CHICAGO--(BUSINESS WIRE)--OFS Credit Company, Inc. (Nasdaq: OCCI) ("OFS Credit†, the "Company†, "we†, "us†or "our†), an investment company that primarily invests in collateralized loan obligation ("CLO†) equity and debt securities, today announced the following net asset value ("NAV†) estimate at January 31, 2026. Management's unaudited estimate of the range of our NAV per share of our common stock at January 31, 2026 is between $4.31 and $4.41. This estimate is not a comprehensive statement o. ...

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]