Oxford Lane Capital Signals Optimism Following Reverse Split,Maintains Distribution
NEW YORK – September 21,2024 - Oxford Lane Capital Corp. (NASDAQ: OXLC) is signaling a positive outlook for investors following the completion of a 1-for-10 reverse stock split, while concurrently maintaining its distribution level on an adjusted basis.the move, finalized after announcement in early 2024, aims to improve market perception and broaden institutional investor appeal.
The reverse split resolves uncertainty surrounding the share, and management’s decision to uphold the distribution – adjusted for the split – demonstrates confidence in the fund’s continued ability to deliver income-oriented returns. Preliminary, unaudited net asset value (NAV) estimates as of September 8th indicated a range of $20.02 to $20.22 per share,already reflecting the impact of the split. Management cautioned that these figures are preliminary, pending the standard quarterly finalization process, and portfolio valuations remain subject to market volatility.
Oxford Lane Capital’s core investment strategy remains focused on the Collateralized Loan Obligation (CLO) market, primarily targeting external and equity tranches. The portfolio may also include warehouse facilities designed to bundle loans for potential CLO vehicles, positioning the company within a specialized niche of the Leveraged Loan market. The NAV stability observed during the restructuring period suggests the underlying assets have demonstrated relative resilience.
Looking ahead, the company acknowledges that future performance will be influenced by broader market conditions, especially volatility in the US and global economies, and the health of the Leveraged Loan market.