2026-03-27 13:22:46
OFS Capital Corporation Amends Senior Secured Revolving Credit Facility
Expected Stock impact: Slightly Positive
On March 27, 2026, OFS Capital Corporation announced an amendment to its Business Loan Agreement with Banc of California, which provides the company with a senior secured revolving credit facility aimed at supporting general corporate purposes, including investment funding. The amendment introduces several key changes to the terms of the credit facility. Notably, the minimum tangible net asset value covenant has been reduced from $100 million to $75 million. Additionally, the requirement for minimum quarterly net investment income after management and incentive fees has been lowered from $2 million to $1 million for the quarters ending March 31, June 30, and September 30, 2026. After this period, the minimum quarterly net investment income requirement will revert to $2 million. Furthermore, the maximum commitment amount has been decreased from $25 million to $15 million. These adjustments reflect the company's strategic efforts to enhance its liquidity position while navigating the current market conditions. The company incurred customary fees, costs, and expenses associated with the closing of this amendment. The full text of the amendment is available as an exhibit to the current report on Form 8-K.
