Oxford Square Capital Corp (OXSQ) 2025 Q3 法說會逐字稿

Good morning ladies and gentlemen, and welcome to the Oxford Square Capital Corp. third-quarter 2025 earnings conference call. (Operator Instructions) This call is being recorded on Tuesday, November 4, 2025.

女士們、先生們，早安，歡迎參加牛津廣場資本公司2025年第三季財報電話會議。（操作員指示）本次通話於2025年11月4日星期二進行錄音。

I would now like to turn the conference over to Jonathan Cohen. Please go ahead.

現在我將把會議交給喬納森·科恩。請繼續。

Good morning, everyone, and welcome to the Oxford Square Capital Corp. third quarter 2025 earnings conference call. This is Jonathan Cohen, and I'm joined today by Saul Rosenthal, our President; Bruce Rubin, our CFO; and Kevin Yonon, our Managing Director and Portfolio Manager. Bruce, could you open the call with the disclosure regarding forward-looking statements?

各位早安，歡迎參加牛津廣場資本公司2025年第三季財報電話會議。我是喬納森·科恩，今天與我一同主持節目的還有我們的總裁索爾·羅森塔爾、首席財務官布魯斯·魯賓以及董事總經理兼投資組合經理凱文·約農。Bruce，您能否在電話會議開始時先揭露有關前瞻性聲明的資訊？

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

當然可以，喬納森。今天的電話會議正在錄音。本次電話會議的音訊回放將保留30天。回放訊息已包含在我們今天早上發布的新聞稿中。請注意，本次電話會議的所有權歸牛津廣場資本公司所有。嚴禁以任何形式未經授權轉播本次電話會議。

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，請將注意力集中到今天早上的新聞稿中有關前瞻性資訊的慣例披露部分。今天的電話會議包含前瞻性陳述和預測，反映了公司目前對未來事件和財務表現等方面的看法。

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. 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.

請您參閱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有重大差異的重要因素。除非法律要求，否則我們不承擔更新前瞻性聲明的義務。如需我們最新的美國證券交易委員會文件副本，請造訪我們的網站 www.oxfordsquarecapital.com。

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

接下來，我將把演講交還給喬納森。

Thank you, Bruce. For the quarter ended September, Oxford Square's net investment income was approximately $5.6 million or $0.07 per share compared with approximately $5.5 million or $0.08 per share in the prior quarter. Our net asset value per share stood at $1.95 compared to a net asset value per share of $2.06 for the prior quarter. During the quarter, we distributed $0.105 per share to our common stock shareholders.

謝謝你，布魯斯。截至 9 月的季度，牛津廣場的淨投資收益約為 560 萬美元，即每股 0.07 美元，而上一季約為 550 萬美元，即每股 0.08 美元。本季每股淨資產值為 1.95 美元，而上一季每股淨資產值為 2.06 美元。本季度，我們向普通股股東每股派發了 0.105 美元。

For the third quarter, we recorded total investment income of approximately $10.2 million as compared to approximately $9.5 million in the prior quarter. In the third quarter, we recorded combined net unrealized and realized losses on investments of approximately $7.5 million or $0.09 per share compared to combined net unrealized and realized losses on investments of approximately $1.1 million or $0.01 per share for the prior quarter.

第三季度，我們的投資總收益約為 1,020 萬美元，而上一季約為 950 萬美元。第三季度，我們錄得投資未實現和已實現淨虧損合計約 750 萬美元，即每股 0.09 美元，而上一季度投資未實現和已實現淨虧損合計約 110 萬美元，即每股 0.01 美元。

During the third quarter, our investment activity consisted of purchases of approximately $58.1 million and repayments of approximately $31.3 million. During the quarter ended September, we issued a total of approximately 5.4 million shares of our common stock, pursuant to an at-the-market offering, resulting in net proceeds of approximately $11.8 million.

第三季度，我們的投資活動包括約 5,810 萬美元的購買和約 3,130 萬美元的償還。在截至 9 月的季度中，我們根據市場發行方式發行了約 540 萬股普通股，淨收益約為 1,180 萬美元。

During the quarter, we issued $74.8 million of 7.75% unsecured notes due July of 2030, and we fully repaid the remaining balance of $34.8 million of our 6.25% unsecured notes due April of 2026. On October 30, our Board of Directors declared monthly distributions of $0.035 per share for each of the months ending January, February and March of 2026. Additional details regarding record and payment date information can be found in our press release that was issued this morning.

本季度，我們發行了 7,480 萬美元的 7.75% 無擔保票據，該票據將於 2030 年 7 月到期；同時，我們全額償還了剩餘的 3,480 萬美元 6.25% 無擔保票據，該票據將於 2026 年 4 月到期。10 月 30 日，我們的董事會宣布，截至 2026 年 1 月、2 月和 3 月的每個月，每股股息 0.035 美元。有關記錄和付款日期資訊的更多詳情，請參閱我們今天早上發布的新聞稿。

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

接下來，我將把電話轉交給我們的投資組合經理凱文·約農。凱文？

Thank you, Jonathan. During the quarter ended September 30, US loan market performance was stable versus the prior quarter. US loan prices, as defined by the Morningstar LSTA US Leveraged Loan Index, decreased slightly from 97.07% of par as of June 30 to 97.06% of par as of September 30.

謝謝你，喬納森。截至9月30日的季度，美國貸款市場表現與上一季相比保持穩定。根據晨星LSTA美國槓桿貸款指數的定義，美國貸款價格從6月30日的面額97.07%略微下降至9月30日的面額97.06%。

According to LCD, during the quarter, there was some pricing dispersion with BB-rated loan prices decreasing 11 basis points, B-rated loan prices increasing 37 basis points and CCC-rated loan prices decreasing 227 basis points on average.

根據LCD的數據，本季價格出現一定程度的波動，BB級貸款價格下降11個基點，B級貸款價格上升37個基點，CCC級貸款價格平均下降227個基點。

According to PitchBook LCD, the 12-month trailing default rate for the loan index increased to 1.47% by principal amount at the end of the quarter from 1.11% at the end of June. Additionally, the default rate, including various forms of liability management exercises, which are not captured in the cited default rate; remained at an elevated level of 4.32%. The distress ratio, defined as a percentage of loans with prices below 80% of par, ended the quarter at 2.88% compared to 3.06% at the end of June.

根據 PitchBook LCD 的數據，截至本季末，貸款指數的 12 個月滾動違約率（以本金計算）從 6 月底的 1.11% 上升至 1.47%。此外，違約率（包括各種形式的負債管理措施，這些措施並未計入上述違約率）仍維持在 4.32% 的高點。不良貸款率（定義為價格低於面額 80% 的貸款百分比）在本季末為 2.88%，而 6 月底為 3.06%。

During the quarter ended September 30, 2025, US leveraged loan primary market issuance, excluding amendments and repricing transactions, was $133.7 billion, representing a 22% increase versus the quarter ended September 30, 2024. This was driven by higher refinancing activity, partly offset by lower non-refinancing issuance, including lower M&A and LBO activity versus the prior year comparable quarter.

截至 2025 年 9 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 1337 億美元，比截至 2024 年 9 月 30 日的季度增長了 22%。這主要得益於更高的再融資活動，但部分被更低的非再融資發行所抵消，其中包括與去年同期相比更低的併購和槓桿收購活動。

At the same time, US loan fund outflows, as measured by Lipper, were approximately $540 million for the quarter ended September 30. We continue to focus on portfolio management strategies designed to maximize our long-term total return. And as a permanent capital vehicle, we historically have been able to take a longer-term view towards our investment strategy.

同時，根據 Lipper 的統計，截至 9 月 30 日的季度，美國貸款基金流出額約為 5.4 億美元。我們將繼續專注於旨在最大化長期總回報的投資組合管理策略。作為一個永久性資本工具，我們歷來能夠以更長遠的眼光看待我們的投資策略。

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

好了，現在我把電話轉回喬納森。

Thank you, Kevin. Additional information about our third quarter performance has been posted to our website at www.oxfordsquarecapital.com. With that, operator, we're happy to open the call for any questions.

謝謝你，凱文。關於我們第三季業績的更多資訊已發佈在我們的網站 www.oxfordsquarecapital.com 上。接線員，現在我們很高興開始接受提問。

(Operator Instructions)

（操作說明）

Erik Zwick, Lucid Capital Markets.

Erik Zwick，Lucid Capital Markets。

Thanks. Good morning, guys. Jonathan, I wanted to start with maybe a question. You noted the nice net portfolio growth in the quarter and I think one of the stronger quarters of purchase activities you had in a while. So wondering if you could just talk maybe a little bit about what types of investments you found attractive during the quarter, maybe a little bit of kind of color into what you added to the portfolio.

謝謝。各位早安。喬納森，我想先問你一個問題。您注意到本季淨投資組合成長良好，我認為這是近一段時間以來購買活動最為強勁的季度。所以，我想請您談談您在本季發現哪些類型的投資比較有吸引力，以及您添加到投資組合中的投資項目。

Sure. We'll present the answer to that question, Erik, in essentially two parts. The first with Joe Kupka on the CLO side of the book and the second on the leveraged loan side. Joe?

當然。艾瑞克，我們將分兩部分來回答這個問題。第一本是 Joe Kupka 負責 CLO 的投資，第二本是負責槓桿貸款的投資。喬？

Erik, yes, so we were able to purchase a couple of CLO equity pieces. They were both long-dated, top-tier managers that we felt good about. So steady, predictable cash flow that we expect to hold for quite a while, just similar to what we've done in the past, just good relative value long-dated CLO equity.

埃里克，是的，所以我們成功購買了幾份 CLO 股權。他們都是資歷深厚、能力出眾的經理人，我們對他們都很滿意。因此，我們預計能夠獲得穩定、可預測的現金流，並能持有相當長一段時間，就像我們過去所做的那樣，只是相對價值良好的長期 CLO 權益。

And as you know, Erik, from our perspective, the best hedge in this asset class really is duration that the longer the reinvestment period, the greater we think everything else held constant should be the level of protection against economic dislocation or financial markets disruption. Kevin?

如你所知，艾瑞克，從我們的角度來看，這類資產中最好的對沖手段實際上是久期，再投資期越長，我們認為在其他條件不變的情況下，抵禦經濟動盪或金融市場混亂的保護水平就越高。凱文？

Sure. And on the loan side, we had a fairly active quarter focused sort of in two parts. First is mostly on sort of relatively higher-quality credits with lower spreads in the market, but that generate decent yield to maturities as well as some opportunistic trades, which are somewhat less liquid names, where you're able to capture a bit more spread at prices below par.

當然。在貸款方面，我們本季相當活躍，主要集中在兩個方面。首先，主要投資於市價差較低的相對高品質信貸產品，這些產品能產生可觀的到期收益；其次，進行一些機會性交易，這些產品流動性稍差，但你可以在低於面值的價格中獲得更高的價差。

I appreciate the color from all three of you there. Maybe kind of turning that question and looking forward a little bit now as you look at your pipeline for potential new additions here in 4Q, what is that split looking at maybe between CLO and loans and then yield activity? Or kind of what does the yield look like in the portfolio relative to maybe kind of current average portfolio yield?

我很欣賞你們三位帶來的色彩。現在，讓我們把這個問題往前推一推，看看您在第四季度潛在的新增項目，CLO 和貸款以及收益活動之間的比例是多少？或者說，相對於目前投資組合的平均報酬率，該投資組合的報酬率如何？

Sure, Erik. So as of our reporting date, we are -- we have hit the maximum in terms of our ability to add additional CLO equity without rotating the portfolio. So from a portfolio management perspective, I think you could reasonably assume that any additional purchases on the CLO equity or junior debt tranche side of the book are going to be accompanied by appropriate levels of sales. In terms of what we're seeing in the new issue and secondary market on the leveraged loan book, Kevin?

當然可以，艾瑞克。因此，截至我們的報告日期，我們已經達到了在不輪換投資組合的情況下增加額外 CLO 權益的最大能力。因此，從投資組合管理的角度來看，我認為可以合理地假設，CLO 股權或次級債務部分的任何額外購買都將伴隨著適當水平的出售。凱文，就槓桿貸款組合的新發行和二級市場而言，我們看到的情況如何？

Sure. So we will continue to focus both on the primary and secondary market for leveraged loans. On the primary side, from our perspective, in terms of what's interesting, it's been a bit of a slower market, more sort of higher-quality, much lower spread credits are out there participating in the primary.

當然。因此，我們將繼續關注槓桿貸款的一級市場和二級市場。從我們的角度來看，一級市場比較有趣的是，市場成長放緩，更多高品質、利差較低的信貸產品參與了一級市場交易。

So I would anticipate just as kind of has happened over the last many quarters that we focus more on the secondary market and more on situations where it's less sort of liquid credits in the secondary market that -- where we can capture a bit more spread. And just given the way the sort of loan market has been trading, we can capture a lot of these at par or below at this point, which presents a decent opportunity for us going forward.

因此，我預計，就像過去幾季發生的那樣，我們將更加關註二級市場，並更加關註二級市場流動性較差的信貸產品，以便我們能夠獲得更多利差。鑑於目前這類貸款市場的交易方式，我們現在可以以面值或低於面值的價格獲得許多這類貸款，這為我們未來的發展提供了一個不錯的機會。

And then switching gears a little bit, I noticed the cash and equivalents balance at the end of the quarter moved up to $51 million. It looks like it's a little bit higher than it's been in the past. Anything to take note of there? Is that more just kind of a timing issue?

然後稍微轉換一下主題，我注意到季度末的現金及等價物餘額增加到 5,100 萬美元。看起來比以往略高。有什麼需要注意的嗎？這更多的是一個時間安排問題嗎？

I think it's principally timing as a result, Erik, of the ATM issuances.

埃里克，我認為這主要是由於 ATM 發行的時間表造成的。

Got it. That makes sense. And kind of curious, given that the level at which the stock is trading today and there are some preferences for institutional investors to have stock may invest and have higher prices, curious, have you given any thought to a reverse stock split similar to what we did at Oxford Lane?

知道了。這很有道理。考慮到該股票目前的交易水平，以及一些機構投資者可能更傾向於投資該股票並追求更高的價格，我很好奇，您是否考慮過像我們在牛津巷所做的那樣進行反向股票分割？

We like to think, Erik, that we're giving thought to any viable idea on a continuous basis.

艾瑞克，我們喜歡認為，我們會持續不斷地思考任何可行的想法。

Makes sense. And last one for me, and then I'll step aside. It's been a couple of quarters now since the NII has covered the dividend. Just curious from your seat, what levers do you have at your disposal on either the income or expense side to improve the run rate of NII in the near to midterm?

有道理。這是我最後一個發言，說完我就讓位了。淨利息收入已經連續幾季未能支付股息了。我只是好奇，從您的角度來看，在短期到中期內，您在收入或支出方面有哪些手段可以提高淨利息收入的運作率？

Well, we're running a relatively lightly levered portfolio at the moment relative to our statutory limitation. That's certainly one element that's probably worthy of consideration, but there are certainly others.

目前，相對於我們的法定限額而言，我們營運的投資組合槓桿率相對較低。這當然是一個值得考慮的因素，但肯定還有其他因素。

Others. Got it. Jonathan, Kevin, Joe, I appreciate all the commentary today. That's it for me.

其他的。知道了。喬納森、凱文、喬，感謝你們今天的所有評論。就這些了。

Thank you, Erik, very much. Thank you.

非常感謝你，埃里克。謝謝。

There are no further questions at this time. I will now turn the call over to Jonathan Cohen. Please continue.

目前沒有其他問題了。現在我將把電話交給喬納森·科恩。請繼續。

We'd like to thank everybody on the call and listening on the replay for their interest and for their participation. We look forward to speaking to you again soon. Thanks very much.

我們衷心感謝所有參與電話會議和收聽重播的朋友們，感謝你們的關注和參與。我們期待盡快再次與您聯繫。非常感謝。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect. You have reached the end of the recording. Goodbye.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線了。錄音已結束。再見。