Oxford Lane to sell $5 million 7.5% series 2023 term preferred shares

By Toni Weeks

San Luis Obispo, Calif., Sept. 2 – Oxford Lane Capital Corp. plans to sell 200,000 of its 7.5% series 2023 term preferred shares to a single investor, according to a 497 filing with the Securities and Exchange Commission.

Dividends on the $25-par preferreds will be payable monthly.

The preferreds mature on June 30, 2023 and are callable beginning June 30, 2016.

Should the company's asset coverage ratio fall below 200%, Oxford will redeem a portion of the preferreds at the lesser of the minimum number of shares needed to be redeemed in order to reach the necessary asset coverage ratio or the maximum number of shares that can be redeemed with cash legally available.

The preferreds closed at $24.44 (Nasdaq: OXLCO) on Tuesday.

Proceeds will be used for acquiring investments and for general working capital purposes, which may include operating expenses, including advisory and administrative fees and expenses.

Greenwich, Conn.-based Oxford Lane is a closed-end management investment company that invests in equity and junior debt tranches of collateralized loan obligation vehicles that are collateralized primarily by senior secured loans made to companies whose debt is unrated or rated below investment grade.

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