CHICAGO - OFS Credit Company (NASDAQ:OCCI), Inc. (NASDAQ: OCCI, OCCIN, OCCIO) has revealed plans for an underwritten public offering of its Series F Term Preferred Stock. The offering's terms, including the public offering price, are currently under negotiation with the underwriters. The company has initiated the process to list the Preferred Stock on the Nasdaq Capital Market under the symbol "OCCIM," anticipating trading to commence within 30 days from the issue date.
The Chicago-based investment firm also intends to provide the underwriters a 30-day option to purchase additional shares of Preferred Stock to cover any overallotments. The net proceeds from the sale are earmarked for acquiring investments that align with the company's investment objectives and strategies. Lucid (NASDAQ:LCID) Capital Markets, LLC, B. Riley Securities, Inc., Janney Montgomery Scott LLC, InspereX LLC, and Ladenburg Thalmann & Co. Inc. are managing the offering.
Investors are encouraged to review the preliminary prospectus supplement, dated September 24, 2024, and the accompanying prospectus, dated May 29, 2024, for a detailed understanding of the investment's objectives, risks, charges, and expenses. These documents have been filed with the Securities and Exchange Commission and are essential for informed investment decisions.
The announcement clarifies that this press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities. The offering of these securities will only be made through a prospectus and a related prospectus supplement. Interested parties can obtain these documents from the investment banks involved in the offering or by visiting the SEC's website at www.sec.gov.
OFS Credit Company is a non-diversified, externally managed closed-end management investment company, primarily focused on generating current income and, to a lesser extent, capital appreciation through investments in collateralized loan obligation equity and debt securities. OFS Capital (NASDAQ:OFS) Management, LLC, a registered investment adviser, manages the company's investment activities.
This press release contains forward-looking statements regarding the offering and the use of proceeds. These statements are subject to various risks and uncertainties, including but not limited to economic conditions, market volatility, and other factors detailed in the company's SEC filings. The information provided is as of the release date, and the company does not undertake any obligation to update the information.
The article is based on a press release statement and aims to present the facts of the offering without bias or promotional language.
In other recent news, OFS Credit Company, Inc. disclosed its estimated net asset value (NAV) per share for August 2024, projected to be in the range of $7.04 and $7.14. Please note that these are preliminary figures and may vary significantly from the actual NAV determined for the period ending October 31, 2024, which will be detailed in the company's forthcoming Annual Report on Form N-CSR. The company's management cautions that OFS Credit's financial condition could be influenced by several potential factors, including fluctuating interest and inflation rates, geopolitical tensions, and uncertainties surrounding the 2024 U.S. presidential election. It's important to note that this preliminary financial data has not been reviewed or audited by the company's auditor, KPMG LLP. These are among the recent developments concerning OFS Credit Company, Inc.
InvestingPro Insights
OFS Credit Company, Inc. (OCCI) has positioned itself as an attractive option for income-seeking investors, notably due to its significant dividend yield. According to InvestingPro data, OFS Credit Company's dividend yield stood at an impressive 18.96% as of the last recorded date, signaling a robust return on investment through dividend payouts. This aligns with the InvestingPro Tip that OCCI pays a substantial dividend to its shareholders, which could be a compelling reason for investors to consider as they evaluate the company's upcoming offering of Series F Term Preferred Stock.
InvestingPro data further reveals that the company has a market capitalization of $121.71 million and a price-to-earnings (P/E) ratio of 10.41, which could suggest a reasonable valuation relative to its earnings. Additionally, the company's revenue has experienced growth over the last twelve months as of Q3 2024, with a reported increase of 13.47%, affirming the company's profitable performance during this period. This profitability is further underscored by one of the InvestingPro Tips, which notes that OCCI has been profitable over the last twelve months.
For investors considering the potential risks and rewards of OCCI's preferred stock offering, these insights may prove valuable. It's worth noting that there are more InvestingPro Tips available, providing a deeper analysis of the company's financial health and market positioning. Interested readers can explore additional tips on the InvestingPro platform.
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