OFS Credit Company Declares Common and Preferred Stock Distributions

Rhea-AI Summary

OFS Credit Company (NASDAQ: OCCI) announced a quarterly distribution of $0.55 per share for common stockholders for the quarter ending July 31, 2022. The distribution consists of 20% cash and 80% stock, with a record date of June 13, 2022 and a payment date of July 29, 2022. Additionally, monthly distributions for Series B, C, D, and E preferred stocks are scheduled through January 31, 2023. The management believes these distributions will enhance the balance sheet and prepare for future investment opportunities.

Positive

• Declared a quarterly distribution of $0.55 per share, strengthening shareholder returns.
• Pro-rata distribution allows flexibility between cash and stock for common stockholders, potentially increasing shareholder engagement.
• Management's belief that distributions will strengthen the balance sheet and prepare for future opportunities.

Negative

• The majority of distribution (80%) will be in stock, potentially increasing dilution for existing shareholders.
• Dependence on stock performance during distribution calculation could lead to discrepancies in expected cash flow.

CHICAGO--(BUSINESS WIRE)-- OFS Credit Company (NASDAQ: OCCI) (“OFS Credit,” the “Company,” “we,” “us” or “our”), an investment company that primarily invests in collateralized loan obligation (“CLO”) equity and debt securities, today announced that on June 1, 2022 its Board of Directors declared a $0.55 per share quarterly distribution for common stockholders for the quarter ending July 31, 2022. The Board of Directors has also declared monthly cash distributions through January 31, 2023 for the Company’s 6.60% Series B Term Preferred Stock, 6.125% Series C Term Preferred Stock, 6.00% Series D Term Preferred Stock and 5.25% Series E Term Preferred Stock.

Common Stock Distribution

The distribution for common stockholders will be paid in cash or shares of our common stock at the election of stockholders. The total amount of cash distributed to all stockholders will be limited to 20% of the total distribution to be paid, excluding any cash paid for fractional shares. The remainder of the distribution (approximately 80%) will be paid in the form of shares of our common stock. The number of shares of common stock comprising the stock portion will be determined by using the volume weighted average price per share on the Nasdaq Capital Market on the three business-day period of July 13, 14 and 15, 2022. The exact distribution of cash and stock to any given stockholder will be dependent upon each stockholder’s election as well as elections of other stockholders, subject to the pro-rata limitation.

Management believes that the cash and stock distribution will allow the Company to strengthen its balance sheet and to be in position to capitalize on potential future investment opportunities.

The following schedule applies to the distribution for common stockholders of record on the close of business of the record date:

Declaration Date		Record Date		Payment Date		Distribution Per Share
June 1, 2022		June 13, 2022		July 29, 2022		$0.55

The amount, details and U.S. federal income tax consequences of the distribution will be described in the election form and accompanying materials that will be mailed to stockholders in connection with the distribution promptly following the record date. Election forms must be returned on or before 5:00 p.m. Eastern Time on July 14, 2022 to be effective. Stockholders who do not return a timely and properly completed election form before the election deadline will be deemed to have made an election to receive 100% of their distribution in stock.

Participants in the Company's dividend reinvestment plan will also receive an election form. The investment feature of the dividend reinvestment plan will be suspended for the common stock distribution and will be reinstated after the distribution has been completed.

Stockholders who hold their shares through a bank, broker or nominee, or in “street name” will not receive an election form directly from the Company and should receive information regarding the election process from their bank, broker or nominee. Street name holders should contact their bank, broker or nominee for additional information.

Preferred Stock Distributions

The following schedule applies to the 6.60% Series B Term Preferred Stock distributions for preferred stockholders of record on the close of business of each specific record date:

Record Date	Payable Date	Distribution Per Share
August 24, 2022	August 31, 2022	$0.1375
September 23, 2022	September 30, 2022	$0.1375
October 24, 2022	October 31, 2022	$0.1375
November 23, 2022	November 30, 2022	$0.1375
December 23, 2022	December 30, 2022	$0.1375
January 24, 2023	January 31, 2023	$0.1375

The following schedule applies to the 6.125% Series C Term Preferred Stock distributions for preferred stockholders of record on the close of business of each specific record date:

Record Date	Payable Date	Distribution Per Share
August 24, 2022	August 31, 2022	$0.1276042
September 23, 2022	September 30, 2022	$0.1276042
October 24, 2022	October 31, 2022	$0.1276042
November 23, 2022	November 30, 2022	$0.1276042
December 23, 2022	December 30, 2022	$0.1276042
January 24, 2023	January 31, 2023	$0.1276042

The following schedule applies to the 6.00% Series D Term Preferred Stock distributions for preferred stockholders of record on the close of business of each specific record date:

Record Date	Payable Date	Distribution Per Share
August 24, 2022	August 31, 2022	$0.125
September 23, 2022	September 30, 2022	$0.125
October 24, 2022	October 31, 2022	$0.125
November 23, 2022	November 30, 2022	$0.125
December 23, 2022	December 30, 2022	$0.125
January 24, 2023	January 31, 2023	$0.125

The following schedule applies to the 5.25% Series E Term Preferred Stock distributions for preferred stockholders of record on the close of business of each specific record date:

Record Date	Payable Date	Distribution Per Share
August 24, 2022	August 31, 2022	$0.109375
September 23, 2022	September 30, 2022	$0.109375
October 24, 2022	October 31, 2022	$0.109375
November 23, 2022	November 30, 2022	$0.109375
December 23, 2022	December 30, 2022	$0.109375
January 24, 2023	January 31, 2023	$0.109375

About OFS Credit Company, Inc.

OFS Credit is a non-diversified, externally managed closed-end management investment company. The Company’s investment objective is to generate current income, with a secondary objective to generate capital appreciation primarily through investment in CLO equity and debt securities. The Company's investment activities are managed by OFS Capital Management, LLC, an investment adviser registered under the Investment Advisers Act of 1940¹, as amended, and headquartered in Chicago with additional offices in New York and Los Angeles.

Forward-Looking Statements

Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating to: management’s beliefs that the cash and stock distribution will allow the Company to strengthen its balance sheet and to be in position to capitalize on potential future investment opportunities, when there can be no assurance either will occur; the tax consequences of the distributions to stockholders; and other factors may constitute forward-looking statements. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in documents that may be filed by OFS Credit from time to time with the Securities and Exchange Commission, as well as the impact of the global COVID-19 pandemic, changes in base interest rates and inflation rates, the conflict between Russia and the Ukraine and significant market volatility on our business, our portfolio companies, our industry and the global economy. As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. OFS Credit is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

¹ Registration does not imply a certain level of skill or training.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220602005806/en/

INVESTOR RELATIONS:

Steve Altebrando

646-652-8473

saltebrando@ofsmanagement.com

MEDIA RELATIONS:

Bill Mendel

212-397-1030

bill@mendelcommunications.com

Source: OFS Credit Company

FAQ

What is the quarterly distribution amount declared by OFS Credit Company on June 1, 2022?

OFS Credit Company declared a quarterly distribution of $0.55 per share for common stockholders.

What are the payment dates for preferred stock distributions by OFS Credit Company?

Preferred stock distributions are payable starting from August 31, 2022, through January 31, 2023.

What is the record date for the quarterly distribution of common stockholders for OFS Credit Company?

The record date for the quarterly distribution is June 13, 2022.

How will the distribution for common stockholders be paid by OFS Credit Company?

The distribution will be paid in cash or shares of common stock, with approximately 80% allocated to stock.

When is the payment date for the common stock distribution by OFS Credit Company?

The payment date for the common stock distribution is July 29, 2022.