Business
OFS Capital Corporation Announces First Quarter 2021 Financial Results & Increases Quarterly Cash Distribution
Quarterly Distribution Increased by 10% Compared to Prior Quarter CHICAGO--(BUSINESS WIRE)-- OFS Capital Corporation (NASDAQ: OFS) ("OFS Capital," the
About this update from Ofs Capital Corporation
[{"type":"text","content":"\nQuarterly Distribution Increased by 10% Compared to Prior Quarter\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, 2021.\n\nFINANCIAL HIGHLIGHTS\n\n\nNet investment income of $2.6 million, or $0.19 per share.\n\n\nAdjusted net investment income(1) of $3.1 million, or $0.23 per share.\n\n\nNet asset value (\"NAV\") per share increased to $11.96 at March 31, 2021 from $11.85 at December 31, 2020. During the three months ended March 31, 2021, our portfolio recognized net gains of $3.9 million.\n\n\nNo new loans placed on non-accrual status in the quarter.\n\n\nAt March 31, 2021, 96% and 70% of our loan portfolio and total portfolio, respectively, consisted of senior secured loans, based on fair value.\n\n\nAs of March 31, 2021, 90% of our debt matures in 2024 and beyond and 64% of our outstanding debt is unsecured.\n\n\nOn May 7, 2021, OFS Capital's Board of Directors declared a distribution of $0.22 per share for the second quarter of 2021, payable on June 30, 2021, to stockholders of record as of June 23, 2021.\n\n\n\"We are pleased to announce our third consecutive increase in our quarterly distribution,\" said Bilal Rashid, OFS Capital's Chairman and Chief Executive Officer. \"We had a strong quarter that resulted in another increase in our net asset value per share. We refinanced $125 million of our long term debt during the quarter, which we believe will result in lower interest expense going forward. We believe there is an opportunity for us to continue to increase net investment income over time as we increase the pace of our originations and benefit from lower borrowing costs.”\n\n(1) Supplemental information regarding adjusted net investment income:\n\nOn a supplemental basis, we disclose adjusted net investment income (\"Adjusted Net Investment Income\") (including on a per share basis), which is a financial measure calculated and presented on a basis of accounting other than in accordance with generally accepted accounting principles of the United States of America (“GAAP”). GAAP states losses on debt extinguishment are measured as the “difference between the reacquisition price of debt and the net carrying amount of the extinguished debt,” which for our Unsecured No...