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Sep 30, 2021
OFS Capital Q3 2021 Earnings Report
OFS Capital's financial performance was announced for the quarter ended September 30, 2021, revealing an increase in net asset value and a rise in the quarterly cash distribution.
Key Takeaways
OFS Capital Corporation reported a net investment income of $3.2 million, or $0.24 per common share, for the quarter ended September 30, 2021. The net asset value per common share increased by 5.5% to $14.16. The company's board of directors declared a distribution of $0.25 per share for the fourth quarter of 2021.
Net investment income was $3.2 million, or $0.24 per common share.
Adjusted net investment income was $3.3 million, or $0.25 per common share.
Net asset value per common share increased 5.5% to $14.16.
A distribution of $0.25 per share was declared for the fourth quarter of 2021.
OFS Capital
OFS Capital
Forward Guidance
Management expressed optimism about the company's positioning and the anticipated benefits of recent financial maneuvers. However, they also acknowledged the potential risks associated with the ongoing COVID-19 pandemic and its possible effects on their portfolio companies and the broader economy.
Positive Outlook
- Management believes the company's portfolio is well positioned for the future.
- The company increased its quarterly distribution for the fifth consecutive quarter.
- A seven-year unsecured bond was closed in late October.
- The company expects to redeem outstanding debt with a higher cost.
- The October offering extended debt maturities and will help reduce borrowing costs.
Challenges Ahead
- The COVID-19 pandemic could lead to a prolonged period of world-wide economic downturn.
- Certain portfolio companies have been, or may continue to be, incentivized to draw on most, if not all, of the unfunded portion of any revolving or delayed draw term loans.
- An extended period of global supply chain and economic disruption could materially affect our business, results of operations, access to sources of liquidity and financial condition.
- The company expects to recognize a loss on extinguishment of debt of $0.6 million related to the charge-off of deferred borrowing costs on the redemption of the notes.
- The company expects to recognize a loss on extinguishment of debt of $1.6 million related to the charge-off of deferred borrowing costs on the redemption of the notes.