OFS Credit Company Provides May 2021 NAV Update



CHICAGO–(COMMERCIAL THREAD) – OFS Credit Company, Inc. (NASDAQ: OCCI) (“OFS Credit”, the “Company”, “we”, “us” or “our”), an investment company that invests primarily in bonds of guaranteed loan (“CLO”), today announced the following estimate of the net asset value (“NAV”) as at May 31, 2021 and the issuance of 120,000 shares of term preferred shares from series D to 6, 0% due 2026 (the “Series D Stock Term Preferred Shares”), generating gross proceeds of approximately $ 2.9 million.

  • Management’s unaudited estimate of the range of our net asset value per share of our common shares as of May 31, 2021 is between $ 14.19 and $ 14.29. This estimate is not a complete statement of our financial position or results for the month ended May 31, 2021. This estimate has not been subject to the Company’s customary quarter-end financial close procedures and has not been subject to the Company’s usual quarter-end financial close procedures. has not been approved by the Board of Directors of the Company. We inform you that our NAV per share as of July 31, 2021, which will be declared in our monthly report on the N-PORT form, may differ significantly from this estimate.

  • On June 10, 2021, we issued in a private placement 120,000 shares of our Series D forward preferred shares at a price of $ 24.50 per share, generating gross proceeds of approximately $ 2,940,000. . The offer has been made pursuant to the terms of a purchase agreement (the “Purchase Agreement”) dated June 10, 2021 by and between us and the purchaser named therein (the “Purchaser”). The purchase agreement provided that the Series D forward preferred shares would be issued to the buyer in a private placement on the basis of an exemption from registration under the Securities Act of 1933, as amended. (the “Securities Act”), provided for in Section 4 (a) (2) thereof and Regulation D thereunder. We have relied on this exemption from registration based in part on representations made by the purchaser. The Series D Forward Preferred Shares have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration. We intend to use the net proceeds from the issuance of the Series D Forward Preferred Shares to acquire investments in accordance with our investment objectives and strategies and for general working capital purposes. In connection with the issuance of Series D term preferred shares, our board of directors declared two monthly cash dividends of approximately $ 0.08750 and $ 0.12500 per share of term preferred shares of Series D for the months ending June 30, 2021 and July 31, 2021, respectively.

We believe that the COVID-19 pandemic presents significant uncertainty and risks regarding the underlying value of the Company’s investments, financial condition, results of operations and cash flow. In addition, the operational and financial performance of the Company has been, and may continue to be, strongly impacted by the COVID-19 pandemic, which in turn has, and may continue to have, an impact on the valuation of Company investments. Consequently, the fair value of the investments in the Company’s portfolio could be significantly affected after May 31, 2021 by circumstances and events that are not yet known. To the extent that the Company’s portfolio investments are more affected by the effects of the COVID-19 pandemic, the Company may experience a material adverse impact on its future net investment income, the fair value of its portfolio investments, its financial position and its financial position the statement of its portfolio investments.

The preliminary financial data included in this press release has been prepared and is the responsibility of the management of OFS Credit. KPMG LLP has not audited, reviewed, compiled or applied agreed procedures relating to preliminary financial data. Therefore, KPMG LLP expresses no opinion or any other form of assurance in this regard.

About OFS Credit Company, Inc.

OFS Credit is an externally managed, non-diversified, fixed-capital investment company. The investment objective of the Company is to generate current income, with a secondary objective of generating capital appreciation primarily by investing in CLO debt securities and subordinated securities. The investment activities of the Company are managed by OFS Capital Management, LLC, an investment adviser registered under the Investment Advisers Act of 19401, as amended, and headquartered in Chicago, Illinois, with additional offices in New York and Los Angeles.

Forward-looking statements

Statements in this press release regarding management’s expectations, beliefs, intentions, objectives, strategies, plans or future prospects may constitute forward-looking statements. Forward-looking statements may be identified by words such as “anticipate”, “believe”, “could”, “could increase the probability”, “estimate”, “expect”, “intend”, “ is expected ”,“ could, “should”, “will”, “will”, “would be expected”, “look to the future”, “may provide”, “would” or similar terms, variations of these terms or the negative of these terms. These forward-looking statements involve known and unknown risks, uncertainties and other factors, including the risks, uncertainties and factors mentioned in documents which may be filed by OFS Credit from time to time with the Securities and Exchange Commission, including including the intended use of the proceeds from the Series D term preferred share issuance, as well as the impact of the global COVID-19 pandemic and significant market volatility on our business, our companies. portfolio, our industry and the global economy. As a result of these risks, uncertainties and factors, actual results may differ materially from future results, performance or achievements discussed or suggested by the forward-looking statements contained in this document. OFS Credit provides the information contained in this press release as of that date and assumes no obligation to update the information included in this press release or to revise any forward-looking statements, whether as a result of new information, future events or otherwise.

1 Registration does not imply a certain level of skill or training

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