OFS Capital Subsidiary Secures $80M Revolving Credit Facility, Extends Maturity

summarizeSummary

OFS Capital Corp's subsidiary secured an $80 million revolving credit facility, replacing a previous one and extending maturity, enhancing financial flexibility.

check_boxKey Events

• New $80M Revolving Credit Facility

  OFSCC-FS, LLC, an indirect wholly-owned subsidiary, entered into a new revolving credit and security agreement for up to $80,000,000 with Natixis, New York Branch.

• Extended Maturity and Reinvestment Period

  The new facility extends the reinvestment period to February 18, 2029, and the final maturity date to February 18, 2031, providing a longer financial runway.

• Termination of Previous Credit Facility

  In connection with the new agreement, the previous Revolving Credit and Security Agreement (BNP Facility) dated June 20, 2019, was fully repaid and terminated.

• Non-Recourse to Parent Company

  The obligations under the new Natixis Credit Facility are limited recourse to the borrower (OFSCC-FS, LLC) and are non-recourse to OFS Capital Corporation and its equityholder.

auto_awesomeAnalysis

OFS Capital Corp's indirect wholly-owned subsidiary, OFSCC-FS, LLC, has entered into a new $80 million revolving credit and security agreement with Natixis. This new facility replaces an existing one, extending the reinvestment period to February 2029 and the final maturity date to February 2031. The non-recourse nature of this facility to OFS Capital Corporation limits direct financial risk to the parent company. Securing this substantial financing, especially with extended terms, provides significant financial flexibility and liquidity runway for the subsidiary, which is a positive development for the company, particularly as it trades near its 52-week low.