OFS Capital announces $69 million offering of 7.50% notes due 2028

Published 22/07/2025, 17:18
OFS Capital announces $69 million offering of 7.50% notes due 2028

OFS Capital Corp (NASDAQ:OFS), a business development company with a market capitalization of $113 million and an impressive 16% dividend yield, announced that on Wednesday it entered into an underwriting agreement for the issuance, offer, and sale of $69 million aggregate principal amount of its 7.50% notes due 2028. The agreement includes the purchase of $9 million in notes to cover over-allotments.

The underwriting agreement was made between OFS Capital, OFS Capital Management, LLC, OFS Capital Services, LLC, Lucid (NASDAQ:LCID) Capital Markets, LLC, and Goldman Sachs & Co (NYSE:GS). LLC, as representatives of the several underwriters named in the agreement.

According to the company’s statement, the offering was made pursuant to a registration statement on Form N-2, a preliminary prospectus filed with the Securities and Exchange Commission (SEC) on Wednesday, a pricing term sheet filed on Thursday, and a final prospectus supplement also filed on Thursday.

OFS Capital’s common stock and its 4.95% notes due 2028 are listed on The Nasdaq Global Select Market under the symbols OFS and OFSSH, respectively.

This information is based on a press release statement included in the company’s SEC filing.

In other recent news, OFS Capital Corporation reported preliminary financial estimates for Q2 2025, indicating a decline in net asset value per share. The company expects its NAV per share to be between $10.86 and $10.96, down from $11.97 at the end of the previous quarter. Net investment income per share is projected to range from $0.23 to $0.27, compared to $0.26 in the prior quarter. In addition, OFS Capital announced a partial redemption of its 4.75% Notes due 2026, planning to redeem $25 million of the $125 million outstanding. This redemption is set for August 11, 2025. Furthermore, the company has launched an offering of unsecured notes, with proceeds intended to partially redeem its 2026 notes, and has applied for these new notes to be listed on The Nasdaq Global Select Market. The interest rates and terms will be determined during the pricing of the offering. Lastly, at its recent annual meeting, OFS Capital elected Elaine E. Healy as a Class I Director and ratified KPMG LLP as the independent auditor for the fiscal year ending December 31, 2025.

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