OFS Credit Company, Inc. Prices Preferred Stock Offering
OFS Credit Company (Nasdaq: OCCI) has priced an underwritten public offering of 1,040,000 shares of 7.875% Series F Term Preferred Stock due 2029 at $25.00 per share, raising $26.0 million in gross proceeds. The company granted underwriters a 30-day option to purchase up to 156,000 additional shares. Expected net proceeds are approximately $25.0 million, or $28.8 million if the overallotment option is fully exercised.
The Preferred Stock is expected to trade on Nasdaq Capital Market under the symbol 'OCCIM' within 30 days from the issue date. OFS Credit Company plans to use the net proceeds to acquire investments aligned with its objectives and strategies. The offering is expected to close on October 2, 2024, subject to customary conditions.
OFS Credit Company (Nasdaq: OCCI) ha prezzato un'offerta pubblica sottoscritta di 1.040.000 azioni di azioni privilegiate a termine di Serie F al 7,875% con scadenza nel 2029 a $25,00 per azione, raccogliendo $26,0 milioni di proventi lordi. L'azienda ha concesso agli sottoscrittori un'opzione di acquisto di 156.000 azioni aggiuntive per 30 giorni. Si prevede che i proventi netti siano di circa $25,0 milioni, oppure $28,8 milioni se l'opzione di over-allotment viene interamente esercitata.
Si prevede che le azioni privilegiate vengano scambiate sul Nasdaq Capital Market sotto il simbolo 'OCCIM' entro 30 giorni dalla data di emissione. OFS Credit Company prevede di utilizzare i proventi netti per acquisire investimenti allineati con i propri obiettivi e strategie. Si prevede che l'offerta si chiuda il 2 ottobre 2024, soggetta a condizioni consuete.
OFS Credit Company (Nasdaq: OCCI) ha fijado una oferta p煤blica garantizada de 1,040,000 acciones de acciones preferentes de la Serie F al 7.875% con vencimiento en 2029 a $25.00 por acci贸n, recaudando $26.0 millones en ingresos brutos. La compa帽铆a otorg贸 a los suscriptores una opci贸n de compra de hasta 156,000 acciones adicionales durante 30 d铆as. Se espera que los ingresos netos sean aproximadamente $25.0 millones, o $28.8 millones si se ejerce la opci贸n de sobreasignaci贸n en su totalidad.
Se espera que las acciones preferentes comiencen a cotizar en el Nasdaq Capital Market bajo el s铆mbolo 'OCCIM' dentro de los 30 d铆as posteriores a la fecha de emisi贸n. OFS Credit Company planea usar los ingresos netos para adquirir inversiones alineadas con sus objetivos y estrategias. Se espera que la oferta cierre el 2 de octubre de 2024, sujeta a condiciones comunes.
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鞖办劆欤茧姅 氚滍枆鞚茧攵�韯� 30鞚� 鞚措偞鞐� 'OCCIM' 鞁臣搿� Nasdaq Capital Market鞐愳劀 瓯半灅霅� 瓴冹溂搿� 鞓堨儊霅╇媹雼�. OFS Credit Company電� 靾滌垬鞚奠潉 靷毄頃橃棳 鞛愳嫚鞚� 氇╉憸鞕� 鞝勲灥鞐� 毵炿姅 韴瀽毳� 鞚胳垬頃� 瓿勴殟鞛呺媹雼�. 鞚� 瓿惦電� 2024雲� 10鞗� 2鞚检棎 毵堦皭霅� 鞓堨爼鞚措┌, 鞚茧皹鞝侅澑 臁瓣贝鞐� 霐半雼堧嫟.
OFS Credit Company (Nasdaq: OCCI) a fix茅 une offre publique souscrite de 1.040.000 actions de l'actions privil茅gi茅es de s茅rie F 脿 7,875 % devant arriver 脿 茅ch茅ance en 2029 au prix de 25,00 $ par action, levant ainsi 26,0 millions de dollars de produits bruts. La soci茅t茅 a accord茅 aux souscripteurs une option d'achat de 156 000 actions suppl茅mentaires pendant 30 jours. Les produits nets pr茅vus sont d'environ 25,0 millions de dollars, ou 28,8 millions de dollars si l'option de surallocation est enti猫rement exerc茅e.
Les actions privil茅gi茅es devraient commencer 脿 se n茅gocier sur le Nasdaq Capital Market sous le symbole 'OCCIM' dans les 30 jours suivant la date d'茅mission. OFS Credit Company pr茅voit d'utiliser les produits nets pour acqu茅rir des investissements conformes 脿 ses objectifs et strat茅gies. La cl么ture de l'offre est pr茅vue pour le 2 octobre 2024, sous r茅serve de conditions habituelles.
Die OFS Credit Company (Nasdaq: OCCI) hat ein unterzeichnetes 枚ffentliches Angebot von 1.040.000 Aktien der 7,875% Serie F Vorzugsaktien mit F盲lligkeit 2029 zu einem Preis von $25,00 pro Aktie festgelegt und damit 26,0 Millionen US-Dollar brutto eingenommen. Das Unternehmen hat den Underwritern eine 30-t盲gige Option gew盲hrt, bis zu 156.000 zus盲tzliche Aktien zu kaufen. Die erwarteten Nettomittel betragen ungef盲hr $25,0 Millionen, oder $28,8 Millionen, wenn die 脺berzuteilungsoption vollst盲ndig ausge眉bt wird.
Die Vorzugsaktien sollen voraussichtlich innerhalb von 30 Tagen nach dem Ausgabetag an der Nasdaq Capital Market unter dem Symbol 'OCCIM' gehandelt werden. Die OFS Credit Company plant, die Nettomittel zu verwenden, um Investitionen zu erwerben, die mit ihren Zielen und Strategien 眉bereinstimmen. Es wird erwartet, dass das Angebot am 2. Oktober 2024 abgeschlossen wird, vorbehaltlich der 眉blichen Bedingungen.
- Raised $26.0 million in gross proceeds from preferred stock offering
- Potential for additional $3.8 million if overallotment option is exercised
- New preferred stock to be listed on Nasdaq Capital Market
- Net proceeds to be used for acquiring new investments
- Potential dilution for existing shareholders
- Additional debt obligation with 7.875% interest rate
Insights
OFS Credit Company's pricing of
The overallotment option for an additional
Investors should note that while this offering provides growth capital, it also increases the company's leverage and preferred dividend obligations. The success of this strategy will depend on management's ability to deploy the capital effectively and generate returns exceeding the
The pricing of this preferred stock offering reveals several key market insights:
- Investor appetite for high-yield instruments remains strong, as evidenced by the successful pricing at a
7.875% yield. - The involvement of multiple underwriters (Lucid Capital Markets, B. Riley Securities, Janney Montgomery Scott, InspereX and Ladenburg Thalmann) suggests broad market interest and distribution capabilities.
- The expected listing on Nasdaq Capital Market within 30 days indicates confidence in meeting listing requirements and potential for increased liquidity for investors.
This offering could impact the broader business development company (BDC) sector, potentially setting a benchmark for similar capital raises. The success of this offering may encourage other small to mid-sized BDCs to consider similar preferred stock issuances to fund growth initiatives.
The Company has applied to list the Preferred Stock on the Nasdaq Capital Market under the trading symbol 鈥淥CCIM鈥�. The Company expects the Preferred Stock to begin trading within 30 days from the original issue date.
The Company expects to receive net proceeds from the offering, excluding the exercise of the underwriters鈥� option to purchase additional shares of Preferred Stock, of approximately
The Company intends to use the net proceeds of the offering to acquire investments in accordance with its investment objectives and strategies.
Lucid Capital Markets, LLC, B. Riley Securities, Inc., Janney Montgomery Scott LLC, InspereX LLC are acting as joint bookrunners and Ladenburg Thalmann & Co. Inc. is acting as a co-manager for the offering.
Investors are advised to carefully consider the investment objectives, risks and charges and expenses of the Company before investing. The preliminary prospectus supplement, dated September 24, 2024, and accompanying prospectus, dated May 29, 2024, each of which has been filed with the Securities and Exchange Commission, contain a description of these matters and other important information about the Company and should be read carefully before investing.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities in this offering or any other securities nor will there be any sale of these securities or any other securities referred to in this press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.
A shelf registration statement relating to these securities is on file with and has been declared effective by the Securities and Exchange Commission. The offering may be made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained, when available, from the following investment banks: Lucid Capital Markets, LLC, 570 Lexington Avenue, 40th Floor,
About OFS Credit Company, Inc.
The Company is a non-diversified, externally managed closed-end management investment company. The Company鈥檚 primary investment objective is to generate current income, with a secondary objective to generate capital appreciation, which it seeks to achieve primarily through investments in collateralized loan obligation equity and debt securities. The Company鈥檚 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
Forward-Looking Statements
Statements included herein may constitute 鈥渇orward-looking statements,鈥� which relate to future events or our future operations, performance or financial condition. Forward-looking statements include statements regarding our intentions related to the offering discussed in this press release, including the use of proceeds from the offering. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties, including elevated interest and inflation rates, the ongoing war between
1 Registration does not imply a certain level of skill or training
OFS庐 and OFS Credit庐 are registered trademarks of Orchard First Source Asset Management, LLC
OFS Capital Management鈩� is a trademark of Orchard First Source Asset Management, LLC.
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INVESTOR RELATIONS:
OFS Credit Company, Inc.
Steve Altebrando
847-734-2085
investorrelations@ofscreditcompany.com
Source: OFS Credit Company, Inc.
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