Oxford Lane Capital Corp. Repays its $40 million Repurchase Agreement with Nomura Securities

Rhea-AI Summary

Oxford Lane Capital announced the termination of its $40 million repurchase agreement with Nomura Securities, effectively repurchasing CLO securities as of May 15, 2020. This strategic move eliminates this debt obligation before its scheduled maturity in October 2020. Currently, the company's sole outstanding liabilities are preferred stock, with the earliest maturity in June 2023. The decision reflects Oxford Lane's commitment to reducing leverage and enhancing shareholders' financial stability.

Positive

• Elimination of $40 million debt obligation, enhancing financial stability.
• Repurchase of CLO securities improves asset control.
• Only preferred stock outstanding, indicating lower leverage.

Negative

• None.

GREENWICH, Conn., May 18, 2020 (GLOBE NEWSWIRE) -- Oxford Lane Capital Corp. (NasdaqGS: OXLC) (NasdaqGS: OXLCO) (NasdaqGS: OXLCM) (NasdaqGS: OXLCP) (“Oxford Lane” or the “Company”) today announced that it has elected to repay and terminate its $40.0 million repurchase agreement with Nomura Securities International, Inc. (“Nomura”). Oxford Lane had previously entered into a repurchase transaction (the “Repo”) with Nomura pursuant to which Oxford Lane sold collateralized loan obligation (“CLO”) securities to Nomura. As of May 15, 2020, the size of the Repo stood at $40.0 million and the scheduled maturity date was October 2, 2020. On May 15, 2020, Oxford Lane elected, at its option, to terminate the Repo and to repurchase all of the previously-sold CLO securities from Nomura at a repurchase price of $40.0 million plus accrued interest. Following the repayment and termination of the Repo, the Company’s only debt or preferred securities currently outstanding are its preferred stock, for which the earliest maturity is June of 2023.

About Oxford Lane Capital Corp. 

Oxford Lane Capital Corp. is a publicly-traded registered closed-end management investment company principally investing in debt and equity tranches of CLO vehicles. CLO investments may also include warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle.

Forward-Looking Statements

This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered to be forward-looking statements. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties, including the impact of COVID-19 and related changes in base interest rates and significant market volatility on our business, our portfolio companies, our industry and the global economy. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events, except as may be required by law. 

Contact:
Bruce Rubin
203-983-5280

FAQ

What is the significance of Oxford Lane Capital's $40 million repurchase agreement termination?

Terminating the repurchase agreement improves Oxford Lane’s financial stability by eliminating this debt.

When was the repurchase agreement with Nomura Securities terminated?

The repurchase agreement was terminated on May 15, 2020.

What will happen to Oxford Lane Capital's outstanding debts after the termination?

Post-termination, the only debts remaining are its preferred stock with maturity in June 2023.

How does repurchasing CLO securities benefit Oxford Lane Capital?

Repurchasing CLO securities allows Oxford Lane to maintain better asset control and reduce overall leverage.