Oxford Lane Capital Implements 1-for-5 Reverse Stock Split and Announces New Distribution Schedule

Oxford Lane Capital Corp. has completed a significant corporate action, implementing a 1-for-5 reverse stock split of its common stock. The shares of the closed-end fund began trading on a split-adjusted basis this Monday, prompting investor questions about the practical implications for their holdings and the company’s dividend distributions.

Revised Monthly Distribution Policy

In conjunction with the reverse split, the fund’s management has announced a recalibrated schedule for its monthly cash distributions. The updated payment details are as follows:

• A distribution of $0.45 per share is scheduled for September 2025, with a record date of September 16.
• For October 2025, a payment of $0.40 per share will be made to shareholders of record on October 17.
• The November 2025 distribution is also set at $0.40 per share, with a record date of November 14.
• A December 2025 payment of $0.40 per share will be distributed to investors on record as of December 17.

While the nominal distribution amounts appear larger, this is a direct result of the reduced number of shares outstanding following the reverse split. The fundamental economic value delivered to shareholders remains consistent with the company’s previous distribution policy.

Preliminary Net Asset Value Estimate Provided

The company’s management released a preliminary estimate of its net asset value (NAV) per share as of September 8, 2025. This estimate, which is already adjusted for the reverse split, places the NAV in a range between $20.02 and $20.22 per share.

A notable caution accompanies this estimate: the figure has not undergone the company’s standard quarterly financial closing procedures and is subject to change due to market movements. Consequently, the final NAV per share as of September 30, 2025, could differ materially from this preliminary range.

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Share Repurchase Program Update

Oxford Lane continues to actively execute its share repurchase program. Between July 24, 2025, and August 13, 2025, the company bought back 4.9 million shares at a total cost of $17.4 million, reflecting an average price of $3.53 per share.

This repurchase activity is part of a broader $150 million authorization approved by the board of directors. The program is set to run through March 2026, and approximately $132.7 million remains available for future share buybacks.

Core CLO Investment Strategy Unchanged

The reverse split does not signal a shift in Oxford Lane Capital’s fundamental investment approach. The fund continues to specialize in investing in both debt and equity tranches of collateralized loan obligations (CLOs). Its portfolio also includes investments in warehouse facilities, which aggregate loans that may be used to form new CLOs.

This business model is designed to maximize risk-adjusted returns through these specialized credit investments. The recent reverse split and the accompanying adjustments to the distribution policy are strategic moves intended to optimize the company’s capital structure, aligning with the objectives of return-focused investors who have an interest in the CLO market.