OFS Capital to redeem $69 million of 4.75% notes due 2026 in August

OFS Capital Corp (NASDAQ:OFS), a financial services company with a market capitalization of $113 million and maintaining a "GREAT" financial health score according to InvestingPro, announced Tuesday it will redeem $69 million in aggregate principal amount of its 4.75% Notes due 2026. The company, which boasts a strong current ratio of 2.23, notified holders of the notes of its decision to exercise its option for a partial redemption, according to a press release statement based on a filing with the Securities and Exchange Commission.

The redemption is scheduled for August 21, 2025. OFS Capital will redeem $69 million out of the $125 million outstanding principal amount of the notes. The notes will be redeemed at the greater of 100% of the principal amount or the sum of the present value of the remaining scheduled payments of principal and interest, discounted to the redemption date using the applicable Treasury Rate plus 50 basis points, as outlined in the indenture and supplemental indenture agreements. The company, which offers an impressive 16.04% dividend yield and trades at a P/E ratio of 3.74, demonstrates strong shareholder returns. Discover more financial insights and metrics with InvestingPro’s comprehensive research report.

The 4.75% Notes due 2026 are identified by CUSIP No. 67103B AA8. The redemption will be carried out in accordance with Section 1101 of the Indenture dated April 16, 2018, and Section 1.01(h) of the Fifth Supplemental Indenture dated February 10, 2021, between OFS Capital and U.S. Bank Trust Company, National Association, as trustee.

OFS Capital’s common stock and certain notes 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 Form 8-K filing with the SEC.

In other recent news, OFS Capital Corporation has announced preliminary financial estimates for the second quarter of 2025, indicating a decline in net asset value per share. The company estimates its net asset value per share to be between $10.86 and $10.96, down from $11.97 at the end of March 2025. Additionally, net investment income per share is expected to range from $0.23 to $0.27, compared to $0.26 in the previous quarter. In another development, OFS Capital has entered an underwriting agreement for the issuance of $69 million in 7.50% notes due 2028, including $9 million to cover over-allotments. The company has also launched an underwritten offering of unsecured notes, with proceeds intended to partially redeem its 4.75% Notes due 2026. OFS Capital announced it will redeem $25 million of these 4.75% Notes due 2026 on August 11, 2025. Furthermore, during its 2025 Annual Meeting of Stockholders, Elaine E. Healy was elected as a Class I Director, and KPMG LLP was ratified as the independent auditor for the fiscal year ending December 31, 2025.

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