AG真人官方

OFS Credit Company Announces Financial Results for the Second Fiscal Quarter 2025

CHICAGO--(BUSINESS WIRE)-- OFS Credit Company, Inc. (Nasdaq: OCCI) (鈥淥FS Credit,鈥� the 鈥淐ompany,鈥� 鈥渨e,鈥� 鈥渦s鈥� or 鈥渙ur鈥�), an investment company that primarily invests in collateralized loan obligation (鈥淐LO鈥�) equity and debt securities, today announced its financial results for the fiscal quarter ended April 30, 2025.

SECOND QUARTER HIGHLIGHTS

• Net investment income (鈥淣II鈥�) of $5.2 million, or $0.21 per common share, for the fiscal quarter ended April 30, 2025. This compares to NII of $5.2 million, or $0.23 per common share, for the fiscal quarter ended January 31, 2025. During the fiscal quarter ended April 30, 2025, NII remained stable while NII per common share decreased by $0.02 to $0.21 due to a decrease in our net interest spread¹.
• Core net investment income (鈥淐ore NII鈥�)² of $9.2 million, or $0.37 per common share, for the fiscal quarter ended April 30, 2025. This compares to Core NII of $7.5 million, or $0.34 per common share, for the fiscal quarter ended January 31, 2025. Core NII increased for the fiscal quarter ended April 30, 2025, because recurring waterfall payments from CLO equity investments increased to $13.0 million from $10.9 million in the prior quarter, primarily attributable to an increase in issuers making their first payments since our investment.
• Net asset value (鈥淣AV鈥�) per common share of $6.17 at April 30, 2025, a decrease from NAV of $7.00 at January 31, 2025. This decrease in NAV was primarily due to a net loss on investments of $0.71 per common share. See additional information under 鈥淩esults of Operations鈥� below.
• During the fiscal quarter ended April 30, 2025, the interest income yield³ of our investment portfolio was 14.04%, based on average amortized cost.
• During the fiscal quarter ended April 30, 2025, we issued 2,317,132 shares of common stock through our At-the-Market offering, for net proceeds of $16.2 million, after deducting commissions, fees and offering costs.

OTHER RECENT EVENTS

• As previously announced, on April 3, 2025, our board of directors (the 鈥淏oard鈥�) declared monthly cash distributions of $0.115 per common share for each of the three months in the fiscal quarter ending July 31, 2025, which implies an annualized cash distribution rate of 20.7% based on the closing market price of $6.67 per common share on April 30, 2025. See additional information under 鈥淒istributions鈥� below.
• On April 1, 2025, through a private placement, we issued 1,000,000 shares of our 8.00% Series G Term Preferred Stock due 2030 at a price of $24.25 per share, raising approximately $24.3 million in net proceeds, before offering costs.

MANAGEMENT COMMENTARY

鈥淒uring our second fiscal quarter, we raised additional capital of approximately $40.4 million through the issuance of common and preferred stock,鈥� said Bilal Rashid, Chief Executive Officer. 鈥淲e deployed additional capital into our investment portfolio, which as of April 30, 2025, increased our weighted-average remaining reinvestment period to 3.4 years and weighted-average effective yield to 14.07%.鈥�

PORTFOLIO AND INVESTMENT ACTIVITIES

As of April 30, 2025, the total fair value of our investment portfolio was $252.2 million, which was equal to 81.2% of amortized cost. For the quarter ended April 30, 2025, our CLO equity cash flow yield⁵ was 20.04% based on amortized cost.

RESULTS OF OPERATIONS

Interest Income

During the fiscal quarter ended April 30, 2025, interest income increased to $10.2 million from $10.1 million during the prior quarter. The increase in interest income was primarily due to net investment deployment (purchases, net of sales and repayments) of $36.4 million, partially offset by a 0.64% decrease in the interest income yield of our investment portfolio as compared to the prior quarter.

Expenses

During the fiscal quarter ended April 30, 2025, total expenses increased by $0.2 million to $5.1 million, primarily due to an increase of $0.2 million in interest expense related to one month of expense on our 8.00% Series G Term Preferred Stock due 2030.

Net AG真人官方ized and Unrealized Gain (Loss) on Investments

During the fiscal quarter ended April 30, 2025, net loss on investments of $17.8 million was primarily due to net unrealized depreciation of $16.8 million on our CLO equity investments, attributable to meaningful widening in debt spread levels coupled with a decrease in underlying collateral loan prices during the quarter.

DISTRIBUTIONS

Third Fiscal Quarter 2025 Common Stock Distributions

The following schedule applies to distributions for common stockholders of record on the close of business of each specific record date:

Dividend Reinvestment Plan (鈥淒RIP鈥�) 鈥� DRIP Shares Issued at 95% of Market Price

Common stockholders who participate in our DRIP have the opportunity to receive a 5% discount to the market price per share of common stock at the close of regular trading on The Nasdaq Capital Market on the valuation date fixed by the Board for each distribution (i.e., the payment date).

Common stockholders that are interested in participating in our DRIP should contact their broker or financial intermediary.

Additional information about our DRIP and how to participate can be found at . We make our website content available for informational purposes only. It should not be relied upon for investment purposes, nor is it incorporated by reference into this press release.

OFS Credit Company, Inc.
Statement of Assets and Liabilities
(Unaudited)

OFS Credit Company, Inc.
Statements of Operations
(Unaudited)

About OFS Credit Company, Inc.

OFS Credit is a non-diversified, externally managed closed-end management investment company. The Company鈥檚 primary investment objective is to generate current income, with a secondary objective to generate capital appreciation, which we seek to achieve primarily through investments in CLO equity and debt securities. The Company鈥檚 investment activities are managed by OFS Capital Management, LLC, an investment adviser registered under the Investment Advisers Act of 1940⁷, as amended, and headquartered in Chicago with additional offices in New York and Los Angeles.

Forward-Looking Statements

Statements in this press release regarding management鈥檚 future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating to: the Company鈥檚 results of operations, including NII, Core NII, earnings per share and net asset value and the factors that may affect such results; and other factors may constitute forward-looking statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as 鈥渁nticipates,鈥� 鈥渆xpects,鈥� 鈥渋ntends,鈥� 鈥減lans,鈥� 鈥渨ill,鈥� 鈥渕ay,鈥� 鈥渃ontinue,鈥� 鈥渂elieves,鈥� 鈥渟eeks,鈥� 鈥渆stimates,鈥� 鈥渨ould,鈥� 鈥渃ould,鈥� 鈥渟hould,鈥� 鈥渢argets,鈥� 鈥減rojects,鈥� and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including those risks, uncertainties and factors referred to in documents that may be filed by OFS Credit from time to time with the Securities and Exchange Commission (鈥淪EC鈥�), such as interest rate and inflation rate changes, the ongoing war between Russia and Ukraine, the agenda of the new U.S. presidential administration, including the impact of tariff enactment and tax reductions, trade disputes with other countries, instability in the U.S. and international banking systems, the risk of recession or a shutdown of U.S. government services and related market volatility, on our business, our portfolio companies, our industry and the global economy. Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and, as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this press release should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. Except as required by the federal securities laws, we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including Annual and Semi-Annual Reports on Form N-CSR and monthly portfolio investments reports filed on Form N-PORT for the third month of each of our fiscal quarters.

Supplemental Information Regarding Core Net Investment Income

We provide information relating to Core NII (a non-GAAP measure) on a supplemental basis. This measure is not provided as a substitute for GAAP NII, but in addition to it. Our non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. Core NII represents GAAP NII adjusted for differences in applicable cash distributions received on our CLO equity and equity-related investments that have not been optionally redeemed relative to income recognized in accordance with GAAP. OFS Capital Management, LLC, our investment adviser, uses this information in its internal analysis of results and believes that this information may be informative in gauging the quality of the Company鈥檚 financial performance, identifying trends in its results, and providing meaningful period-to-period comparisons.

Income from investments in the 鈥渆quity鈥� class securities of CLO vehicles, for GAAP purposes, is recorded using the effective interest method; this is based on an estimated effective yield, at current amortized cost, to the expected redemption of the security utilizing assumed cash flows, including those CLO equity investments that have not made their inaugural distribution for the relevant period end. The result is an estimated effective yield for the investment in which the respective investment鈥檚 cost basis is adjusted quarterly based on the difference between the actual cash received, or distributions entitled to be received, and the income recognized via the estimated effective yield calculation. Accordingly, investment income recognized on CLO equity and equity-related securities in the GAAP statement of operations differs from the cash distributions actually received by the Company during the period (referred to below as 鈥淐LO equity adjustments鈥�). Therefore, management believes that Core NII may provide a useful indicator of distributable operating income, as this reflects a measure of potential cash availability, net of operating expenses, that could be utilized to cover distributions to common stockholders. We note that this non-GAAP measure has no bearing on the tax character of the common stock distributions made during the period, and future distributions are not guaranteed. A portion of current and future common stock distributions may consist of a return of capital for tax purposes. The actual tax character of our earnings cannot be finally determined until our tax return is prepared after the close of our taxable year.

The following table provides a reconciliation of GAAP NII to Core NII for the fiscal quarters ended April 30, 2025 and January 31, 2025:

The following table provides a reconciliation of GAAP NII to Core NII for the six months ended April 30, 2025 and 2024:

OFS庐 and OFS Credit庐 are registered trademarks of Orchard First Source Asset Management, LLC.

OFS Capital Management鈩� is a trademark of Orchard First Source Asset Management, LLC.

View source version on businesswire.com:

INVESTOR RELATIONS:

OFS Credit Company, Inc.

Steve Altebrando

847-734-2085

[email protected]

Source: OFS Credit Company, Inc.