OFS Capital Corporation (the “Company”) (Nasdaq: OFS) announced
today that it has priced a registered public offering of
$50,000,000 aggregate principal amount of its 4.95% notes due 2028
(the “Notes”) which will result in net proceeds to the Company of
approximately $48,137,500 (or approximately $52,981,250 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 October 31, 2028 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 October 31, 2023. The Notes will bear
interest at a rate of 4.95% per year, payable quarterly on January
31, April 30, July 31, and October 31 of each year, beginning on
January 31, 2022. The Company has also granted the underwriters a
30-day option to purchase an additional $5,000,000 aggregate
principal amount of Notes to cover overallotments, if any.
The offering is subject to customary closing conditions and is
expected to close on October 28, 2021. The Company has submitted an
application for the Notes to be listed and trade on The Nasdaq
Global Select Market under the trading symbol “OFSSH”. 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 from this offering
to fully or partially pay down, retire, or redeem certain of its
outstanding indebtedness, which may include the Company’s 6.25%
Notes due 2023, 5.95% Notes due 2026 and/or borrowings under its
secured revolving credit facility with BNP Paribas (the “BNP
Facility”). As of October 19, 2021, the Company had approximately
$25.0 million aggregate principal amount outstanding, plus accrued
interest, of 6.25% Notes due 2023, which mature on September 30,
2023, and bear interest at a rate of 6.25% per annum. The Company’s
6.25% Notes due 2023 will be redeemed on November 1, 2021. As of
October 19, 2021, the Company had approximately $54.3 million
aggregate principal amount outstanding, plus accrued interest, of
5.95% Notes due 2026, which mature on October 31, 2026, and bear
interest at a rate of 5.95% per annum. As of October 19, 2021, the
Company had $78.1 million of indebtedness outstanding under the BNP
Facility, which bore interest at rates from 1.84% to 2.60% as of
such date. The BNP Facility matures on June 20, 2024.
Ladenburg Thalmann & Co. Inc. and Goldman Sachs & Co.
LLC are acting as joint lead book-running managers of this
offering. B. Riley Securities, Inc. and Oppenheimer & Co. Inc.
are acting as joint book-running managers of this 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 October 21,
2021, and accompanying prospectus, dated June 24, 2021, 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., 640 5th Ave., 4th Floor, New York, New York 10019, or:
1-800-573-2541, or: prospectus@ladenburg.com.
About OFS Capital Corporation
OFS Capital Corporation is an externally managed, closed-end,
non-diversified management investment company that has elected to
be regulated as a business development company. OFS Capital’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. OFS Capital invests
primarily in privately held middle-market companies in the United
States, including lower-middle-market companies, targeting
investments of $3 million to $20 million in companies with annual
EBITDA between $5 million and $50 million. OFS Capital 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. OFS Capital’s
investment activities are managed by OFS Capital Management, LLC,
an investment adviser registered under the Investment Advisers Act
of 19401, as amended, 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.
SOURCE: OFS Capital Corporation
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version on businesswire.com: https://www.businesswire.com/news/home/20211021006132/en/
OFS Capital Corporation INVESTOR RELATIONS: Steve Altebrando,
646-652-8473 saltebrando@ofsmanagement.com
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