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OFS Credit Company Announces Financial Results for the First Fiscal Quarter 2026

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  • OFS Credit Company reported Net Investment Income (NII) of $5.5 million ($0.19 per share) for the quarter ended January 31, 2026, down from $6.2 million ($0.22 per share) in the prior quarter due to lower interest income yields.
  • Core Net Investment Income (Core NII) increased to $9.1 million ($0.32 per share) from $8.8 million ($0.32 per share) in the prior quarter, driven by a modest rise in recurring CLO equity cash flows.
  • Net Asset Value (NAV) per common share decreased to $4.36 from $5.46, primarily caused by a net loss on investments of $0.96 per share & distributions of $0.345 per share that exceeded quarterly NII.
  • The investment portfolio's interest income yield was 13.16% based on average amortized cost, while the CLO equity cash flow yield reached 17.40%.
  • Total investments at fair value declined to $235.9 million from $256.5 million, with the portfolio valued at 71.2% of its amortized cost.
  • The company issued 825,444 common shares via its At-the-Market offering for net proceeds of $4.1 million during the quarter.
  • On February 27, 2026, OFS Credit redeemed all outstanding Series D Term Preferred Stock ($3.0 million) at 100% of principal; dividends for February 2026 were paid separately.
  • Notices were issued to redeem $5.0 million of Series C Term Preferred Stock on March 31, 2026, at 100% of principal, with March 2026 dividends paid separately.
  • The Board declared monthly cash distributions of $0.05 per common share for March & April 2026, implying an 18.9% annualized rate based on the $3.17 closing price.
  • Net loss on investments totaled $27.2 million, largely driven by $26.3 million in unrealized depreciation on CLO equity due to spread compression & declining loan prices.
  • Total operating expenses decreased by $0.3 million to $5.5 million, mainly due to lower base management & incentive fees.
  • The asset coverage ratio for senior securities stood at 209.4% as of January 31, 2026, down from 232.0% in the prior period.
  • Portfolio purchases included $12.0 million in CLO equity investments & $3.1 million in loan accumulation facility investments for the quarter.
  • Management cited ongoing CLO equity market volatility as the reason for reducing the common stock distribution rate & focusing on capital preservation.