Terms

Series

6.00% Series 2029 Term Preferred Shares

Liquidation Preference

$25.00

Coupon Rate

6%

Rate Type

Fixed

Annual Dividend

$1.50

Payment Frequency

Monthly

Cumulative

Yes

Perpetual

No

Convertible

No

Callable

Yes

First Call Date

August 31, 2024

First Call Price

$25.00

Mandatory Redemption Date

August 31, 2029

Capital Stack Ranking

Junior To: 6.75% Notes Due 2031, All Senior Indebtedness; Pari Passu With: 6.75% Series 2024 Term Preferred Shares, 6.25% Series 2027 Term Preferred Shares, All Future Series Of Preferred Stock; Senior To: Common Stock

Regulatory (Basel III) Call

No

Tax Classification

Ordinary

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

2,400,000

Prospectus Summary

Oxford Lane Capital Corp. is offering 2,400,000 shares of its 6.00% Series 2029 Term Preferred Shares at a $25 liquidation preference per share, paying a fixed annual dividend of $1.50 per share (6.00%) distributed monthly on the last business day of each month, commencing September 30, 2021, with a mandatory redemption date of August 31, 2029 and an optional call available from August 31, 2024 at par plus accrued dividends. Dividends are cumulative, meaning any missed payments accrue and must be paid before common stockholders receive distributions — providing a layer of income protection, though payment remains subject to Board declaration and availability of legally distributable funds. The Series 2029 Term Preferred Shares sit in the middle of Oxford Lane's capital stack: senior to common stock in both dividend priority and liquidation, pari passu with the existing 6.75% Series 2024 and 6.25% Series 2027 Term Preferred Shares, but expressly subordinated to the $100 million 6.75% Notes Due 2031 and any other senior indebtedness. There is no regulatory Tier 1 capital call (Oxford Lane is a closed-end fund, not a bank), but the issuer is subject to a mandatory asset coverage redemption: if the 1940 Act asset coverage ratio falls below 200% and is not cured within 30 days, Oxford Lane must redeem enough preferred shares to restore compliance within 90 days, which could result in involuntary early redemption. At the $25 public offering price, the effective yield at par is 6.00% ($1.50 annually, paid in equal monthly installments). Oxford Lane has elected RIC status under Subchapter M, but because its income derives substantially from CLO equity tranches — many of which are passive foreign investment companies (PFICs) — dividends are unlikely to qualify for the preferential 15%/20% qualified dividend income (QDI) rate or the corporate dividends-received deduction (DRD); investors should expect ordinary income treatment and are urged to consult their own tax advisors. The dividend stopper mechanism prohibits Oxford Lane from declaring any common stock distribution if doing so would reduce asset coverage below 200%, protecting preferred holders' priority — but preferred dividends themselves can be suspended if funds are not legally available.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If the asset coverage ratio would fall below 200% after paying a common stock dividend, the issuer is prohibited from declaring that distribution; this protects preferred holders by preserving asset coverage.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 73 (Strong)