OFS Capital Corporation reported a decrease in net asset value (NAV) per share to $11.97 as of March 31, 2025, down from $12.85 at the end of the previous fiscal period. The company experienced a net loss on investments of $10.8 million during the quarter, primarily due to unrealized depreciation of $8.2 million and realized losses of $2.6 million. Total investment income for the quarter was $10.3 million, a decline from $11.6 million in the prior quarter, attributed to decreases in interest, dividend, and fee income.
In terms of operational metrics, OFS Capital's total outstanding debt slightly decreased from $248.4 million at December 31, 2024, to $248.1 million at March 31, 2025. The weighted average interest cost on this debt remained stable at 6.29%. The company reported that 90% of its loan portfolio consisted of variable-rate investments, which are sensitive to changes in interest rates. As of the end of the quarter, the company had non-accrual loans with a fair value of $16.9 million, representing 4.2% of total investments.
Strategically, OFS Capital continues to focus on its investment strategy, which includes debt investments in middle-market companies and structured finance securities. The company had unfunded commitments of $13.8 million to nine portfolio companies as of March 31, 2025. Additionally, the company declared a distribution of $0.34 per share for the second quarter of 2025, payable on June 30, 2025, to stockholders of record as of June 20, 2025.
The filing also highlighted the company's liquidity position, with cash and cash equivalents totaling $4.1 million and unused commitments of $21.5 million under its Banc of California Credit Facility and $85.5 million under its BNP Facility. The company remains in compliance with all applicable covenants under its debt facilities. Looking ahead, OFS Capital's management expressed confidence in its ability to navigate market conditions and maintain its investment strategy, although it acknowledged potential risks related to interest rate fluctuations and market volatility.
About OFS Capital Corp
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