Company: OXLCZ
Filing Date: 2025-02-19
Form Type: 424B2
Source: 0001213900-25-015045
Chunk: 97

Company: Oxford Lane Capital Corp.
Filing Date: 2025-02-19
Form: 424B2
Chunk 97
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 market is characterized by various factors, including: • Floating rate instruments.Senior Loans and other types of CLO Assets typically contain a floating interest rate as opposed to a fixed interest rate, which we believe provides some measure of protection against the risk of interest rate fluctuation. However, all of our CLO investments have many CLO Assets which are subject to interest rate floors and since interest rates on CLO Assets may only reset periodically and the amount of the increase following an interest rate reset may be below the interest rate floors of such CLO Assets, our ability to benefit from rate resets following an increase in interest rates may be limited. • Frequency of interest payments.Senior Loans and other CLO Assets typically provide for scheduled interest payments no less frequently than quarterly. Investment Opportunity We believe that the market for CLO -relatedassets provides us with opportunities to generate attractive risk -adjustedreturns over the long term. The long -termand relatively low -costcapital that many CLO vehicles have secured, compared with current asset spreads, have created opportunities to purchase certain CLO equity and junior debt instruments that may produce attractive risk -adjustedreturns. Additionally, given that the CLO vehicles we invest in are cash flow -basedvehicles, this term financing may be beneficial in periods of market volatility. We continue to review a large number of CLO investment opportunities in the current market environment, and we expect that the majority of our portfolio holdings, over the near to intermediate -term, will continue to be comprised of CLO debt and equity securities, with the more significant focus over the near -termlikely to be on CLO equity securities. 25 Investment Selection Oxford Lane Management’s investment team is responsible for all aspects of our investment process. Oxford Lane Management’s senior investment team currently consists of Messrs. Cohen, Rosenthal and Kupka, and Messrs. Cohen and Rosenthal serve as members of the investment committee of Oxford Lane Management. While the investment strategy involves a team approach, whereby potential transactions are screened by various members of the investment team, Messrs. Cohen or Rosenthal must approve all investments in order for them to close. See “Portfolio Management.” The stages of our investment selection process are as follows: Deal Sourcing Deal sourcing is generally conducted through brokers and bankers, and may also be sourced through industry contacts, CLO vehicle sponsors and investors. We believe that we currently have an active pipeline of deal flow, particularly through multiple CLO trading desks. Screening In screening potential investments in CLO vehicles, Oxford Lane Management’s investment team