OFS Capital Corporation Prices Public Offering of $25,000,000 6.25% Notes Due 2023
September 15 2020 - 6:00AM
Business Wire
OFS Capital Corporation (the “Company”) (Nasdaq: OFS) announced
today that it has priced a registered public offering of
$25,000,000 aggregate principal amount of its 6.25% notes due 2023
(the “Notes”) which will result in net proceeds to the Company of
approximately $23,950,000 (or approximately $27,587,500 if the
underwriters fully exercise the overallotment option described
below) based on a public offering price of 100% of the aggregate
principal amount of the Notes, after deducting payment of
underwriting discounts and commissions and estimated offering
expenses payable by the Company.
The Notes will mature on September 30, 2023 and may be redeemed
in whole or in part at any time, or from time to time, at the
Company’s option on or after September 30, 2021. The Notes will
bear interest at a rate of 6.25% per year, payable quarterly on
January 31, April 30, July 31 and October 31 of each year,
beginning on January 31, 2021. The Company has also granted the
underwriters a 30-day option to purchase an additional $3,750,000
aggregate principal amount of Notes to cover overallotments, if
any.
The offering is subject to customary closing conditions and is
expected to close on September 18, 2020. The Company has submitted
an application for the Notes to be listed and trade on The Nasdaq
Global Select Market under the trading symbol “OFSSG”. If approved
for listing, the Company expects the Notes to begin trading within
30 days from the original issue date.
The Company intends to use the net proceeds of the offering to
fund investments in debt and equity securities in accordance with
its investment objective and for other general corporate purposes.
The Company also intends to use a portion of the net proceeds from
the offering to repay outstanding indebtedness under its senior
secured revolving credit facility with Pacific Western Bank, or
PWB, as amended (the “PWB Credit Facility”). As of September 10,
2020, the Company had $15.0 million of indebtedness outstanding
under the PWB Credit Facility.
Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC,
and National Securities Corporation, a wholly owned subsidiary of
National Holdings, Inc. (NASDAQ: NHLD), are acting as joint-booking
running managers.
Investors are advised to carefully consider the investment
objective, risks and charges and expenses of the Company before
investing. The preliminary prospectus supplement, dated September
14, 2020, and accompanying prospectus, dated April 10, 2020, each
of which has been filed with the Securities and Exchange
Commission, contain a description of these matters and other
important information about the Company and should be read
carefully before investing.
The information in the preliminary prospectus supplement, the
accompanying prospectus and this press release is not complete and
may be changed. This press release does not constitute an offer to
sell or the solicitation of an offer to buy the securities in this
offering or any other securities nor will there be any sale of
these securities or any other securities referred to in this press
release in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such state or
jurisdiction.
A shelf registration statement relating to these securities
is on file with and has been declared effective by the Securities
and Exchange Commission. The offering may be made only by means of
a prospectus and a related prospectus supplement, copies of which
may be obtained, when available, from: Ladenburg Thalmann & Co.
Inc., 277 Park Avenue, 26th Floor, New York, New York 10172, or:
1-800-573-2541, or: prospectus@ladenburg.com.
About OFS Capital Corporation
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 to $20 million in companies with annual EBITDA
between $3 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. The Company's
investment activities are managed by OFS Capital Management, LLC,
an investment adviser registered under the Investment Advisers Act
of 19401 and headquartered in Chicago, Illinois, with additional
offices in New York and Los Angeles.
Forward-Looking Statements
Statements included herein may constitute “forward-looking
statements”, which relate to future events or our future
operations, performance or financial condition. Forward-looking
statements include statements regarding our intentions related to
the offering discussed in this press release, including the use of
proceeds from the offering. These statements are not guarantees of
future performance, condition or results and involve a number of
risks and uncertainties. Actual results and outcomes may differ
materially from those anticipated in the forward-looking statements
as a result of a variety of factors, including those described from
time to time in our filings with the Securities and Exchange
Commission or factors that are beyond our control. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements made herein. All forward-looking
statements speak only as of the time of this press release.
1 Registration does not imply a certain level of skill or
training.
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version on businesswire.com: https://www.businesswire.com/news/home/20200915005495/en/
OFS Capital Corporation INVESTOR RELATIONS: Steve Altebrando,
646-652-8473 saltebrando@ofsmanagement.com
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