\nOFS Credit Company, Inc. (NASDAQ: OCCI) (\u201cOFS Credit,\u201d the \u201cCompany,\u201d \u201cwe,\u201d \u201cus\u201d or \u201cour\u201d), an investment company that primarily invests in collateralized loan obligation (\u201cCLO\u201d) equity and debt securities, today announced a net asset value (\u201cNAV\u201d) estimate as of October 31, 2020 and the issuance of 120,000 shares of our 6.60% Series B Term Preferred Stock (the \u201cPreferred Stock\u201d), raising approximately $2.9 million in gross proceeds.\n<\/p>\n
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- \nManagement\u2019s unaudited estimate of the range of our NAV per share of our common stock as of October 31, 2020 is between $11.53 and $11.63. This estimate is not a comprehensive statement of our financial condition or results for the month ended October 31, 2020. This estimate did not undergo the Company\u2019s typical quarter-end financial closing procedures and was not approved by the Company\u2019s board of directors. We advise you that our NAV per share as of October 31, 2020, which will be reported in the audited financial statements included in our annual report on Form N-CSR, may differ materially from this estimate.\n<\/li>\n<\/ul>\n
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- \nOn November 19, 2020, we issued through a private placement 120,000 shares of our Preferred Stock due November 19, 2023 at a price per share of $24.40625, raising approximately $2.9 million in gross proceeds. The offering was consummated pursuant to the terms of a purchase agreement (the \u201cPurchase Agreement\u201d) dated November 19, 2020 by and between the Company and the purchaser named therein (the \u201cPurchaser\u201d). The Purchase Agreement provided for the Preferred Stock to be issued to the Purchaser in a private placement in reliance on an exemption from registration under the Securities Act of 1933, as amended (the \u201cSecurities Act\u201d). We relied upon this exemption from registration based in part on representations made by the Purchaser. The Preferred Stock has 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 Preferred Stock to acquire new investments in accordance with our investment objectives and strategies and for general working capital purposes. In connection with the issuance of the Preferred Stock, the Company\u2019s Board of Directors declared three monthly cash dividends of $0.055, $0.1375 and $0.1375 per share of Preferred Stock for the months ending November 30, 2020, December 31, 2020 and January 31, 2021, respectively.\n<\/li>\n<\/ul>\n
\nWe believe that the COVID-19 pandemic presents material uncertainty and risks with respect to the underlying value of the Company\u2019s investments, financial condition, results of operations and cash flows. Further, the operational and financial performance of the Company has been, and may continue to be, significantly impacted by the COVID-19 pandemic, which in turn has, and may continue to have, an impact the valuation of the Company\u2019s investments. As a result, the fair value of the Company\u2019s portfolio investments may be materially impacted after October 31, 2020 by circumstances and events that are not yet known. To the extent the Company\u2019s portfolio investments are further adversely impacted 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 condition and the financial condition of its portfolio investments.\n<\/p>\n
\nThe preliminary financial data included in this press release has been prepared by, and is the responsibility of, OFS Credit\u2019s management. KPMG LLP has not audited, reviewed, compiled, or applied agreed-upon procedures with respect to the preliminary financial data. Accordingly, KPMG LLP does not express an opinion or any other form of assurance with respect thereto.\n<\/p>\n
About OFS Credit Company, Inc.<\/b><\/p>\n
\nOFS Credit is a non-diversified, externally managed closed-end management investment company. The Company\u2019s investment objective is to generate current income, with a secondary objective to generate capital appreciation primarily through investment in CLO debt and subordinated securities. The Company’s investment activities are managed by OFS Capital Management, LLC, an investment adviser registered under the Investment Advisers Act of 19401<\/sup>, as amended, and headquartered in Chicago, Illinois with additional offices in New York and Los Angeles.\n<\/p>\n
Forward-Looking Statements<\/b><\/p>\n
\nStatements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements regarding our intentions related to the issuance of the Preferred Stock and the use of proceeds from the issuance, may constitute forward-looking statements. Forward-looking statements can be identified by terminology such as \u201canticipate,\u201d \u201cbelieve,\u201d \u201ccould,\u201d \u201ccould increase the likelihood,\u201d \u201cestimate,\u201d \u201cexpect,\u201d \u201cintend,\u201d \u201cis planned,\u201d \u201cmay,\u201d \u201cshould,\u201d \u201cwill,\u201d \u201cwill enable,\u201d \u201cwould be expected,\u201d \u201clook forward,\u201d \u201cmay provide,\u201d \u201cwould\u201d or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in documents that may be filed by OFS Credit from time to time with the Securities and Exchange Commission, as well as the impact of the global COVID-19 pandemic and significant market volatility on our business, our portfolio companies, our industry and the global economy. As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. OFS Credit is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.\n<\/p>\n
1<\/sup> Registration does not imply a certain level of skill or training\n<\/p>\n
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View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20201119006249\/en\/<\/a><\/span><\/p>\n
INVESTOR RELATIONS:
\n<\/b>
OFS Credit Company, Inc.
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Steve Altebrando, 646-652-8473
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saltebrando@ofsmanagement.com<\/a><\/p>\nMEDIA RELATIONS:
\n<\/b>
Bill Mendel
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212-397-1030
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bill@mendelcommunications.com<\/a><\/p>\nKEYWORDS:<\/b> United States North America Illinois<\/p>\n
INDUSTRY KEYWORDS:<\/b> Banking Professional Services Finance<\/p>\n
- \nOn November 19, 2020, we issued through a private placement 120,000 shares of our Preferred Stock due November 19, 2023 at a price per share of $24.40625, raising approximately $2.9 million in gross proceeds. The offering was consummated pursuant to the terms of a purchase agreement (the \u201cPurchase Agreement\u201d) dated November 19, 2020 by and between the Company and the purchaser named therein (the \u201cPurchaser\u201d). The Purchase Agreement provided for the Preferred Stock to be issued to the Purchaser in a private placement in reliance on an exemption from registration under the Securities Act of 1933, as amended (the \u201cSecurities Act\u201d). We relied upon this exemption from registration based in part on representations made by the Purchaser. The Preferred Stock has 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 Preferred Stock to acquire new investments in accordance with our investment objectives and strategies and for general working capital purposes. In connection with the issuance of the Preferred Stock, the Company\u2019s Board of Directors declared three monthly cash dividends of $0.055, $0.1375 and $0.1375 per share of Preferred Stock for the months ending November 30, 2020, December 31, 2020 and January 31, 2021, respectively.\n<\/li>\n<\/ul>\n
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