OFS Credit Company Provides June 2024 Net Asset Value Update
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.
- Provided timely NAV estimate update for investors
- NAV per share estimated between $7.15 and $7.25
- NAV estimate not based on comprehensive financial closing procedures
- Potential material differences in future NAV determinations
- Possible adverse impacts from economic and geopolitical factors
OFS Credit Company provides an unaudited estimate of its Net Asset Value (NAV) per share, ranging between
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.
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.
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Management’s unaudited estimate of the range of our NAV per share of our common stock as of June 30, 2024 is between
and$7.15 . 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.$7.25
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
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
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
1 Registration does not imply a certain level of skill or training
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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.
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