CHICAGO--(BUSINESS WIRE)--OFS Credit Company (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 that on December 1, 2022 its Board of Directors declared a $0.55 per share quarterly distribution for common stockholders for the quarter ending January 31, 2023. The Board of Directors has also declared monthly cash distributions through July 31, 2023 for the Company's 6.60% Series B Term Preferred Stock, 6.125% Series C Term Preferred Stock, 6.00% Series D Term Preferred Stock and 5.25% Series E Term Preferred Stock.
Common Stock Distribution
The distribution for common stockholders will be paid in cash or shares of our common stock at the election of stockholders. The total amount of cash distributed to all stockholders will be limited to 20% of the total distribution to be paid, excluding any cash paid for fractional shares. The remainder of the distribution (approximately 80%) will be paid in the form of shares of our common stock. The number of shares of common stock comprising the stock portion will be determined by using the volume weighted average price per share on the Nasdaq Capital Market on the three business-day period of January 17, 18 and 19, 2023. The exact distribution of cash and stock to any given stockholder will be dependent upon each stockholder's election as well as elections of other stockholders, subject to the pro-rata limitation.
Management believes that the cash and stock distribution will allow the Company to strengthen its balance sheet and be in position to capitalize on potential future investment opportunities.
The following schedule applies to the distribution for common stockholders of record on the close of business of the record date:
Declaration Date | Record Date | Payment Date | Distribution Per Share |
December 1, 2022 | December 13, 2022 | January 31, 2023 | $0.55 |
The amount, details and U.S. federal income tax consequences of the distribution will be described in the election form and accompanying materials that will be mailed to stockholders in connection with the distribution promptly following the record date. Election forms must be returned on or before 5:00 p.m. Eastern Time on January 18, 2023 to be effective. Stockholders who do not return a timely and properly completed election form before the election deadline will be deemed to have made an election to receive 100% of their distribution in stock.
Participants in the Company's dividend reinvestment plan will also receive an election form. The investment feature of the dividend reinvestment plan will be suspended for the common stock distribution and will be reinstated after the distribution has been completed.
Stockholders who hold their shares through a bank, broker or nominee, or in "street name" will not receive an election form directly from the Company and should receive information regarding the election process from their bank, broker or nominee. Street name holders should contact their bank, broker or nominee for additional information.
Preferred Stock Distributions
The following schedule applies to the 6.60% Series B Term Preferred Stock distributions for preferred stockholders of record on the close of business of each specific record date:
Record Date | Payable Date | Distribution Per Share |
February 21, 2023 | February 28, 2023 | $0.1375 |
March 24, 2023 | March 31, 2023 | $0.1375 |
April 21, 2023 | April 28, 2023 | $0.1375 |
May 24, 2023 | May 31, 2023 | $0.1375 |
June 23, 2023 | June 30, 2023 | $0.1375 |
July 24, 2023 | July 31, 2023 | $0.1375 |
The following schedule applies to the 6.125% Series C Term Preferred Stock distributions for preferred stockholders of record on the close of business of each specific record date:
Record Date | Payable Date | Distribution Per Share |
February 21, 2023 | February 28, 2023 | $0.1276042 |
March 24, 2023 | March 31, 2023 | $0.1276042 |
April 21, 2023 | April 28, 2023 | $0.1276042 |
May 24, 2023 | May 31, 2023 | $0.1276042 |
June 23, 2023 | June 30, 2023 | $0.1276042 |
July 24, 2023 | July 31, 2023 | $0.1276042 |
The following schedule applies to the 6.00% Series D Term Preferred Stock distributions for preferred stockholders of record on the close of business of each specific record date:
Record Date | Payable Date | Distribution Per Share |
February 21, 2023 | February 28, 2023 | $0.125 |
March 24, 2023 | March 31, 2023 | $0.125 |
April 21, 2023 | April 28, 2023 | $0.125 |
May 24, 2023 | May 31, 2023 | $0.125 |
June 23, 2023 | June 30, 2023 | $0.125 |
July 24, 2023 | July 31, 2023 | $0.125 |
The following schedule applies to the 5.25% Series E Term Preferred Stock distributions for preferred stockholders of record on the close of business of each specific record date:
Record Date | Payable Date | Distribution Per Share |
February 21, 2023 | February 28, 2023 | $0.109375 |
March 24, 2023 | March 31, 2023 | $0.109375 |
April 21, 2023 | April 28, 2023 | $0.109375 |
May 24, 2023 | May 31, 2023 | $0.109375 |
June 23, 2023 | June 30, 2023 | $0.109375 |
July 24, 2023 | July 31, 2023 | $0.109375 |
About OFS Credit Company, Inc.
OFS Credit is a non-diversified, externally managed closed-end management investment company. The Company's investment objective is to generate current income, with a secondary objective to generate capital appreciation 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 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, including statements relating to: management's beliefs that the cash and stock distribution will allow the Company to strengthen its balance sheet and be in position to capitalize on potential future investment opportunities, when there can be no assurance either will occur; the tax consequences of the distributions to stockholders; and other factors 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 the impact of the continuing COVID-19 pandemic, rising interest rates and the risk of recession, the ongoing war between Russia and the Ukraine and significant 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.
Contacts
INVESTOR RELATIONS:
Steve Altebrando
646-652-8473
saltebrando@ofsmanagement.com
MEDIA RELATIONS:
Bill Mendel
212-397-1030
bill@mendelcommunications.com
