OFS Capital Corp. Prices Public Offering of Additional $25 Million of 4.75% Notes Due 2026 with a Re-Offer Yield of Approxima...
March 15 2021 - 5:45PM
Business Wire
OFS Capital Corporation (the “Company”) (Nasdaq: OFS) announced
today that it has priced a registered public offering of an
additional $25 million aggregate principal amount of its 4.75%
notes due 2026 (the “Notes”) which will result in net proceeds to
the Company of approximately $24.7 million after deducting payments
of underwriting discounts and estimated offering expenses payable
by the Company. The Notes will be issued at a price of 101.038% of
the aggregate principal amount of the Notes, plus accrued interest,
resulting in a re-offer yield of approximately 4.50%.
Purchasers will be required to pay accrued and unpaid interest
on the Notes from February 10, 2021 up to (but excluding) the date
of delivery of the Notes. On August 10, 2021, the Company will pay
this pre-issuance accrued interest on the Notes to the holders of
the Notes as of the applicable record date, along with interest
accrued on the Notes offered hereby from the date of delivery to
such interest payment date.
The Notes will constitute a further issuance of, have the same
terms as, rank equally in right of payment with, and be fungible
and form a single series with the $100 million in aggregate
principal amount of the 4.75% Notes due 2026 that the Company
initially issued on February 10, 2021. Upon the issuance of the
Notes, the outstanding aggregate principal amount of the Company’s
4.75% notes due 2026 will be $125 million.
The Notes will mature on February 10, 2026 and may be redeemed
in whole or in part at any time, or from time to time, at the
Company’s option at par plus a “make-whole” premium, if applicable.
The Notes will bear interest at a rate of 4.75% per year, payable
semi-annually in arrears on February 10 and August 10 of each year,
beginning on August 10, 2021.
The offering is subject to customary closing conditions and is
expected to close on March 18, 2021.
The Company intends to use the net proceeds of the offering to
fund investments in debt and equity securities in accordance with
its investment objectives and for other general corporate purposes.
The Company may also use the net proceeds from the offering to
repay outstanding indebtedness under its secured revolving credit
facility with BNP Paribas, as amended (the “BNP Facility”). As of
March 12, 2021, the Company had $35.7 million of indebtedness
outstanding under the BNP Facility, which bore interest at rates
from 1.94% to 2.69% as of such date. The BNP Facility matures on
June 20, 2024.
Goldman Sachs & Co. LLC is acting as sole book-running
manager for the offering.
Investors are advised to carefully consider the investment
objective, risks and charges and expenses of the Company before
investing. The preliminary prospectus supplement, dated March 15,
2021, 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: Goldman Sachs & Co. LLC,
200 West Street, New York, New York 10282.
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 $5 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/20210315005833/en/
OFS Capital Corporation INVESTOR RELATIONS: Steve Altebrando,
646-652-8473 saltebrando@ofsmanagement.com
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