Company: OXLCZ
Filing Date: 2025-02-21
Form Type: 424B2
Source: 0001213900-25-015823
Chunk: 104

Company: Oxford Lane Capital Corp.
Filing Date: 2025-02-21
Form: 424B2
Chunk 104
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 or repurchases during the relevant quarter. You should be aware that a rise in the general level of interest rates can be expected to lead to higher interest rates applicable to our debt investments. Accordingly, an increase in interest rates would make it easier for us to meet or exceed the incentive fee hurdle rate and may result in a substantial increase of the amount of incentive fees payable to Oxford Lane Management with respect to pre -incentivefee net investment income. No incentive fee is payable to Oxford Lane Management on realized capital gains. In addition, the amount of the incentive fee is not affected by any realized or unrealized losses that we may suffer. Examples of Quarterly Incentive Fee Calculation (amounts expressed as a percentage of the value of net assets, and are not annualized) Alternative 1: Assumptions Investment income (including interest, dividends, fees, etc.) = 1.25% Hurdle rate (1)= 1.75% Management fee (2)= 0.5% Other expenses (legal, accounting, custodian, transfer agent, etc.) (3)= 0.20% Pre -incentivefee net investment income (investment income-(management fee + other expenses)) = 0.55% Pre -incentivenet investment income does not exceed hurdle rate, therefore there is no incentive fee. 33 Table of Contents Alternative 2: Assumptions Investment income (including interest, dividends, fees, etc.) = 2.70% Hurdle rate (1)= 1.75% Management fee (2)= 0.5% Other expenses (legal, accounting, custodian, transfer agent, etc.) (3)= 0.20% Pre -incentivefee net investment income (investment income–(management fee + other expenses)) = 2.00% Incentive fee = 100% × pre -incentivefee net investment income in excess of the hurdle but less than 2.1875% (i.e. the “catch -up” (4)) = 100% × (2.0%–1.75%) = 0.25% Alternative 3: Assumptions Investment income (including interest, dividends, fees, etc.) = 3.00% Hurdle rate (1)= 1.75% Management fee (2)= 0.5% Other expenses (legal, accounting, custodian, transfer agent, etc.) (3)= 0.20% Pre -in