OFS Credit Company Declares Monthly Common Stock Cash Distributions

Rhea-AI Summary

OFS Credit Company (NASDAQ: OCCI) has announced monthly cash distributions for both common stock and Series G Preferred Stock through July 31, 2025. The company will distribute $0.115 per common share monthly for May, June, and July 2025.

The company recently issued 1,000,000 shares of Series G Term Preferred Stock through private placement at $24.25 per share, raising approximately $24.25 million. These preferred shares have a $25 liquidation preference and an 8.00% dividend rate, with mandatory redemption on April 1, 2030. Monthly distributions for the preferred stock are set at $0.16666667 per share.

Common stockholders participating in the Dividend Reinvestment Plan (DRIP) can receive shares at a 5% discount to market price on the distribution payment date.

Positive

• Secured $24.25 million in new capital through Series G Preferred Stock issuance
• Maintains consistent monthly dividend payments for common stockholders
• Offers 5% discount on DRIP participation, benefiting long-term shareholders

Negative

• Increased debt obligations through new preferred stock issuance
• Higher dividend payment obligations due to new preferred shares

Insights

Financial Analyst

OFS Credit Company's announcement reflects solid financial management with three key positive elements. First, the consistent $0.115 monthly dividend provides a predictable income stream that translates to an annualized yield of approximately 21.3% at current prices - significantly above market averages. This stable distribution signals management's confidence in near-term cash flow generation.

Second, the $24.25 million Series G Term Preferred Stock issuance significantly enhances the company's investment capacity. For a firm with a market cap of approximately $148 million, this capital raise represents a substantial 16.4% expansion of its potential investment base. The 8% preferred yield is competitive in current market conditions and establishes a manageable cost of capital.

Third, the DRIP program offering a 5% discount to market price represents an attractive value proposition for income-focused investors. This structure potentially minimizes share dilution while encouraging long-term ownership.

The 5-year term structure of the preferred shares (maturing April 2030) with call options beginning April 2027 provides the company with financial flexibility while giving investors medium-term income visibility. For a CLO-focused investment company, this capital structure aligns appropriately with the underlying asset class characteristics and investment cycle.

Series G Preferred Stock Distributions Declared Through July 31, 2025

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 its board of directors (the “Board”) declared monthly cash distributions of $0.115 per share of common stock for each of the three months in the quarter ending July 31, 2025. The Board has also declared monthly cash distributions for the Company’s 8.00% Series G Term Preferred Stock due 2030 (the “Series G Term Preferred Stock”) through July 31, 2025.

Common Stock Distributions

The following schedule applies to the common stock (Nasdaq: OCCI) 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
May 2025	May 20, 2025	May 30, 2025	$0.115
June 2025	June 20, 2025	June 30, 2025	$0.115
July 2025	July 21, 2025	July 31, 2025	$0.115

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

Common stockholders who participate in our DRIP have the opportunity to receive a 5% discount to 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 each distribution (i.e., the payment date).

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 Issuance and Distributions

On April 1, 2025, we issued through a private placement 1,000,000 shares of our Series G Term Preferred Stock at a price of $24.25 per share, raising approximately $24,250,000 in net proceeds. The shares of Series G Term Preferred Stock have a liquidation preference of $25 per share and are subject to mandatory redemption on April 1, 2030. At any time on or after April 1, 2027, we may, at our sole option, redeem the outstanding shares of Series G Term Preferred Stock in whole or, from time to time, in part, out of funds legally available for such redemption, at the liquidation preference plus an amount equal to accumulated but unpaid dividends, if any, on such shares (whether or not earned or declared, but excluding interest on such dividends) to, but excluding, the date fixed for such redemption.

The offering was consummated pursuant to the terms of a purchase agreement (the “Purchase Agreement”) dated April 1, 2025 by and between us and the purchaser named therein (the “Purchaser”). The Purchase Agreement provided for the Series G Term Preferred Stock to be issued to the Purchaser in a private placement in reliance on an exemption from registration under the Securities Act of 1933, as amended (the “Securities Act”), provided by Section 4(a)(2) thereof and Regulation D thereunder. We relied upon this exemption from registration based in part on representations made by the Purchaser. The Series G Term Preferred Stock has not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

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

Month	Record Date	Payment Date	Cash Distribution Per Share
April 2025	April 18, 2025	April 30, 2025	$0.16666667
May 2025	May 20, 2025	May 30, 2025	$0.16666667
June 2025	June 20, 2025	June 30, 2025	$0.16666667
July 2025	July 21, 2025	July 31, 2025	$0.16666667

About OFS Credit Company, Inc.

OFS Credit is a non-diversified, externally managed closed-end management investment company. The Company’s primary investment objective is to generate current income, with a secondary objective to generate capital appreciation, which we seek to achieve primarily through investments 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, as well as interest rate and inflation rate changes, the ongoing war between Russia and Ukraine, the agenda of the new U.S. Presidential administration, including the potential impact of tariff enactment and tax reductions, instability in the U.S. and international banking systems, the risk of recession or a shutdown of U.S. government services and related 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.

OFS® and OFS Credit® are registered trademarks of Orchard First Source Asset Management, LLC.

OFS Capital Management™ is a trademark of Orchard First Source Asset Management, LLC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250403835682/en/

INVESTOR RELATIONS:

Steve Altebrando

847-734-2085

investorrelations@ofscreditcompany.com

MEDIA RELATIONS:

Bill Mendel

212-397-1030

bill@mendelcommunications.com

Source: OFS Credit Company, Inc.

FAQ

What are the monthly distribution amounts for OCCI common stock through July 2025?

OCCI will distribute $0.115 per common share monthly for May, June, and July 2025.

How much did OCCI raise from the Series G Preferred Stock private placement?

OCCI raised approximately $24.25 million by issuing 1,000,000 shares at $24.25 per share.

What is the dividend rate and redemption date for OCCI's Series G Preferred Stock?

The Series G Preferred Stock pays 8.00% annually and has a mandatory redemption date of April 1, 2030.

What discount do OCCI shareholders receive through the DRIP program?

Shareholders participating in the DRIP receive a 5% discount to the market price on distribution payment dates.

When can OCCI optionally redeem the Series G Preferred Stock?

OCCI can optionally redeem the Series G Preferred Stock at any time on or after April 1, 2027.