Oxford Square Capital Reports Q3 2026 Results with Strategic Deleveraging and Reduced Distributions
Oxford Square Capital (OXSQ) reported its third-quarter 2026 financial results, highlighting a strategic shift toward deleveraging. The company successfully reduced its debt-to-equity ratio from 1.26 to 1.07 by utilizing an at-the-market equity offering to fund debt repayments and reorienting the portfolio toward first lien secured debt. This conservative approach aims to mitigate market risk amid ongoing credit distress. Despite a rise in total investment income to $9.9 million, net investment income fell to $0.04 per share due to increased expenses and realized losses from maturing CLO equity positions. Consequently, the Board of Directors reduced monthly distributions to $0.015 per share to align with projected earnings power. Management noted an elevated default rate of 2.97% and rising distress ratios in the loan market, reflecting broader economic volatility.
Tickers: $OXSQ
Topics: CLO Equity Debt-to-Equity Ratio Net Asset Value Net Investment Income Share Issuance
Read the full article at Motley Fool
Part of the story Ready Capital Reports Q3 2026 Results with Improved GAAP Loss and Reduced Leverage (6 articles)