OFS Credit Company Provides July 2024 Net Asset Value Update

Rhea-AI Summary

OFS Credit Company (NASDAQ: OCCI), an investment firm focusing on CLO equity and debt securities, has released an unaudited net asset value (NAV) estimate for July 31, 2024. The estimated NAV per share of common stock ranges between $7.19 and $7.29. This estimate is preliminary and subject to change, as it hasn't undergone typical quarter-end financial closing procedures.

The company cautions that its final NAV, to be reported in the monthly Form N-PORT, may differ from this estimate. OFS Credit also acknowledges potential impacts on its financial condition and portfolio investments from factors such as elevated interest rates, inflation, geopolitical conflicts, banking system instability, and the upcoming U.S. presidential election. The management-prepared financial data has not been audited or reviewed by KPMG LLP.

Positive

• Provided timely NAV estimate update for shareholders
• NAV per share estimate between $7.19 and $7.29 as of July 31, 2024

Negative

• NAV estimate not comprehensive and subject to change
• Potential material impacts from various economic and geopolitical factors
• Estimate did not undergo typical quarter-end financial closing procedures

Financial Analyst

OFS Credit's latest NAV update reveals a slight increase from the previous month, with the estimated range of $7.19 to $7.29 per share. This marginal improvement suggests relative stability in the company's portfolio, despite ongoing market challenges. However, it's important to note that this estimate is preliminary and subject to change.

The company's focus on CLO equity and debt securities exposes it to interest rate sensitivity. With the current high-interest rate environment, this could potentially impact OFS Credit's future performance. Investors should closely monitor how the company navigates these market conditions in the coming months.

The lack of comprehensive financial closing procedures for this update means investors should exercise caution when interpreting these figures. The final NAV, to be reported in the Form N-PORT, may differ significantly. This uncertainty, combined with the various macroeconomic risks mentioned, underscores the need for vigilant portfolio management and transparent communication from OFS Credit moving forward.

Market Research Analyst

The modest NAV range provided by OFS Credit reflects the challenging landscape for CLO investments. While the slight uptick is encouraging, it's essential to contextualize this within broader market trends. The CLO market has been grappling with increased volatility due to interest rate fluctuations and economic uncertainties.

Investors should pay attention to how OFS Credit's NAV compares to its peers in the CLO space. This relative performance can offer insights into the company's investment strategy effectiveness. Additionally, the mention of potential impacts from geopolitical events and domestic political uncertainties highlights the interconnected nature of CLO investments with global economic conditions.

The company's acknowledgment of various risk factors, including the possibility of a recession, suggests a cautious outlook. This transparency is commendable, but it also underscores the potential for significant NAV fluctuations in the near term. Investors should closely monitor upcoming economic indicators and policy decisions that could influence the CLO market and, by extension, OFS Credit's performance.

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 July 31, 2024.

• Management’s unaudited estimate of the range of our NAV per share of our common stock as of July 31, 2024 is between $7.19 and $7.29. This estimate is not a comprehensive statement of our financial condition or results for the month ended July 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 July 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 July 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, uncertainties related to the 2024 U.S. presidential election, 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 primary investment objective is to generate current income, with a secondary objective to generate capital appreciation, which we seek to achieve 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 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, uncertainties related to the 2024 U.S. presidential election, 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/20240815144474/en/

INVESTOR RELATIONS:

OFS Credit Company, Inc.

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 is OFS Credit Company's estimated NAV range as of July 31, 2024?

OFS Credit Company's estimated NAV range per share of common stock as of July 31, 2024, is between $7.19 and $7.29.

Is the July 31, 2024 NAV estimate for OCCI final?

No, the NAV estimate is not final. It's an unaudited estimate that hasn't undergone typical quarter-end financial closing procedures and may differ from the final NAV to be reported in the monthly Form N-PORT.

What factors could impact OFS Credit Company's (OCCI) financial condition?

Factors that could impact OCCI's financial condition include elevated interest rates, inflation, geopolitical conflicts (Russia-Ukraine war, Middle East conflict), banking system instability, the 2024 U.S. presidential election, and potential recession or U.S. government shutdown.

Has KPMG LLP audited OFS Credit Company's July 2024 NAV estimate?

No, KPMG LLP has not audited, reviewed, compiled, or applied agreed-upon procedures to the preliminary financial data in the July 2024 NAV estimate.