Business Wire·Jun 9, 2026, 8:00 AM ET

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

OCCI OCCIM OCCIN

OFS Credit Company, Inc. reported net investment income (NII) of $4.4 million ($0.15 per share) for the quarter ended April 30, 2026, down from $5.5 million ($0.19 per share) in the prior quarter due to lower interest income yields.
Core net investment income (Core NII) was $5.5 million ($0.19 per share) for the quarter, decreasing from $9.1 million ($0.32 per share) previously, primarily driven by a $3.4 million drop in recurring CLO equity cashflows caused by spread compression.
Net asset value (NAV) per common share fell to $3.72 at April 30, 2026, from $4.36 on January 31, 2026, a decline attributed to a $0.56 per share net loss on investments and distributions of $0.215 per share that exceeded NII.
The investment portfolio's interest income yield was 11.82% based on average amortized cost, while the CLO equity cash flow yield was 13.79% for the quarter.
Total investments at fair value decreased to $197.4 million from $235.9 million in the prior quarter, with the portfolio comprised of $193.6 million in broadly syndicated loan CLOs and $3.8 million in middle-market loan CLOs.
The company redeemed $26.0 million of preferred stock during the quarter, including $23.0 million of 6.125% Series C Term Preferred Stock and $3.0 million of 6.00% Series D Term Preferred Stock.
The board declared monthly cash distributions of $0.05 per common share for May, June, and July 2026, an annualized rate of 19.0% based on the April 30 closing price of $3.15.
Management commentary highlighted a reduction in the monthly distribution rate from $0.115 to $0.05 starting in March 2026 to preserve capital, alongside eight reset and refinancing transactions to bolster cashflow returns.
Net loss on investments totaled $16.5 million for the quarter, consisting of $7.5 million in net realized losses and $9.0 million in net unrealized depreciation driven by loan price declines and default risks.
Total operating expenses decreased by $0.7 million to $4.8 million, primarily due to a $0.5 million reduction in base management and incentive fees.
The company received $21.0 million in net proceeds from the repayment and sale of portfolio investments, which were used to fund preferred stock redemptions.
No new common shares were issued through the At-the-Market offering during the fiscal quarter ended April 30, 2026.
The asset coverage ratio for senior securities increased to 221.3% as of April 30, 2026, compared to 209.4% at the end of the previous quarter.