Business Wire·Apr 30, 2026, 4:30 PM ET

OFS Capital Corporation Announces First Quarter 2026 Financial Results

OFS

OFS Capital Corporation reported fiscal results for the quarter ended March 31, 2026, with net investment income decreasing to $0.18 per share from $0.20 in the prior quarter.
The company reported a net loss of $1.04 per share for the quarter, driven by a net loss on investments of $1.03 per share.
Net asset value per common share declined from $9.19 as of December 31, 2025, to $8.16 as of March 31, 2026.
Total investments at fair value decreased to $308.1 million from $342.0 million in the prior period.
The weighted-average performing income yield on the investment portfolio dropped to 12.5% from 13.5% due to decreased yields on structured finance securities.
The Board declared a second quarter distribution of $0.17 per share, payable on July 6, 2026, to shareholders of record as of June 19, 2026.
A loan with a fair value of $1.0 million was placed on non-accrual status, while another loan previously on non-accrual status resulted in a $4.3 million realized loss upon partial recovery.
Outstanding debt principal decreased to $202.5 million from $220.5 million, following the redemption of $16.0 million in 4.75% notes in February 2026.
The company entered into an $80.0 million revolving credit facility with Natixis in February 2026, replacing its prior facility with BNP Paribas.
The Banc of California credit facility was amended to extend maturity to February 2028, reduce the minimum tangible net asset value covenant to $75.0 million, and decrease the maximum commitment amount to $15.0 million.
As of March 31, 2026, 94% of the loan portfolio consisted of floating rate loans, with 100% comprised of first lien & second lien loans.
Approximately 96% of outstanding debt matures in more than two years, while 74% is unsecured, with a regulatory asset coverage ratio of 154%.
Total investment income decreased to $8.9 million from $9.4 million, primarily due to a $1.3 million reduction in interest income.
Total expenses, net of fee waivers, decreased to $6.4 million from $6.7 million, driven by lower interest expense partially offset by higher management fees.
A net loss on investments of $13.9 million was recorded, primarily attributed to $9.4 million in unrealized depreciation on structured finance securities & a $9.0 million realized loss on a second lien debt investment.