Company Quick10K Filing
Quick10K
Oxford Square Capital
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-07-26 Earnings, Shareholder Vote, Exhibits
8-K 2019-04-30 Earnings, Exhibits
8-K 2019-02-28 Earnings, Exhibits
8-K 2018-10-30 Earnings, Exhibits
8-K 2018-10-12 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-07-31 Earnings, Exhibits
8-K 2018-07-27 Shareholder Vote
8-K 2018-06-22 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-05-01 Earnings, Exhibits
8-K 2018-04-06 Other Events
8-K 2018-03-16 Amend Bylaw, Other Events, Exhibits
8-K 2018-02-27 Earnings, Exhibits
8-K 2018-02-06 Other Events, Exhibits
8-K 2018-02-01 Earnings, Exhibits
NAN North American Nickel 11,204
CIK Pinnacle Foods 373
SRET Sterling Real Estate Trust 132
GEF Greif 0
SNSR World Surveillance Group 0
GULF Crimson Exploration 0
TSLX TPG Specialty Lending 0
FIF Financial Federal 0
SVVC Firsthand Technology Value Fund 0
GARS Garrison Capital 0
OXSQ 2019-06-30
Part I - Financial Information
Item 1. Financial Statements
Note 1. Unaudited Interim Financial Statements
Note 2. Organization
Note 3. Summary of Significant Accounting Policies
Note 4. Fair Value
Note 5. Cash, Cash Equivalents and Restricted Cash
Note 6. Borrowings
Note 7. Related Party Transactions
Note 8. Earnings per Share
Note 9. Distributions
Note 10. Net Asset Value per Share
Note 11. Share Repurchase Program
Note 12. Investment Income
Note 13. Commitments and Contingencies
Note 14. Financial Highlights
Note 15. Risks and Uncertainties
Note 16. Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II - Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-31.1 f10q0619ex31-1_oxford.htm
EX-31.2 f10q0619ex31-2_oxford.htm
EX-32.1 f10q0619ex32-1_oxford.htm
EX-32.2 f10q0619ex32-2_oxford.htm

Oxford Square Capital Earnings 2019-06-30

OXSQ 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 f10q0619_oxfordsquarecap.htm FORM 10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

___________________________________

FORM 10-Q

___________________________________

 

(Mark One)

   
   

S

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019

 

£

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-00638

_______________________

OXFORD SQUARE CAPITAL CORP.

(Exact name of registrant as specified in its charter)

_______________________

 

MARYLAND

 

20-0188736

   
   

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

   

8 SOUND SHORE DRIVE, SUITE 255
GREENWICH, CONNECTICUT 06830

(Address of principal executive office)

(203) 983-5275

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common stock, par value $0.01 per share

 

OXSQ

 

NASDAQ Global Select Market LLC

6.50% Notes due 2024

 

OXSQL

 

NASDAQ Global Select Market LLC

6.25% Notes due 2026

 

OXSQZ

 

NASDAQ Global Select Market LLC

_______________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes S No £

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes £ No £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer £

 

Accelerated filer S

   

Non-accelerated filer £

 

Smaller Reporting company £

   

Emerging growth company £

   

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. £

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes £ No S

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. The number of shares of the issuer’s common stock, $0.01 par value, outstanding as of July 30, 2019, was 47,650,959.

 

i

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

OXFORD SQUARE CAPITAL CORP.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

June 30,
2019

 

December 31,
2018

   

(unaudited)

   

ASSETS

 

 

 

 

 

 

 

 

Non-affiliated/non-control investments (cost: $497,304,443 and $486,232,755, respectively)

 

$

433,845,212

 

 

$

430,496,633

 

Affiliated investments (cost: $15,461,904 and $9,126,017, respectively)

 

 

13,949,814

 

 

 

14,492,197

 

Cash equivalents

 

 

10,336,577

 

 

 

13,905,059

 

Restricted cash

 

 

2,267,372

 

 

 

3,175,805

 

Interest and distributions receivable

 

 

4,486,790

 

 

 

4,682,735

 

Other assets

 

 

421,172

 

 

 

392,784

 

Total assets

 

$

465,306,937

 

 

$

467,145,213

 

LIABILITIES

 

 

 

 

 

 

 

 

Notes payable – 6.50% Unsecured Notes, net of deferred issuance costs

 

$

62,825,881

 

 

$

62,664,863

 

Notes payable – Credit Facility, net of deferred issuance costs

 

 

52,811,859

 

 

 

85,522,569

 

Notes payable – 6.25% Unsecured Notes, net of deferred issuance costs

 

 

43,201,242

 

 

 

 

Base management fee and net investment income incentive fee payable to affiliate

 

 

4,223,566

 

 

 

3,227,456

 

Accrued interest payable

 

 

972,028

 

 

 

488,608

 

Accrued expenses

 

 

442,887

 

 

 

517,470

 

Total liabilities

 

 

164,477,463

 

 

 

152,420,966

 

COMMITMENTS AND CONTINGENCIES (Note 13)

 

 

 

 

 

 

 

 

NET ASSETS

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, 100,000,000 shares authorized; 47,650,959 and 47,650,959 shares issued and outstanding, respectively

 

 

476,509

 

 

 

476,509

 

Capital in excess of par value

 

 

456,970,560

 

 

 

456,970,560

 

Total distributable earnings / (accumulated losses)

 

 

(156,617,595

)

 

 

(142,722,822

)

Total net assets

 

 

300,829,474

 

 

 

314,724,247

 

Total liabilities and net assets

 

$

465,306,937

 

 

$

467,145,213

 

Net asset value per common share

 

$

6.31

 

 

$

6.60

 

See Accompanying Notes.

1

OXFORD SQUARE CAPITAL CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited)
June 30, 2019

COMPANY/INVESTMENT(1)(20)

 

PRINCIPAL
AMOUNT

 

COST

 

FAIR
VALUE
(2)

 

% OF NET ASSETS

Senior Secured Notes

 

 

   

 

   

 

     

 

Aerospace and Defense

 

 

   

 

   

 

     

 

Novetta, LLC

 

 

   

 

   

 

     

 

first lien senior secured notes, 7.44% (LIBOR + 5.00%), (1.00% floor) due October 16, 2022(4)(5)(6)(16)(21)

 

$

5,500,130

 

$

5,452,580

 

$

5,390,127

   

 

Total Aerospace and Defense

 

 

   

$

5,452,580

 

$

5,390,127

 

1.8

%

   

 

   

 

   

 

     

 

Business Services

 

 

   

 

   

 

     

 

Access CIG, LLC

 

 

   

 

   

 

     

 

first lien senior secured notes, 6.19% (LIBOR + 3.75%),
(0.00% floor) due February 27, 2025(4)(5)(6)(14)(16)(21)

 

$

493,752

 

$

493,752

 

$

490,513

   

 

second lien senior secured notes, 10.19% (LIBOR + 7.75%), (0.00% floor) due February 27, 2026(4)(5)(14)(16)(21)

 

 

16,754,000

 

 

16,854,905

 

 

16,614,439

   

 

   

 

   

 

   

 

     

 

Convergint Technologies, LLC

 

 

   

 

   

 

     

 

second lien senior secured notes, 9.19% (LIBOR + 6.75%), (0.75% floor) due February 2, 2026(4)(5)(16)(21)

 

 

1,500,000

 

 

1,492,966

 

 

1,440,000

   

 

   

 

   

 

   

 

     

 

Imagine! Print Solutions

 

 

   

 

   

 

     

 

second lien senior secured notes, 11.19% (LIBOR + 8.75%), (1.00% floor) due June 21, 2023(4)(5)(16)(21)

 

 

15,000,000

 

 

14,850,583

 

 

12,000,000

   

 

   

 

   

 

   

 

     

 

OMNIA Partners, Inc.

 

 

   

 

   

 

     

 

first lien senior secured notes, 6.35% (LIBOR + 3.75%), (0.00% floor) due May 23, 2025(4)(5)(6)(14)(15)(21)

 

 

5,940,027

 

 

5,941,635

 

 

5,865,777

   

 

second lien senior secured notes, 10.10% (LIBOR + 7.50%), (0.00% floor) due May 22, 2026(4)(5)(14)(15)(21)

 

 

14,000,000

 

 

13,939,940

 

 

13,650,000

   

 

   

 

   

 

   

 

     

 

Premiere Global Services, Inc.

 

 

   

 

   

 

     

 

first lien senior secured notes, 9.06% (LIBOR + 6.50%), (1.00% floor) due December 8, 2021(4)(5)(6)(15)

 

 

14,318,924

 

 

13,581,243

 

 

8,090,192

   

 

second lien senior secured notes, 12.08% (LIBOR + 9.50%), (1.00% floor) due June 6, 2022(4)(5)(15)

 

 

10,000,000

 

 

9,812,522

 

 

5,000,000

   

 

   

 

   

 

   

 

     

 

Verifone Systems, Inc.

 

 

   

 

   

 

     

 

first lien senior secured notes, 6.52% (LIBOR + 4.00%), (0.00% floor) due August 20, 2025(4)(5)(6)(15)(21)

 

 

6,965,000

 

 

6,934,419

 

 

6,738,638

   

 

Total Business Services

 

 

   

$

83,901,965

 

$

69,889,559

 

23.2

%

   

 

   

 

   

 

     

 

Diversified Insurance

 

 

   

 

   

 

     

 

AmeriLife Group LLC

 

 

   

 

   

 

     

 

second lien senior secured notes, 11.41% (LIBOR + 9.00%), (1.00% floor) due July 11, 2027(4)(5)(16)

 

$

10,000,000

 

$

9,900,137

 

$

9,950,000

   

 

Total Diversified Insurance

 

 

   

$

9,900,137

 

$

9,950,000

 

3.3

%

   

 

   

 

   

 

     

 

Education

 

 

   

 

   

 

     

 

Edmentum, Inc. (f/k/a Plato, Inc.)

 

 

   

 

   

 

     

 

first lien senior secured notes, 7.08% (LIBOR + 4.50%), (1.00% floor) Cash, 4.00% PIK due June 9,
2021
(3)(4)(5)(6)(15)(21)

 

$

6,012,946

 

$

5,976,814

 

$

5,050,875

   

 

Total Education

 

 

   

$

5,976,814

 

$

5,050,875

 

1.7

%

(continued on next page)

See Accompanying Notes.

2

OXFORD SQUARE CAPITAL CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited)
June 30, 2019

COMPANY/INVESTMENT(1)(20)

 

PRINCIPAL
AMOUNT

 

COST

 

FAIR
VALUE
(2)

 

% OF NET ASSETS

Senior Secured Notes – (continued)

 

 

   

 

   

 

     

 

Financial Intermediaries

 

 

   

 

   

 

     

 

First American Payment Systems

 

 

   

 

   

 

     

 

second lien senior secured notes, 13.10% (LIBOR + 10.50%), (1.00% floor) due July 5, 2024(4)(5)(15)(21)

 

$

1,500,000

 

$

1,466,093

 

$

1,498,125

   

 

   

 

   

 

   

 

     

 

Lighthouse Network, LLC (f/k/a Harbortouch Payments, LLC)

 

 

   

 

   

 

     

 

first lien senior secured notes, 7.08% (LIBOR + 4.50%), (1.00% floor) due November 30, 2024(4)(5)(6)(14)(15)(21)

 

 

3,447,500

 

 

3,434,061

 

 

3,443,191

   

 

second lien senior secured notes, 11.08% (LIBOR + 8.50%), (1.00% floor) due November 30, 2025(4)(5)(14)(15)(21)

 

 

16,490,000

 

 

16,339,962

 

 

16,118,975

   

 

Total Financial Intermediaries

 

 

   

$

21,240,116

 

$

21,060,291

 

7.0

%

   

 

   

 

   

 

     

 

Healthcare

 

 

   

 

   

 

     

 

Keystone Acquisition Corp.

 

 

   

 

   

 

     

 

first lien senior secured notes, 7.85% (LIBOR + 5.25%), (1.00% floor) due May 1, 2024(4)(5)(6)(14)(15)(21)

 

$

7,496,017

 

$

7,467,276

 

$

7,289,877

   

 

second lien senior secured notes, 11.85% (LIBOR + 9.25%), (1.00% floor) due May 1, 2025(4)(5)(14)(15)(21)

 

 

13,000,000

 

 

12,865,395

 

 

12,610,000

   

 

   

 

   

 

   

 

     

 

Viant Medical Holdings, Inc.

 

 

   

 

   

 

     

 

first lien senior secured notes, 6.35% (LIBOR + 3.75%), (0.00% floor) due July 2, 2025(4)(5)(6)(15)(21)

 

 

9,925,000

 

 

9,925,723

 

 

9,887,781

   

 

second lien senior secured notes, 10.35% (LIBOR + 7.75%), (0.00% floor) due July 2, 2026(4)(5)(15)(21)

 

 

5,000,000

 

 

4,955,136

 

 

4,912,500

   

 

   

 

   

 

   

 

     

 

Healthport Technologies, LLC

 

 

   

 

   

 

     

 

first lien senior secured notes, 6.69% (LIBOR + 4.25%), (1.00% floor) due December 1, 2021(4)(5)(6)(16)

 

 

12,467,532

 

 

10,770,171

 

 

10,597,402

   

 

   

 

   

 

   

 

     

 

ScribeAmerica, LLC

 

 

   

 

   

 

     

 

first lien senior secured notes, 6.97% (LIBOR + 4.50%), (0.00% floor) due April 3, 2025(4)(5)(6)(16)

 

 

9,912,092

 

 

9,846,750

 

 

9,837,751

   

 

Total Healthcare

 

 

   

$

55,830,451

 

$

55,135,311

 

18.3

%

   

 

   

 

   

 

     

 

Logistics

 

 

   

 

   

 

     

 

Capstone Logistics Acquisition, Inc.

 

 

   

 

   

 

     

 

first lien senior secured notes, 6.94% (LIBOR + 4.50%), (1.00% floor) due October 7, 2021(4)(5)(6)(16)(21)

 

$

12,917,066

 

$

12,899,536

 

$

12,836,334

   

 

Total Logistics

 

 

   

$

12,899,536

 

$

12,836,334

 

4.3

%

   

 

   

 

   

 

     

 

Printing and Publishing

 

 

   

 

   

 

     

 

Merrill Communications, LLC

 

 

   

 

   

 

     

 

first lien senior secured notes, 7.83% (LIBOR + 5.25%), (1.00% floor) due June 1, 2022(4)(5)(6)(15)(21)

 

$

4,860,339

 

$

4,853,709

 

$

4,884,641

   

 

Total Printing and Publishing

 

 

   

$

4,853,709

 

$

4,884,641

 

1.6

%

   

 

   

 

   

 

     

 

Software

 

 

   

 

   

 

     

 

ECI Software Solutions, Inc.

 

 

   

 

   

 

     

 

first lien senior secured notes, 6.85% (LIBOR + 4.25%), (1.00% floor) due September 29, 2024(4)(5)(6)(14)(15)(21)

 

$

4,937,186

 

$

4,952,874

 

$

4,918,672

   

 

second lien senior secured notes, 10.60% (LIBOR + 8.00%), (1.00% floor) due September 29, 2025(4)(5)(14)(15)(21)

 

 

15,000,000

 

 

14,914,828

 

 

14,756,250

   

 

(continued on next page)

See Accompanying Notes.

3

OXFORD SQUARE CAPITAL CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited)
June 30, 2019

COMPANY/INVESTMENT(1)(20)

 

PRINCIPAL
AMOUNT

 

COST

 

FAIR
VALUE
(2)

 

% OF NET ASSETS

Senior Secured Notes – (continued)

 

 

   

 

   

 

     

 

Software – (continued)

 

 

   

 

   

 

     

 

Help/Systems Holdings, Inc.

 

 

   

 

   

 

     

 

first lien senior secured notes, 6.19% (LIBOR + 3.75%), (0.00% floor) due March 28, 2025(4)(5)(6)(14)(15)(21)

 

$

3,960,000

 

$

3,967,982

 

$

3,925,350

   

 

second lien senior secured notes, 10.19% (LIBOR + 7.75%), (0.00% floor) due March 27, 2026(4)(5)(14)(15)(21)

 

 

15,500,000

 

 

15,484,417

 

 

15,345,000

   

 

   

 

   

 

   

 

     

 

Quest Software, Inc.

 

 

   

 

   

 

     

 

first lien senior secured notes, 6.84% (LIBOR + 4.25%), (0.00% floor) due May 16, 2025(4)(5)(6)(14)(15)(21)

 

 

5,970,000