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

OCCIOCCINOCCIM
  • OFS Credit Company reported Net Investment Income (NII) of $4.2 million ($0.14 per share) for the quarter ended July 31, 2026, a decrease from $4.4 million in the prior quarter due to a smaller portfolio & lower interest yield.
  • Core Net Investment Income (Core NII) increased to $6.3 million ($0.21 per share) for the quarter ended July 31, 2026, driven by initial payments from issuers.
  • Net Asset Value (NAV) per common share fell to $3.32 at July 31, 2026, from $3.72, primarily due to a net loss on investments of $0.38 per share.
  • The investment portfolio's interest income yield was 11.43% based on average amortized cost during the quarter.
  • The company issued 13,500 common shares via At-the-Market offering for net proceeds of $0.1 million.
  • $5.0 million of 5.25% Series E Term Preferred Stock was redeemed on August 31, 2026, at 100% of principal value.
  • The Board declared monthly cash distributions of $0.05 per common share for September & October 2026.
  • Total investments at fair value stood at $181.5 million as of July 31, 2026, down from $197.4 million in April 2026.
  • Net loss on investments for the quarter was $11.3 million, consisting of $2.4 million in realized losses & $8.9 million in unrealized depreciation caused by spread compression & software exposure concerns.
  • Total operating expenses decreased to $4.4 million for the quarter, primarily due to a reduction in interest expense following previous preferred stock redemptions.
  • The portfolio composition included $177.7 million in broadly syndicated loan CLOs & $3.8 million in middle-market loan CLOs.
  • The CLO equity cash flow yield was 14.46% based on amortized cost for the quarter.
  • Asset coverage ratio was 209.1% at July 31, 2026, compared to 221.3% at April 30, 2026.
  • The company maintains a Dividend Reinvestment Plan offering a 5% discount to market price for participating common stockholders.
  • Distributions for 5.25% Series E, 7.875% Series F, & 8.00% Series G preferred stocks were declared through January 2027, with Series E dividends ceasing prior to its mandatory redemption on December 31, 2026.