Oxford Lane Capital (OXLC) has posted a new presentation for the quarter ending 12/31/2020. OXLC is a holder of collateralized loan obligations (CLO’s) mainly of the equity tranche.
A quick glance shows OXLC is showing steady progress in rebuilding their Net Asset Value as NAV is now $5.44/share versus $3.88/share last quarter.
I mention this because OXLC has 4 issues of term preferreds outstanding (2 of which are currently callable). The issues can be seen here.
The company presentation can be read here.
10 thoughts on “Oxford Lane Capital Post Presentation”
Hi , Tim, everyone,
Where can I find an explanation of III ratings?
Feb. 04, 2021
Oxford Lane Capital (OXLC +0.9%) estimates net asset value per share of $5.84-$5.94 at Jan. 31, 2021, or 7.4%-9.2% higher than its $5.44 NAV at the end of December.
Even better- pricing at a pretty good premium
Potter, that is probably because Oxford has a clause around maintaining > 200% asset coverage, and if they don’t have that coverage, they must redeem a minimum # of shares at par + accrued unpaid dividends to get back into compliance. They also pay monthly which some investors like, as well as does not fluctuate as much as well and staying within ~.15 swings. Disclosure: I own some of this to juice my returns.
OXLCO did a partial call last Feb.
Lets expand on that. Its here on Tim’s site. being a monthly payer, last Feb. call was at par plus .05 in accrued dividend’s
At Friday’s closing price of 25.39 that means you lose .34 or 2 month’s of dividend’s not a risk I would want to take. After last call, it left about 2/3rd of the preferred. Even if they did a call of 1.2 million same as last call you lose 1/2 your shares and stock will drop to call price so you still rise losing money.
I am beginning to like the idea of holding a few FTF stocks with the 10yr treasury closing at 1.17 Friday.
But as 2WR says below its complicated. What is the floating rate pinned to, how often does it reset, and is it a term or perpetual ?
I have one yr left on a 30 year variable mortgage pinned to 11th district cost of funds but when I signed with San Francisco Federal it could only reset once a yr and no more than 1% in a yr with a max ceiling on life of the loan.
Now if I could find a Preferred like that !
Charles – A couple of things to keep in mind – The February call was done with a 30 day notice so not only did you get 5¢ in div on call date but you also got one full monthly div of 15¢ in between announcement and call as well so the “loss” was not and would not be 34¢. Secondly, at least in my experience, when partial calls take place, the stock does NOT drop to the call price…. Most recent example I can think of is FDUSZ which will be partially called to the tune of about 72% of outstanding on 2/16 for an amount of 25.375. FDUSZ is trading at 25.93 and imho will remain above the call price because the remaining outstanding are worth more. The trick is to weigh the math and the likelihood of when the remaining will be called to decide whether or not 25.93 is too high, but it will not be dropping to 25.375… If my brain was functioning properly I could easily come up with other similar examples, but the fog’s rolling in……..
You stayed up too late 2WR !
I would never take the other end of the stick in a discussion with you, I would lose every time.
When the call announcement came on the BRG-PA it dropped the C so I jumped over to it. See how many qtrs. it goes before it gets called. As you told me before it will probably be all at once.
I know nothing wrong about this company and the presentation makes sense. But their preferred seems over priced. The P series has two years of call protection and offers 6.75% at $23.79. I own a full position in Energy Transfer, ETP-D, (BB from S & P, overweight from Morgan Stanley on the common) which offers 7.625% at $21.79 with about the same call protection. If I am going to buy junk, I want to get paid for it. (Oil is trading today near $57)
Feeling Ya Potter
The 2043 senior only has a 5.9 coupon and TRACE has it bought yesterday at $113 for <5% YTW. And it's rated BBB-/Baa3.
But the ETP-E looks juicier, no? Priced almost the same, almost same coupon, a year more on the coupon, and 40 bps higher on the float:
Yield at Float: ~6.00%
“Yield at Float?” That’s a new one to me…. Are you doing a calculation of what the current yield would be were ETP-E to begin floating today and still be trading at today’s price? With first float date being more than 3 years away and with float rate subsequently changing again every 3 months, there sure has got to be a lot of questionmarks imbedded in the relevancy of a number like that to my way of thinking. Then again, it’s 3 in the morning as I write… maybe I should just yawn and go back to sleep..