GREENWICH, Conn. - Oxford Lane Capital Corp. (NASDAQ:OXLC), a closed-end management investment company, announced an estimated net asset value (NAV) per share for October 2024. The unaudited NAV per share, as of October 31, 2024, is projected to be between $4.82 and $4.92.
This preliminary financial data is based on management's estimates and has not been subjected to the company's typical quarter-end financial closing procedures, nor has it been reviewed by the company's board of directors. Oxford Lane Capital Corp. cautions that the actual NAV per share for the quarter ending December 31, 2024, could materially differ from this estimate.
The company also highlighted that as of October 31, 2024, there were approximately 345.9 million shares of common stock issued and outstanding. It noted that the fair value of the company's portfolio investments could be significantly affected by future market volatility, both in the U.S. and globally, which could in turn impact its net investment income, the fair value of its portfolio investments, and overall financial condition.
Investors are reminded that investing in Oxford Lane's securities carries a number of significant risks, as detailed in the "Risk Factors" section of the company's prospectus and the "Risks and Uncertainties" note in its most recent annual or semi-annual report.
The press release also stated that PricewaterhouseCoopers LLP has not audited, reviewed, compiled, or applied any procedures to the preliminary financial data presented. Therefore, PricewaterhouseCoopers LLP does not express an opinion or any form of assurance regarding this preliminary financial data.
Oxford Lane Capital Corp. specializes in debt and equity tranches of collateralized loan obligation (CLO) vehicles, which may also include warehouse facilities to aggregate loans that could form the basis for a CLO vehicle.
The company's forward-looking statements involve inherent uncertainties in predicting future results and conditions, and actual outcomes may differ materially. Oxford Lane does not undertake any obligation to update these statements for subsequent events, except as required by law. This news article is based on a press release statement from Oxford Lane Capital Corp.
In other recent news, Oxford Lane Capital Corp. reported its second fiscal quarter results for 2025. The company's net asset value per share decreased to $4.76 from $4.91 in the previous quarter. However, GAAP total investment income rose to approximately $105.1 million, and GAAP net investment income remained steady at $0.22 per share. Core net investment income was reported at $99.4 million, or $0.32 per share, marking a decrease from $0.41 in the previous quarter. The firm also experienced net unrealized depreciation on investments, but logged net realized gains. The weighted average yields on CLO debt and equity investments have slightly decreased. Despite these developments, Oxford Lane Capital Corp. continues its common stock distributions of $0.09 per share for the upcoming months. The company maintains an opportunistic approach to CLO investments, seeing attractive opportunities in both secondary and primary markets.
InvestingPro Insights
Oxford Lane Capital Corp.'s (NASDAQ:OXLC) estimated NAV per share announcement can be further contextualized with recent financial data from InvestingPro. As of the latest available information, OXLC boasts a market capitalization of $1.72 billion, reflecting its significant presence in the CLO investment space.
The company's financial performance has been noteworthy, with a revenue growth of 16.98% over the last twelve months as of Q4 2024, reaching $306.79 million. This growth trajectory aligns with the company's focus on CLO investments, which can generate substantial income streams.
InvestingPro Tips highlight OXLC's attractive dividend profile. The company "pays a significant dividend to shareholders" and "has maintained dividend payments for 14 consecutive years." This is particularly relevant given the estimated NAV announcement, as it suggests the company's ability to generate income for shareholders even amidst market fluctuations. The current dividend yield stands at an impressive 20.07%, which may be of interest to income-focused investors considering the NAV estimates.
It's worth noting that OXLC has a P/E ratio of 5.47, indicating that the stock may be undervalued relative to its earnings. This could be an important factor for investors analyzing the company's valuation in light of the recent NAV estimate.
For those seeking a deeper understanding of OXLC's financial position, InvestingPro offers 7 additional tips, providing a more comprehensive analysis of the company's strengths and potential risks.
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