Oxford Square Capital Corp. Prices Public Offering of $65 Million 7.75% Notes Due 2030
Rhea-AI Summary
Oxford Square Capital Corp. (NASDAQ:OXSQ) has announced the pricing of a $65 million public offering of unsecured notes due 2030. The notes will carry a 7.75% interest rate, payable quarterly, and will mature on July 31, 2030. The company has also granted underwriters an option to purchase an additional $9.75 million in notes.
The notes, expected to trade under symbol "OXSQH", will be redeemable after July 31, 2027. The offering is anticipated to close on August 7, 2025. Proceeds will be used to repay existing debt, make new investments aligned with the company's objectives, and for general corporate purposes. Lucid Capital Markets and Piper Sandler are serving as joint book-running managers for the offering.
Positive
- New notes offer fixed income stream with 7.75% interest rate payable quarterly
- Additional capital raising flexibility with $9.75M overallotment option
- Debt maturity extended to 2030, improving long-term capital structure
- Notes will be listed on NASDAQ, providing liquidity for investors
Negative
- Additional debt burden of $65M (potentially $74.75M) increases leverage
- 7.75% interest rate represents significant ongoing interest expense
- Early redemption not available until July 31, 2027
News Market Reaction – OXSQ
On the day this news was published, OXSQ declined 1.29%, reflecting a mild negative market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $2M from the company's valuation, bringing the market cap to $177M at that time.
Data tracked by StockTitan Argus on the day of publication.
GREENWICH, Conn., Aug. 01, 2025 (GLOBE NEWSWIRE) -- Oxford Square Capital Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQG) (NasdaqGS: OXSQZ) (the “Company”) today announced that it has priced an underwritten public offering of
The offering is expected to close on August 7, 2025, subject to customary closing conditions. The Company has granted the underwriters an option to purchase up to an additional
The Company intends to use the net proceeds from this offering to repay indebtedness, acquire investments in accordance with our investment objective and strategies described in this prospectus supplement and for general corporate purposes.
Lucid Capital Markets, LLC and Piper Sandler & Co. are acting as joint book-running managers for the offering. Clear Street LLC, InspereX LLC, Janney Montgomery Scott LLC and William Blair & Company, L.L.C. are acting as lead managers for the offering.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities in this offering or any other securities nor will there be any sale of these securities or any other securities referred to in this press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.
A shelf registration statement relating to these securities is on file with and has been declared effective by the Securities and Exchange Commission. The offering may be made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained, when available, from the following investment banks: Lucid Capital Markets, LLC at 570 Lexington Ave, 40th Floor, New York, NY 10022, at telephone number (646) 362-0256, or via email at: Prospectus@lucidcm.com; and Piper Sandler & Co., 350 North 5th Street, Suite 1300, Minneapolis, MN 55402, Attention: Prospectus Department, or by telephone at (800) 747-3924, or by email at prospectus@psc.com. The preliminary prospectus supplement, dated July 31, 2025, and accompanying prospectus, dated September 26, 2022, each of which has been filed with the Securities and Exchange Commission, contain a description of these matters and other important information about the Company and should be read carefully before investing. Investors are advised to carefully consider the investment objectives, risks and charges and expenses of the Company before investing.
About Oxford Square Capital Corp.
Oxford Square Capital Corp. is a publicly-traded business development company principally investing in syndicated bank loans and, to a lesser extent, debt and equity tranches of collateralized loan obligation (“CLO”) vehicles. CLO investments may also include warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle.
Forward Looking Statements
This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered to be forward-looking statements. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to update such statements to reflect subsequent events, except as may be required by law.
Contact:
Bruce Rubin
203-983-5280
FAQ
What is the size and interest rate of OXSQ's new notes offering?
When will OXSQ's new notes mature and when can they be redeemed?
How will OXSQ use the proceeds from the notes offering?
What is the payment schedule for OXSQ's new notes?
When will OXSQ's new notes begin trading and under what symbol?
