Company: OXLCZ
Filing Date: 2025-11-05
Form Type: N-CSRS
Source: 0001213900-25-106331
Chunk: 84

Company: Oxford Lane Capital Corp.
Filing Date: 2025-11-05
Form: N-CSRS
Chunk 84
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____________ (1) Assumes (i) $2.85billion in pro forma total assets as of September 30, 2025; (ii) $2.06 billion in pro forma net assets as of September 30, 2025 (adjusted to reflect the issuances noted in the Fees and Expenses section above); and (iii) an annualized average effective interest rate on our indebtedness and preferred equity, as of September 30, 2025 (adjusted to reflect the issuances described above), of 7.52%. Based on our assumed leverage described above, our investment portfolio would have been required to experience an annual return of at least 1.4% to cover annual interest and dividend payments on our outstanding indebtedness and preferred equity.

68 Our investment portfolio is recorded at fair value, with our Board of Directors having final responsibility for overseeing, reviewing and approving, in good faith, its estimate of fair value and, as a result, there will be uncertainty as to the value of our portfolio investments. Under the 1940 Act, we are required to carry our portfolio investments at market value or, if there is no readily available market value, at fair value as determined by us in accordance with our written valuation policy with our Board of Directors having final responsibility for overseeing, reviewing and approving, in good faith, its estimate of fair value. Typically, there will not be a public market for the type of investments we target. As a result, the Board will determine the fair value of these securities quarterly based on relevant information compiled by our Adviser, third -partypricing services (when available) and our Valuation Committee. The determination of fair value and, consequently, the amount of unrealized gains and losses in our portfolio, are to a certain degree subjective and dependent on a valuation process approved by our Board of Directors. Certain factors that may be considered in determining the fair value of our investments include available indicative bids or quotations, as well as external events, such as private mergers, sales and acquisitions involving comparable companies. Because such valuations, and particularly valuations of private securities, are inherently uncertain, they may fluctuate over short periods of time and may be based on estimates. The fair value of our investments may differ materially from the values that would have been used if an active public market for these securities existed. The fair value of our investments has a material impact on our net earnings through the recording of unrealized appreciation or depreciation of