Oxford Square Capital Corp.

Good morning ladies and gentlemen and welcome to the Oxford Square Capital Court First Quarter 2025 earnings conference call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you are required an immediate assistance, please press star zero for the operator. This call is being recorded on Friday April 25, 2025. I would now like to turn the conference over to Mr. Jonathan Cohen. Please go ahead.

Good morning. Welcome to the Oxford Square Capital Court First Quarter 2025 earnings conference call. I'm joined today by Bruce Rubin, our Chief Financial Officer and Kevin Yoden, managing director and portfolio manager. 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 conference call will be available for 30 days. Replay information is included in our press release of this issue this morning. Please note that this call is the property of Oxford Square Capital Court, and the unauthorized rebroadcast of this call in any form is strictly prohibited. At this point, please direct your attention to the customer disclosure of 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 reverse the 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 that was required to do so by law. To obtain copies of our latest PST filings, please visit our website at .oxfordsquarecapital.com. With that, I'll turn the presentation back to Jonathan. Thanks, Bruce. For the quarter-end of March 31st, Oxford Square's net investment income was approximately $6.1 million, or 9 cents per share, compared with approximately $6 million, or 9 cents per share for the prior quarter. Our net asset value per share is $2.09, compared to a net asset value per share of $2.30 for the prior quarter. During the quarter, we distributed $10.5 per share to our common stock shareholders. For the first quarter, we recorded total investment income of approximately $10.2 million, which was approximately the same as in the prior quarter. During the first quarter, we recorded combined net unrealized and realized losses on investments of approximately $14.2 million, or 20 cents per share, compared to combined net unrealized and realized losses on investments of approximately $2.7 million, or 4 cents per share for the prior quarter. During the first quarter, our investment activity consisted of purchases of approximately $16 million, sales of approximately $10.7 million, and repayments of approximately $8.7 million. During the quarter in March, we issued a total of approximately 1.3 million shares of our common stock pursuant to an -the-market offering, resulting in net proceeds of approximately $3.5 million. On April 22, 2025, our Board of Directors declared monthly distributions of 3.5 cents per share for each of the months ending July, August, and September of 2025. Additional details regarding the record of payment data information can be found in our press release that was issued this morning. With that, I'll turn the call over to our Portfolio Manager, Kevin Young.

Thank you, Jonathan. During the quarter in March 31, US loan market performance leached in versus the prior quarter. US loan prices, as defined by the 1-star LSTA US Leverage Loan Index, decreased from .33% of par as of December 31 to .31% of par as of March 31. According to LCD, during the quarter there was some pricing dispersion, with W-rated loan prices decreasing 82 basis points, B-rated loan prices decreasing 134 basis points, and -Q-rated loan prices decreasing 211 basis points on average. While the 12-point sharing default rate for the loan index decreased to .82% by principal amount at the end of the quarter from .91% at the end of December, we note that the default rate, including various forms of liability management exercises, which are not passers-in this title default rate, remain at an elevated level of 4.31%. Additionally, the distress ratio, defined as the percentage of loans with prices below 80% of par, ended the quarter at .21% compared to .02% at the end of 2024. During the quarter ended March 31, 2025, US Leverage Loan's primary market issuance, excluding amendments and repricing transactions, was $141.1 billion, representing a 2% decrease versus the quarter ended March 31, 2024. This was driven by lower opportunistic activity, including refinancing and the funding of dividends, partly offset by higher non-refinancing issuance, including M&A and LDO activity, versus the prior year comparable quarter. At the same time, US Lund Fund inflows, as a member of our river, were approximately $1.94 billion for the quarter ended March 31. We continue to focus on portfolio management strategies to design the nationalized long-term total return, and as a permanent capital vehicle, we have been able to take a long-term view towards our investment strategy. With that, I will turn the call back over to Jonathan.

Thanks very much, Kevin. We note that additional information about Oxford Square's first quarter performance has been posted to our website at OxfordSquareCapital.com, and with that, operator, we can open

the calls for any questions. Thank you, ladies and gentlemen. We

will now begin the question and answer session. Should you have a question, please press the star followed by the number 1 on your touch phone phone. You will hear a prompt with your hand heavy in the air. Should you wish to decline from the calling process, please press the star followed by the number 2. If you are using a speakerphone, please lift the handset before pressing only kiss.

One moment, please for our first question. There are no further questions,

so there are no questions at this time. I would now like to turn the call back over to Mr. Jonathan Cohe for his closing remarks.

Thank you, operator. Thanks very much to everybody who listened and participated in this call. We look forward to speaking with you again soon. Thanks very much.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.