OFS Capital Corporation Announces Certain Preliminary Estimates of Its Fourth Quarter 2020 Financial Results
02 February 2021 - 2:10AM
Business Wire
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 $3 million to $20 million in companies with annual
EBITDA between $3 million and $50 million. OFS Capital offers
flexible solutions through a variety of asset classes including
senior secured loans, which includes first-lien, second-lien and
unitranche loans, as well as subordinated loans and, to a lesser
extent, warrants and other equity securities. OFS Capital'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
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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INVESTOR RELATIONS CONTACT: Steve Altebrando 646-652-8473
saltebrando@ofsmanagement.com
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