Core Insights - OFS Credit Company, Inc. has announced an estimated net asset value (NAV) per share of its common stock to be between $5.01 and $5.11 as of November 30, 2025, which is subject to change based on future evaluations [1] - The company primarily invests in collateralized loan obligation (CLO) equity and debt securities, aiming to generate current income and capital appreciation [3] Financial Condition - The NAV estimate is unaudited and does not reflect the company's comprehensive financial condition for the month ending November 30, 2025, and may differ from future NAV estimates [1] - The financial condition and results of operations may be significantly affected by various factors, including interest rate changes, inflation, geopolitical tensions, and economic instability [1] Company Overview - OFS Credit is a non-diversified, externally managed closed-end management investment company, with its investment activities managed by OFS Capital Management, LLC [3] - The company is headquartered in Chicago, Illinois, with additional offices in New York and Los Angeles [3]

Financial Data and Key Metrics Changes - Net investment income decreased to $0.22 per share from $0.25 per share in the prior quarter, primarily due to higher interest costs [4] - Net asset value per share declined to $10.17 from $10.91 in the previous quarter, largely driven by markdowns on equity investments [4][11] - Total investment income increased approximately 1% to $10.6 million, while total expenses rose by about 6% to $7.6 million [13] Business Line Data and Key Metrics Changes - The company placed one loan on non-accrual status, representing 1.8% of the total portfolio at fair value, while one loan was moved back to performing status [11][15] - The loan portfolio remains stable, with 88% of holdings in first lien positions based on fair value [15][16] - The weighted average performing investment income yield decreased to 13.3%, down about 0.3% quarter over quarter [16] Market Data and Key Metrics Changes - The broader economic outlook remains uncertain, with the Fed having lowered interest rates by 50 basis points this year, potentially impacting net investment income [6][14] - The company has a regulatory asset coverage ratio of 157%, a decrease of 3 percentage points from the prior quarter [12] Company Strategy and Development Direction - The company is focused on preserving capital and strengthening its balance sheet, including reducing the distribution rate to $0.17 per share for the fourth quarter [10][18] - Efforts are ongoing to monetize the minority equity position in Fansteel Holdings, which has a fair value of approximately $78.5 million [5][11] - The company aims to maintain a diversified loan portfolio and avoid highly cyclical industries, with a commitment to senior secured loans [6][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall health of the portfolio despite the challenging market conditions [6][18] - The company anticipates further net interest margin compression due to lower reference rates and higher interest costs related to refinancing [14][15] - The management remains focused on increasing net investment income over the long term through strategic actions [18][19] Other Important Information - The company completed a $69 million unsecured public bond offering and a $25 million private placement, extending debt maturities [7][12] - The company has approximately $4.1 billion in assets under management and a strong track record across multiple credit cycles [9][19] Q&A Session Summary - The Q&A session was not detailed in the provided content, and thus no specific questions or answers are available for summarization.

Financial Performance - As of September 30, 2025, the net asset value (NAV) per common share decreased to $10.17 from $10.91 at June 30, 2025, primarily due to a net loss on investments of $0.58 per common share[142]. - Total investment income for the quarter ended September 30, 2025, increased to $10.6 million from $10.5 million in the prior quarter, driven by non-recurring interest and dividend income[143]. - A net loss on investments of $7.8 million was recognized for the quarter ended September 30, 2025, attributed to a net realized loss of $4.6 million and net unrealized depreciation of $3.1 million[145]. - For the three months ended September 30, 2025, total investment income increased to $10.6 million from $10.5 million in the prior quarter, driven by non-recurring income[180]. - Net loss on investments for the three months ended September 30, 2025, was $7.8 million, primarily due to unrealized depreciation on equity investments[191]. - For the nine months ended September 30, 2025, total investment income decreased by $5.0 million compared to the prior year, mainly due to a $3.3 million decrease in total interest income[184]. - Net loss on investments for the nine months ended September 30, 2025, was $31.4 million, consisting of $20.0 million in unrealized depreciation and $11.4 million in realized losses[193]. Debt and Financing - The total outstanding debt decreased from $243.4 million at June 30, 2025, to $239.2 million at September 30, 2025, while the weighted-average debt interest costs increased to 6.67% from 6.21%[144]. - The company had $239.2 million of outstanding debt with a weighted-average effective interest rate of 7.03% as of September 30, 2025[205]. - The company redeemed $94.0 million of Unsecured Notes Due February 2026, resulting in a loss on extinguishment of debt of $0.3 million[215]. - The company issued $69.0 million in Unsecured Notes Due July 2028, with net proceeds of $67.3 million after fees[212]. - The company entered into a private placement for a $25.0 million Unsecured Note Due August 2029, with net proceeds of $24.2 million[213]. - The BNP Facility had outstanding debt of $59.2 million as of September 30, 2025, with an effective interest rate of 7.19%[220]. - Approximately 62% of the company's outstanding debt matures in more than two years, and 75% is unsecured[205]. Asset Management - As of September 30, 2025, the asset coverage ratio was 157%, exceeding the minimum requirement of 150% under the 1940 Act[146]. - The fair value of the debt investment portfolio totaled $205.6 million across 33 portfolio companies, with approximately 88% being first lien debt investments[157]. - The company had non-accrual loans with an aggregate fair value of $23.1 million, representing 6.2% of total investments at fair value[145]. - As of September 30, 2025, 100% of the loan portfolio and 56% of the total portfolio consisted of first lien and second lien loans[164]. - The three largest industries by fair value in the Portfolio Company Investments were Manufacturing (32.6%), Health Care and Social Assistance (20.8%), and Real Estate and Rental and Leasing (7.3%), totaling approximately 60.7%[165]. - As of September 30, 2025, approximately 81% of investments were qualifying assets, in compliance with BDC regulations[224]. Cash and Liquidity - As of September 30, 2025, the company held cash and cash equivalents of $5.0 million, including $2.5 million held by OFSCC-FS[197]. - The company had an unused commitment of $25.0 million under the Banc of California Credit Facility, which is scheduled to mature on February 28, 2026[198]. - Cash from net investment income for the nine months ended September 30, 2025, decreased by $1.9 million compared to the same period in 2024[202]. - The company expects to fund portfolio growth through current borrowings and future capital raises, but cannot assure stockholders of success[222]. - The reinvestment period of the BNP Facility expired on September 30, 2025, potentially constraining short-term liquidity if a new credit facility is not established[199]. Distributions - On October 28, 2025, a distribution of $0.17 per share was declared for the fourth quarter of 2025, payable on December 31, 2025[148]. - The Board declared a distribution of $0.17 per share for the fourth quarter of 2025, payable on December 31, 2025[237].

Financial Performance - Net investment income decreased to $0.22 per common share for Q3 2025, down from $0.25 per common share in Q2 2025[4] - Net loss on investments was $0.58 per common share for Q3 2025, compared to a net loss of $0.31 per common share in Q2 2025[4] - Total investment income increased to $10.6 million in Q3 2025 from $10.5 million in Q2 2025[16] - Total investment income for the three months ended September 30, 2025, was $10,551,000, a slight increase from $10,476,000 in the previous quarter[28] - Net investment income for the nine months ended September 30, 2025, was $9,688,000, down from $12,636,000 for the same period in 2024, reflecting a decrease of approximately 23.1%[28] - The company reported a net loss on investments of $31,441,000 for the nine months ended September 30, 2025, compared to a loss of $9,669,000 for the same period in 2024[28] Asset and Liability Management - Net asset value per common share decreased from $10.91 as of June 30, 2025, to $10.17 as of September 30, 2025[4] - Total assets decreased from $428,123,000 as of December 31, 2024, to $378,150,000 as of September 30, 2025, representing a decline of approximately 11.7%[27] - Total liabilities decreased from $255,898,000 as of December 31, 2024, to $241,836,000 as of September 30, 2025, a reduction of approximately 5.5%[27] - Total outstanding debt was $239.2 million as of September 30, 2025, down from $243.4 million in the previous quarter[3] - As of September 30, 2025, approximately 62% of outstanding debt matures in more than two years[12] Investment Strategy - The company targets investments of $3 million to $20 million in privately held middle-market companies with annual EBITDA between $5 million and $50 million[29] - The company is externally managed and focuses on providing current income and capital appreciation primarily through debt investments[29] Distributions - A distribution of $0.17 per common share for Q4 2025 was declared, payable on December 31, 2025[4] - Distributions declared per common share remained stable at $0.34 for both the three months ended September 30, 2025, and June 30, 2025[28] Expenses - Total expenses rose to $7.6 million in Q3 2025, an increase of $0.4 million compared to the prior quarter[17] - The company recognized a net loss on investments of $7.8 million in Q3 2025, primarily due to a net realized loss of $4.6 million[18] - Net realized loss on investments for the three months ended September 30, 2025, was $4,646,000, compared to a loss of $4,191,000 in the previous quarter[28]

Core Points - OFS Capital Corporation will report its third quarter 2025 earnings results after the market closes on October 30, 2025 [1] - A conference call to discuss the financial results will be held on October 31, 2025, at 10:00 a.m. Eastern Time, hosted by CEO Bilal Rashid and CFO Kyle Spina [2] Company Overview - OFS Capital Corporation is an externally managed, closed-end, non-diversified management investment company regulated as a business development company [3] - The company's investment objective is to provide stockholders with current income and capital appreciation primarily through debt investments, targeting investments of $3 million to $20 million in privately held middle-market companies in the U.S. [3] - OFS Capital focuses on companies with annual EBITDA between $5 million and $50 million and offers flexible solutions through various asset classes, including senior secured loans and subordinated loans [3]

Core Viewpoint - OFS Credit Company, Inc. has announced an estimated net asset value (NAV) per share of its common stock for August 31, 2025, ranging between $5.81 and $5.91 [1] Company Summary - OFS Credit Company primarily invests in collateralized loan obligation (CLO) equity and debt securities [1] - The NAV estimate provided is unaudited and does not represent a comprehensive statement of the company's financial position [1]

Core Insights - OFS Credit Company, Inc. reported a net investment income (NII) of $6.1 million, or $0.22 per common share, for the fiscal quarter ended July 31, 2025, representing an increase from the previous NII of $5.2 million [1] Financial Performance - The NII for the third quarter reflects a positive growth trend, indicating improved financial performance compared to the prior period [1]

Core Viewpoint - Ofs Capital reported mixed financial results for Q2 2025, with net investment income slightly exceeding expectations but facing significant net investment losses and a decline in net asset value per share [1][5][9] Financial Performance - Net investment income per share was $0.25, slightly above the analyst estimate of $0.24, but down 3.8% from Q1 2025 [2][5] - Total investment income reached $10.5 million, exceeding the $10.0 million estimate and showing a year-over-year increase of 1.9% [2][5] - The company experienced a net loss on investments of $12.9 million, a 19.4% increase in losses compared to the previous quarter [2][6] - Net asset value per share decreased from $11.97 to $10.91, reflecting an 8.9% decline [2][6] - Total investments at fair value fell from $403.1 million to $382.7 million, a decrease of 5.1% [2][6] Business Overview - Ofs Capital focuses on providing financing solutions to U.S. middle-market companies, which typically have annual revenues between $15 million and $300 million [3][4] - The investment strategy includes senior secured loans, subordinated debt, and some equity securities, aiming to generate recurring interest income [3][4] Portfolio Developments - During Q2 2025, the company deployed $12.5 million in new investments, an increase from $10.4 million in the prior quarter [5] - No new loans were shifted to non-accrual status, but existing non-accrual loans accounted for 4.0% of total investments based on fair value, indicating ongoing credit concerns [7] Debt Management - The company's total outstanding debt decreased from $248.1 million to $243.4 million during Q2 2025 [8] - Management issued $69.0 million in new unsecured notes at a 7.50% interest rate in July 2025, refinancing older notes with lower rates [8] Dividend and Future Outlook - The company maintained its quarterly dividend at $0.34 per share, raising concerns about potential income shortfalls if investment losses continue [9] - No explicit financial guidance was provided for the current quarter or fiscal 2025, leading to investor focus on future portfolio credit quality and potential markdowns [10]

Financial Data and Key Metrics Changes - Net investment income was stable at $0.25 per share compared to $0.26 per share in the prior quarter [4] - Net asset value (NAV) decreased to $10.91 per share from $11.97 per share in the prior quarter, primarily due to a decline in equity investments [4][13] - Total investment income increased approximately 2% to $10,500,000, driven by non-recurring fee income and a modest improvement in loan portfolio yield [15] - Total expenses increased by approximately 5% to $7,200,000, leading to a slight decline in net investment income [12][15] Business Line Data and Key Metrics Changes - The health of the credit portfolio remains stable with no new non-accruals reported [5][20] - The loan portfolio is primarily composed of 70% senior secured loans, 23% structured finance securities, and 7% equity securities [18] - The weighted average performing investment income yield increased to 13.6%, up about 0.2% quarter over quarter [18] Market Data and Key Metrics Changes - The regulatory asset coverage ratio decreased to 160%, a decline of five percentage points from the prior quarter [14] - 74% of outstanding debt was unsecured at the end of the quarter [10][14] Company Strategy and Development Direction - The company is focused on improving long-term net investment income by rotating non-interest earning equity positions into interest-earning assets [5][20] - There is a commitment to maintaining a diversified portfolio and investing higher in the capital structure, with 100% of the loan portfolio in first lien and second lien senior secured loans [8][20] - The company is cautious in deploying new capital due to subdued M&A activity and macroeconomic uncertainty [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the current quality of the portfolio despite economic uncertainties surrounding tariffs and U.S. monetary policy [7][20] - The company believes its portfolio is defensively positioned to withstand current macroeconomic pressures [20] - Management highlighted the importance of capital preservation during uncertain economic times [21] Other Important Information - The company completed a $69,000,000 unsecured note offering with a 7.5% coupon, maturing in July 2028, to refinance existing debt [10][14] - The advisor managing the company has a strong track record and maintains approximately 23% ownership in the company, aligning interests with shareholders [22] Q&A Session Summary - The Q&A session was opened but no specific questions or answers were documented in the provided content [23]

Financial Data and Key Metrics Changes - The net investment income for the second quarter was stable at $0.25 per share, down from $0.26 per share in the prior quarter [4] - The net asset value (NAV) decreased to $10.91 per share from $11.97 per share in the previous quarter, primarily due to a decline in equity investments [4][13] - The quarterly distribution rate was maintained at $0.34 per share, representing a 16.1% annualized yield based on the market price [12][13] Business Line Data and Key Metrics Changes - Total investment income increased by approximately 2% to $10,500,000, driven by non-recurring fee income and a modest improvement in loan portfolio yield [15] - Total expenses rose by about 5% to $7,200,000, leading to a slight decline in net investment income [12][15] - The loan portfolio remained stable with no new non-accruals during the quarter, and 85% of loan holdings were in first lien positions based on fair value [16] Market Data and Key Metrics Changes - The regulatory asset coverage ratio decreased to 160%, down five percentage points from the prior quarter [14] - The weighted average performing investment income yield increased to 13.6%, up about 0.2% quarter over quarter [17] Company Strategy and Development Direction - The company is focused on improving long-term net investment income by monetizing non-interest earning equity positions, particularly the investment in FansDeal [5][19] - The strategy includes maintaining a diversified portfolio and investing higher in the capital structure, with 100% of the loan portfolio in senior secured loans [7][19] - The company is cautious in deploying new capital due to subdued M&A activity and macroeconomic uncertainty [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the overall quality of the portfolio, noting no new non-accruals and a defensively positioned portfolio to withstand economic pressures [7][19] - There is significant uncertainty regarding tariffs and U.S. monetary policy, which may impact portfolio companies [6][19] - The company aims to preserve capital during uncertain economic times while leveraging the experience of its advisor [20][21] Other Important Information - The company completed a $69,000,000 unsecured note offering with a 7.5% coupon, intended to refinance maturing unsecured notes [10][14] - Approximately 74% of outstanding debt was unsecured at the end of the quarter, providing operational flexibility [10][14] Q&A Session Summary - The Q&A session was not detailed in the provided content, and thus no specific questions or answers are available for summary.