Good morning and welcome to the Oxford Lane Second Fiscal Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jonathan Cohen, CEO, please go ahead.

Thanks very much. Good morning and welcome everyone to the Oxford Lane Capital Corp. second fiscal quarter 2016 earnings conference call. I'm joined today by Saul Rosenthal our President and Bruce Rubin our Chief Financial Officer and Treasurer. Bruce, could you open the call today, with the discussion regarding forward-looking statements?

Sure, Jonathan. Today's call is being recorded. An audited replay of the conference call will be available for 30 days. Replay information is included in our press release that was released last evening. Please note that this call is a property of Oxford Lane Capital Corp. and the unauthorized rebroadcast of this call in any form is strictly prohibited. I'd also like to call your attention to the customary disclosure in our press release from last night regarding forward-looking information. Today's conference call includes forward-looking statements and projections and we ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from those projections. We do not undertake to update our forward-looking statements, unless required to do so by law. To take copies of our latest SEC filings please visit our Web site www.oxlc.com. With that I'll turn the presentation over to Jonathan.

Thanks, Bruce. For the quarter ended September 2015, Oxford Lane Capital Corp. recorded GAAP total investment income of approximately $14.5 million, representing a decrease of approximately $100,000 when compared to the quarter ended June 30, 2015. This decrease primarily represented a decline in GAAP income recorded on our CLO equity investments. The September quarter's GAAP income from our portfolio was produced as follows; approximately $13.9 million from our CLO equity investments; approximately $200,000 from our CLO debt investments; and approximately $400,000 from all other income. Oxford Lane also reported GAAP net investment income of approximately $5.9 million or $0.33 per common share for the quarter ended September 30th, compared with the prior quarter's $7.3 million or $0.44 per share. The net investment income was impacted by a one-time $500,000 write-off of unamortized deferred issuance cost in connection with the July 24, 2015 redemption of all of the Series 2017 term preferred shares which equates to approximately $0.03 per share. We note that the diminishment in our GAAP net investment income for the quarter was primarily driven by reduced effective yield projections, which were in turn driven by weakness in the broader corporate loan market. As of September 30, 2015 the following weighted average yields were calculated. The weighted average GAAP yield of our CLO debt investments at current cost was approximately 8.2% compared with 7.9% as of June 30, 2015. The weighted average GAAP effective yield of our CLO equity investments at current cost was approximately 13.9% compared to 16.1% as of June 30, 2015 and the weighted average cash distribution yield of our cash income producing CLO equity investments at current cost was approximately 26.6% compared to 27.3% as of June 30, 2015. We note that the cash yield calculated on our CLO equity investments is based on the…

We will now begin the question-and-answer session. [Operator Instructions] Our first question will be from Steven Bavaria of -- a private investor and a journalist. Please go ahead.

Maybe it's already obvious, so I just wanted to ask a question, if you in theory, if the -- if your -- if a CLO is leveraged say 10 to one and you have a 1% drop in the market price of the loans that comprise that CLO, then in theory you could recreate that CLO for 10% less. So, that would account again in theory for a possible 10% drop in the equity value of that CLO, right? Which would translate into a drop in your NAV for that amount, without it having any impact at all on the cash flow potential of the assets in the CLO, is that essentially right?

I think that is essentially right, Steve. Your larger point I think is the correct one, which is CLO equity tranches are levered investments and they are significantly levered against the syndicated corporate loan market and the syndicated loan assets and collateral CLOs that they hold. So, to the extent that there is a drop in the syndicated corporate loan market which we certainly saw in the third calendar quarter, and in the second fiscal quarter for the Oxford Lane. The magnitude of that drop is magnified by the leverage within the CLO structures. So, yes, that is correct. At the same time, we continue to see strong cash flows produced from our CLO equity portfolio the cash flows within these various vehicles continue to be strong.

It sort of further emphasizes the fact that big changes in your NAV can occur without any real impact, without it reflecting any real impact on your cash flow capacity?

Sure I mean that’s I think a generally true statement over some period of time, obviously over a longer period of time, diminishments in NAV will necessarily affect the ability for any portfolio to generate cash flows because there will be a smaller base of assets, especially to the extent that that losses are realized overtime upon which to generate a return. So, I think a fundamentally true statement is that you have made, but again with the notion of timing being important.

Our next question comes from Mickey Schleien of Ladenburg. Please go ahead.

You have 13 investments which are now callable. Can you tell us what your expectations are for those given the current market conditions?

Right, to a certain extent Mickey the market environment and to a substantial extent the market environment needs to be a factor when making decisions about optimal call points. So to the extent that NAVs have been diminished all things held equal which is a difficult assumption to make but all things held equal there would likely be a lengthening in the call expectation or a delay in the call expectation relative to a market in which NAVs originally remain stable. But we are certainly watching very closely. We have always very watched very closely the optimal call calculation with respect to our division, especially positions where we own a significant piece of the equity tranche.

Of the unrealized depreciation in the first half, not the second quarter, the first half which totaled $43 million, can you give me a sense of how much of that was mark-to-market, how much of it was the positive impact of reductions to cost given the difference between effective yield and cash and how much were reversals if any?

The very substantial majority of that, Mickey, I believe we are essentially marks-to-market.

Okay, mostly mark-to-market. Jonathan or Bruce I noticed the G&A in the first half was almost equal to all of what you reported for fiscal year ’15, can you -- was there something extraordinary in that number, what’s going on there?

Sorry Mickey, what was the end of that question, I am sorry?

Okay. So G&A in the first half of this fiscal year was almost equal to what you reported for the entire fiscal year 2015. I am asking whether there was something non-recurring in the G&A number?

There was some excise taxes Mickey that were paid I believe those approximated about $190,000, there was also some write-off associated with an expiring or expired shelf registration which was a bit more than that I believe.

Okay, thank you.

It will generally be non-recurring unless obviously there were to recur.

Okay. Last question, I can’t get the base management feet to foot it usually runs very close to 2% of assets but that ratio increased in the first half of this fiscal year. Is there something specific going on there Bruce that I should be aware of?

We raised some capital I think at the end of June Mickey that may account for the math.

Okay. But 2% run rate on a status quo basis is still correct, is that right?

That is correct Mickey yes.

This concludes our question-and-answer session. I would like to turn the conference back over to Jonathan Cohen for any closing remarks.

I would like to thank very much everyone for their interest in Oxford Lane Capital Corp. and for their participation on this call. We look forward to speaking to you all in the near future. Thank you very much.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines. Have a great day.