OFS Credit Company Provides March 2025 Net Asset Value Update

Rhea-AI Summary

OFS Credit Company (NASDAQ: OCCI), an investment firm focused on CLO equity and debt securities, has released its estimated Net Asset Value (NAV) per share for March 31, 2025. The company projects a NAV range between $6.57 and $6.67 per share.

Management emphasizes that these figures are preliminary estimates that haven't undergone typical quarter-end financial closing procedures. The company cautions that future NAV determinations, including for April 30, 2025, may differ materially from current estimates.

The company acknowledges potential risks that could materially impact their portfolio investments and financial condition, including:

• Interest rate and inflation rate changes
• The ongoing Russia-Ukraine conflict
• U.S. Presidential administration policies
• Banking system instability
• Recession risks
• Potential U.S. government shutdown

Positive

• None.

Negative

• NAV estimates not finalized and subject to material changes
• Multiple significant risk factors threatening portfolio value
• Lack of comprehensive financial closing procedures for current estimates

Insights

Financial Analyst specialized in Closed-End Funds

OFS Credit Company has released its estimated NAV range of $6.57 to $6.67 per share as of March 31, 2025. With the current share price at $6.55, OCCI is trading at a minimal discount to NAV between 0.3% and 1.8%, suggesting the market is valuing shares close to their underlying asset value.

This NAV update provides new information for investors. The narrow range indicates relative stability in the company's CLO portfolio valuation this month. For a CLO-focused investment company, these monthly NAV estimates help investors track portfolio performance between quarterly reports, though they lack the detail of full financial statements.

The company's extensive disclaimers about macroeconomic risks - including interest rate changes, geopolitical tensions, banking system instability, and recession risks - are standard cautionary language but serve as a reminder of CLO equity's vulnerability to broader credit market conditions.

The consistency between market price and NAV suggests efficient market pricing for OCCI shares. However, investors should note these are unaudited estimates that haven't undergone typical quarter-end procedures, so the final NAV determination could differ when reported in the upcoming Semi-Annual Report.

This routine update presents no material change or clear directional signals about OCCI's portfolio performance that would significantly alter the investment thesis for the company's shares.

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 March 31, 2025.

• Management’s unaudited estimate of the range of our NAV per share of our common stock as of March 31, 2025 is between $6.57 and $6.67. This estimate is not a comprehensive statement of our financial condition or results for the month ended March 31, 2025. 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 April 30, 2025, which will be reported in our Semi-Annual Report on Form N-CSRS.

Our financial condition, including the fair value of our portfolio investments, and results of operations may be materially impacted after March 31, 2025 by circumstances and events that are not yet known. To the extent our portfolio investments are adversely impacted by 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, 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 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, 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 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/20250415734545/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 for March 2025?

OFS Credit Company's estimated NAV per share range is between $6.57 and $6.67 as of March 31, 2025.

What are the main risk factors affecting OCCI's portfolio value in 2025?

Key risks include interest rate changes, inflation, Russia-Ukraine war, U.S. banking system instability, recession risks, and potential government shutdown impacts.

Has OCCI's March 2025 NAV estimate undergone final financial closing procedures?

No, the NAV estimate has not undergone the company's typical quarter-end financial closing procedures.

When will OCCI report its next official NAV determination?

The next NAV determination will be reported for the period ending April 30, 2025, in the company's Semi-Annual Report on Form N-CSRS.