In This Article:
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Net Investment Income: $0.42 per share, up 20% from previous quarter.
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Distribution: Covered distribution of $0.34 per share.
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Net Asset Value (NAV): Decreased to $11.08 per share from $12.09.
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Nonaccrual Status: One borrower added, representing 2% of portfolio at fair value.
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Debt Maturity: 100% of outstanding debt matures in 2026 or later.
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Unsecured Debt: 70% of outstanding debt is unsecured.
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Fixed Rate Debt: $180 million at a weighted average coupon of 4.8%.
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SBIC Debt: Paid down remaining $31.9 million, maturing in early 2025.
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Total Investment Income: Increased by 6% to $14.2 million.
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Total Expenses: Decreased by 1.7% to $8.6 million.
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Debt to Equity Ratio: Approximately 1.74 times.
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Regulatory Asset Coverage Ratio: 157.
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Investment Portfolio: $400.4 million on a fair value basis across 74 issuers.
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Investment Income Yield: Weighted average yield of 13% on interest-bearing investments.
Release Date: May 03, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Net investment income increased to $0.42 per share, a 20% rise from the previous quarter, primarily due to nonrecurring items.
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OFS Capital Corp (NASDAQ:OFS) continues to cover its distribution, maintaining a $0.34 per share payout, representing a 13.7% annualized yield based on the quarter's stock price.
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The loan portfolio remains strong with 100% at fair value in first and second lien senior secured loans, positioning the company well in a volatile macroeconomic environment.
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OFS Capital Corp (NASDAQ:OFS) has a robust balance sheet with 100% of outstanding debt maturing in 2026 or later, and 70% of the debt is unsecured.
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The company's advisor manages approximately $4 billion across various asset classes, providing experienced oversight through multiple credit cycles.
Negative Points
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Net asset value per share declined to $11.08 from $12.09 at year end, primarily due to unrealized depreciation in several investments, notably in fin Steel Holdings.
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One borrower was placed on nonaccrual status this quarter, representing about 2% of the portfolio at fair value, contributing to a total of 4.8% of investments at fair value on nonaccrual status.
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Interest income decreased partly due to a smaller overall investment portfolio, impacting the company's earnings from its core activities.
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The company experienced a decline in the regulatory asset coverage ratio, influenced by unrealized depreciation in a few positions.
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Despite a stable investment income yield of 13%, there was a quarter-over-quarter decrease of about 1.1%, attributed to nonaccrual loans and a slight decrease in yields on structured finance.