OFS Credit Company, Inc. Announces Pricing of Preferred Stock Offering
OFS Credit Company, Inc. has taken a significant step by revealing the pricing details of its public offering. This offering consists of 1,040,000 shares of 7.875% Series F Term Preferred Stock, maturing in 2029. Each share is priced at $25.00, bringing the total gross proceeds to a remarkable $26 million. The company has also granted the underwriters a 30-day option to buy an extra 156,000 shares if there's a demand for more.
Major Financial Impact
After factoring in underwriting discounts and offering expenses, the company expects around $25 million in net proceeds from this offering, which should enhance its investment potential. If the underwriters fully take advantage of their additional purchase option, the net proceeds could increase to about $28.8 million. OFS Credit intends to use these funds to make investments aligned with its strategic aims.
Stock Trading Symbol and Market Listing
The new Preferred Stock will be available on the Nasdaq Capital Market under the trading symbol 'OCCIM'. The company expects trading to start within 30 days from the issue date, giving investors a quick chance to engage with this offering.
Commitment to Investors
Investors are encouraged to carefully consider their investment objectives before participating. A preliminary prospectus supplement along with an accompanying prospectus has been filed with the Securities and Exchange Commission. These documents include essential information regarding the offering that potential investors should review thoroughly.
Key Partners in the Offering
To facilitate this offering, OFS Credit Company is partnering with several well-known financial institutions. Lucid Capital Markets, LLC and B. Riley Securities, Inc. are the main bookrunners, along with Janney Montgomery Scott LLC and InspereX LLC also involved. Additionally, Ladenburg Thalmann & Co. Inc. acts as a co-manager, supporting the overall execution and management of the offering.
Insight into the Company’s Investment Focus
OFS Credit Company, Inc. is a non-diversified, externally managed closed-end management investment company. Its primary objective is to generate current income while pursuing capital appreciation. It primarily achieves this through investments in collateralized loan obligation equity and debt securities. The investment activities are expertly overseen by OFS Capital Management, LLC, registered under the Investment Advisers Act of 1940. The company is based in Chicago, with operational offices in New York and Los Angeles.
Market Conditions and Future Outlook
In a fluctuating market environment, OFS Credit is dedicated to effectively navigating challenges. Current geopolitical tensions and uncertainties within the banking sector pose potential risks to performance. Nevertheless, the company is well-positioned to manage these risks as it pursues its investment objectives strategically.
Frequently Asked Questions
What purpose does the preferred stock offering serve?
The offering is intended to raise capital for investments that support the company's strategic goals.
When can we expect the preferred stock to start trading?
The preferred stock is projected to begin trading within 30 days from its original issue date.
What will the proceeds from this offering be used for?
The proceeds will mostly be directed towards acquiring investments that are in line with the company’s objectives and strategies.
Who are the primary underwriters involved in this offering?
Key underwriters for this offering are Lucid Capital Markets, LLC, B. Riley Securities, Inc., Janney Montgomery Scott LLC, and InspereX LLC.
What trading symbol will the preferred stock use?
The preferred stock will be traded under the symbol 'OCCIM' on the Nasdaq Capital Market.
