Oxford Lane Capital Signals Optimismโฃ Following Reverse Split,Maintains Distribution
NEW YORK – Septemberโฃ 21,2024 -โ Oxford Lane Capital Corp. (NASDAQ:โ OXLC) is โsignaling a positive outlook for investors followingโ the completion of a 1-for-10 reverse stock split, while concurrently maintaining its distributionโค level onโข an adjusted basis.the move, finalized after announcement in early 2024, aims to improve โคmarket perception and broaden institutional investor appeal.
The reverse โsplit resolves uncertainty surrounding the share, and management’s decision to uphold โฃthe distribution – adjusted for the split – โdemonstrates confidence in the fund’s continuedโ ability to deliver income-oriented returns. โPreliminary, unaudited net โขasset value (NAV) estimates as of September 8th indicated a range ofโข $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 โsubject to market volatility. โค
Oxford โคLane Capital’s core โinvestment strategy remains focused on the Collateralized Loan Obligation (CLO) market, primarilyโ targeting external and equity tranches. The portfolio mayโข also include warehouse facilities designed to bundle loans for potential CLO vehicles, positioning the company within a specialized nicheโ of the Leveraged Loan market. The NAV stability observed during the restructuring periodโค suggests theโ underlying assets have demonstrated relative resilience.
Looking ahead, the company acknowledges that future performance will be influenced byโ broader market conditions, especially volatility in the US and globalโ economies, and the health โขof the Leveragedโ Loan market.