Debt Facility Designed to Focus on Senior Secured Loans
Waives 75 Basis Points of Base Management Fees on Assets Held in Subsidiary
The new entity will primarily hold first lien loans, including unitranche loans. Management believes that the Credit Facility will provide sponsors and management teams with continued access to flexible capital and improve OFS Capital’s deal flow.
“We are excited to announce this new financing arrangement, which we believe will improve OFS’s return on equity,” said
The Credit Facility has a five-year term with a three-year investment period, during which pricing will range from Libor plus 160-250 basis points, depending on asset type.
The Credit Facility is secured by all of the assets held by the new subsidiary and includes customary covenants, including minimum asset coverage and minimum equity requirements.
The description above is only a summary of the material provisions of the Credit Facility and is qualified in its entirety by reference to the documentation for the Credit Facility.
The Company is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company. The Company's investment objective is to provide stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments. The Company invests primarily in privately held middle-market companies in
Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating to: management’s belief that the Credit Facility will provide sponsors and management teams with continued access to flexible capital and improve OFS Capital’s deal flow; management’s belief that the Credit Facility will benefit