Company: OXLCZ
Filing Date: 2025-11-05
Form Type: N-CSRS
Source: 0001213900-25-106331
Chunk: 37

Company: Oxford Lane Capital Corp.
Filing Date: 2025-11-05
Form: N-CSRS
Chunk 37
---
 Fund does not expect the borrower to be able to service its debt and other obligations, the Fund will, on a discretionary basis, place the debt instrument on non -accrualstatus and will generally cease recognizing interest income on that loan for financial reporting purposes until all principal and interest have been brought current through payment or due to restructuring such that the interest income is deemed to be collectible. The Fund generally restores non -accrualloans to accrual status when past due principal and interest is paid and, in the Fund’s judgment, the payments are likely to remain current. As of September 30, 2025, the Fund did not have any investments in its portfolio on non -accrualstatus. Interest income also includes a payment -in-kindprovision on certain investments in the Fund’s portfolio. Refer to the section below, “Payment -In-Kind,” for a description of the PIK provision and its impact on interest income. Payment-In-Kind The Fund holds debt investments in its portfolio which contain a contractual PIK provision. Certain PIK investments offer issuers the option at each payment date of making payments in cash or additional securities. PIK interest is computed at the contractual rate and is recorded as interest income. The PIK amount is added to the principal balance on the capitalization date. Upon capitalization, the PIK component is subject to the fair value estimates associated with the related investments. At the point the Fund believes PIK is not fully expected to be realized, the PIK investment will be placed on non -accrualstatus. When a PIK investment is placed on non -accrualstatus, the accrued, uncapitalized interest is reversed from the related receivable through interest income. PIK investments on non -accrualstatus are restored to accrual status once it becomes probable that PIK will be realized. Other Income Other income includes distributions from fee letters and success fees associated with portfolio investments. Distributions from fee letters are an enhancement to the return on CLO equity investments and are based upon a percentage of the collateral manager’s fees above the amortized cost and are recorded as other income when earned. The Fund may also earn success fees associated with its investments in CLO warehouse facilities, which are contingent upon a repayment of the warehouse by a permanent CLO securitization structure. The Fund also earns other income on its cash balance, which is swept into a money market fund at the close of business each day and then returned as cash the following business day.