OFS Capital announces partial redemption of $15 million in 4.75% notes due 2026

OFS Capital Corp (NASDAQ:OFS) announced Friday that it will redeem $15 million in aggregate principal amount of its 4.75% Notes due 2026, according to a statement filed with the Securities and Exchange Commission. The business development company, currently trading at $4.90 with a market cap of $65.65 million, offers a substantial 13.88% dividend yield according to InvestingPro data.

The company has issued notices to holders of the notes regarding its decision to exercise its option for a partial redemption. The redemption is scheduled for December 30, 2025. The notes, identified by CUSIP No. 67103B AA8, will be redeemed at a price equal to 100% of the principal amount, plus accrued and unpaid interest up to, but not including, the redemption date.

Following the transaction, $16 million in principal amount of the 4.75% notes will remain outstanding from the original $31 million. The notes were issued under an indenture dated April 16, 2018, and a fifth supplemental indenture dated February 10, 2021. InvestingPro data shows OFS has maintained dividend payments for 13 consecutive years and its current financial position features liquid assets exceeding short-term obligations with a current ratio of 1.61.

OFS Capital’s common stock, as well as its 4.95% and 7.50% notes due 2028, are listed on the Nasdaq Global Select Market under the symbols OFS, OFSSH, and OFSSO, 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 its third-quarter earnings for 2025, presenting a mixed financial outcome. The company’s earnings per share (EPS) were reported at $0.22, falling short of the anticipated $0.24. However, revenue showed a positive surprise, reaching $10.55 million and surpassing the forecasted $9.8 million. In other developments, Lucid Capital Markets initiated coverage on OFS Capital with a Neutral rating, setting a price target of $7.00. The firm noted that OFS Capital has outperformed its peer group median in total return since its initial public offering in 2012. These recent developments provide investors with critical insights into the company’s current financial standing and market perception.

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