Oxford Lane Capital Corp.

Good morning and thank you all for attending the Oxford Lane Capital Court announces net asset values and selected financial results for the fourth fiscal quarter. My name is Rika and I will be your moderator for today. All lines will be muted during the presentation portion of the course with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, Jonathan Curran, CEO at Oxford Lane Capital Court. Thank you, you may proceed, Jonathan.

Thank you. Good morning, everyone, and welcome to the Oxford Lane Capital Corp. 4th Fiscal Quarter 2025 Earnings Conference Call. I'm joined today by Paul Rosenthal, our president, Bruce Rubin, our CFO, and Joe Kupka, our managing director. Bruce, could you open the call with a disclosure regarding forward-looking statements? 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. At this point, please direct your attention to the customary disclosure of this morning's press release regarding code-looking information. Today's conference call includes code-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. We do not undertake to update our floor-looking statements unless required to do so by law. During this call, we will use terms defined in the earnings relief and also refer to non-GAAP measures. The definitions and reconciliations to GAAP, please refer to our earnings relief provided on our website at www.OxfordLandCapital.com. With that, I'll turn the presentation back over to Jonathan. Thank you, Chris. On March 31st, 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. For the quarter ending March, we recorded, excuse me, the quarter's 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 incomes. Oxford Lane recorded net investment income of approximately $75.4 million, or 18 cents per share, for the quarter ended March, compared to approximately $72.4 million, or 20 cents per share, for the quarter ended December 31st. Our core net investment income was approximately $95.8 million, or 23 cents per share, for the quarter ended March. compared with approximately $99.9 million, or $0.28 per share, for the quarter ended December 31st. As of March 31st, 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. 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 31st, the following metrics apply. We note that none of these metrics necessarily represented a total return to shareholders. The weighted average yield of our CLO debt investments at current costs was 15.9%, down from 16.6% as of December 31st. The weighted average effective yield of our CLO equity investments at current costs was 15.9%, down from 16.1% as of December 31st. 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 31st. 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. 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 26th, 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. Finally, as previously announced, on May 16th, we were awarded Best Public Closed NTLO Fund by the periodical credit slugs at their London conference. With that, I'll turn the call over to our Managing Director, Joe Kupka.

Thanks, Jonathan. During the quarter-ended March 31, 2025, U.S. loan market performance weakened versus the prior quarter. U.S. loan price index decreased from 97.33% as of December 31, 2024, to 96.31% as of March 31. The decrease in U.S. loan prices led to an approximate 12-point decrease in median U.S. 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. The 12-month strong 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 September 2024. We note that output restructurings, exchanges, and subpar buybacks, which are not captured in the cited default rate, remain elevated. The CLO's 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. Additionally, the U.S. CLO market saw over $100 billion in reset and refinancing activity in Q125, 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 opportunistic 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's CLO equity portfolio from February 2028 to November 2028. Our primary investment strategy during the quarter was to engage in relative value trading and seeks 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 uncontrained CLO investment strategy across U.S. CLO equity debt and warehouses as we look to maximize our long-term total return. And as a permanent capital vehicle, we've historically been able to take a longer-term view towards our investment strategy. With that, I'll turn the call back over to Jonathan.