OXLC Stock: Distribution Cut to $0.20, NAV $10.56, CLO Schedule

What OXLC is, and which filings this page reads

Oxford Lane Capital Corp. is a Maryland corporation in Greenwich, Connecticut, registered under the Investment Company Act as a closed-end management investment company and taxed as a regulated investment company. It is not a business development company, so it files no 10-Q and no 10-K: its reports are the annual N-CSR (fiscal year to March 31), the semiannual N-CSRS (September 30), the quarterly portfolio filing N-PORT, and notices such as N-23C-2 for redemptions. Its investment objective is to maximize risk adjusted total return, which it pursues by buying the equity and junior debt tranches of collateralized loan obligations (CLOs), plus warehouse facilities. Its adviser is Oxford Lane Management. The same chief executive and president also run Oxford Square Capital (OXSQ), a different company and a BDC with its own NAV, dividend and filings, covered on its own page.

This page reads the Form N-CSR for the year to March 31, 2026 (filed May 22, 2026), the N-CSRS for the six months to September 30, 2025 (filed November 5, 2025), four N-PORT filings (portfolio dates September 30 and December 31, 2025 and March 31 and June 30, 2026), the proxy statement filed September 3, 2026 and the four N-23C-2 notices filed between April and September 2026. The quarterly press releases carry extra non-GAAP measures that are not SEC filings; we do not use them. Per-share figures before September 5, 2025 are the fund's own retroactive adjustment for the 1-for-5 reverse split, which became effective at 4:00 p.m. Eastern that day and combined every five shares into one.

The payout: $0.45, $0.40, $0.20

The N-CSR's price table gives quarter-end NAV, the intraday high and low, and the distributions declared in each quarter, all adjusted for the split. The ratio columns are our arithmetic.

Two readings. First, the $0.45 monthly rate was paid for six quarters even as NAV slid from $24.55 to $19.19, and the first cut, to $0.40, came with the quarter ended December 2025; the cut to $0.20 was declared on January 29, 2026 for April, May and June, and again on May 14, 2026 for July, August and September. Second, the quarterly low price was above NAV through the quarter to December 2024 and below it in every quarter since: the Q4 FY2026 low of $8.01 was 24.1% under the quarter-end NAV, and the March 31, 2026 close of $9.78 was the 7.39% discount the balance sheet prints. On May 15, 2026 the last price in the N-CSR is $9.97.

The distribution declarations in the N-CSR end at September 30, 2026; we did not read a filing that declares later months. At 98.03 million shares, $0.20 a month is about $235.3 million a year, against $252.6 million of NII in the six months to March 2026 at an annual rate (our arithmetic). That comparison is generous to the new rate, because the portfolio and the leverage that produced that NII have both shrunk since March.

Ten years: NII per share against distributions and NAV

The note on financial highlights carries ten fiscal years. The table below is theirs (reverse-split adjusted); the last two columns are our arithmetic.

Over the ten years NII per share adds up to $54.88 and distributions to $65.85, so NII paid for 83.3% of what was distributed (our arithmetic). Only 2022 (121.7%) and 2023 (107.8%) show NII above the payout; the latest year, at 57.5%, is the lowest of the ten. NII per share has fallen every fiscal year since 2022 ($5.05, $4.85, $4.60, $4.00, $2.93), even though total NII rose from $270.9 million in fiscal 2025 to $282.7 million in fiscal 2026: the share count about doubled in the same period, from 47.8 million at March 31, 2024 to 90.6 million a year later and 97.6 million at March 31, 2026.

Where $21.60 went: the fiscal 2026 NAV bridge

The same note breaks the per-share change into its parts (weighted-average basis, with the fund's reconciling adjustment inside the loss line):

In dollars, fiscal 2026 had $795.5 million of net change in unrealized depreciation and $72.3 million of realized losses on a $464.1 million investment income line; after $181.3 million of expenses that left $282.7 million of NII and a net decrease in net assets from operations of $585.1 million. Distributions to common stockholders of $492.1 million took net assets down further. The stockholder letter ties part of the move to the market: it says U.S. loan prices fell between September 30, 2025 and March 31, 2026, producing an “approximate 20-point decrease in median U.S. CLO equity net asset values” for the period. The tax side has the same direction: at March 31, 2026 the fund had $239.5 million of long-term capital loss carryforward and $1.437 billion of tax-basis unrealized depreciation.

NAV by quarter-end ran $21.60, $20.60, $19.19, $15.51 and $10.56 from March 2025 to March 2026. The sharpest quarter was the one to March 31, 2026, when NAV fell 31.9% (our arithmetic). The N-PORT filed August 14, 2026 shows net assets of $1.052 billion at June 30, 2026, up 2.1% on March 31 (our arithmetic). The June 30 NAV per share is not in any filing we read; dividing net assets by the 97.65 million shares of March 31 or the 98.03 million of August 27 gives a range of $10.74 to $10.78, an estimate only.

Coverage two ways: GAAP NII and the cash CLOs actually paid

CLO equity income is booked on an effective-yield basis, not as the cash received. The letter makes the gap explicit: GAAP income from CLO equity was $447.1 million while the fund “received or were entitled to receive approximately $606.4 million in distributions” from them. The $159.3 million difference (our arithmetic) is cash that came in above booked income; our reading of the cost footnote and the cash-flow statement, which shows $163.1 million of net reductions to CLO equity and related investment cost, is that it was applied against the investments' cost, so it did not pass through NII. Adding it to GAAP NII gives about $442.0 million, which covers 89.8% of the $492.1 million paid to common stockholders (our arithmetic). Neither view reaches 100%.

Distributions in fiscal 2026 were estimated at $415.9 million from ordinary income and $76.2 million from tax return of capital, and the fund also paid $14.1 million of dividends on its term preferred. The final tax character of the payout is set after the fund's tax return; our 1099-DIV timeline and the page on estimated taxes on K-1 and RIC income cover what changes for a holder.

What the CLO schedule shows, position by position

At March 31, 2026 the fund held equity in 237 CLO structures and debt in 10. Total investments were $1.712 billion at fair value on a cost of $3.119 billion, 166.0% of net assets, and the CLO equity share of that, $1.705 billion, is 165.3% of net assets. We read 234 of the equity lines that show an estimated yield; their cost ($3.072 billion) and fair value ($1.681 billion) add exactly to the N-CSR totals once the other CLO equity related lines ($21.4 million of cost, $23.4 million of fair value) are added back. The estimated yield is the fund's own forward-looking rate for each position. Fair value weighted, the 234 average 13.07% (our arithmetic).

By estimated yield:

The 0.00% flag has a precise meaning in the filing: the footnote says the aggregate projected future distributions and terminal principal payment are “less than the amortized investment cost”, which is the fund saying that, on its model, it does not expect to get its cost back from that position. By the year the position was bought:

About half the portfolio by cost, $1.505 billion or 49.0% (our arithmetic), was bought in 2024 and 2025, while the fund raised $1.04 billion in fiscal 2025 and $130.9 million in fiscal 2026 from selling stock; 57.7% of fair value sits in those two vintages (our arithmetic). Only 19 of the 234 positions are carried at or above cost, and 113 are carried below half of it, with a combined cost of $1,007.1 million and fair value of $333.5 million. The ten largest holdings are all CLO subordinated notes and add up to 29.6% of net assets (our arithmetic), the largest at 3.34%:

The debt side is small: $7.1 million at fair value on a $26.5 million cost, with two debt positions on non-accrual (Highbridge Loan Management 2013-2 and Nassau 2017-II, cost $4.2 million, fair value $0.5 million, our arithmetic) and unfunded commitments to four CLO vehicles of $52.7 million (our sum). N-PORT portfolio filings show the same direction after March: CLO equity at fair value of $2.581 billion on September 30, 2025, $2.250 billion on December 31, $1.705 billion on March 31 and $1.675 billion on June 30, 2026 (the N-PORT classification differs from the N-CSR by $0.3 million at March 31).

Related reading: a CLO-equity vehicle with a different structure is Priority Income Fund, and the BDCs that hold the same kind of credit are listed in our BDC stock list and non-accrual tracker.

Leverage: term preferred, notes and the 2026 redemptions

OXLC borrows in two ways: mandatorily redeemable term preferred stock, carried as a liability, and unsecured notes. At March 31, 2026:

Total preferred and notes were $788.0 million against $1.031 billion of net assets, 0.76 times (our arithmetic); the weighted average debt and preferred outstanding during the year was $721.3 million at a weighted average effective rate of 7.55%, and interest expense was $54.5 million, 19.3% of NII (our arithmetic). The fund redeemed the 6.25% Series 2027 preferred in full by June 1, 2026 (2,800,000 shares on May 1 and the remaining 724,806 on June 1, at $25.00), leaving 7,996,900 preferred shares ($199.9 million) on August 27, 2026. Two N-23C-2 notices, filed July 28 and September 2, 2026, say the fund would redeem $30,000,000 of the 5.00% notes on August 27 and another $30,000,000 on October 2, 2026. We did not read a filing confirming either completion. If both happened, notes would be $440.0 million and preferred $199.9 million, $639.9 million in total, 0.61 times the June 30 net assets (our arithmetic).

Fees: 2.00% of gross assets plus 20% above a hurdle

The advisory agreement charges a base fee of 2.00% of gross assets, which includes assets bought with borrowed money, and an incentive fee of 20% of pre-incentive fee NII above a quarterly hurdle of 1.75% (7.00% annualized), with a catch-up to 2.1875%. In the year to March 31, 2026 the base fee was $51.3 million and the incentive fee $70.7 million, together $121.9 million, 43.1% of NII and 26.3% of investment income (our arithmetic). The incentive fee is calculated on income less operating expenses, interest and preferred dividends, and the note says the fund “could incur Incentive Fees in periods when there is a net decrease in net assets from operations”; it adds that there is no offset in later quarters for a quarter in which none is earned. The fund's own fee table estimates total annual expenses at 15.70% of net assets attributable to common stock, of which the base fee is 3.32% and the incentive fee 6.62%. Fiscal 2026 is therefore a year in which net assets fell $925.7 million and the adviser was paid $121.9 million of fees. This is arithmetic on the filing, not a statement about whether the fee structure is fair.

Officers, directors and members of Oxford Lane Management owned about 3.3% of the common stock at March 31, 2026, and on January 6, 2026 the fund received an updated SEC co-investment order that lets it invest alongside affiliated funds under a “fair and equitable” allocation standard.

Shares: sold high, bought back low

The N-CSR says the fund sold 5,852,674 shares through its at-the-market program in fiscal 2026 for net proceeds of about $130.9 million, and 40,722,223 shares in fiscal 2025 for $1.043 billion net (both adjusted for the split). Net proceeds per share were therefore about $22.36 in fiscal 2026 and $25.62 in fiscal 2025 (our arithmetic),. All of the fiscal 2026 issuance and all of the $20.5 million of repurchases (1,164,735 shares, about $17.57 each) happened in the six months to September 30, 2025, according to the semiannual report; the statements show no issuance or repurchase in the second half. On May 14, 2026 the board authorized a new 12-month program to buy up to $150.0 million of common stock in the open market through May 14, 2027, with no obligation to buy any amount. Common shares rose from 97,649,648 at March 31 to 98,030,246 on August 27, 2026 (+0.4%, our arithmetic); the filings we read do not say how many, if any, were repurchased after March.

What happened recently, in dates

• September 5, 2025: 1-for-5 reverse stock split effective at 4:00 p.m. Eastern.
• November 5, 2025: N-CSRS: NAV $19.19, price $16.93 at September 30, 2025.
• January 6, 2026: updated SEC co-investment order received.
• January 29, 2026: board declares $0.20 a month for April, May and June 2026.
• March 20, 2026: 8.25% Series 2031 term preferred issued ($69.0 million).
• May 1 and June 1, 2026: the 6.25% Series 2027 preferred redeemed ($88.1 million).
• May 14, 2026: $0.20 declared for July to September; $150 million buyback authorized.
• May 22, 2026: N-CSR for the year to March 31, 2026: NAV $10.56, NII $2.93 a share.
• August 14, 2026: N-PORT for June 30, 2026: net assets $1.052 billion.
• August 27 and October 2, 2026: $30.0 million each of the 5.00% notes noticed for redemption.
• October 22, 2026: annual meeting of stockholders (record date August 27, 2026).
• Expected early November 2026: N-CSRS for the six months to September 30, 2026, with the September NAV and the first look at NII since the cut. It was filed on November 5, 2025, November 1, 2024, November 7, 2023 and November 1, 2022.

What a holder or reader can do with this

This is a checklist built from the filings, not a recommendation.

• Check which distribution you are looking at. Any yield quoted from the pre-2026 $0.40 or $0.45 a month is out of date; the declared rate is $0.20 through September 2026, and the filings we read do not cover later months.
• Read coverage both ways. GAAP NII covered 57.5% of fiscal 2026 distributions and 89.8% when the cash CLOs paid above booked income is added; the second figure is ours, not the company's, and it depends on the fund's own disclosure of those cash flows.
• Ask what the NAV is made of. 70 positions at 0.00% estimated yield and 113 positions below half of cost mean that the NAV rests on the fund's own valuation of Level 3 assets, and the N-CSRS will re-mark all of them as of September 30.
• Watch the buyback against the discount. The program is up to $150 million; the discount was 7.39% at March 31, and the semiannual report will show whether the fund bought shares after March.
• If you hold the notes or preferred, the table above gives principal, maturity and call dates, and the 5.00% notes due January 31, 2027 are being redeemed in parts.
• Taxes. The fund's estimate was $76.2 million of return of capital for fiscal 2026; the actual character is only known after the tax return. See our BDC explainer for how RIC income differs from qualified dividends.

FAQ

All figures are from Oxford Lane Capital Corp.'s SEC filings (CIK 1495222) read on EDGAR on October 19, 2026: the Form N-CSR for the year ended March 31, 2026 (accession 0001213900-26-060338, filed May 22, 2026) and the Form N-CSRS for the six months ended September 30, 2025 (0001213900-25-106331); the Forms N-PORT for September 30 and December 31, 2025 and March 31 and June 30, 2026 (0000894189-25-014410, -26-003323, -26-016078 and -26-022370); the proxy statement DEF 14A filed September 3, 2026 (0001213900-26-097175); and the Forms N-23C-2 of April 1, April 24, July 28 and September 2, 2026 (0001213900-26-038531, -26-047526, -26-082258 and -26-096696). The position-level aggregates, ratios, half-year splits, the cash-coverage view and the estimated June NAV range are our arithmetic; the cash-coverage view is not a company measure. The June 30, 2026 net assets are from the N-PORT, and the N-PORT classification can differ slightly from the N-CSR schedule. This is analysis of public documents, not investment, legal or tax advice.