OFS Capital Corporation Announces Certain Preliminary Estimates of Its Fourth Quarter 2020 Financial Results
OFS Capital Corporation (Nasdaq: OFS) reported preliminary estimates for the quarter ended December 31, 2020. The estimated net asset value per share increased to between $11.75 and $11.85, up from $11.18 in Q3 2020. The estimated net investment income rose to between $0.21 and $0.23 per share, compared to $0.20 in the previous quarter. Additionally, there were $37.7 million in cash and unused credit capacity. Notably, no new loans were placed on non-accrual status, and $23.5 million in SBA debentures were permanently reduced during the quarter.
- Net asset value per share increased to between $11.75 and $11.85.
- Estimated net investment income rose to between $0.21 and $0.23 per share.
- No additional loans were placed on non-accrual status.
- SBA debentures permanently reduced by $23.5 million.
- Preliminary estimates are subject to change and may differ materially from final results.
OFS Capital Corporation (Nasdaq: OFS) (“OFS Capital,”, “we,” “us,” or “our”) today announced certain preliminary estimates of its financial results for the quarter ended December 31, 2020.
PRELIMINARY ESTIMATES OF CERTAIN FINANCIAL HIGHLIGHTS
-
Net asset value per share was estimated to be between
$11.75 and$11.85 per common share at December 31, 2020. This compares to a net asset value per common share of$11.18 at September 30, 2020. -
Net investment income was estimated to be between
$0.21 and$0.23 per common share for the quarter ended December 31, 2020. This compares to net investment income of$0.20 per common share for the quarter ended September 30, 2020. - No additional loans were placed on non-accrual status in the quarter.
-
SBA debentures were permanently reduced by
$23.5 million during the quarter. They were additionally reduced by$9.8 million on January 5, 2021. Principal amounts of our outstanding borrowings were as follows (in millions):
|
As of December 31, 2020 |
|
As of September 30, 2020 |
||||
Secured lines of credit |
$ |
32.1 |
|
|
$ |
24.7 |
|
SBA debentures |
105.3 |
|
|
128.8 |
|
||
Unsecured debt |
177.8 |
|
|
177.8 |
|
||
Total debt |
$ |
315.2 |
|
|
$ |
331.3 |
|
-
At December 31, 2020, we had
$37.7 million in cash and unused capacity under our credit facilities.
These estimates are subject to the completion of our financial closing procedures and are not a comprehensive statement of our financial position, results of operations, or cash flows for the quarter ended December 31, 2020. Final results may differ materially from these estimates as a result of the completion of our financial closing procedures, as well as subsequent events, including the discovery of information affecting fair values of our portfolio investments as of December 31, 2020, arising between now and the completion of our financial statements and the filing of our Annual Report on Form 10-K for the year then ended.
The preliminary financial estimates provided herein have been prepared by, and are the responsibility of OFS Capital's management. KPMG LLP has not audited, reviewed, compiled, or performed any procedures with respect to the accompanying preliminary financial data. Accordingly, KPMG LLP does not express an opinion or any other form of assurance with respect thereto.
ABOUT OFS CAPITAL
OFS Capital Corporation is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company. OFS Capital's investment objective is to provide stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments. OFS Capital invests primarily in privately held middle-market companies in the United States, including lower-middle-market companies, targeting investments of
FORWARD-LOOKING STATEMENTS
This report may contain forward-looking statements that involve substantial risks and uncertainties, including the future operating results of OFS Capital. 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 OFS Capital’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission under the section “Risk Factors,” and in "Part II, Item 1A. Risk Factors" in our Quarterly Report in Form 10-Q for the quarter ended September 30, 2020, as well as other documents that may be filed by OFS Capital from time to time with the Securities and Exchange Commission. 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 Capital 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
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FAQ
What are the preliminary financial estimates for OFS Capital for Q4 2020?
How much was reduced in SBA debentures for OFS Capital in Q4 2020?
What was the cash position of OFS Capital at the end of December 2020?
How does the net asset value per share compare from Q3 2020 to Q4 2020 for OFS Capital?
