OFS Credit Company Provides June 2024 Net Asset Value Update

Rhea-AI Summary

OFS Credit Company (NASDAQ: OCCI) has released an update on its estimated net asset value (NAV) per share as of June 30, 2024. The company, which primarily invests in collateralized loan obligation (CLO) equity and debt securities, estimates its NAV per share to be between $7.15 and $7.25. This estimate is unaudited and did not undergo the typical quarter-end financial closing procedures.

The company cautions that this estimate may differ materially from future NAV determinations, including the one for July 31, 2024. OFS Credit acknowledges potential impacts on its financial condition and portfolio investments from factors such as elevated interest rates, inflation, geopolitical conflicts, and economic uncertainties. The company emphasizes that this preliminary financial data has not been audited or reviewed by KPMG LLP.

Positive

• Provided timely NAV estimate update for investors
• NAV per share estimated between $7.15 and $7.25

Negative

• NAV estimate not based on comprehensive financial closing procedures
• Potential material differences in future NAV determinations
• Possible adverse impacts from economic and geopolitical factors

Financial Analyst

OFS Credit Company provides an unaudited estimate of its Net Asset Value (NAV) per share, ranging between $7.15 and $7.25 as of June 30, 2024. This range signifies a very narrow window, which suggests a degree of stability in the company's asset valuation. An important point for investors to note is that this is an unaudited figure and did not undergo the usual quarterly financial closing procedures.

For retail investors, this NAV estimate provides a snapshot into the company's performance, though with limited assurance. The implications of this figure depend on a few factors:

• Comparative Analysis: Comparing this NAV to previous periods is crucial. If it shows an increase, it might indicate growth or improved asset quality. Conversely, a decline could signal potential issues in their portfolio or broader market conditions impacting their investments.
• Market Conditions: OFS Credit acknowledges several macroeconomic risks such as elevated interest rates, geopolitical tensions and financial system instability. These factors could heavily influence the NAV in subsequent periods.
• Future Projections: Analyzing how OFS Credit plans to navigate these uncertainties is vital. Are they reshuffling their portfolio to mitigate risks? Any proactive measures could stabilize or enhance future NAV estimates.

Investors should consider these aspects while also looking at the broader market sentiment and other investment opportunities in the same sector for a balanced perspective.

Market Research Analyst

Given the current market volatility, the NAV estimate for OFS Credit Company is a noteworthy data point. CLO equity and debt securities are sensitive to economic changes and the factors mentioned, such as interest rate fluctuations and geopolitical tensions, can have substantial impacts on these assets. It is important for investors to understand how such external events influence the company’s portfolio value and the corresponding NAV.

From a market research perspective, it is also beneficial to keep an eye on the company's strategy in the face of these challenges. Are they diversifying their portfolio? Are they increasing their cash reserves to handle potential liquidity issues? Such strategic moves could provide a buffer against adverse market conditions, potentially making the company's stock a more stable investment in turbulent times.

Moreover, comparing OFS Credit's NAV trends with industry benchmarks can offer a clearer picture of their relative performance. If OFS Credit consistently aligns or outperforms the benchmarks, it may suggest robust portfolio management and resilience.

Ultimately, while the current NAV estimate provides a snapshot, continuous monitoring and understanding the broader implications will enable investors to make more informed decisions.

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 June 30, 2024.

• Management’s unaudited estimate of the range of our NAV per share of our common stock as of June 30, 2024 is between $7.15 and $7.25. This estimate is not a comprehensive statement of our financial condition or results for the month ended June 30, 2024. This estimate did not undergo the Company’s typical quarter-end financial closing procedures. We advise you that the current estimates of our NAV per share may differ materially from future NAV estimates or determinations, including the determination for the period ending July 31, 2024, which will be reported in our monthly report on Form N-PORT.

Our financial condition, including the fair value of our portfolio investments, and results of operations may be materially impacted after June 30, 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 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, 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/20240715912935/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 (OCCI) estimated NAV range as of June 30, 2024?

OFS Credit Company (OCCI) estimates its net asset value (NAV) per share to be between $7.15 and $7.25 as of June 30, 2024.

What are the main investment focuses of OFS Credit Company (OCCI)?

OFS Credit Company (OCCI) primarily invests in collateralized loan obligation (CLO) equity and debt securities.

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

Factors that could impact OCCI's future financial condition include elevated interest rates, inflation, geopolitical conflicts (such as the Russia-Ukraine war and Middle East conflicts), economic uncertainties, and potential U.S. government shutdowns.

Has KPMG LLP audited OFS Credit Company's (OCCI) June 2024 NAV estimate?

No, KPMG LLP has not audited, reviewed, compiled, or applied agreed-upon procedures with respect to OCCI's June 2024 NAV estimate.