OFS Credit Company, Inc. Announces Preferred Stock Pricing

OFS Credit Company, Inc. Prices Preferred Stock Offering

OFS Credit Company, Inc. has recently made a strategic move by announcing the pricing of its underwritten public offering. The offering includes 1,040,000 shares of 7.875% Series F Term Preferred Stock, which is due in 2029. This offer is priced at $25.00 per share, totaling an impressive $26 million in gross proceeds. Furthermore, the company has given underwriters a 30-day window to purchase an additional 156,000 shares, in case of any overallotments.

Significant Financial Implications

With the expected net proceeds of around $25 million, after accounting for underwriting discounts and offering expenses, this initiative is set to bolster the company's investment capabilities. If the underwriters fully exercise their option, net proceeds could rise to about $28.8 million. The company intends to channel these proceeds towards acquiring investments aligned with its strategic objectives.

Trading Symbol and Market Listing

The new Preferred Stock will be listed on the Nasdaq Capital Market under the trading symbol 'OCCIM'. The company anticipates that trading will commence within 30 days from its original issue date, providing investors an opportunity to engage with this new offering quickly.

Commitment to Investors

Investors are encouraged to evaluate their investment goals carefully before proceeding. A preliminary prospectus supplement and accompanying prospectus have been filed with the Securities and Exchange Commission, detailing pertinent information regarding the offering. These documents contain vital details that prospective investors should review.

Key Partnerships in the Offering

OFS Credit Company is collaborating with several notable financial institutions to facilitate this offering. Lucid Capital Markets, LLC and B. Riley Securities, Inc. are amongst the joint bookrunners, with Janney Montgomery Scott LLC and InspereX LLC also participating. Additionally, Ladenburg Thalmann & Co. Inc. serves as a co-manager, contributing to the overall execution and management of the offering.

Understanding the Company’s Investment Focus

OFS Credit Company, Inc. operates as a non-diversified, externally managed closed-end management investment company. Its primary goal is to generate current income, while also aiming for capital appreciation. This is primarily achieved through investments in collateralized loan obligation equity and debt securities. The company’s investment activities are expertly managed by OFS Capital Management, LLC, which is registered under the Investment Advisers Act of 1940. The firm is headquartered in Chicago and has operational presences in New York and Los Angeles.

Market Dynamics and Future Outlook

As the market experiences fluctuations due to various economic factors, OFS Credit remains committed to navigating these challenges effectively. The ongoing geopolitical tensions and uncertainties in the banking sector are potential risk factors that could impact performance. However, the company is poised to manage these risks as it strategically implements its investment objectives.

Frequently Asked Questions

What is the purpose of the preferred stock offering?

The preferred stock offering aims to raise capital for investments in line with the company's strategic objectives.

When is the expected trading date for the preferred stock?

The company expects the preferred stock to begin trading within 30 days from the original issue date.

What will the proceeds from the offering be used for?

The proceeds will primarily be used to acquire investments that align with the company's goals and strategies.

Who are the key underwriters for the offering?

Key underwriters include Lucid Capital Markets, LLC, B. Riley Securities, Inc., Janney Montgomery Scott LLC, and InspereX LLC.

What is the trading symbol for the preferred stock?

The preferred stock will be traded under the symbol 'OCCIM' on the Nasdaq Capital Market.

About The Author

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