OFS Capital Corporation Prices Public Offering of $43,750,000 6.375% Notes Due 2025
April 11 2018 - 7:17PM
Business Wire
OFS Capital Corporation (the “Company”) (Nasdaq:OFS) announced
today that it has priced a registered public offering of $43.75
million aggregate principal amount of its 6.375% notes due 2025
(the “Notes”) which will result in net proceeds to the Company of
approximately $42.03 million (or approximately $48.39 million if
the underwriters fully exercise the overallotment option described
below) based on a public offering price of 100% of the aggregate
principal amount of the Notes, after deducting payment of
underwriting discounts and commissions and estimated offering
expenses payable by the Company.
The Notes will mature on April 30, 2025 and may be redeemed
in whole or in part at any time, or from time to time, at the
Company’s option on or after April 30, 2020. The Notes will bear
interest at a rate of 6.375% per year, payable quarterly on January
31, April 30, July 31 and October 31 of each year, beginning on
July 31, 2018. At closing, the Notes are expected to be
rated “A”* by Egan-Jones Ratings Company. The Company has
also granted the underwriters an option to purchase an
additional $6,562,500 aggregate principal amount of Notes to cover
overallotments, if any, on or before April 30, 2018.
The offering is subject to customary closing conditions and is
expected to close on April 16, 2018. The Company has submitted an
application for the Notes to be listed and trade on The Nasdaq
Global Select Market under the trading symbol “OFSL”. If approved
for listing, the Company expects the Notes to begin trading within
30 days from the original issue date.
The Company intends to use the net proceeds of the offering to
fund investments in debt and equity securities in accordance with
its investment objective and for other general corporate purposes.
The Company also intends to use a portion of the net proceeds from
the offering to repay outstanding indebtedness under its revolving
credit facility. As of April 9, 2018, the Company had $38.2 million
of indebtedness outstanding under the credit facility.
Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg
Thalmann Financial Services Inc. (NYSEMKT: LTS), and Janney
Montgomery Scott LLC are acting as book-running managers for the
offering. B. Riley FBR, Inc., BB&T Capital Markets, a division
of BB&T Securities, LLC and National Securities Corporation, a
wholly owned subsidiary of National Holdings Corporation
(NasdaqCM:NHLD), are acting as lead managers for the offering.
Investors are advised to carefully consider the investment
objective, risks and charges and expenses of the Company before
investing. The preliminary prospectus supplement, dated April 11,
2018, and accompanying prospectus, dated June 16, 2017, 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.
The information in the preliminary prospectus supplement, the
accompanying prospectus and this press release is not complete and
may be changed. 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: Ladenburg Thalmann & Co.
Inc., 277 Park Avenue, 26th Floor, New York, New York 10172,
or: 1-800-573-2541, or:
prospectus@ladenburg.com.
* Note: A securities rating is not a recommendation to buy, sell
or hold securities and may be subject to revision or withdrawal at
any time.
About OFS Capital Corporation
The Company is an externally managed, closed-end,
non-diversified management investment company that has elected to
be regulated as a business development company. The Company's
investment objective is to provide stockholders with both current
income and capital appreciation primarily through debt investments
and, to a lesser extent, equity investments. The Company invests
primarily in privately held middle-market companies in the United
States, including lower-middle-market companies, targeting
investments of $3 to $20 million in companies with annual EBITDA
between $3 million and $50 million. The Company offers flexible
solutions through a variety of asset classes including senior
secured loans, which includes first-lien, second-lien and
unitranche loans, as well as subordinated loans and, to a lesser
extent, warrants and other equity securities. The Company's
investment activities are managed by OFS Capital Management, LLC,
an investment adviser registered under the Investment Advisers Act
of 1940 and headquartered in Chicago, Illinois, with additional
offices in New York and Los Angeles.
Forward-Looking Statements
Statements included herein may constitute “forward-looking
statements”, 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. Actual results and outcomes may differ
materially from those anticipated in the forward-looking statements
as a result of a variety of factors, including those described from
time to time in our filings with the Securities and Exchange
Commission or factors that are beyond our control. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements made herein. All forward-looking
statements speak only as of the time of this press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20180411006440/en/
OFS Capital CorporationINVESTOR RELATIONS:Steve Altebrando,
646-652-8473saltebrando@ofsmanagement.com
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