OFS Capital Corporation
OFS Capital Corp (Form: 10-Q, Received: 11/03/2017 16:48:01)
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 September 30, 2017

 
¨
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
ý
 
 

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. ý

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 November 1, 2017 was 13,334,851 .



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
Annual Distribution Requirement
Distributions to our stockholders, for each taxable year, of at least 90% of our ICTI
ASC
Accounting Standards Codification, as issued by the FASB
ASC Topic 820
ASC Topic 820, "Fair Value Measurements and Disclosures"
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
FASB
Financial Accounting Standards Board
FDIC
Federal Deposit Insurance Corporation
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
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, an established investment platform focused on meeting the capital needs of middle-market companies
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

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 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.
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, 2016 . 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 of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
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)

September 30,
2017

December 31,
2016

(unaudited)


Assets





Investments, at fair value:





Non-control/non-affiliate investments (amortized cost of $224,616 and $178,279, respectively)
$
212,206


$
173,219

Affiliate investments (amortized cost of $67,260 and $76,306, respectively)
73,727


81,708

Control investments (amortized cost of $10,182 and $24,722, respectively)
10,697


26,700

Total investments at fair value (amortized cost of $302,058 and $279,307, respectively)
296,630


281,627

Cash and cash equivalents
53,868


17,659

Interest receivable
1,782


1,770

Prepaid expenses and other assets
4,229


3,974

Total assets
$
356,509


$
305,030







Liabilities





Revolving line of credit
$
17,100


$
9,500

SBA debentures (net of deferred debt issuance costs of $2,752 and $3,037, respectively)
147,128


146,843

Interest payable
395


1,599

Management and incentive fees payable
2,400


2,119

Administration fee payable
382


435

Accrued professional fees
368


477

Other liabilities
80


279

Total liabilities
167,853


161,252







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 September 30, 2017, and December 31, 2016, respectively
$


$

Common stock, par value of $0.01 per share, 100,000,000 shares authorized, 13,334,851 and 9,700,297 shares issued and outstanding as of September 30, 2017, and December 31, 2016, respectively
133


97

Paid-in capital in excess of par
189,278


134,300

Accumulated undistributed net investment income
6,942


6,731

Accumulated undistributed net realized gain (loss)
(2,269
)

330

Accumulated net unrealized appreciation (depreciation) on investments
(5,428
)

2,320

Total net assets
188,656


143,778







Total liabilities and net assets
$
356,509


$
305,030







Number of shares outstanding
13,334,851


9,700,297

Net asset value per share
$
14.15


$
14.82


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 September 30,

Nine Months Ended September 30,

2017

2016

2017

2016
Investment income











Interest income:











Non-control/non-affiliate investments
$
5,759


$
4,355


$
15,281


$
13,522

Affiliate investments
1,796


1,643


5,382


5,000

Control investment
263


582


1,406


1,413

Total interest income
7,818


6,580


22,069


19,935

Dividend income:











Non-control/non-affiliate investments
77


102


289


264

Affiliate investments
242


343


944


1,166

Control investments
92


83


262


194

Total dividend income
411


528


1,495


1,624

Fee income:











Non-control/non-affiliate investments
679


169


1,004


1,164

Affiliate investments
197


48


431


87

Control investments
17


34


135


75

Total fee income
893


251


1,570


1,326













Total investment income
9,122


7,359


25,134


22,885













Expenses











Interest expense
1,503


1,320


4,229


3,936

Management fees
1,310


1,120


3,726


3,324

Incentive fee
1,090


817

 
2,249

 
2,407

Professional fees
284


260


840


877

Administration fee
274


255


982


1,009

General and administrative expenses
259


290


1,050


923













Total expenses
4,720


4,062


13,076


12,476













Net investment income
4,402


3,297


12,058


10,409













Net realized and unrealized gain (loss) on investments











Net realized gain (loss) on non-control/non-affiliate investments
(5,204
)

58


(5,041
)

2,624

Net realized gain on affiliate investments
3,617




4,491



Net unrealized appreciation (depreciation) on non-control/non-affiliate investments
1,196


(538
)

(7,350
)

(3,668
)
Net unrealized appreciation (depreciation) on affiliate investments
(2,901
)

(363
)

(2,243
)

79

Net unrealized appreciation (depreciation) on control investment
65


(66
)

1,845


(439
)












Net loss on investments
(3,227
)

(909
)

(8,298
)

(1,404
)












Net increase in net assets resulting from operations
$
1,175


$
2,388


$
3,760


$
9,005













Net investment income per common share – basic and diluted
$
0.33


$
0.34


$
1.00


$
1.07

Net increase in net assets resulting from operations per common share – basic and diluted
$
0.09


$
0.25


$
0.31


$
0.93

Distributions declared per common share
$
0.34


$
0.34


$
1.02


$
1.02

Basic and diluted weighted average shares outstanding
13,331,690


9,694,353


12,089,895


9,692,634


See Notes to Financial Statements.

6


OFS Capital Corporation and Subsidiaries
Consolidated Statements of Changes in Net Assets (unaudited)
(Dollar amounts in thousands)
 
Nine Months Ended September 30,
 
2017
 
2016
Increase in net assets resulting from operations:
 
 
 
Net investment income
$
12,058


$
10,409

Net realized gain (loss) on investments
(550
)

2,624

Net change in unrealized appreciation/depreciation on investments
(7,748
)

(4,028
)
Net increase in net assets resulting from operations
3,760


9,005

Distributions to stockholders from:





Accumulated net investment income
(12,362
)

(9,886
)
Total distributions to stockholders
(12,362
)

(9,886
)
Common stock transactions:





Public offering of common stock, net of expenses
53,348

 

Reinvestment of stockholder distributions
132


79

Net increase in net assets resulting from capital transactions
53,480


79

Net increase in net assets
44,878


(802
)
Net assets:





Beginning of period
$
143,778


$
143,012

End of period
$
188,656


$
142,210

Accumulated undistributed net investment income
$
6,942


$
5,320

Common stock activity:





Public offering of common stock
3,625,000

 

Common stock issued from reinvestment of stockholder distributions
9,554


6,040

Common stock issued and outstanding at beginning of period
9,700,297


9,691,170

Common stock issued and outstanding at end of period
13,334,851


9,697,210


See Notes to Financial Statements.

7


OFS Capital Corporation and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(Dollar amounts in thousands)
 
Nine Months Ended September 30,
 
2017
 
2016
Cash flows from operating activities
 
 
 
Net increase in net assets resulting from operations
$
3,760


$
9,005

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





Net realized (gain) loss on investments
550


(2,624
)
Net change in unrealized appreciation/depreciation on investments
7,748


4,028

Amortization of Net Loan Fees
(1,187
)

(1,162
)
Amendment fees collected
112


107

Payment-in-kind interest and dividend income
(2,199
)

(1,903
)
Amortization of deferred debt issuance costs
402


330

Amortization of intangible asset
147


146

Purchase and origination of portfolio investments
(114,663
)

(40,179
)
Proceeds from principal payments on portfolio investments
86,527


37,137

Proceeds from sale or redemption of portfolio investments
7,456


2,115

Changes in operating assets and liabilities:





Interest receivable
(12
)

(267
)
Interest payable
(1,204
)

(1,157
)
Management and incentive fees payable
281


(301
)
Administration fee payable
(53
)

(122
)
Other assets and liabilities
(147
)

(71
)
Net cash provided by (used in) operating activities
(12,482
)

5,082

Cash flows from financing activities
 
 
 
Proceeds from common stock offering, net of expenses
53,423



Distributions paid to stockholders
(12,231
)

(9,807
)
Borrowings under revolving line of credit
28,000



Repayments under revolving line of credit
(20,400
)


Payment of debt issuance costs
(101
)


Net cash provided by (used in) financing activities
48,691


(9,807
)
Net increase in cash and cash equivalents
36,209


(4,725
)
Cash and cash equivalents — beginning of year
17,659


32,714

Cash and cash equivalents — end of year
$
53,868


$
27,989

 
 
 
 
Supplemental Disclosure of Cash Flow Information:
 
 
 
Cash paid during the period for interest
$
5,031


$
4,731

Distributions paid by issuance of common stock
132


79


See Notes to Financial Statements.

8

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments
September 30, 2017
(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
 
 


















Armor Holdings II LLC

Other Professional, Scientific, and Technical Services


















Senior Secured Loan



10.34%

(L +9.00%)

12/26/2020

$
3,500


$
3,474


$
3,570


1.8
%





















Avison Young Canada, Inc.

Offices of Real Estate Agents and Brokers


















Senior Secured Loan (5) (6)



9.50%

N/A

12/15/2021

4,000


3,935


4,038


2.0






















BCC Software, LLC (5)

Custom Computer Programming Services


















Senior Secured Loan



9.24%

(L +8.00%)

6/20/2019

6,799


6,743


6,821

 
3.5

Senior Secured Loan (Revolver) (10) (4)



N/A

(L +8.00%)

6/20/2019



(6
)














6,799


6,737


6,821


3.5

BJ's Wholesale Club, Inc.

Warehouse Clubs and Supercenters


















Senior Secured Loan



8.73%

(L +7.50%)

2/3/2025

7,300


7,268


6,999


3.7






















Carolina Lubes, Inc. (5) (9)

Automotive Oil Change and Lubrication Shops


















Senior Secured Loan



9.26%

(L +7.25%)

8/23/2022

21,411


21,226


21,226


11.3

Senior Secured Loan (Revolver)



9.26%

(L +7.25%)

8/23/2022



(14
)

(14
)


Preferred Equity (973 units) 14% PIK












2,937


2,937


1.6











21,411

 
24,149

 
24,149

 
12.9

Community Intervention Services, Inc. (5)

Outpatient Mental Health and Substance Abuse Centers


















Subordinated  Loan (7) (11)



7.0% cash / 6.0% PIK

N/A

1/16/2021

8,399


7,639


2,038


1.1

Common equity (Success Fee) (10)



























8,399


7,639


2,038


1.1

Confie Seguros Holdings II Co.

Insurance Agencies and Brokerages


















Senior Secured Loan



10.99%

(L +9.75%)

5/8/2019

7,851


7,808


7,653


4.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Constellis Holdings, LLC

Other Justice, Public Order, and Safety Activities


















Senior Secured Loan



6.33%

(L +5.00%)

4/21/2024

4,963


4,916


4,981


2.6

Senior Secured Loan



10.33%

(L +9.00%)

4/21/2025

9,950


9,809


9,915


5.3











14,913


14,725


14,896


7.9


9

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
September 30, 2017
(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
DuPage Medical Group

Offices of Physicians, Mental Health Specialists


















Senior Secured Loan



4.32%

(L +3.00%)

8/15/2024

$
1,400


$
1,393


$
1,400


0.7
%
Senior Secured Loan



8.32%

(L +7.00%)

8/15/2025

5,600


5,545


5,520


2.9











7,000


6,938


6,920


3.6

Eblens Holdings, Inc.

Shoe Store


















Subordinated  Loan



12.0% cash / 1.0% PIK

N/A

1/13/2023

8,807


8,723


8,723


4.6

Common equity (71,250 units)












713


713


0.4











8,807


9,436


9,436


5.0

Elgin Fasteners Group

Bolt, Nut, Screw, Rivet, and Washer Manufacturing


















Senior Secured Loan



8.08%

(L +6.75%)

8/27/2018

3,942


3,926


3,618


1.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inhance Technologies Holdings LLC

Other Basic Inorganic Chemical Manufacturing


















Senior Secured Loan



5.83%

(L +4.50%)

6/30/2019

1,939


1,929


1,939


1.0


















Jobson Healthcare Information, LLC (5)

Other Professional, Scientific, and Technical Services


















Senior Secured Loan (11)



10.13% cash / 5.05% PIK

(L +13.18%)

7/21/2019

15,247


15,007


11,841


6.3

Warrants (1,056,428 member units) (10)







7/21/2019 (12)




454















15,247


15,461


11,841


6.3

LRI Holding, LLC (5)

Electrical Contractors and Other Wiring Installation Contractors


















Senior Secured Loan



10.59%

(L +9.25%)

6/30/2022

18,500


18,346


18,553


9.8

Preferred Equity (238,095 units)









 

300


324


0.2











18,500


18,646


18,877


10.0

Maverick Healthcare Equity, LLC (5)

Home Health Equipment Rental


















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












900


132


0.1

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






























900


132


0.1

My Alarm Center, LLC (5)

Security Systems Services (except Locksmiths)


















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












1,509


1,509


0.8

Preferred Equity (1,198 Class B units)












1,198


1,198


0.6

Common Equity (64,149 units)






























2,707


2,707


1.4


10

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
September 30, 2017
(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
MYI Acquiror Limited (6)

Insurance Agencies and Brokerages


















Senior Secured Loan



5.80%

(L +4.50%)

5/28/2019

$
4,686


$
4,682


$
4,674


2.5
%





















NVA Holdings, Inc.

Veterinary Services


















Senior Secured Loan



8.33%

(L +7.00%)

8/14/2022

743


743


750


0.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
O2 Holdings, LLC (5)

Fitness and Recreational Sports Centers


















Senior Secured Loan



12.23%

(L +11.00%)

9/2/2021

10,500


10,428


10,389


5.5






















Planet Fitness Midwest LLC (5)

Fitness and Recreational Sports Centers


















Subordinated Loan



13.00%

N/A

12/16/2021

5,000


4,962


5,033


2.7






















PM Acquisition LLC

All Other General Merchandise Stores














Senior Secured Loan



11.50%

N/A

10/31/2021

6,205


6,154


6,070


3.2

Common equity (499 units) (10)












499


255


0.1











6,205


6,653


6,325


3.3

Quantum Spatial, Inc.

Other Information Services


















Senior Secured Loan



6.75%

(L +5.50%)

11/27/2017

2,382


2,382


2,375


1.3






















Ranpak Corp.

Packaging Machinery Manufacturing


















Senior Secured Loan



8.48%

(L +7.25%)

10/3/2022

1,660


1,647


1,643


0.9






















Resource Label Group, LLC

Commercial Printing (except Screen and Books)


















Senior Secured Loan



5.83%

(L +4.50%)

5/26/2023

1,912


1,894


1,897


1.0

Senior Secured Loan



9.83%

(L +8.50%)

11/26/2023

4,821


4,752


4,764


2.5











6,733


6,646


6,661


3.5

Security Alarm Financing Enterprises, L.P. (5)

Security Systems Services (except Locksmiths)


















Subordinated Loan (14)



14.00% cash / 0.3% PIK

(L +13.00%)

6/19/2020

12,514


12,422


12,253


6.5


11

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
September 30, 2017
(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
Sentry Centers Holdings, LLC

Other Professional, Scientific, and Technical Services


















Senior Secured Loan



12.74%

(L +11.50%)

7/24/2019

$
4,198


$
4,153


$
4,282


2.3
%
Preferred Equity (5,000 units) (10) (13)



 
 
 
 
 
 



516


516


0.3
%










4,198


4,669


4,798


2.6

smarTours, LLC (5)

Tour Operators


















Preferred Equity (500,000 units) (10)












439


1,424


0.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern Technical Institute, LLC (5)

Colleges, Universities, and Professional Schools


















Subordinated Loan



10.30% cash / 3.0% PIK

(L +12.00%)

12/2/2020

3,494


3,423


2,741


1.5

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












2,094


170


0.1

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







3/30/2026 (12)




46















3,494


5,563


2,911


1.6

Stancor, L.P. (5)

Pump and Pumping Equipment Manufacturing


















Senior Secured Loan



9.73%

(L +8.50%)

8/19/2019

8,382


8,354


8,343


4.4

Preferred Equity (1,250,000 units), 8% PIK (8) (10)












1,501


1,046


0.6











8,382


9,855


9,389


5.0

TravelCLICK, Inc.

Computer Systems Design and Related Services


















Senior Secured Loan



8.99%

(L +7.75%)

11/6/2021

7,334


7,300


7,401


3.9






















Truck Hero, Inc.

Truck Trailer Manufacturing


















Senior Secured Loan



9.58%

(L +8.25%)

4/21/2025

4,941


4,870


5,003


2.7

Senior Secured Loan



5.33%

(L +4.00%)

4/21/2024

1,380


1,367


1,387


0.7











6,321


6,237


6,390


3.4

United Biologics Holdings, LLC (5)

Medical Laboratories


















Senior Secured Loan (11)



12.0% cash / 2.0% PIK

N/A

4/30/2018

4,245


4,212


4,111


2.2

Subordinated Loan (10)



8.0% PIK

N/A

4/30/2019

7


7


5



Preferred Equity (151,787 units) (10)












9


20



Warrants (29,374 units) (10)







03/05/2022 (12)




82


20













4,252


4,310


4,156


2.2

Total Non-control/Non-affiliate Investments









214,012


224,616


212,206


112.4


12

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
September 30, 2017
(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
Affiliate Investments




















All Metals Holding, LLC (5)

Metal Service Centers and Other Metal Merchant Wholesalers


















Senior Secured Loan



12.0% cash / 1.0% PIK

N/A

12/28/2021

$
12,965


$
12,343


$
12,965


6.9
%
Common Equity (637,954 units) (10)












565


1,484


0.8











12,965


12,908


14,449


7.7

Contract Datascan Holdings, Inc. (5)

Office Machinery and Equipment Rental and Leasing


















Subordinated Loan



12.00%

N/A

2/5/2021

8,000


7,984


8,000


4.2