Oxford Square Capital Corp.

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 require immediate assistance, please press star zero, followed by the zero opposite. This call is being recorded on Thursday, August 7, 2025. I will now like to turn the conference over to Jonathan H. Cohen, CEO. Please go ahead.

Good morning. Welcome to the Oxford Square Capital Corps' second quarter 2025 earnings conference call. I'm joined today by Saul Rosensal, our president, and Sgerrera, our controller and vice president of finance, and Kevin Yonan, our managing director and portfolio manager. Vince, 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 that was issued this morning. Please note that this call is property of Oxford Square Capital Corps. Any unauthorized rebroadcast of this call in any form is strictly prohibited. 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 reflected companies current use with respect to, among other things, future events and financial performance. We ask that you refer to our most recent findings at the SEC for any factors that could cause actual results to differ materially from those indicated in those projections. We do not undertake to update our forward-looking statements and are required to do so by law. To obtain copies of our latest SEC findings, please visit our website at .oxxsqercapital.com. With that, I will turn the presentation back over to John.

Thanks, Hintz. For the quarter ended June, Oxford Square's net investment income was approximately $5.5 million, or 8 cents per share, compared with approximately $6.1 million, or 9 cents per share in the prior quarter. Our net assets value per share stood at $2.06, compared to net assets value per share of $2.09 for the prior quarter. During the quarter, we distributed .10.5 per share to our common stock shareholders. For the second quarter, we recorded total investment income of approximately $9.5 million, as compared to approximately $10.2 million in the prior quarter. In the second quarter, we recorded combined net unrealized and realized losses on investments of approximately $1.1 million, or 1 cent per share, compared to combined net unrealized and realized losses on investments of approximately $14.2 million, or 20 cents per share for the prior quarter. During the second quarter, our investment activity consisted of repayments of approximately $233,000. During the quarter ended June, we issued a total of approximately 4.9 million shares of our common stock, pursuant to an aftermarket offering, resulting in net proceeds of approximately $11.6 million. On June 30th, our Board of Directors declared monthly distributions of 3.5 cents per share for each of the months ending October, November, and December of 2025. Additional details regarding record and payment date information can be found in our press release that was issued this morning. On August 1st, we announced that we priced an underwritten public offering of $65 million in aggregate principal amount of .75% unsecured notes to 2030, which will be used for investments and for repayment of existing debt. With that, I'll turn the call over to our portfolio manager, Kevin. Kevin?

Thank you, Johnson. During the quarter into June 30th, U.S. loan market performance strengthened versus the prior quarter. U.S. loan prices, as defined by the NMSTAR LSTA U.S. Leverage Loan Index, increased from .31% of par at the March 31st to .07% of par as of June 30th. According to LCD, during the quarter, there was some pricing dispersion, with double B-rated loan prices increasing 35 basis points, B-rated loan prices increasing 68 basis points, and triple C-rated loan prices increasing 235 basis points on average. According to Hitchcock LCD, while the 12-month trailing default rate for the loan index increased to .11% by principal amount at the end of the quarter from .82% at the end of March, we note that the default rates, including various forms of liability management exercises, which are not captured in this cited default rate, remain at an elevated level of 4.46%. Additionally, the distract ratio, defined as a percentage of loans with prices below 80% of par, ended the quarter at 3.06%, compared to .21% at the end of March. During the quarter of the June 30th, 2025, U.S. leveraged loan primary market issuance, excluding amendments in repricing transactions, with $76.3 billion, representing a 48% decrease versus the quarter end of June 30th, 2024. This was driven by lower optimistic activity, including refinancing and funding of dividends, partly offset by higher non-refinancing issuance, including M&A and LBO activity, versus the prior year comparable quarter. At the same time, U.S. loan fund outflows, as measured by Lipper, were possibly $5.94 billion for the quarter end of June period. 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. With that, I will turn the call back over to John from...

Thank you, Devin, very much. Additional information about Oxford Square's second quarter performance has been posted to our website at .oxfordsquarecapitals.com. And with that, operator, we're happy to open the call up for any questions.

Thank you, ladies and gentlemen. We will now begin the

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keys. One moment, please, for your first question. I am showing no questions at this time. I will now turn the call

back to Mr. Cullen.

Thank you very much. We'd like to thank everyone on the call and listening to the replay for their interest in Oxford Square. We look forward to speaking to you again soon. Thanks very much.

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