OFS Capital Corp. priced its public offering of $50.0 million aggregate principal amount of its 5.95% notes due Oct. 31, 2026.
The company also granted the underwriters an option to purchase an additional $7.5 million aggregate principal amount of notes to cover overallotments.
Net proceeds of the offering are expected to be approximately $48.1 million, or approximately $55.4 million if the underwriters fully exercise their option. These proceeds will be used to fund investments in debt and equity securities, to repay outstanding debt under revolving credit facility, and for other general corporate purposes.
The company had $45.8 million of indebtedness outstanding under the credit facility as of Oct. 7.
OFS Capital may redeem the notes in whole or in part at any time on or after Oct. 31, 2021. The offering is expected to close Oct. 15.
Interest on the notes will be paid quarterly on Jan. 31, April 30, July 31 and Oct. 31 of each year commencing on Jan. 31, 2020.
Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC and BB&T Capital Markets are joint book-running managers of the offering. Incapital LLC and National Securities Corp. are the lead managers.
