Financial Performance - As of September 30, 2023, the net asset value (NAV) per common share decreased to $12.74 from $12.94 at June 30, 2023, primarily due to unrealized depreciation on investments of $0.26 per common share[140]. - For the quarter ended September 30, 2023, total investment income increased to $14.7 million from $14.5 million in the prior quarter, driven by a $0.2 million increase in interest income[141]. - The net investment income for the three months ended September 30, 2023, was $5.390 million, an increase from $5.123 million in the previous quarter[174]. - The company recognized a net loss on investments of $3.4 million for the quarter, primarily due to net unrealized depreciation of $3.5 million on debt and equity investments[143]. - The company experienced a net loss on investments of $3.395 million for the three months ended September 30, 2023, compared to a loss of $7.087 million in the previous quarter[174]. - During the nine months ended September 30, 2023, the portfolio experienced net losses of $11.6 million, primarily due to net unrealized depreciation of $6.7 million on common equity investments[189]. - Adjusted Net Investment Income for the three months ended September 30, 2023, was $5.390 million, or $0.40 per share[195]. Investment Portfolio - As of September 30, 2023, the fair value of the debt investment portfolio totaled $279.2 million across 43 portfolio companies, with approximately 99% being senior secured loans[154]. - The total portfolio company investments amounted to $373.958 million at fair value as of September 30, 2023, compared to $412.058 million as of December 31, 2022[162]. - The ten largest investments accounted for 49.6% of the total portfolio at fair value, with Pfanstiehl Holdings, Inc. being the largest equity investment valued at $77.1 million[156]. - Approximately 99% of the loan portfolio and 61% of the total portfolio consisted of senior secured loans based on fair value as of September 30, 2023[162]. - The three largest industries by fair value in the portfolio were Manufacturing (28.1%), Health Care and Social Assistance (19.3%), and Wholesale Trade (14.0%), totaling 61.4% of the portfolio[163]. Debt and Financing - The weighted-average debt interest costs increased to 6.1% compared to 6.0% for the quarter ended June 30, 2023, due to rising costs on the BNP Facility from SOFR rate increases[142]. - The company had an unused commitment of $25.0 million under the PWB Credit Facility and $58.9 million under the BNP Facility as of September 30, 2023[197]. - The effective interest rate on the PWB Credit Facility was 8.80% as of September 30, 2023, with an unused commitment of $25.0 million[212]. - The BNP Facility had $91.1 million drawn as of September 30, 2023, with an effective interest rate of 8.67%[218][220]. - The company has $31.9 million of outstanding SBA debentures maturing in 2025, with a fair value of the SBIC I LP investment portfolio at $143.3 million[230]. Asset Coverage and Compliance - As of September 30, 2023, the asset coverage ratio was 163%, exceeding the minimum requirement of 150% under the 1940 Act[145]. - The minimum required asset coverage ratio was decreased from 200% to 150% effective May 3, 2019[224]. - The aggregate amount outstanding of senior securities issued was $303.0 million, with an asset coverage ratio of 163%[226]. Cash and Liquidity - As of September 30, 2023, the company held cash of $15.9 million, including $8.4 million held by SBIC I LP and $4.0 million held by OFSCC-FS[196]. - The company continues to monitor liquidity risks associated with potential bank failures and maintains cash balances with U.S. Bank N.A and Citibank N.A[228]. - As of September 30, 2023, the approximate dollar value of shares remaining that may be purchased under the Stock Repurchase Program was $9.6 million[225]. Operational Metrics - Operating expenses for the three months ended September 30, 2023, totaled $9.261 million, a decrease from $9.403 million in the prior quarter[179]. - Interest expense for the three months ended September 30, 2023, decreased by $0.1 million compared to the prior quarter, primarily due to a reduction in the average outstanding debt balance[180]. - Total fee income decreased by $0.1 million compared to the prior quarter due to no syndication fees recognized during the current quarter[177]. Future Outlook - The company plans to fund growth through current borrowings, follow-on equity offerings, and issuances of senior securities[221]. - The company expects potential challenges in extending the PWB Credit Facility due to the merger between Banc of California and Pacific Western Bank[214]. - Interest rate sensitivity analysis indicates that a 100 basis point increase in interest rates could result in a net change of $1.702 million in earnings[242].

Important Disclosures www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATION www.ofscapital.com | ©2023 OFS Capital Corporation − Unsecured bonds provide flexibility and wholly owned senior loan facility has non-recourse financing 1 See Important Disclosures on page 1 and, in particular, the section "CIM Assets Owned and Operated" for additional details. 2 Includes OFS Capital Management, LLC, its parent company, OFSAM Holdings, as well as other wholly-owned subsidiaries of OFSAM Holdi ...

OFS Capital (NASDAQ:OFS) Q2 2023 Earnings Conference Call August 4, 2023 10:00 AM ET Company Participants Steve Altebrando - Vice President, Capital Markets Bilal Rashid - Chairman and Chief Executive Officer Jeff Cerny - Chief Financial Officer and Treasurer Conference Call Participants Mitchel Penn - Oppenheimer Operator Good morning, everyone and welcome to the OFS Capital Corporation Second Quarter 2023 Earnings Conference Call. After today’s prepared remarks, there will be an opportunity to ask questio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Delaware 46-1339639 State or Other Jurisdiction of I.R.S. Employer Identification No. Incorporation or Organization 10 S. Wacker Drive, Suit ...

6 » Return on invested capital on equity investments of 1.79x for realized investments and 5.67x for unrealized investments since inception1 » Since inception, OFS Capital has incurred cumulative net realized losses of only ~1.9%1 1 Cumulative realized gains (loss) for the years ended December 31, 2012 and 2011 give pro forma effect to OFS Capital's consolidation of OFS Capital WM, LLC as a result of the WM 2012 Credit Facility Amendments, as if the consolidation took place on January 1, 2011. Includes $2.7 ...

OFS Capital (NASDAQ:OFS) Q1 2023 Earnings Conference Call May 5, 2023 10:00 AM ET Company Participants Steve Altebrando – Vice President-Capital Markets Bilal Rashid – Chairman and Chief Executive Officer Jeff Cerny – Chief Financial Officer and Treasurer Conference Call Participants Operator Good morning, and welcome to the OFS Capital Corporation First Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number 814-00813 OFS CAPITAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 46-1339639 State o ...

OFS Capital (NASDAQ:OFS) Q4 2022 Earnings Conference Call March 3, 2023 10:00 AM ET Company Participants Steve Altebrando – Vice President-Capital Markets Bilal Rashid – Chairman and Chief Executive Officer Jeff Cerny – Chief Financial Officer Conference Call Participants David Miyazaki – Confluence Investment Management David Prosky – Private Investor Operator Good morning, and welcome to the OFS Capital Corporation Fourth Quarter and Full Year 2022 Earnings Conference Call. All participants will be in lis ...

Jeff Cerny Chief Financial Officer » Subject to the Investment Company Act of 1940, which among other things, places limitations on the incurrence of leverage | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------|-------|---------------|-------|---------------|-------|---------------|-------|---------------------------------------------------|-------|--------------| | SBA debentures1 | | | | | | | | $ 50,697 $ 50,649 $ 50,601 $ 50,553 $ 69,3 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-00813 OFS Capital Corporation (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Delaware 46-1339639 (State or jurisdiction of incorporation or organization) 10 S. ...