OFS Credit Company Provides January 2024 Net Asset Value Update

Rhea-AI Summary

OFS Credit Company, Inc. (OCCI) announces an estimated NAV per share range of $7.63 to $7.73 as of January 31, 2024, subject to potential fluctuations due to various economic factors.

Insights

Financial Analyst

The preliminary net asset value (NAV) estimate provided by OFS Credit Company offers a snapshot of the company's financial position as of January 31, 2024. The NAV per share is a critical metric for investors, as it represents the value of their investment in the company. The provided range of $7.63 to $7.73 indicates a specific valuation band, which can be used to gauge the company's performance relative to the market and its peers. However, it is essential to note that this estimate is unaudited and may not reflect the company's quarter-end financial condition accurately.

Investors should be cautious about the potential volatility in the NAV, which could be affected by several external factors, such as changes in interest and inflation rates, geopolitical tensions and market instability. These factors could materially impact the fair value of OFS Credit's portfolio investments and, consequently, its financial results. The company's exposure to CLO securities suggests a sensitivity to credit market fluctuations, which could influence its investment income and asset valuations. It is also important to consider the absence of assurance from KPMG LLP regarding the preliminary financial data, which adds an additional layer of uncertainty for stakeholders.

Risk Management Expert

OFS Credit's disclosure highlights several risks that could materially impact its financial condition and results of operations. The mention of elevated interest and inflation rates suggests a potential for increased borrowing costs and lower investment yields, which could compress the company's margins. Moreover, geopolitical risks, such as the ongoing war and armed conflicts, pose a threat to global economic stability and can result in increased market volatility.

Investors should also be aware of the systemic risks associated with instability in the banking systems, which could lead to credit events adversely affecting CLO securities. The risk of recession or a government shutdown in the U.S. presents additional uncertainties that could affect investor sentiment and capital flows within the credit markets. A comprehensive risk management strategy would be necessary to mitigate these potential impacts on the company's portfolio and to safeguard investor interests in the face of such unpredictable events.

Market Research Analyst

The NAV estimate for OFS Credit Company, while preliminary, provides market participants with an indication of the company's valuation amidst a complex investment landscape. The CLO market is particularly sensitive to changes in credit conditions and economic indicators. Given the current macroeconomic uncertainties cited by the company, including interest rates, inflation and geopolitical conflicts, there is a heightened need for market research to understand the potential directional shifts in the CLO market.

Furthermore, the potential risks of recession or government shutdown could lead to a reevaluation of risk premiums and investor appetite for CLO securities. Market research can offer insights into sector-specific performance, investor sentiment and comparative analysis with similar investment companies. This information is vital for stakeholders to make informed decisions, especially in a market environment characterized by rapid changes and uncertainties.

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 the following net asset value (“NAV”) estimate as of January 31, 2024.

• Management’s unaudited estimate of the range of our NAV per share of our common stock as of January 31, 2024 is between $7.63 and $7.73. This estimate is not a comprehensive statement of our financial condition or results for the month ended January 31, 2024. This estimate did not undergo the Company’s typical quarter-end financial closing procedures. We advise you that the final determination of our NAV per share as of January 31, 2024, which will be reported in our monthly report on Form N-PORT, may differ from this estimate.

Our financial condition, including the fair value of our portfolio investments, and results of operations may be materially impacted after January 31, 2024 by circumstances and events that are not yet known. To the extent our portfolio investments are adversely impacted by elevated interest and inflation rates, the ongoing war between Russia and Ukraine, the escalated armed conflict in the Middle East, 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, or by other factors, we may experience a material adverse impact on our future net investment income, the underlying value of our investments, our financial condition and the financial condition of our portfolio investments.

The preliminary financial data included in this press release has been prepared by, and is the responsibility of, OFS Credit’s management. KPMG LLP has not audited, reviewed, compiled, or applied agreed-upon procedures with respect to the preliminary financial data. Accordingly, KPMG LLP does not express an opinion or any other form of assurance with respect thereto.

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 debt and subordinated 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 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 elevated interest and inflation rates, the ongoing war between Russia and Ukraine, the escalated armed conflict in the Middle East, 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20240215123914/en/

INVESTOR RELATIONS:

OFS Credit Company, Inc.

Steve Altebrando, 646-652-8473

investorrelations@ofscreditcompany.com

MEDIA RELATIONS:

Bill Mendel

212-397-1030

bill@mendelcommunications.com

Source: OFS Credit Company, Inc.

FAQ

What is the estimated NAV per share range of OFS Credit Company, Inc. (OCCI) as of January 31, 2024?

The estimated NAV per share range of OFS Credit Company, Inc. (OCCI) as of January 31, 2024, is between $7.63 and $7.73.

What factors could potentially impact OFS Credit Company, Inc.'s financial condition and results after January 31, 2024?

Factors such as elevated interest and inflation rates, the ongoing war between Russia and Ukraine, armed conflict in the Middle East, banking system instability, risk of recession, U.S. government shutdown, and market volatility could impact OFS Credit Company, Inc.'s financial condition and results after January 31, 2024.

Who prepared the preliminary financial data included in the press release?

The preliminary financial data included in the press release was prepared by OFS Credit Company, Inc.'s management.

Has the preliminary financial data been audited by KPMG LLP?

No, the preliminary financial data included in the press release has not been audited, reviewed, compiled, or applied agreed-upon procedures by KPMG LLP.