Business
OFS Capital Corporation Announces First Quarter 2020 Financial Results
Net Investment Income of $0.30 per common share Declares 30th Consecutive Quarterly Distribution on common shares CHICAGO--(BUSINESS WIRE)-- OFS Capital
About this update from Ofs Capital Corporation
[{"type":"text","content":"\nNet Investment Income of $0.30 per common share\n\n\nDeclares 30th Consecutive Quarterly Distribution on common shares\n\n CHICAGO--(BUSINESS WIRE)--\nOFS Capital Corporation (NASDAQ:OFS) (\"OFS Capital,\" the \"Company,\" \"we,\" \"us,\" or \"our\") today announced its financial results for the quarter ended March 31, 2020.\n\n\nFINANCIAL HIGHLIGHTS\n\n\n\nNet investment income of $3.97 million, or $0.30 per share.\n\n\nNet asset value (\"NAV\") per share decreased to $9.71 at March 31, 2020 from $12.46 at December 31, 2019. The fair value mark on our portfolio declined by approximately 7.2% and one loan was placed on non-accrual during the quarter.\n\n\nAt March 31, 2020, 91% and 79% of our loan portfolio and total portfolio, respectively, consisted of senior secured loans, based on fair value.\n\n\nAs of March 31, 2020, 93% of our debt matures in 2024 and beyond and 44% of our outstanding debt is unsecured.\n\n\nOn May 4, 2020, OFS Capital's Board of Directors declared a distribution of $0.17 per share for the second quarter of 2020, payable on June 30, 2020, to stockholders of record as of June 23, 2020. Given the unprecedented uncertainty related to the COVID-19 situation, we intend to take a cautious approach to our distributions. We believe that this rate will enhance our liquidity so that we can continue to support our borrowers, strengthen our balance sheet and put us in a position to capitalize on potential opportunities.\n\n\n\nWe are actively monitoring our portfolio companies throughout this period of economic uncertainty including assessing portfolio companies' operational and liquidity outlook. In March 2020, the Coronavirus Aid, Relief, and Economic Security Act (\"CARES Act\"), which, among other things, provides eligible companies with up to $10 million in 100% SBA-guaranteed forgivable Paycheck Protection Program (\"PPP\") loans, was signed into law. As of today, over 25 of our portfolio companies have secured approximately $78 million in PPP loans from the SBA.\n\n\nWith respect to our portfolio, at March 31, 2020 and May 8, 2020, we had unfunded commitments of $4.4 million and $-0-, respectively.\n\n\nAt March 31, 2020, our asset coverage ratio was 162% and we remained in compliance with all applicable financial covenant thresholds under our outstanding debt and our minimum asset coverage requirements unde...