OFS Capital Corporation reported its financial results for the second quarter of 2026, revealing a net asset value (NAV) per share of $8.41, an increase from $8.16 at the end of the previous quarter. The company experienced a net increase in net assets resulting from operations of $5.6 million, or $0.42 per share, compared to a net loss of $9.6 million, or $(0.72) per share, in the same quarter last year. Total investment income for the quarter was $6.8 million, down from $8.9 million in the prior quarter, primarily due to a decrease in interest and dividend income.

In terms of operational metrics, OFS Capital's total outstanding debt decreased from $202.5 million at the end of the first quarter to $185.8 million by June 30, 2026. The company reported a weighted-average interest cost of 7.41%, consistent with the previous quarter. The decrease in debt was attributed to net paydowns on revolving credit facilities. The company also recognized a net gain on investments of $4.6 million, driven by net unrealized appreciation of $10.6 million, which was partially offset by a net realized loss of $6.0 million.

OFS Capital's investment portfolio as of June 30, 2026, included $147.0 million in debt investments across 33 portfolio companies, with 97% classified as first lien debt. The company also held equity investments valued at approximately $116.7 million and structured finance securities worth about $34.1 million. The largest investment was in Pfanstiehl Holdings, Inc., which accounted for 31.8% of the total portfolio at fair value. The company had unfunded commitments of $6.0 million to fund outstanding commitments to 12 portfolio companies.

The company declared a distribution of $0.17 per share for the third quarter of 2026, payable on October 5, 2026, to stockholders of record as of September 18, 2026. OFS Capital continues to maintain compliance with all applicable covenants under its outstanding debt facilities, with an asset coverage ratio of 161%, exceeding the minimum requirement of 150% under the 1940 Act. The company has also extended its stock repurchase program, allowing for the repurchase of up to $10 million of its common stock through May 22, 2028.

About OFS Capital Corp

OFS Capital Corporation is a business development company that invests primarily in middle-market U.S. companies through debt and equity securities. Its portfolio includes senior secured loans, subordinated loans, preferred and common equity, and structured finance securities. Managed by OFS Advisor, it focuses on generating current income and capital appreciation via disciplined credit analysis, active portfolio monitoring, and strategic structuring within a competitive market.

This description was generated via AI from an annual report. Updated about 1 year ago.

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