OFS Capital Corporation (NASDAQ: OFS) (“OFS Capital” or the “Company”) today announced its first quarter 2013 dividend and its financial results for the year ended December 31, 2012.
The consolidated results for the year ended December 31, 2012 reflect the performance of the Company’s predecessor, OFS Capital, LLC, prior to the Company’s initial public offering (“IPO”), which was effective on November 7, 2012. Based on the Company’s qualification to be treated as a business development company (“BDC”) and related changes in accounting principles immediately following the completion of the IPO, the Company’s consolidated results for the year ended December 31, 2012 may not be indicative of the results reported in future periods. In accordance with applicable accounting standards, the Company has included in this press release consolidated results subsequent to its IPO from November 8, 2012 through December 31, 2012 (the “stub period”).
|HIGHLIGHTS ($ in millions)|
|Portfolio Results||As of December 31, 2012|
|Investment portfolio, at fair value||$232.2|
|Weighted average yield on debt investments (at fair value)||7.64%|
|Portfolio Activity||Year ended December 31, 2012||November 8, 2012- December 31, 2012|
|Investments in new portfolio companies, at par||$92.7||$32.7|
|Number of new portfolio companies||24||8|
|Number of portfolio companies at end of period||59||59|
|Total investment income||$13.4||$2.6|
|Net investment income||$4.1||$0.7|
|Net increase in net assets resulting from operations||$6.2||$0.9|
Other Key Data Points
- On November 26, 2012, the Company declared fourth quarter 2012 dividend of $0.34 per share ($0.17 per share pro-rated for fifty-four days remaining in the quarter post-IPO). The dividend was paid in January 2013.
- The Company had net asset value (“NAV”) of $14.80 per share as of December 31, 2012.
“I am pleased that, since the IPO of OFS Capital, we have been able to exploit the strategic benefit of our OFS Capital WM subsidiary to invest in senior secured floating rate assets during the stub period,” said Glenn Pittson, Chairman and Chief Executive Officer of OFS Capital Corporation. “These incremental assets have enhanced the earnings of OFS Capital while we continue to make progress on converting our investment in the Tamarix Capital Partners L.P. (“Tamarix LP”) small business investment company (“SBIC”) into a drop-down SBIC fund within OFS Capital, though work remains on obtaining the necessary approvals. As we enter what appears to be a new phase in the corporate credit cycle, we remain committed to prudent, thoughtful growth as we deploy capital, to preserve the investment entrusted to us by our shareholders.
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