OFS Credit Company Provides November 2024 Net Asset Value Update

Rhea-AI Summary

OFS Credit Company (NASDAQ: OCCI) has released its estimated net asset value (NAV) per share for November 30, 2024. The company, which primarily invests in CLO equity and debt securities, estimates its NAV per share to be between $7.03 and $7.13.

The company notes that this estimate is preliminary and has not undergone typical quarter-end financial closing procedures. Management cautions that future NAV estimates may differ materially, particularly for the period ending January 31, 2025. The company acknowledges potential impacts from various factors including interest rates, inflation, geopolitical conflicts, banking system instability, and recession risks.

Positive

• None.

Negative

• NAV estimate did not undergo typical quarter-end financial closing procedures
• Company warns of potential material differences in future NAV estimates
• Portfolio faces multiple risk factors including interest rates, inflation, geopolitical conflicts, and recession risks

Insights

Financial Analyst

The estimated November 2024 NAV range of $7.03 to $7.13 per share provides insight without comparative historical data. The company's cautionary statements about potential impacts from macroeconomic factors, including interest rates, geopolitical tensions and banking system instability, suggest heightened risk awareness. The unaudited nature of these figures and absence of typical quarter-end closing procedures warrant conservative interpretation. For CLO investors, NAV stability is important as it reflects the underlying portfolio's health and potential distribution sustainability.

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 November 30, 2024.

• Management’s unaudited estimate of the range of our NAV per share of our common stock as of November 30, 2024 is between $7.03 and $7.13. This estimate is not a comprehensive statement of our financial condition or results for the month ended November 30, 2024. This estimate did not undergo the Company’s typical quarter-end financial closing procedures. We advise you that current estimates of our NAV per share may differ materially from future NAV estimates or determinations, including the determination for the period ending January 31, 2025, 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 November 30, 2024 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, 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 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, 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

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/20241213415600/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 OCCI's estimated NAV range as of November 30, 2024?

OFS Credit Company (OCCI) estimates its NAV per share to be between $7.03 and $7.13 as of November 30, 2024.

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

The main risk factors include interest rate and inflation changes, geopolitical conflicts (Russia-Ukraine and Middle East), banking system instability, recession risks, and potential U.S. government shutdown.

Has OCCI's November 2024 NAV estimate been audited?

No, the NAV estimate has not been audited, reviewed, compiled, or undergone agreed-upon procedures by KPMG LLP, and has not gone through typical quarter-end financial closing procedures.

When will OCCI report its next NAV determination?

OCCI's next NAV determination will be for the period ending January 31, 2025, which will be reported in their monthly report on Form N-PORT.