OFS Credit Company Declares Monthly Cash Distributions on Common and Preferred Stock

Rhea-AI Summary

OFS Credit Company, Inc. (NASDAQ: OCCI) announced monthly cash distributions for common stockholders and preferred stockholders for the quarter ending April 30, 2024. The Board also declared monthly cash distributions for the Company’s preferred stocks through July 31, 2024. Additionally, the company amended its Dividend Reinvestment Plan to issue DRIP shares at 95% of the market price, providing a 5% discount to the market price. Common stockholders interested in participating in the DRIP should contact their broker or financial intermediary.

Insights

Financial Analyst

From a financial perspective, the amendment to the Dividend Reinvestment Plan (DRIP) by OFS Credit Company to issue shares at a 5% discount to the market price is a strategic move to incentivize shareholder participation in the DRIP. This can be seen as a method to conserve cash by paying dividends in the form of shares rather than cash, which might be beneficial for the company's liquidity. Additionally, it could potentially lead to dilution of shares, which shareholders should monitor. However, it could also signal management's confidence in the company's long-term value, assuming they believe the reinvestment at a discounted price will yield a higher return in the future.

Market Research Analyst

The decision to offer DRIP shares at a discounted rate is noteworthy in the context of investor sentiment and market dynamics. Historically, such incentives are well-received as they provide an immediate value proposition to investors. However, it is essential to assess the broader market's perception of such moves, as they can sometimes be interpreted as a lack of demand for the stock or a need for the company to bolster stock ownership among current investors. Market response to this announcement will be an important indicator of how the investment community views the company's financial health and future prospects.

Legal Expert

Legally, the amendment to the DRIP must comply with securities regulations and corporate governance standards. The Board's decision to issue shares at a discount requires careful consideration to ensure it aligns with the best interests of shareholders and does not violate any fiduciary duties. Transparency in the process, especially in how the market price is determined on the valuation date, is crucial to avoid any legal complications or claims of unfair practices. Shareholders should be attentive to the terms and conditions of the DRIP, as well as any disclosures that accompany such corporate actions.

Amended Dividend Reinvestment Plan Permits DRIP Shares to be Issued at 95% of Market Price

CHICAGO--(BUSINESS WIRE)-- OFS Credit Company, Inc. (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 February 1, 2024, its board of directors (the “Board”) declared monthly cash distributions for common stockholders for each of the three months in the quarter ending April 30, 2024. The Board has also declared monthly cash distributions for the Company’s 6.125% Series C Term Preferred Stock, 6.00% Series D Term Preferred Stock and 5.25% Series E Term Preferred Stock through July 31, 2024.

Common Stock Distributions

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

Month	Record Date	Payment Date	Cash Distribution Per Share
February 2024	February 19, 2024	February 29, 2024	$0.10
March 2024	March 19, 2024	March 29, 2024	$0.10
April 2024	April 19, 2024	April 30, 2024	$0.10

Dividend Reinvestment Plan (“DRIP”) – DRIP Shares Issued at 95% of Market Price

On June 1, 2023, our Board adopted a change to our DRIP so that common stockholders may receive their distribution in shares based on 95% of the market price per share of common stock at the close of regular trading on The Nasdaq Capital Market on the valuation date fixed by the Board for such distribution (i.e., the payment date), providing a 5% discount to the market price.

Common stockholders that are interested in participating in our DRIP should contact their broker or financial intermediary.

Additional information about our DRIP and how to participate can be found at https://ir.ofscreditcompany.com/shareholder-services/dividend-reinvestment-plan. We make our website content available for informational purposes only. It should not be relied upon for investment purposes, nor is it incorporated by reference into this press release.

Preferred Stock Distributions

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:

Month	Record Date	Payable Date	Cash Distribution Per Share
February 2024	February 19, 2024	February 29, 2024	$0.1276042
March 2024	March 19, 2024	March 29, 2024	$0.1276042
April 2024	April 19, 2024	April 30, 2024	$0.1276042
May 2024	May 21, 2024	May 31, 2024	$0.1276042
June 2024	June 18, 2024	June 28, 2024	$0.1276042
July 2024	July 19, 2024	July 31, 2024	$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:

Month	Record Date	Payable Date	Cash Distribution Per Share
February 2024	February 19, 2024	February 29, 2024	$0.125
March 2024	March 19, 2024	March 29, 2024	$0.125
April 2024	April 19, 2024	April 30, 2024	$0.125
May 2024	May 21, 2024	May 31, 2024	$0.125
June 2024	June 18, 2024	June 28, 2024	$0.125
July 2024	July 19, 2024	July 31, 2024	$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:

Month	Record Date	Payable Date	Cash Distribution Per Share
February 2024	February 19, 2024	February 29, 2024	$0.109375
March 2024	March 19, 2024	March 29, 2024	$0.109375
April 2024	April 19, 2024	April 30, 2024	$0.109375
May 2024	May 21, 2024	May 31, 2024	$0.109375
June 2024	June 18, 2024	June 28, 2024	$0.109375
July 2024	July 19, 2024	July 31, 2024	$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 may constitute “forward-looking statements” regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects. 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, elevated interest and inflation rates, the ongoing war between Russia and Ukraine, the current conflict in Israel, instability in the U.S. and international banking systems, the risk of recession or a shutdown of U.S. government services 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/20240202943593/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 ticker symbol for OFS Credit Company, Inc.?

The ticker symbol for OFS Credit Company, Inc. is OCCI.

What cash distributions were declared for common stockholders?

Monthly cash distributions of $0.10 per share were declared for common stockholders for each of the three months in the quarter ending April 30, 2024.

What change was made to the Dividend Reinvestment Plan (DRIP)?

The Board adopted a change to the DRIP so that common stockholders may receive their distribution in shares based on 95% of the market price per share of common stock at the close of regular trading on The Nasdaq Capital Market on the valuation date fixed by the Board for such distribution.

What should common stockholders do if they are interested in participating in the DRIP?

Common stockholders interested in participating in the DRIP should contact their broker or financial intermediary.