 GREENWICH, Conn., July 28, 2020 GLOBE NEWSWIRE -- Oxford Square Capital Corp. NasdaqGS: OXSQ NasdaqGS: OXSQL NasdaqGS: OXSQZ the Company, we, us or our announced today its financial results and related information for the quarter ended June 30, 2020. As previously announced by the Company, our Board of Directors had declared monthly common stock distributions of 0.035 through September 30, 2020. In light of current economic and market conditions, specifically as a result of the global crisis caused by the spread of the COVID-19 virus, no assurance can be provided as to the level of any common stock distributions that may be declared by the Companys Board of Directors for the fourth quarter of 2020 which are currently expected to be declared in September. During the quarter ended June 30, 2020, the U.S. loan market strengthened versus the quarter ended March 31, 2020. U.S. loan prices, as defined by the SP LSTA Leveraged Loan Index, increased from 82.85 of par value as of March 31, 2020 to a quarterly high of 91.24 of par value on June 10, 2020, before declining to 89.88 of par value on June 30, 2020. We believe that the COVID-19 pandemic represents an extraordinary circumstance that materially impacts the fair value of the Companys investments. As a result, the fair value of the Companys portfolio investments may be negatively impacted after June 30, 2020 by circumstances and events that are not yet known. As of June 30, 2020, net asset value NAV per share was 3.54, compared with the NAV per share of 3.32 at the prior quarter end. - For the quarter ended June 30, 2020 we recorded GAAP net investment income of approximately 4.3 million, or 0.09 per share, compared to 6.4 million, or 0.13 per share, for the quarter ended March 31, 2020. - We recorded net realized losses on investments of approximately 2.8 million and net unrealized appreciation of approximately 19.0 million for the quarter ended June 30, 2020, compared to net realized losses on investments of approximately 0.3 million and net unrealized depreciation of approximately 85.4 million for the quarter ended March 31, 2020. The increase in net unrealized appreciation for the three months ended June 30, 2020 was due primarily to unrealized appreciation in our syndicated loan investments, partially offset by the unrealized depreciation in our collateralized loan obligation CLO equity investments. - In total, we had a net increase in net assets from operations of approximately 20.6 million, or 0.41 per share, for the quarter ended June 30, 2020, compared with a net decrease in net assets from operations of 79.4 million, or 1.62 per share, for the quarter ended March 31, 2020. Total investment income for the quarter ended June 30, 2020 amounted to approximately 8.3 million, which represents a decrease of approximately 2.6 million from the quarter ended March 31, 2020. For the quarter ended June 30, 2020 the components of investment income were as follows: - 4.9 million from our debt investments, - 3.2 million from our CLO equity investments, and - 0.2 million from all other sources. Our total expenses for the quarter ended June 30, 2020 were approximately 3.9 million, which represents a decrease of approximately 0.5 million from the quarter ended March 31, 2020. During the second quarter of 2020, we made investments of approximately 21.3 million and received, or were entitled to receive, proceeds of approximately 9.5 million from sales of investments, and 16.7 million from repayments and amortization payments on our debt investments. As of June 30, 2020, the following metrics applied note that none of these values represents a total return to shareholders: - The weighted average yield of our debt investments was 8.1 at current cost, compared with 8.8 as of March 31, 2020. - The weighted average effective yield of our CLO equity investments at current cost was 7.1, compared with 9.7 as of March 31, 2020. - The weighted average cash distribution yield of our cash income producing CLO equity investments at current cost was 11.6, compared with 14.4 as of March 31, 2020. Our weighted average credit rating was 2.3 based on total fair value and 2.5 based on total principal value as of June 30, 2020, compared with 2.2 based on total fair value and 2.5 based on total principal value as of March 31, 2020. As of June 30, 2020, we had two debt investments on non-accrual status, with a combined fair value of 5.4 million. Also, as of June 30, 2020, our preferred equity investments in one of our portfolio companies were on non-accrual status, with a combined fair value of 0.6 million.We will host a conference call to discuss our second quarter results today, Tuesday, July 28, 2020 at 9:00 AM ET. Please call 1-888-339-0740 to participate. A recording of the conference call will be available to replay for approximately 30 days following the call. The replay number is 1-877-344-7529, and the replay passcode is 10146310.A presentation containing further detail regarding our quarterly results of operations has been posted under the Investor Relations section of our website at OXFORD SQUARE CAPITAL CORP.CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES June 30, 2020 December 31, 2019 unaudited ASSETS Non-affiliatednon-control investments cost: 440,310,808 and 467,828,907, respectively 270,187,580 361,985,203 Affiliated investments cost: 16,836,822 and 16,836,822, respectively 634,089 2,816,790 Cash equivalents 20,061,813 14,410,486 Restricted cash 2,050,452 Interest and distributions receivable 1,090,287 3,480,036 Other assets 776,759 523,626 Total assets 292,750,528 385,266,593 LIABILITIES Notes payable 6.50 Unsecured Notes net of deferred issuance costs of 1,218,751 and 1,380,658, respectively 63,151,474 62,989,567 Notes payable 6.25 Unsecured Notes net of deferred issuance costs of 1,360,619 and 1,476,878, respectively 43,430,131 43,313,872 Notes payable Credit Facility net of deferred issuance costs of 10,051 28,080,550 Securities purchased not settled 8,742,818 Base management fee and net investment income incentive fee payable to affiliate 1,010,673 1,480,653 Accrued interest payable 481,261 632,235 Accrued expenses 607,562 771,174 Total liabilities 117,423,919 137,268,051 NET ASSETS Common stock, 0.01 par value, 100,000,000 shares authorized; 49,589,607 and 48,448,987 shares issued and outstanding, respectively 495,895 484,489 Capital in excess of par value 457,810,322 451,839,302 Total distributable earnings accumulated losses 282,979,608 204,325,249 Total net assets 175,326,609 247,998,542 Total liabilities and net assets 292,750,528 385,266,593 Net asset value per common share 3.54 5.12 OXFORD SQUARE CAPITAL CORP.CONSOLIDATED STATEMENTS OF OPERATIONS unaudited Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 INVESTMENT INCOME From non-affiliatednon-control investments: Interest income debt investments 4,873,382 7,432,376 10,527,637 14,580,857 Income from securitization vehicles and investments 3,217,953 6,649,481 7,977,023 13,496,406 Other income 163,286 495,158 574,649 724,866 Total investment income from non-affiliatednon-control investments 8,254,621 14,577,015 19,079,309 28,802,129 From affiliated investments: Dividend income non-cash 6,335,886 6,335,886 Total investment income from affiliated investments 6,335,886 6,335,886 Total investment income 8,254,621 20,912,901 19,079,309 35,138,015 EXPENSES Interest expense 1,906,442 2,806,159 4,079,910 4,956,000 Base management fees 1,010,672 1,868,123 2,241,882 3,494,661 Professional fees 433,746 354,818 907,735 722,069 Compensation expense 168,281 194,975 368,629 427,903 General and administrative 405,498 554,075 778,680 882,592 Total expenses before incentive fees 3,924,639 5,778,150 8,376,836 10,483,225 Net investment income incentive fees 2,355,442 3,511,493 Total expenses 3,924,639 8,133,592 8,376,836 13,994,718 Net investment income 4,329,982 12,779,309 10,702,473 21,143,297 Net change in unrealized appreciationdepreciation on investments: Non-affiliatednon-control investments 18,736,102 11,951,759 64,279,524 7,723,109 Affiliated investments 249,793 8,328,556 2,182,701 6,878,270 Total net change in unrealized appreciation depreciation on investments 18,985,895 20,280,315 66,462,225 14,601,379 Net realized gainslosses: Non-affiliatednon-control investments 2,760,308 1,296 3,037,481 1,277,570 Extinguishment of debt 36,980 5,211 51,086 Total net realized losses 2,760,308 35,684 3,042,692 1,328,656 Net increasedecrease in net assets resulting from operations 20,555,569 7,536,690 58,802,444 5,213,262 Net increase in net assets resulting from net investment income per common share Basic and Diluted 0.09 0.27 0.22 0.44 Net increasedecrease in net assets resulting from operations per common share Basic and Diluted 0.41 0.16 1.19 0.11 Weighted average shares of common stock outstanding Basic and Diluted 49,589,607 47,650,959 49,363,588 47,650,959 Distributions per share 0.201 0.201 0.402 0. 