Collateralized loan obligation (CLO) owner Oxford Lane Capital (OXLC) has announced they will be selling a new issue of baby bonds.
The company has stated they will call a portion or all of the their 7.50% term preferred shares (OXLCO) with the proceeds of this offering.
The company has 2 additional term preferred issues outstanding which can be seen here.
The preliminary prospectus can be found here.
Fabrib was right on this one with ChrisW and J chiming in.
So how does would one play this – I recently sold my partial position in OXCLM when it roared from 24.10 to 25.40. I also have a partional position in OXCLO. So to replace OXCLO would one move into OXCLM or go into the new baby bond? any thoughts? Thanks
Price talk at 6.75%-6.875%. Other issues look to be safe from call.
Priced @ 6.75% due ’31
Who knows how many shares of OXLCO are currently outstanding?
The IPO in 2013 was 800,000 shares, which jumped to 3.6 million shares by Sept. 2019.
As of December 31, 2020, the Company had approximately $57.0 million in aggregate principal value outstanding of its Series 2023 Term Preferred Shares.
That translates into about 2.3 million shares as of 12/31/20, which means Oxford bought back roughly 1.3 million shares on the open market in 2020. It would be interesting to know if this information got reported, and what their average price per share was.
OXLCO was partially called so certainly not all and potentially none of the shares were bought in the open market. 1.2 million shares were redeemed at face value + accrued interest, announced in Feb 2020 and executed in March 2020. The shares were trading well below face shortly thereafter, but OXLC did not authorize an open market repurchase plan until May.
Where do you find information like the plan to repurchase shares or sell additional ones? Do they notify the SEC first, or just issue a press release?
I usually find out after the fact because I’m not proactive, but I’m still holding an odd lot of OXLCO from the partial call last year so it’s obvious whenever I look at my positions.
OXLC did issue a press release which would have been reported on their investor relations page, and they also made an SEC filing:
https://ir.oxfordlanecapital.com/sec-filings/other-filings/document-details/default.aspx?FilingId=13904749
Quantum Online has some good information on specific issues as well:
https://www.quantumonline.com/search.cfm?tickersymbol=OXLCO&sopt=symbol