Oxford Lane Capital Distributes First Post-Split Dividend Payment

Shareholders of Oxford Lane Capital received a significant dividend distribution today, marking the initial payment following the company’s recent reverse stock split. The closed-end fund distributed $0.45 per share, representing the split-adjusted equivalent of the previously announced $0.09 payout.

This distribution follows the 1:5 reverse stock split executed on September 8, which consolidated shares to potentially increase the per-share price and attract institutional investors while maintaining shareholders’ proportional ownership stakes.

Revised Dividend Schedule

The board of directors has adjusted all previously declared distributions to align with the new share structure. The updated dividend calendar now includes:

• September 30, 2025: $0.45 per share (paid today)
• October 31, 2025: $0.40 per share (record date: October 17)
• November 30, 2025: $0.40 per share (record date: November 14)
• December 31, 2025: $0.40 per share (record date: December 17)

These amounts correspond to the split-adjusted equivalents of the original $0.09 and $0.08 distributions declared before the reverse split. The company clarified that no fractional shares were issued, with shareholders instead receiving cash payments for fractional interests.

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Investment Strategy and Performance Metrics

Oxford Lane Capital maintains its specialized focus on investments in both debt and equity tranches of collateralized loan obligation (CLO) vehicles. The fund’s strategy continues to emphasize CLO equity investments, which generated approximately $117.4 million in investment income during the first fiscal quarter ending June 30, 2025.

Recent financial metrics demonstrate the portfolio’s performance: the weighted average cash dividend yield from CLO equity investments reached 21.6% at current cost as of June 30, 2025, compared to 20.5% in the prior quarter. The net asset value stood at $4.12 per share (pre-split) as of June 30, 2025, versus $4.32 per share as of March 31, 2025.

Dividend Sustainability Considerations

The increased per-share dividend amounts reflect mathematical adjustments following the reverse split rather than an actual increase in distribution rates. Oxford Lane’s capacity to maintain these dividends depends on the continuing performance of its CLO investment portfolio and broader conditions in the leveraged loan market.

With core net capital income of $0.24 per share (pre-split) during the first fiscal quarter, management continues to emphasize that taxable income may differ substantially from GAAP financial measures. The next earnings report and potential dividend declarations are anticipated in the coming months as Oxford Lane approaches its fiscal year-end.