Steven Bavaria
Long only, closed-end funds, deep value, long-term horizon

Oxford Lane Capital's New Rights Offering: Not The No-Brainer Of A Year Ago

Participating in Oxford Lane Capital Corp.'s (NASDAQ:OXLC) non-transferable rights offering a year ago was a slam-dunk decision for many shareholders, but this year's offering is not so obviously enticing. Last year's offering featured:

· Exercise price of $14.50 versus a market price in the range of $15 to $16.

· Net asset value that was even higher than the market price, so the rights offering represented a "discount on a discount" to potential OXLC buyers.

· Even investors who didn't own OXLC had plenty of time to buy in and get the discounted price, since the exercise price was announced 11 days before the record date.

This would have been too good an opportunity to miss, and -...

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