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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended December 31, 2019 and Declaration of Distributions of Common stock for the Months Ending April 30, May 31, and June 30, 2020

February 26, 2020 GMT

GREENWICH, Conn., Feb. 26, 2020 (GLOBE NEWSWIRE) -- Oxford Square Capital Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQL) (NasdaqGS: OXSQZ) (“OXSQ,” the “Company,” “we,” “us” or “our”) announced today its financial results and related information for the quarter ended December 31, 2019.

-- As of December 31, 2019, net asset value (“NAV”) per share was $5.12, compared with the NAV per share of $5.42 at the prior quarter end. o For the quarter ended December 31, 2019 we recorded GAAP net investment income of approximately $8.4 million, or $0.18 per share, compared to $8.9 million, or $0.19 per share for the quarter ended September 30, 2019. o We recorded net realized losses on extinguishment of debt of approximately $16,000 and net unrealized depreciation of approximately $13.3 million for the quarter ended December 31, 2019. o In total, we had a net decrease in net assets resulting from operations of approximately $4.9 million, or $0.10 per share, for the quarter ended December 31, 2019, compared with a net decrease in net assets resulting from operations of $33.1 million, or $0.69 per share, for the quarter ended September 30, 2019. -- Total investment income for the fourth quarter of 2019 amounted to approximately $13.4 million, which represents a decrease of approximately $700,000 from the third quarter of 2019. -- For the quarter ended December 31, 2019, we recorded approximate investment income from our portfolio as follows: o $6.3 million from our debt investments, o $5.6 million from our collateralized loan obligation (“CLO”) equity investments, o $700,000 of dividend income – PIK from affiliated investments, and o $800,000 from all other sources. -- Our total expenses for the quarter ended December 31, 2019 were approximately $5.0 million, which represents a decrease of approximately $100,000 from the third quarter of 2019. -- During the fourth quarter of 2019, we made additional investments of approximately $3.9 million and received proceeds of approximately $19.7 million from repayments and amortization payments on our debt investments. -- As of December 31, 2019, the following metrics applied (note that none of these values represent a total return to shareholders): o The weighted average yield of our debt investments was 9.1% at current cost, compared with 9.7% as of September 30, 2019. o The weighted average effective yield of our CLO equity investments at current cost was 11.0%, compared with 11.9% as of September 30, 2019. o The weighted average cash distribution yield of our CLO equity investments at current cost was 22.1%, compared with 19.9% as of September 30, 2019. -- Our weighted average credit rating on a fair value basis was 2.2 at the end of the fourth quarter of 2019, unchanged from September 30, 2019. -- As of December 31, 2019, we had two debt investments on non-accrual status with a combined fair value of $5.8 million. -- On February 24, 2020 our Board of Directors declared the following distributions on our common stock:

Month Ending Record Date Payment Date Amount Per Share -------------- -------------- -------------- ---------------- April 30, 2020 April 15, 2020 April 30, 2020 $0.067 -------------- -------------- -------------- ---------------- May 31, 2020 May 14, 2020 May 29, 2020 $0.067 -------------- -------------- -------------- ---------------- June 30, 2020 June 15, 2020 June 30, 2020 $0.067 -------------- -------------- -------------- ----------------

We will host a conference call to discuss our fourth quarter results today, Wednesday, February 26, 2020 at 9:00 AM ET. Please call 1-844-792-3730 to participate. A recording of the conference call will be available for replay for approximately 30 days following the call. The replay number is 1-877-344-7529, and the replay passcode is 10139666.

A presentation containing further detail regarding our quarterly results of operations has been posted under the Investor Relations section of our website at www.oxfordsquarecapital.com.

OXFORD SQUARE CAPITAL CORP.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

December 31, December 31, 2019 2018 ---------------- ---------------- ASSETS Non-affiliated/non-control investments (cost: $467,828,907 and $486,232,755, $ 361,985,203 $ 430,496,633 respectively) Affiliated investments (cost: $16,836,822 and $9,126,017, respectively) 2,816,790 14,492,197 Cash equivalents 14,410,486 13,905,059 Restricted cash 2,050,452 3,175,805 Interest and distributions receivable 3,480,036 4,682,735 Other assets 523,626 392,784 - ------------ - - ------------ - Total assets $ 385,266,593 $ 467,145,213 - ------------ - - ------------ - LIABILITIES Notes payable – 6.50% Unsecured Notes, net of deferred issuance costs $ 62,989,567 $ 62,664,863 Notes payable – 6.25% Unsecured Notes, net of deferred issuance costs 43,313,872 — Notes payable – Credit Facility, net of deferred issuance costs 28,080,550 85,522,569 Base management fee and net investment income incentive fee payable to 1,480,653 3,227,456 affiliate Accrued interest payable 632,235 488,608 Accrued expenses 771,174 517,470 - ------------ - - ------------ - Total liabilities 137,268,051 152,420,966 - ------------ - - ------------ - NET ASSETS Common stock, $0.01 par value, 100,000,000 shares authorized; 48,448,987 and 484,489 476,509 47,650,959 shares issued and outstanding, respectively Capital in excess of par value 451,839,302 456,970,560 Total distributable earnings / (accumulated losses) (204,325,249 ) (142,722,822 ) - ------------ - - ------------ - Total net assets 247,998,542 314,724,247 - ------------ - - ------------ - Total liabilities and net assets $ 385,266,593 $ 467,145,213 - ------------ - - ------------ - Net asset value per common share $ 5.12 $ 6.60

OXFORD SQUARE CAPITAL CORP. CONSOLIDATED STATEMENT OF OPERATIONS

Year Ended Year Ended Year Ended December 31, December 31, December 31, 2019 2018 2017 --------------- --------------- --------------- INVESTMENT INCOME From non-affiliated/non-control investments: Interest income – debt investments $ 28,000,283 $ 25,183,547 $ 24,561,956 Income from securitization vehicles and investments 25,244,866 27,837,032 33,274,392 Other income 1,694,434 2,984,773 3,198,469 - ----------- - - ----------- - - ----------- - Total investment income from non-affiliated/non-control 54,939,583 56,005,352 61,034,817 investments - ----------- - - ----------- - - ----------- - From affiliated investments: Dividend income – non-cash 7,710,805 — — Interest income – debt investments — 271,916 382,200 - ----------- - - ----------- - - ----------- - Total investment income from affiliated investments 7,710,805 271,916 382,200 - ----------- - - ----------- - - ----------- - Total investment income 62,650,388 56,277,268 61,417,017 - ----------- - - ----------- - - ----------- - EXPENSES Interest expense 9,901,426 7,181,009 12,898,815 Base management fees 6,704,467 7,309,435 8,140,010 Professional fees 1,454,942 1,227,296 2,799,113 Compensation expense 832,256 907,995 901,472 Director’s fees 417,500 441,501 584,580 Insurance 281,146 247,178 256,956 Transfer agent and custodian fees 239,323 227,381 244,115 General and administrative 829,476 644,104 1,014,580 - ----------- - - ----------- - - ----------- - Total expenses before incentive fees 20,660,536 18,185,899 26,839,641 - ----------- - - ----------- - - ----------- - Net investment income incentive fees 3,511,493 4,585,151 3,850,646 Capital gains incentive fees — — — - ----------- - - ----------- - - ----------- - Total incentive fees 3,511,493 4,585,151 3,850,646 - ----------- - - ----------- - - ----------- - Total expenses 24,172,029 22,771,050 30,690,287 - ----------- - - ----------- - - ----------- - Net investment income 38,478,359 33,506,218 30,726,730 - ----------- - - ----------- - - ----------- - Net change in unrealized appreciation/depreciation on investments Non-Affiliate/non-control investments (50,107,582 ) (36,969,481 ) 19,478,902 Affiliated investments (19,386,212 ) (2,323,867 ) 3,561,269 Total net change in unrealized appreciation/depreciation on (69,493,794 ) (39,293,348 ) 23,040,171 investments - ----------- - - ----------- - - ----------- - Net realized (losses) gains Non-Affiliated/non-control investments (1,709,816 ) (3,370,732 ) (7,007,892 ) Affiliated investments — 5,241 — Extinguishment of debt (72,666 ) (60,752 ) (3,149,338 ) - ----------- - - ----------- - - ----------- - Total net realized losses (1,782,482 ) (3,426,243 ) (10,157,230 ) - ----------- - - ----------- - - ----------- - Net (decrease)/increase in net assets resulting from $ (32,797,917 ) $ (9,213,373 ) $ 43,609,671 operations - ----------- - - ----------- - - ----------- -

Year Ended Year Ended Year Ended December 31, December 31, December 31, 2019 2018 2017 -------------- -------------- ------------- Net increase in net assets resulting from net investment income per common share: Basic and Diluted $ 0.81 $ 0.67 $ 0.60 Net (decrease)/increase in net assets resulting from operations per common share: Basic $ (0.69 ) $ (0.19 ) $ 0.85 Diluted $ (0.69 ) $ (0.19 ) $ 0.83 Weighted average shares of common stock outstanding: Basic 47,756,596 49,662,157 51,479,409 Diluted 47,756,596 49,662,157 58,349,224

OXFORD SQUARE CAPITAL CORP. FINANCIAL HIGHLIGHTS

Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, 2019 2018 2017 2016 2015 --------------- --------------- --------------- -------------- --------------- Per Share Data Net asset value at beginning of $ 6.60 $ 7.55 $ 7.50 $ 6.40 $ 8.64 year Net investment income(1)(3) 0.81 0.67 0.60 0.52 0.66 Net realized and unrealized (1.49 ) (0.91 ) 0.25 1.62 (1.85 ) gains (losses)(2)(3) - ---------- -- - ---------- -- - ---------- -- - ---------- - - ---------- -- Net change in net asset value (0.68 ) (0.24 ) 0.85 2.14 (1.19 ) from operations - ---------- -- - ---------- -- - ---------- -- - ---------- - - ---------- -- Distributions per share from (0.80 ) (0.73 ) (0.66 ) (1.06 ) (1.14 ) net investment income Distributions based on weighted — 0.01 — 0.01 0.01 average share impact Tax return of capital — (0.07 ) (0.14 ) (0.10 ) — distributions - ---------- -- - ---------- -- - ---------- -- - ---------- - - ---------- -- Total distributions(4) (0.80 ) (0.79 ) (0.80 ) (1.15 ) (1.13 ) Effect of shares issued/repurchased, — 0.08 — 0.11 0.08 gross - ---------- -- - ---------- -- - ---------- -- - ---------- - - ---------- -- Net asset value at end of year $ 5.12 $ 6.60 $ 7.55 $ 7.50 $ 6.40 - ---------- -- - ---------- -- - ---------- -- - ---------- - - ---------- -- Per share market value at $ 6.47 $ 5.74 $ 6.61 $ 6.08 $ 7.53 beginning of year Per share market value at end $ 5.44 $ 6.47 $ 5.74 $ 6.61 $ 6.08 of year Total return based on Market (4.14 )% 26.95 % (2.01 )% 33.29 % (4.35 )% Value(5) Total return based on Net Asset (10.26 )% (1.99 )% 11.33 % 35.31 % (12.73 )% Value(6) Shares outstanding at end of 48,448,987 47,650,959 51,479,409 51,479,409 56,396,435 year Ratios/Supplemental Data(8) Net assets at end of $ 247,999 $ 314,724 $ 388,419 $ 385,992 $ 360,935 period (000’s) Average net assets (000’s) $ 289,373 $ 369,258 $ 385,947 $ 343,328 $ 487,894 Ratio of expenses to average 8.35 % 6.17 % 7.95 % 12.38 % 9.80 % net assets Ratio of net investment income 13.30 % 9.07 % 7.96 % 7.80 % 8.12 % to average net assets Portfolio turnover rate(7) 12.75 % 35.18 % 43.02 % 25.73 % 24.96 %

____________(1) Represents per share net investment income for the period, based upon weighted average shares outstanding.(2) Net realized and unrealized gains include rounding adjustments to reconcile change in net asset value per share.(3) During the first quarter of 2015, the Company identified a non-material error in its accounting for income from CLO equity investments. Prospectively as of January 1, 2015, the Company records income from its CLO equity investments using the effective yield method in accordance with the accounting guidance in ASC 325-40, Beneficial Interests in Securitized Financial Assets, based upon an estimation of an effective yield to maturity utilizing assumed cash flows. An out-of-period adjustment to Net Investment Income Incentive Fees, in the amount of $2.4 million, or $0.04 per share, is reflected in the year ended December 31, 2015. Prior period amounts are not materially affected. During the quarter ended September 30, 2015, the Company recorded an out of period adjustment related to a miscalculation of discount accretion which increased interest income and increased investment cost, by approximately $1.4 million. For the year ended December 31, 2015, approximately $1.1 million, or $0.02 per share, of the adjustment related to prior years. The increase in the investment cost has a corresponding effect on the investment’s unrealized depreciation of the same amount. Management concluded the adjustment was not material to previously filed financial statements.(4) Management monitors available taxable earnings, including net investment income and realized capital gains, to determine if a tax return of capital may occur for the year. To the extent the Company’s taxable earnings fall below the total amount of the Company’s distributions for that fiscal year, a portion of those distributions may be deemed a tax return of capital to the Company’s stockholders. The ultimate tax character of the Company’s earnings cannot be determined until tax returns are prepared after the end of the fiscal year.(5) Total return based on market value equals the increase or decrease of ending market value over beginning market value, plus distributions, divided by the beginning market value per share, assuming distribution reinvestment prices obtained under the Company’s distribution reinvestment plan, excluding any discounts.(6) Total return based on net asset value equals the increase or decrease of ending net asset value over beginning net asset value, plus distributions, divided by the beginning net asset value.(7) Portfolio turnover rate is calculated using the lesser of the annual cash investment sales and debt repayments or annual cash investment purchases over the average of the total investments at fair value.(8) The following table provides supplemental performance ratios measured for the years ended December 31, 2019, 2018, 2017, 2016 and 2015:

Year Year Year Year Year Ended Ended Ended Ended Ended DecembeDecembeDecembeDecemberDecember r 31, r 31, r 31, 31, 31, 2019 2018 2017 2016 2015 ------ ------ ------ ------- -------- Ratio of expenses to average net assets: Expenses before incentive fees 7.14 % 4.92 % 6.95 % 11.57 % 10.00 % Net Investment Income Incentive Fees 1.21 % 1.24 % 1.00 % 0.81 % (0.19 )% Capital Gains Incentive Fees — % — % — % — % — % Ratio of expenses, excluding interest expense, to average net assets 4.93 % 4.21 % 4.61 % 7.37 % 5.73 %

About Oxford Square Capital Corp. Oxford Square Capital Corp. is a publicly-traded business development company principally investing in syndicated bank loans and debt and equity tranches of collateralized loan obligation (“CLO”) vehicles. CLO investments may also include warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle.

Forward-Looking Statements This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered to be forward-looking statements. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events, except as may be required by law.

Contact:Bruce Rubin203-983-5280