OFS Credit Company, Inc. Prices Preferred Stock Offering

OFS Credit Company, Inc. (Nasdaq: OCCI, OCCIP, OCCIO) has announced the pricing of an underwritten public offering of 1,220,000 shares of 5.25% Series E Term Preferred Stock due 2026. The offering raised $30.5 million in gross proceeds, with the potential for an additional $3.7 million if the underwriters' option to purchase additional shares is fully exercised.


The net proceeds, after deducting underwriting discounts and estimated offering expenses, are expected to be approximately $29.3 million to $33.7 million. OFS Credit Company intends to use these funds to acquire investments in accordance with its investment objectives and strategies, primarily in collateralized loan obligation (CLO) equity and debt securities.




OFS Credit Company's investment strategy focuses on generating current income and capital appreciation through investments in CLO debt and subordinated securities. The company's senior management team, with an average of over 25 years of experience in CLOs, debt securities, and loans, will guide the allocation of the offering proceeds.


The company also announced its intention to use a portion of the net proceeds to redeem all or a portion of its outstanding 6.875% Series A Term Preferred Stock due 2024. This redemption aligns with OFS Credit Company's investment objectives, as it allows the company to optimize its capital structure and allocate resources more effectively.




The listing of the Preferred Stock on the Nasdaq Capital Market under the trading symbol "OCCIN" is expected to enhance the company's liquidity and attract a broader range of investors. This increased visibility and accessibility may contribute to the company's long-term financial stability and growth.


In addition to acquiring CLO investments, OFS Credit Company plans to use a portion of the net proceeds for general working capital purposes. This allocation will contribute to the company's operational flexibility and support its ongoing business activities.


The successful pricing of the preferred stock offering demonstrates OFS Credit Company's ability to access capital markets and execute on its investment strategies. The company's focus on CLO investments and its experienced management team position it well to generate current income and capital appreciation for its shareholders.