OFS Capital Corp
NASDAQ:OFS
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OFS Capital Corp
OFS Capital Corporation, formerly OFS Capital, LLC (OFS Capital), is an externally managed, closed-end, non-diversified management investment company. The company is headquartered in Chicago, Illinois and currently employs 50 full-time employees. The company went IPO on 2012-11-08. The Company’s investment objective is to provide its stockholders with both current income and capital appreciation primarily through debt investments and equity investments. The company focuses primarily on investments in middle-market companies in the United States, including senior secured loans, which includes first-lien, second-lien and unitranche loans, as well as subordinated loans, and warrants and other equity securities. The company may make investments directly, or follow-on investments in current portfolio companies held through OFS SBIC I LP (SBIC LP), its investment company subsidiary. The company may also make investments through OFSCC-FS, LLC (OFSCC-FS) for the purpose of acquiring senior secured loan investments. The firm's investment activities are managed by OFS Capital Management, LLC.
OFS Capital Corporation, formerly OFS Capital, LLC (OFS Capital), is an externally managed, closed-end, non-diversified management investment company. The company is headquartered in Chicago, Illinois and currently employs 50 full-time employees. The company went IPO on 2012-11-08. The Company’s investment objective is to provide its stockholders with both current income and capital appreciation primarily through debt investments and equity investments. The company focuses primarily on investments in middle-market companies in the United States, including senior secured loans, which includes first-lien, second-lien and unitranche loans, as well as subordinated loans, and warrants and other equity securities. The company may make investments directly, or follow-on investments in current portfolio companies held through OFS SBIC I LP (SBIC LP), its investment company subsidiary. The company may also make investments through OFSCC-FS, LLC (OFSCC-FS) for the purpose of acquiring senior secured loan investments. The firm's investment activities are managed by OFS Capital Management, LLC.
Net Investment Income: Net investment income dropped to $0.22 per share from $0.25 last quarter, mainly due to higher interest costs from refinancing activities.
Distribution Cut: Quarterly distribution reduced to $0.17 per share for Q4 2025 to better align with current income and preserve capital, reflecting an 8.8% annualized yield.
Net Asset Value: NAV declined to $10.17 per share from $10.91, driven by markdowns in equity holdings, especially Pfanstiehl and CLO equity investments.
Refinancing & Debt Maturity: The company refinanced $94 million of its 2026 notes and issued new debt maturing in 2028 and 2029, improving capital flexibility but at higher interest costs.
Economic Outlook: Management remains cautious due to rate cuts by the Fed and expects further compression of net interest margin if rates decline more.
Portfolio Stability: Credit portfolio described as stable with one loan added to and one removed from nonaccrual status; portfolio remains focused on first and second lien senior secured loans.
