OFS Credit Company Declares Common Stock Distribution

Rhea-AI Summary

OFS Credit Company (NASDAQ: OCCI) announced a quarterly distribution of $0.55 per share for common stockholders, declared on December 1, 2021, and payable on January 31, 2022. The distribution will be primarily in shares, with cash limited to 20% of the total. This move aims to strengthen its balance sheet, allowing the company to seize future investment opportunities. Stockholders must submit election forms by January 18, 2022 to determine their distribution preferences.

Positive

• Quarterly distribution of $0.55 per share strengthens financial outlook.
• Distribution primarily in shares enhances capital availability for investment opportunities.

Negative

• Cash distribution limited to 20% may affect immediate liquidity for stockholders.

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 December 1, 2021 its Board of Directors declared a $0.55 per share quarterly distribution for common stockholders for the quarter ending January 31, 2022.

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 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. Management believes its commitment to strong, long-term performance is aligned with the interests of OFS Capital Management, LLC, our investment advisor who, together with other insiders, own approximately 7.8% of the Company’s common stock.

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
December 1, 2021		December 13, 2021		January 31, 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 January 18, 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 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.

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, Illinois 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 Company's commitment to strong, long-term performance and the alignment of that performance to the ownership of the Company's common stock by affiliated parties; 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 and related changes in base interest rates, inflation rates 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/20211202005055/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, Inc.

FAQ

What is the distribution amount for OFS Credit Company (OCCI) in December 2021?

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

When is the payment date for the OCCI distribution?

The payment date is set for January 31, 2022.

What must stockholders do to receive their distribution from OCCI?

Stockholders must return their election forms by 5:00 p.m. Eastern Time on January 18, 2022.

How will the distribution be paid to stockholders of OCCI?

The distribution will be paid in cash or shares, with 80% expected to be paid in shares.

What is the record date for the OCCI distribution?

The record date is December 13, 2021.