Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
 
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-00813

OFS CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)  

Delaware
46-1339639
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)

10 S. Wacker Drive, Suite 2500
Chicago, Illinois 60606
(Address of principal executive office)

(847) 734-2000
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý     No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ¨     No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
¨
Accelerated filer
ý
 
 
 
 
Non-accelerated filer
¨  (do not check if a smaller reporting company)
Smaller reporting company
¨
 
 
 
 
Emerging growth company
¨

 
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨     No  ý

The number of shares of the issuer’s Common Stock, $0.01 par value, outstanding as of May 1, 2018 was 13,348,774.



OFS CAPITAL CORPORATION

TABLE OF CONTENTS
 
 
Item 1.
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
 
 
Item 1.
Item 1A.
Item 2
Item 3.
Item 4.
Item 5.
Item 6.

2


Defined Terms
We have used "we," "us," "our," "our company," and "the Company" to refer to OFS Capital Corporation in this report. We also have used several other terms in this report, which are explained or defined below:
1940 Act
Investment Company Act of 1940, as amended
Administration Agreement
Administration agreement between the Company and OFS Services dated November 7, 2012
Annual Distribution Requirement
Distributions to our stockholders, for each taxable year, of at least 90% of our ICTI
ASU
Accounting Standards Updates, as issued by the FASB
BDC
Business Development Company under the 1940 Act
BLA
Business Loan Agreement, as amended, with Pacific Western Bank, as lender, which provides the Company with a senior secured revolving credit facility
Board
The Company's board of directors
Code
Internal Revenue Code of 1986, as amended
DRIP
Distribution reinvestment plan
EBITDA
Earnings before interest, taxes, depreciation, and amortization
Exchange Act
Securities Exchange Act of 1934
FASB
Financial Accounting Standards Board
GAAP
Accounting principles generally accepted in the United States
HPCI
Hancock Park Corporate Income, Inc., a non-traded BDC with an investment strategy similar to the Company for whom OFS Advisor serves as investment adviser
ICTI
Investment company taxable income, which is generally net ordinary income plus net short-term capital gains in excess of net long-term capital losses
Investment Advisory Agreement
Investment advisory agreement between the Company and OFS Advisor dated November 7, 2012
IPO
Initial Public Offering
LIBOR
London Interbank Offered Rate
OFS Advisor
OFS Capital Management, LLC, a wholly-owned subsidiary of OFSAM and registered investment advisor under the 1940 Act
OFS Capital WM
OFS Capital WM, LLC, a wholly-owned investment company subsidiary
OFS Services
OFS Capital Services, LLC, a wholly-owned subsidiary of OFSAM and affiliate of OFS Advisor
OFSAM
Orchard First Source Asset Management, LLC, a full-service provider of capital and leveraged finance solutions to U.S. corporations
Prime Rate
United States Prime interest rate
PWB Credit Facility
Senior secured revolving credit facility between the Company and Pacific Western Bank, as lender
RIC
Regulated investment company under the Code
SBA
U.S. Small Business Administration
SBIC
A fund licensed under the SBA small business investment company program
SBIC Acquisition
The Company's acquisition of the remaining ownership interests in SBIC I LP and SBIC I GP, LLC on December 4, 2013
SBIC Act
Small Business Investment Act of 1958
SBIC I LP
OFS SBIC I, LP, a wholly-owned SBIC subsidiary of the Company
SEC
U.S. Securities and Exchange Commission
Securities Act
Securities Act of 1933, as amended

3


Forward-Looking Statements
This quarterly report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:
our ability and experience operating a BDC or an SBIC, or maintaining our tax treatment as a RIC under Subchapter M of the Code;
our dependence on key personnel;
our ability to maintain or develop referral relationships;
our ability to replicate historical results;
the ability of OFS Advisor to identify, invest in and monitor companies that meet our investment criteria;
actual and potential conflicts of interest with OFS Advisor and other affiliates of OFSAM;
constraint on investment due to access to material nonpublic information;
restrictions on our ability to enter into transactions with our affiliates;
limitations on the amount of SBA-guaranteed debentures that may be issued by an SBIC;
our ability to comply with SBA regulations and requirements;
the use of borrowed money to finance a portion of our investments;
competition for investment opportunities;
the ability of SBIC I LP and any other portfolio companies to make distributions enabling us to meet RIC requirements;
our ability to raise debt or equity capital as a BDC;
the timing, form and amount of any distributions from our portfolio companies;
the impact of a protracted decline in the liquidity of credit markets on our business;
the general economy and its impact on the industries in which we invest;
uncertain valuations of our portfolio investments; and
the effect of new or modified laws or regulations governing our operations, including the ability to incur additional leverage under the Small Business Credit Availability Act.
Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Quarterly Report on Form 10-Q should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include, among others, those described or identified in “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly Report on Form 10-Q.
We have based the forward-looking statements on information available to us on the date of this Quarterly Report on Form 10-Q. Except as required by the federal securities laws, we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The forward-looking statements and projections contained in this Quarterly Reports on Form 10-Q are excluded from the safe harbor protection provided by Section 27A of the Securities Act, and Section 21E of the Exchange Act.
The following analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes thereto contained elsewhere in this Quarterly Report on Form 10-Q.

4


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
OFS Capital Corporation and Subsidiaries
Consolidated Balance Sheets
(Dollar amounts in thousands, except per share data)

March 31,
2018
 
December 31,
2017

(unaudited)
 

Assets


 


Investments, at fair value:


 


Non-control/non-affiliate investments (amortized cost of $215,488 and $209,360, respectively)
$
201,947

 
$
197,374

Affiliate investments (amortized cost of $122,443 and $70,402, respectively)
122,843

 
69,557

Control investments (amortized cost of $10,244 and $10,213, respectively)
10,674

 
10,568

Total investments at fair value (amortized cost of $348,175 and $289,975, respectively)
335,464

 
277,499

Cash and cash equivalents
31,926

 
72,952

Interest receivable
2,915

 
2,734

Prepaid expenses and other assets
4,396

 
4,593

Total assets
$
374,701

 
$
357,778




 


Liabilities


 


Revolving line of credit
$
40,950

 
$
17,600

SBA debentures (net of deferred debt issuance costs of $2,564 and $2,657, respectively)
147,316

 
147,223

Interest payable
410

 
1,596

Management and incentive fees payable
2,075

 
1,987

Administration fee payable
749

 
476

Accrued professional fees
598

 
433

Other liabilities
150

 
127

Total liabilities
192,248

 
169,442




 


Commitments and contingencies (Note 6)


 





 


Net assets


 


Preferred stock, par value of $0.01 per share, 2,000,000 shares authorized, -0- shares issued and outstanding as of March 31, 2018, and December 31, 2017, respectively
$

 
$

Common stock, par value of $0.01 per share, 100,000,000 shares authorized, 13,348,774 and 13,340,217 shares issued and outstanding as of March 31, 2018, and December 31, 2017, respectively
133

 
133

Paid-in capital in excess of par
187,512

 
187,398

Accumulated undistributed net investment income
7,273

 
9,404

Accumulated undistributed net realized gain
258

 
3,881

Net unrealized depreciation on investments
(12,723
)
 
(12,480
)
Total net assets
182,453

 
188,336




 


Total liabilities and net assets
$
374,701

 
$
357,778




 


Number of shares outstanding
13,348,774

 
13,340,217

Net asset value per share
$
13.67

 
$
14.12


See Notes to Financial Statements.

5


OFS Capital Corporation and Subsidiaries
Consolidated Statements of Operations (unaudited)
(Dollar amounts in thousands, except per share data)

Three Months Ended March 31,

2018

2017
Investment income





Interest income:





Non-control/non-affiliate investments
$
5,758


$
4,612

Affiliate investments
2,085


1,831

Control investment
239


524

Total interest income
8,082


6,967

Payment-in-kind interest and dividend income:
 
 
 
Non-control/non-affiliate investments
224

 
307

Affiliate investments
461

 
352

Control investment
27

 
38

Total payment-in-kind interest and dividend income
712

 
697

Dividend income:





Non-control/non-affiliate investments


5

Affiliate investments
130


85

Control investments
33


33

Total dividend income
163


123

Fee income:





Non-control/non-affiliate investments
26


156

Affiliate investments
2


58

Control investments
18


33

Total fee income
46


247

Total investment income
9,003


8,034

Expenses





Interest expense
1,634


1,387

Management fee
1,360


1,192

Incentive fee
736


1,181

Professional fee
201


263

Administration fee
583


401

Other expenses
695


270

Total expenses before incentive fee waiver
5,209


4,694

Incentive fee waiver (see Note 3)
(22
)
 

Total expenses, net of incentive fee waiver
5,187


4,694

Net investment income
3,816


3,340







Net realized and unrealized gain (loss) on investments





Net realized gain on non-control/non-affiliate investments
461



Net realized loss on affiliate investments
(541
)


Net unrealized depreciation on non-control/non-affiliate investments
(1,563
)

(3,041
)
Net unrealized appreciation on affiliate investments
1,245


4,024

Net unrealized appreciation on control investment
75


543







Net gain (loss) on investments
(323
)

1,526







Net increase in net assets resulting from operations
$
3,493


$
4,866







Net investment income per common share – basic and diluted
$
0.29


$
0.34

Net increase in net assets resulting from operations per common share – basic and diluted
$
0.26


$
0.50

Distributions declared per common share
$
0.71


$
0.34

Basic and diluted weighted average shares outstanding
13,340,502


9,700,329


See Notes to Financial Statements.

6


OFS Capital Corporation and Subsidiaries
Consolidated Statements of Changes in Net Assets (unaudited)
(Dollar amounts in thousands)
 
Three Months Ended March 31,
 
2018
 
2017
Increase in net assets resulting from operations:
 
 
 
Net investment income
$
3,816


$
3,340

Net realized loss on investments
(80
)


Net unrealized appreciation (depreciation) on investments
(243
)

1,526

Net increase in net assets resulting from operations
3,493


4,866

Distributions to stockholders from:





Accumulated net investment income
(4,536
)

(3,298
)
Accumulated net realized gain
(4,936
)


Total distributions to stockholders
(9,472
)

(3,298
)
Common stock transactions:





Reinvestment of stockholder distributions
96


41

Net increase in net assets resulting from capital transactions
96


41

Net increase (decrease) in net assets
(5,883
)

1,609

Net assets:





Beginning of period
188,336


143,778

End of period
$
182,453


$
145,387

Accumulated undistributed net investment income
$
7,273


$
6,786

Common stock activity:





Common stock issued from reinvestment of stockholder distributions
8,557


2,919

Common stock issued and outstanding at beginning of period
13,340,217


9,700,297

Common stock issued and outstanding at end of period
13,348,774


9,703,216


See Notes to Financial Statements.

7


OFS Capital Corporation and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(Dollar amounts in thousands)
 
Three Months Ended March 31,
 
2018
 
2017
Cash flows from operating activities
 
 
 
Net increase in net assets resulting from operations
$
3,493


$
4,866

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:





Net realized loss on investments
80



Net unrealized (appreciation) depreciation on investments
243


(1,526
)
Amortization of Net Loan Fees
(275
)

(341
)
Payment-in-kind interest and dividend income
(712
)

(697
)
Amortization of deferred debt issuance costs
144


130

Amortization of intangible asset
49


49

Purchase and origination of portfolio investments
(98,208
)

(3,139
)
Proceeds from principal payments on portfolio investments
13,025


31,972

Proceeds from sale or redemption of portfolio investments
28,203



Changes in operating assets and liabilities:



 
Interest receivable
(181
)

706

Interest payable
(1,186
)

(1,189
)
Management and incentive fees payable
88


255

Administration fee payable
273


152

Other assets and liabilities
137


(43
)
Net cash provided by (used in) operating activities
(54,827
)

31,195

 
 
 
 
Cash flows from financing activities
 
 
 
Distributions paid to stockholders
(9,376
)

(3,257
)
Borrowings under revolving line of credit
46,250


5,000

Repayments under revolving line of credit
(22,900
)

(6,500
)
Payment of debt issuance costs
(173
)


Payment of common stock offering costs


(10
)
Net cash provided by (used in) financing activities
13,801


(4,767
)
Net increase (decrease) in cash and cash equivalents
(41,026
)

26,428

Cash and cash equivalents — beginning of period
72,952


17,659

Cash and cash equivalents — end of period
$
31,926


$
44,087

 
 
 
 
Supplemental Disclosure of Cash Flow Information:
 
 
 
Cash paid during the period for interest
$
2,676


$
2,446

Distributions paid by issuance of common stock
96


41

Accrued common stock offering costs


165


See Notes to Financial Statements.

8

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments
March 31, 2018
(Dollar amounts in thousands)


Portfolio Company(1)
Investment Type
 
Industry
 
Interest Rate (2)
 
Spread Above Index (2)
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value (3)
 
Percent of Net Assets
Non-control/Non-affiliate Investments
 
 


















Aegis Acquisition, Inc.

Testing Laboratories


















Senior Secured Loan



10.79%

(L +8.50%)

8/24/2021

$
3,520


$
3,473


$
3,364


1.9
%





















Armor Holdings II LLC

Other Professional, Scientific, and Technical Services


















Senior Secured Loan



11.31%

(L +9.00%)

12/26/2020

3,500


3,478


3,570


2.0






















Baymark Health Services, Inc.

Outpatient Mental Health & Sub. Abuse Centers


















Senior Secured Loan



10.27%

(L +8.25%)

3/1/2025

4,000


3,960


3,960


2.2






















Carolina Lubes, Inc. (4) (8)

Automotive Oil Change and Lubrication Shops


















Senior Secured Loan



9.62%

(L +7.93%)

8/23/2022

21,267


21,103


21,574


11.8

Senior Secured Loan (Revolver)



8.94%

(L +7.25%)

8/23/2022

1,849


1,836


1,849


1.0

Preferred Equity (811 units) 14% PIK












2,612


2,638


1.4











23,116

 
25,551

 
26,061

 
14.2

Cirrus Medical Staffing, Inc. (4)

Temporary Help Services


















Senior Secured Loan



10.94%

(L +8.25%)

10/19/2022

7,782


7,706


7,706


4.2

Senior Secured Loan (Revolver)



10.94%

(L +8.25%)

10/19/2022

486


486


486


0.3











8,268


8,192


8,192


4.5

Community Intervention Services, Inc. (4)

Outpatient Mental Health and Substance Abuse Centers


















Subordinated  Loan (6) (10) (11)



7.0% cash / 6.0% PIK

N/A

1/16/2021

8,658


7,639


























Confie Seguros Holdings II Co.

Insurance Agencies and Brokerages


















Senior Secured Loan



11.48%

(L +9.50%)

5/8/2019

9,678


9,597


9,474


5.2






















Constellis Holdings, LLC

Other Justice, Public Order, and Safety Activities


















Senior Secured Loan



11.30%

(L +9.00%)

4/21/2025

9,950


9,818


10,059


5.5























9

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
March 31, 2018
(Dollar amounts in thousands)


Portfolio Company(1)
Investment Type
 
Industry
 
Interest Rate (2)
 
Spread Above Index (2)
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value (3)
 
Percent of Net Assets
Eblens Holdings, Inc.

Shoe Store


















Subordinated  Loan (11)



12.0% cash / 1.0% PIK

N/A

1/13/2023

$
8,852


$
8,775


$
8,717


4.8
%
Common equity (71,250 Class A units) (10)












713


768


0.4











8,852


9,488


9,485


5.2

Elgin Fasteners Group

Bolt, Nut, Screw, Rivet, and Washer Manufacturing


















Senior Secured Loan



9.05%

(L +6.75%)

8/27/2018

3,834


3,827


3,550


1.9






















GGC Aerospace Topco L.P.

Other Aircraft Parts and Auxiliary Equipment Manufacturing


















Senior Secured Loan



10.76%

(L +8.75%)

9/8/2024

5,000


4,880


4,966


2.7

Common Equity (368,852 Class A units) (10)












450


434


0.2

Common Equity (40,984 Class B units) (10)












50


66













5,000


5,380


5,466


2.9

LRI Holding, LLC (4)

Electrical Contractors and Other Wiring Installation Contractors


















Senior Secured Loan



11.56%

(L +9.25%)

6/30/2022

18,038


17,903


17,828


9.8

Preferred Equity (238,095 Series B units) (10)









 

300


300


0.2











18,038


18,203


18,128


10.0

Maverick Healthcare Equity, LLC (4)

Home Health Equipment Rental


















Preferred Equity (1,250,000 units) (10)












900


109


0.1

Common Equity (1,250,000 Class A units) (10)






























900


109


0.1

My Alarm Center, LLC (4)

Security Systems Services (except Locksmiths)


















Preferred Equity (1,485 Class A units), 8% PIK (10) (13)












1,571


1,571


0.9

Preferred Equity (1,198 Class B units) (10) (13)












1,198


826


0.5

Common Equity (64,149 units) (10) (13)






























2,769


2,397


1.4

Online Tech Stores, LLC (4)

Stationary & Office Supply Merchant Wholesaler


















Subordinated Loan



10.50% cash / 1.0% PIK

N/A

8/1/2023

16,025


15,715


15,715


8.6






















O2 Holdings, LLC (4)

Fitness and Recreational Sports Centers


















Senior Secured Loan



14.88%

(L +13.00%)

9/2/2021

13,850


13,493


14,027


7.7























10

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
March 31, 2018
(Dollar amounts in thousands)


Portfolio Company(1)
Investment Type
 
Industry
 
Interest Rate (2)
 
Spread Above Index (2)
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value (3)
 
Percent of Net Assets
Parfums Holding Company, Inc.

Cosmetics, Beauty Supplies, and Perfume Stores


















Senior Secured Loan



11.06%

(L +8.75%)

6/30/2025

$
3,520


$
3,493


$
3,516


1.9
%

















Planet Fitness Midwest LLC (4)

Fitness and Recreational Sports Centers


















Subordinated Loan



13.00%

N/A

12/16/2021

5,000


4,966


4,994


2.7






















PM Acquisition LLC

All Other General Merchandise Stores














Senior Secured Loan



11.50% cash / 1.0% PIK

N/A

10/29/2021

5,556


5,489


5,383


3.0

Common equity (499 units) (10) (13)












499


393


0.2











5,556


5,988


5,776


3.2

Resource Label Group, LLC

Commercial Printing (except Screen and Books)


















Senior Secured Loan



10.80%

(L +8.50%)

11/26/2023

4,821


4,758


4,748


2.6






















RPLF Holdings, LLC

Software Publishers


















Common Equity (254,110 Class A units) (10) (13)












254


254


0.1






















Security Alarm Financing Enterprises, L.P. (4)

Security Systems Services (except Locksmiths)


















Subordinated Loan (14)



15.31% cash / 0.69% PIK

(L +13.00%)

6/19/2020

12,547


12,471


12,499


6.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sentry Centers Holdings, LLC

Other Professional, Scientific, and Technical Services


















Senior Secured Loan (15)



13.38%

(L +11.50%)

7/24/2020

8,880


8,800


8,800


4.8

Preferred Equity (5,000 Series C units), 8% PIK (10) (13)



 
 
 
 
 
 



537


574


0.3











8,880


9,337


9,374


5.1

Southern Technical Institute, LLC (4)

Colleges, Universities, and Professional Schools


















Subordinated Loan (6)(10)



15.00% PIK

N/A

12/2/2020

3,790


3,451





Preferred Equity (1,764,720 Class SP-1 units), 15.75% PIK (8) (10)












2,094





Warrants (2,174,905 Class A units) (10)







3/30/2026 (12)




46















3,790


5,591






11

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
March 31, 2018
(Dollar amounts in thousands)


Portfolio Company(1)
Investment Type
 
Industry
 
Interest Rate (2)
 
Spread Above Index (2)
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value (3)
 
Percent of Net Assets
Stancor, L.P. (4)

Pump and Pumping Equipment Manufacturing


















Senior Secured Loan



9.88%

(L +8.00%)

8/19/2019

$
11,652


$
11,633


$
11,640


6.4
%
Preferred Equity (1,250,000 Class A units), 8% PIK (7) (10)












1,501


1,461


0.8











11,652


13,134


13,101


7.2

The Escape Game, LLC (4)

Other amusement and recreation industries


















Senior Secured Loan



11.14%

(L +8.75%)

12/22/2022

7,000


6,950


6,918


3.8






















Truck Hero, Inc.

Truck Trailer Manufacturing


















Senior Secured Loan



10.47%

(L +8.25%)

4/21/2025

7,014


6,972


7,083


3.9






















United Biologics Holdings, LLC (4)

Medical Laboratories


















Preferred Equity (151,787 units) (10)












9


20



Warrants (29,374 units) (10)







03/05/2022 (12)




82


107


0.1














91


127


0.1

Total Non-control/Non-affiliate Investments









206,069


215,488


201,947


110.8

Affiliate Investments




















3rd Rock Gaming Holdings, LLC

Software Publishers


















Senior Secured Loan



9.59%

(L +7.50%)

3/12/2023

22,000


21,673


21,673


11.9
%
Preferred Equity (2,547,250 units), 10% PIK












2,560


2,560


1.4
%










22,000


24,233


24,233


13.3
%
All Metals Holding, LLC (4)

Metal Service Centers and Other Metal Merchant Wholesalers


















Senior Secured Loan



12.0% cash / 1.0% PIK

N/A

12/28/2021

19,352


18,807


19,059


10.4

Common Equity (797,443 units) (10)












523


2,129


1.2











19,352


19,330


21,188


11.6

Contract Datascan Holdings, Inc. (4)

Office Machinery and Equipment Rental and Leasing


















Subordinated Loan



12.00%

N/A

2/5/2021

8,000


7,986


8,000


4.4

Preferred Equity (3,061 Series A shares), 10% PIK












4,490


6,107


3.3

Common Equity (11,273 shares) (10)












104


1,268


0.7











8,000


12,580


15,375


8.4


12

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
March 31, 2018
(Dollar amounts in thousands)


Portfolio Company(1)
Investment Type
 
Industry
 
Interest Rate (2)
 
Spread Above Index (2)
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value (3)
 
Percent of Net Assets
DRS IMAGING SERVICES, LLC (4)

Data Processing, Hosting, and Related Services


















Senior Secured Loan (9)



12.55%

(L +10.50%)

3/8/2023

$
5,446


$
5,343


$
5,343


2.9
%
Common Equity (453 units) (10)












454


454


0.2











5,446


5,797


5,797


3.1

Jobson Healthcare Information, LLC (4) (9)

Other Professional, Scientific, and Technical Services


















Senior Secured Loan (11)



10.13% cash / 5.55% PIK

(L +8.13%)

7/21/2019

15,660


15,452


13,403


7.3

Common Equity (13 member units) (10)



























15,660


15,452


13,403


7.3

Master Cutlery, LLC (4)

Sporting and Recreational Goods and Supplies Merchant Wholesalers


















Subordinated Loan (11)



13.00%

N/A

4/17/2020

4,819


4,762


2,559


1.4

Preferred Equity (3,723 Series A units), 8% PIK (7) (10)












3,483





Common Equity (15,564 units) (10)



























4,819


8,245


2,559


1.4

NeoSystems Corp. (4)

Other Accounting Services


















Subordinated Loan



10.50% cash / 1.25% PIK

N/A

8/13/2019

2,149


2,144


2,149


1.2

Preferred Equity (521,962 convertible shares), 10% PIK












1,426


2,250


1.2











2,149


3,570


4,399


2.4

Pfanstiehl Holdings, Inc. (4)

Pharmaceutical Preparation Manufacturing


















Subordinated Loan



10.50%

N/A

9/29/2022

3,788


3,820


3,820


2.1

Common Equity (400 Class A shares)












217


5,270


2.9











3,788


4,037


9,090


5.0

Professional Pipe Holdings, LLC

Plumbing, Heating, and Air-Conditioning Contractors


















Senior Secured Loan



12.11%

(L +10.25%)

3/23/2023

8,486


8,317


8,317


4.6

Common Equity (1,414 Class A units) (10)












1,414


1,414


0.8











8,486


9,731


9,731


5.4


13

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
March 31, 2018
(Dollar amounts in thousands)


Portfolio Company(1)
Investment Type
 
Industry
 
Interest Rate (2)
 
Spread Above Index (2)
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value (3)
 
Percent of Net Assets
TRS Services, LLC (4)

Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance


















Senior Secured Loan



10.63% cash / 1.00% PIK

(L +8.75%)

12/10/2019

$
15,222


$
15,106


$
15,028


8.2
%
Preferred Equity (329,266 Class AA units), 15% PIK (10)












416


425


0.2

Preferred Equity (3,000,000 Class A units), 11% PIK (7)












3,374


1,615


0.9

Common Equity (3,000,000 units) (10)












572















15,222


19,468


17,068


9.3

Total Affiliate Investments









104,922


122,443


122,843


67.2

Control Investments




















MTE Holding Corp. (4)

Travel Trailer and Camper Manufacturing


















Subordinated Loan (to Mirage Trailers, LLC, a controlled, consolidated subsidiary of MTE Holding Corp.)



13.38% cash / 1.5% PIK

(L +11.50%)

11/25/2020

7,213


7,175


7,218


4.0

Common Equity (554 shares)