OFS Credit Company Announces Financial Results for the Second Fiscal Quarter 2026

CHICAGO--(BUSINESS WIRE)--OFS Credit Company, Inc. (Nasdaq: OCCI, OCCIN, OCCIM) (“OFS Credit,” the “Company,” “we,” “us” or “our”), an investment company that primarily invests in collateralized loan obligation (“CLO”) equity and debt securities, today announced its financial results for the fiscal quarter ended April 30, 2026. SECOND QUARTER HIGHLIGHTS Net investment income (“NII”) of $4.4 million, or $0.15 per common share, for the fiscal quarter ended April 30, 2026. This compares to NII of $5.5 million, or $0.19 per common share, for the fiscal quarter ended January 31, 2026. NII decreased for the fiscal quarter ended April 30, 2026, primarily due to a decrease in the interest income yield1 on our investment portfolio. See additional information under “Results of Operations” below. Core net investment income (“Core NII”)2 of $5.5 million, or $0.19 per common share, for the fiscal quarter ended April 30, 2026. This compares to Core NII of $9.1 million, or $0.32 per common share, for the fiscal quarter ended January 31, 2026. Core NII decreased for the fiscal quarter ended April 30, 2026, primarily due to a $3.4 million decrease in recurring CLO equity cashflows from spread compression in the underlying loan collateral, resulting in weaker cashflow arbitrage. See additional information under “Supplemental Information Regarding Core Net Investment Income” below. Net asset value (“NAV”) per common share of $3.72 at April 30, 2026, which decreased by $0.64 from the January 31, 2026 NAV of $4.36. The decrease in NAV was primarily due to a net loss on investments of $0.56 per common share and distributions of $0.215 per common share paid during the quarter which exceeded our quarterly NII of $0.15 per common share. See additional information under “Results of Operations” below. During the fiscal quarter ended April 30, 2026, the interest income yield1 of our investment portfolio was 11.82%, based on average amortized cost. During the fiscal quarter ended April 30, 2026, we did not issue shares of common stock through our At-the-Market offering. OTHER RECENT EVENTS During the fiscal quarter ended April 30, 2026, we redeemed $23.0 million of 6.125% Series C Term Preferred Stock due April 2026 and $3.0 million of 6.00% Series D Term Preferred Stock due June 2026. As previously announced, on April 16, 2026, our board of directors (the “Board”) declared monthly cash distributions of $0.05 per common share for each of the three months in the fiscal quarter ending July 31, 2026, which implies an annualized cash distribution rate of 19.0% based on the closing market price of $3.15 per common share on April 30, 2026. See additional information under “Distributions” below. SELECTED FINANCIAL HIGHLIGHTS (in millions, except per share data) At April 30, 2026 January 31, 2026 Balance Sheet Highlights Total investments, at fair value $ 197.4 $ 235.9 Total outstanding preferred stock - principal 89.9 115.9 Total net assets 109.0 126.8 NAV per common share 3.72 4.36 Asset coverage ratio3 221.3 % 209.4 % Operating Highlights For the Fiscal Quarter Ended (Per common share) April 30, 2026 January 31, 2026 Net investment income $ 0.15 $ 0.19 Net realized loss on investments (0.26 ) (0.02 ) Net change in unrealized depreciation on investments (0.30 ) (0.94 ) Loss on redemption of preferred stock4 — — Net earnings (loss) $ (0.41 ) $ (0.77 ) Reconciliation of Core NII — Non-GAAP2 Net investment income $ 0.15 $ 0.19 CLO equity adjustments 0.04 0.13 Core NII $ 0.19 $ 0.32 MANAGEMENT COMMENTARY “Amid the ongoing market volatility, we took action to strengthen our balance sheet by redeeming in the aggregate $26.0 million of preferred stock during our second fiscal quarter,” said Bilal Rashid, Chief Executive Officer. “Additionally, as previously announced, commencing in March 2026, we reduced our monthly common stock distribution rate from $0.115 per share to $0.05 per share in an effort to preserve capital and provide more stability to our NAV. During the second fiscal quarter, we also continued to proactively manage our portfolio, including through the execution of eight reset and refinancing transactions, which we expect will bolster cashflow returns on these deals and helped preserve our weighted average remaining reinvestment period5 at 3.1 years as of April 30, 2026.” PORTFOLIO AND INVESTMENT ACTIVITIES As of April 30, 2026, the total fair value of our investment portfolio was $197.4 million, comprised of broadly syndicated loan CLOs and middle-market loan CLOs with a total fair value of $193.6 million and $3.8 million, respectively. For the fiscal quarter ended April 30, 2026, our CLO equity cash flow yield6 was 13.79% based on amortized cost. At Portfolio Overview ($ in millions) April 30, 2026 January 31, 2026 Total investments, at fair value $ 197.4 $ 235.9 Total number of issuers 81 85 Weighted-average effective yield7 11.64 % 12.39 % During the fiscal quarter ended April 30, 2026, we received net proceeds of $21.0 million from the repayment and sale of portfolio investments, which were primarily used to redeem shares of our 6.125% Series C Term Preferred Stock due April 2026 and 6.00% Series D Term Preferred Stock due June 2026. For the Fiscal Quarter Ended Portfolio Purchases ($ in millions) April 30, 2026 January 31, 2026 CLO equity investments $ — $ 12.0 CLO debt investments — — Loan accumulation facility investments — 3.1 Other CLO equity-related investments (i.e., fee rebates) — — Total investments $ — $ 15.1 Weighted-average effective yield - period end N/A 16.51 % At April 30, 2026 Portfolio Composition ($ in millions) Amortized Cost Fair Value CLO equity investments $ 298.8 $ 193.9 Loan accumulation facility investments 1.3 1.3 Other CLO equity-related investments (i.e., fee rebates) 1.8 2.2 Total investments $ 301.9 $ 197.4 RESULTS OF OPERATIONS Interest Income During the fiscal quarter ended April 30, 2026, interest income decreased to $9.2 million from $11.0 million during the prior quarter. The decrease in interest income was primarily due to a decrease in the interest income yield1 on our investment portfolio and a smaller average investment portfolio, at cost. Expenses During the fiscal quarter ended April 30, 2026, total expenses decreased by $0.7 million to $4.8 million, primarily due to an aggregate decrease of $0.5 million in base management and incentive fees. Net Realized and Unrealized Gain (Loss) on Investments During the fiscal quarter ended April 30, 2026, net loss on investments of $16.5 million was due to net realized losses of $7.5 million and net unrealized depreciation of $9.0 million. The net unrealized depreciation was primarily driven by significant declines in loan prices, a challenging CLO equity cash flow arbitrage environment and a modest increase in loan defaults. DISTRIBUTIONS Third Fiscal Quarter 2026 Common Stock Distributions The following schedule applies to distributions for common stockholders of record on the close of business of each specific record date: Month Record Date Payment Date Cash Distribution Per Share May 2026 May 15, 2026 May 29, 2026 $ 0.05 June 2026 June 15, 2026 June 30, 2026 $ 0.05 July 2026 July 15, 2026 July 31, 2026 $ 0.05 Dividend Reinvestment Plan (“DRIP”) – DRIP Shares Issued at 95% of Market Price Common stockholders who participate in our DRIP have the opportunity to receive a 5% discount to the market price per share of common stock at the close of regular trading on The Nasdaq Capital Market on the valuation date fixed by the Board for each distribution (i.e., the payment date). Common stockholders that are interested in participating in our DRIP should contact their broker or financial intermediary. Additional information about our DRIP and how to participate can be found at https://ir.ofscreditcompany.com/shareholder-services/dividend-reinvestment-plan. We make our website content available for informational purposes only. It should not be relied upon for investment purposes, nor is it incorporated by reference into this press release. OFS Credit Company, Inc. Statement of Assets and Liabilities (Unaudited) As of April 30, 2026 Assets: Investments, at fair value (amortized cost of $301,855,800) $ 197,361,071 Cash and cash equivalents 2,334,934 Interest receivable 349,082 Other assets 325,198 Total assets 200,370,285 Liabilities: Preferred stock (net of deferred issuance costs of $1,578,081) 88,321,919 Payable to adviser and affiliates 2,453,566 Other liabilities 560,600 Total liabilities 91,336,085 Net assets $ 109,034,200 Net assets consist of: Common stock, par value of $0.001 per share; 90,000,000 shares authorized and 29,314,350 shares issued and outstanding $ 29,314 Paid-in capital in excess of par 224,638,255 Total accumulated losses (115,633,369 ) Total net assets $ 109,034,200 Net asset value per common share $ 3.72 OFS Credit Company, Inc. Statements of Operations (Unaudited) Three Months Ended April 30, 2026 Six Months Ended April 30, 2026 Investment income: Interest income $ 9,202,393 $ 20,181,944 Operating expenses: Interest expense 2,100,062 4,266,705 Incentive fees 1,094,930 2,464,554 Base management fees 878,973 1,951,297 Administration fees 258,539 645,645 Professional fees 252,312 526,151 Other expenses 237,855 469,378 Total operating expenses 4,822,671 10,323,730 Net investment income 4,379,722 9,858,214 Net realized and unrealized gain (loss) on investments: Net realized loss on investments (7,491,118 ) (8,103,045 ) Net change in unrealized depreciation on investments (8,976,648 ) (35,537,271 ) Net loss on investments (16,467,766 ) (43,640,316 ) Loss on redemption of preferred stock (13,360 ) (13,360 ) Net decrease in net assets resulting from operations $ (12,101,404 ) $ (33,795,462 ) Weighted-average common shares outstanding 29,195,385 28,700,140 About OFS Credit Company, Inc. OFS Credit is a non-diversified, externally managed closed-end management investment company. The Company’s primary investment objective is to generate current income, with a secondary objective to generate capital appreciation, which we seek to achieve primarily through investments in CLO equity and debt securities. The Company’s investment activities are managed by OFS Capital Management, LLC, an investment adviser registered under the Investment Advisers Act of 19408, as amended, and headquartered in Chicago with additional offices in New York and Los Angeles. Forward-Looking StatementsRead the full story here

OFS Credit Company Announces Financial Results for the Second Fiscal Quarter 2026

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