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 stock shareholders for the quarter ending October 31, 2022. The distribution will be allocated in cash or shares, with 20% in cash and 80% in stock. The declaration date was September 1, 2022, and the record date is September 13, 2022, with payments made on October 31, 2022. Management believes this distribution will strengthen the balance sheet and prepare the company for future investment opportunities.

Positive

• Declaring a quarterly distribution of $0.55 per share signals positive cash flow.
• 80% of distribution will be in stock, potentially enhancing long-term equity position.
• Management believes the distribution will strengthen the balance sheet.

Negative

• None.

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 September 1, 2022 its Board of Directors declared a $0.55 per share quarterly distribution for common stockholders for the quarter ending October 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 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 October 12, 13 and 14, 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
September 1, 2022		September 13, 2022		October 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 October 13, 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.

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 COVID-19 pandemic, changes in base interest and inflation rates, the ongoing 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/20220902005043/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 for OCCI?

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

When is the record date for the OCCI distribution?

The record date for the OCCI distribution is September 13, 2022.

When will stockholders receive their distribution for OCCI?

Distribution payments for OCCI will be made on October 31, 2022.

What portion of the OCCI distribution will be in cash and stock?

The distribution will be 20% in cash and 80% in stock.

How can OCCI stockholders elect their distribution preference?

Stockholders must return election forms by 5:00 p.m. Eastern Time on October 13, 2022.