OFS Capital Corporation Announces Third Quarter 2024 Financial Results

October 31, 2024 04:30 PM Eastern Daylight Time

CHICAGO--(BUSINESS WIRE)--OFS Capital Corporation (Nasdaq: OFS) (“OFS Capital,” the “Company,” “we,” “us,” or “our”) today announced its financial results for the fiscal quarter ended September 30, 2024.

THIRD QUARTER FINANCIAL HIGHLIGHTS

• Net investment income increased to $0.27 per common share for the quarter ended September 30, 2024 from $0.26 per common share for the quarter ended June 30, 2024.
• Net loss on investments was $0.15 per common share for the quarter ended September 30, 2024. See additional information under “Results of Operations” below.
• Net asset value per common share decreased to $11.29 as of September 30, 2024 from $11.51 as of June 30, 2024.
• As of September 30, 2024, based on fair value, 91% of our loan portfolio consisted of floating rate loans and 100% of our loan portfolio consisted of first lien and second lien loans.
• For the quarter ended September 30, 2024, the investment portfolio’s weighted-average performing income yield increased to 13.6% from 13.4% during the prior quarter, primarily due to the sale of certain structured finance securities and the redeployment of proceeds into higher yielding CLO subordinated note securities.
• The number of issuers with loans on non-accrual status, and the percentage of non-accrual investments to total investments at fair value, remained stable quarter-over-quarter. See additional information under “Portfolio and Investment Activities” below.

OTHER RECENT EVENTS

• On October 29, 2024, our Board of Directors declared a distribution of $0.34 per common share for the fourth quarter of 2024, payable on December 31, 2024 to stockholders of record as of December 20, 2024.

As of September 30, 2024, based on fair value, our investment portfolio was comprised of the following:

• Total investments of $394.7 million, which was equal to approximately 106% of amortized cost;
• Debt investments of $231.1 million, of which approximately 82% and 18% were first lien and second lien loans, respectively;
• Equity investments of $89.8 million; and
• Structured finance securities of $73.8 million.

ABOUT OFS CAPITAL

The Company is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company. The Company’s investment objective is to provide stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments. The Company invests primarily in privately held middle-market companies in the United States, including lower-middle-market companies, targeting investments of $3 million to $20 million in companies with annual EBITDA between $5 million and $50 million. The Company offers flexible solutions through a variety of asset classes including senior secured loans, which includes first-lien, second-lien and unitranche loans, as well as subordinated loans and, to a lesser extent, warrants and other equity securities.

CONFERENCE CALL

OFS Capital will host a conference call to discuss these results on Friday, November 1, 2024, at 10:00 AM Eastern Time. Interested parties may participate in the call via the following:

INTERNET: Go to www.ofscapital.com at least 15 minutes prior to the start time of the call to register, download, and install any necessary audio software.