OFS Capital(US:OFS)2025-10-30 21:37Financial 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].