Business Context and Reporting Period
Company: Oxford Square Capital Corp. (OXSQ)
Filing Type: Form 8-K (Current Report)
Date of Report: August 7, 2025
Event: Entry into a Material Definitive Agreement and creation of a direct financial obligation via the issuance of new debt securities.
Key Financial Metrics and Transaction Details
- Instrument Issued: 7.75% Notes due 2030 (Trading Symbol: OXSQH).
- Aggregate Principal Amount: $65.0 million.
- Underwriter Option: Up to an additional $9.75 million exercisable within 30 days of July 31, 2025.
- Interest Rate: 7.75% per annum, payable quarterly (January 31, April 30, July 31, October 31).
- Maturity Date: July 31, 2030.
- Use of Proceeds: Primarily to repay indebtedness, acquire investments in accordance with investment objectives, and for general corporate purposes.
- Redemption Terms: Callable at the Company's option on or after July 31, 2027, at 100% of principal plus accrued interest.
Material Changes Versus Prior Period
This filing represents a new capital event rather than a comparative financial performance report. The material change is the addition of $65.0 million in long-term debt to the Company's capital structure, increasing leverage and future interest obligations. No prior period financial metrics (revenue, profit, cash flow) are provided in this specific 8-K filing.
Guidance, Outlook, Risks, and Covenants
- Dividend Restrictions: The Indenture includes a covenant prohibiting the declaration of cash dividends or stock repurchases unless the Company maintains specific asset coverage ratios as defined in the Investment Company Act of 1940 (Section 18(a)(1)(B)).
- Regulatory Compliance: The Company must comply with Section 18(a)(1)(A) of the 1940 Act regarding asset coverage.
- Reporting Obligations: The Company must provide financial information to Note holders and the Trustee if it ceases to be subject to reporting requirements under the Securities Exchange Act of 1934.
- Unusual Items: The filing notes that the transaction closed on August 7, 2025, pursuant to an effective shelf registration statement (Form N-2).
Investor Verification Checklist
- Verify the final closing amount, including whether the underwriters exercised the $9.75 million option.
- Review the Company's current asset coverage ratio to ensure compliance with the new dividend restriction covenants.
- Confirm the specific allocation of proceeds between debt repayment and new investment acquisitions.
- Check the listing status of the new Notes (OXSQH) on the NASDAQ Global Select Market.