Company: OXLCZ
Filing Date: 2025-05-20
Form Type: N-CSR
Source: 0001213900-25-045605
Chunk: 68

Company: Oxford Lane Capital Corp.
Filing Date: 2025-05-20
Form: N-CSR
Chunk 68
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 to make the distributions required to maintain our status as a RIC under Subchapter M of the Code. Illustration. The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing below.

| Assumed Return on Our Portfolio(1) (net of expenses) |     | -10.0% |    |     | -5.0% |    |     | 0.0% |    |     | 5.0% |   |     | 10.0% |   |
| Corresponding net return to common stockholder       |     | (16.7  | )% |     | (9.6  | )% |     | (2.6 | )% |     |  4.5 | % |     |  11.5 | % |

____________ (1) Assumes (i) $3.04billion in pro forma total assets as of March 31, 2025; (ii) $2.16 billion in pro forma net assets as of March 31, 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 March 31, 2025 (adjusted to reflect the issuances described above), of 7.70%. Based on our assumed leverage described above, our investment portfolio would have been required to experience an annual return of at least 1.2% to cover annual interest and dividend payments on our outstanding indebtedness and preferred equity.

69 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