Oxford Lane plans add-on sales of 7.5%, 8.125% term preferreds

By Marisa Wong

Morgantown, W.Va., March 14 – Oxford Lane Capital Corp. is planning to sell more shares of its 7.5% series 2023 term preferred stock (Nasdaq: OXLCO) and 8.125% series 2024 term preferred stock (Nasdaq: OXLCN) via an at-the-market agreement, according to a prospectus filed with the Securities and Exchange Commission on Tuesday.

The company plans to offer up to 600,000 shares of the series 2023 preferreds and up to 600,000 share of the series 2024 preferreds.

The add-on offering will be through Ladenburg Thalmann & Co. Inc. as agent.

As of March 13, there were 3,016,001 series 2023 preferred shares and 2,018,879 series 2024 preferred shares outstanding.

Dividends are payable monthly. The series 2023 preferreds and series 2024 preferreds are redeemable on or after June 30, 2016 and June 30, 2017, respectively. The series 2023 preferreds and series 2024 preferreds are mandatorily redeemable June 30, 2023 and June 30, 2024, respectively, at par plus accrued dividends.

The company is also required to redeem a portion of the preferreds if its asset coverage ratio falls below 200%. The amount redeemed will equal the lesser of the minimum number of shares needed to be redeemed in order to meet the asset coverage ratio or the maximum number of shares the company can legally redeem with available cash.

Proceeds will be used to acquire investments in accordance with the company’s investment objectives and strategies and for general working capital purposes.

Oxford Lane is a Greenwich, Conn.-based closed-end management investment company.

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