Oxford Square Capital Corp. (OXSQ) reported a net investment income of $26.4 million for the fiscal year ended December 31, 2024, a slight decrease from the $27.4 million reported in 2023. This decrease was primarily due to a $10 million reduction in stated interest income from debt investments, resulting from restructurings and refinancings, and a decrease in floating interest rates. This was partially offset by a $0.9 million increase in money market fund income. Total investment income decreased to $42.7 million from $51.8 million in the prior year.
Operating expenses for 2024 decreased by approximately $8.2 million to $16.2 million, compared to $24.5 million in 2023. This reduction stemmed mainly from lower Net Investment Income Incentive Fees, excise tax, and interest expense. The decrease in interest expense, to $7.8 million from $10.8 million, was attributed to the full repayment of the 6.50% Unsecured Notes during 2023. The Company's Base Fee also decreased slightly to $4.3 million from $4.6 million due to lower average gross assets.
During 2024, OXSQ purchased approximately $112.2 million in investments, including $31 million in existing portfolio companies and $81.2 million in new companies. This compares to $11.7 million in purchases during 2023. The company also experienced loan principal repayments of $75 million in 2024, significantly higher than the $15.8 million in 2023. Sales of securities totaled $11.8 million in 2024, compared to $19.6 million in 2023. The company's investment portfolio decreased in value to $260.9 million from $266.9 million due to principal repayments, sales, and realized losses, partially offset by unrealized appreciation and new purchases.
As of December 31, 2024, OXSQ's investment portfolio was composed of approximately 57.8% senior secured notes, 40.1% CLO equity, and 2.1% equity and other investments. The company's weighted average grade for its debt investment portfolio remained at 2.3. The company raised approximately $29.2 million in net capital during 2024 through an At-the-Market offering. The company had no employees, with day-to-day operations managed by Oxford Square Management. The company's outlook and future performance are subject to various risks and uncertainties, including economic downturns, credit availability, interest rate volatility, and cybersecurity threats, as detailed in the filing's risk factors section.
About Oxford Square Capital Corp.
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