議到此結束。此時您可以斷開線路並度過美好的一天。