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, 2019
or
 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______

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 Identification No.
Incorporation or Organization
 
 
 
 
 
10 S. Wacker Drive, Suite 2500, Chicago, Illinois
 
60606
Address of Principal Executive Offices
 
Zip Code
 
 
 
 
(847) 734-2000
 
                                      Registrant’s Telephone Number, Including Area Code
 
 
 
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

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 every Interactive Data File required to be submitted 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 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
¨  
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, 2019 was 13,361,134.



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:
Term
Explanation or Definition
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
April 2017 Offering
The April 2017 follow-on public offering 3,625,000 shares of our common stock at an offering price of $14.57 per share
ASC
Accounting Standards Codification, as issued by the FASB
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
CLO
Collateralized loan obligation
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, as amended
FASB
Financial Accounting Standards Board
GAAP
Accounting principles generally accepted in the United States
HPCI
Hancock Park Corporate Income, Inc., a Maryland corporation and non-traded BDC 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
Indicative Prices
Market quotations, prices from pricing services or bids from brokers or dealers
Investment Advisory Agreement
Investment Advisory and Management Agreement between the Company and OFS Advisor dated November 7, 2012
IPO
Initial Public Offering
LIBOR
London Interbank Offered Rate
Net Loan Fees
The cumulative amount of fees, such as discounts, premiums and amendment fees that are deferred and recognized as income over the life of the loan.
OCCI
OFS Credit Company, Inc., a Delaware corporation and a non-diversified, closed-end management investment company for whom OFS Advisor serves as investment adviser
OFS Advisor
OFS Capital Management, LLC, a wholly owned subsidiary of OFSAM and registered investment advisor under the Investment Advisers Act of 1940, as amended
OFS Capital WM
OFS Capital WM, LLC, a wholly owned investment company subsidiary of the Company
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
PIK
Payment-in-kind, non-cash interest or dividends payable as an addition to the loan or equity security producing the income.
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

3


Term
Explanation or Definition
SBCAA
Small Business Credit Availability Act
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 OFS SBIC I GP, LLC on December 4, 2013
SBIC Act
Small Business Investment Act of 1958, as amended
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
Secured Revolver Amendment
The amended Business Loan Agreement with Pacific Western Bank, as lender, dated April 10, 2019
Stock Repurchase Program
The open market stock repurchase program for shares of the Company’s common stock under Rule 10b-18 of the Exchange Act
Structured Finance Notes
CLO subordinated debt positions. CLO subordinated debt positions are entitled to recurring distributions which are generally equal to the remaining cash flow of payments made by underlying securities less contractual payments to debt holders and fund expenses

The Order
We received exemptive relief from the SEC to permit us to co-invest in portfolio companies with certain funds managed by Affiliated Funds in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions.
Transaction Price
The cost of an arm's length transaction occurring in the same security
Unsecured Notes
The combination of the Unsecured Notes Due April 2025 and the Unsecured Notes Due October 2025
Unsecured Notes Due April 2025
The Company’s $50.0 million aggregate principal amount of 6.375% notes due April 30, 2025
Unsecured Notes Due October 2025
The Company’s $46.0 million aggregate principal amount of 6.5% notes due October 30, 2025

4


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;
our ability to incur additional leverage pursuant to the SBCAA, beginning on May 3, 2019;
competition for investment opportunities;
the ability of SBIC I LP 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.
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, 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, 2018. 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 21E of the Exchange Act.

5


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

March 31,
2019

December 31,
2018

(unaudited)


Assets





Investments, at fair value:





Non-control/non-affiliate investments (amortized cost of $323,794 and $312,223, respectively)
$
310,090


$
297,749

Affiliate investments (amortized cost of $120,199 and $90,751, respectively)
117,431


89,103

Control investment (amortized cost of $10,368 and $10,337, respectively)
10,146


9,945

Total investments at fair value (amortized cost of $454,361 and $413,311, respectively)
437,667


396,797

Cash
15,156


38,172

Interest receivable
3,787


2,787

Prepaid expenses and other assets
3,592


3,665

Total assets
$
460,202


$
441,421







Liabilities





Revolving line of credit
$
35,750


$
12,000

SBA debentures (net of deferred debt issuance costs of $2,188 and $2,280, respectively)
147,692


147,600

Unsecured notes (net of deferred debt issuance costs of $3,176 and $3,299 respectively)
95,349


95,226

Interest payable
1,478


2,791

Payable to adviser and affiliates (Note 3)
3,767


3,700

Payable for investments purchased
1,027


4,151

Accrued professional fees
662


637

Other liabilities
219


293

Total liabilities
285,944


266,398







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, 2019, and December 31, 2018, respectively
$


$

Common stock, par value of $0.01 per share, 100,000,000 shares authorized, 13,361,134 and 13,357,337 shares issued and outstanding as of March 31, 2019, and December 31, 2018, respectively
134


134

Paid-in capital in excess of par
187,604


187,540

Total distributable earnings (losses)
(13,480
)

(12,651
)
Total net assets
174,258


175,023







Total liabilities and net assets
$
460,202


$
441,421







Number of shares outstanding
13,361,134


13,357,337

Net asset value per share
$
13.04


$
13.10


See Notes to Consolidated Financial Statements.

6


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


Three Months Ended March 31,


2019

2018
Investment income






Interest income:






Non-control/non-affiliate investments

$
8,642


$
5,758

Affiliate investments

2,333


2,085

Control investment

259


239

Total interest income

11,234


8,082

Payment-in-kind interest and dividend income:






Non-control/non-affiliate investments

97


224

Affiliate investments

252


461

Control investment

27


27

Total payment-in-kind interest and dividend income

376


712

Dividend income:






Affiliate investments

173


130

Control investment



33

Total dividend income

173


163

Fee income:






Non-control/non-affiliate investments

342


26

Affiliate investments

205


2

Control investment

15


18

Total fee income

562


46

Total investment income

12,345


9,003

Expenses






Interest and financing expense

3,455


1,634

Management fee

1,843


1,360

Incentive fee

1,163


736

Professional fees

535


201

Administration fee

437


583

Other expenses

84


695

Total expenses before incentive fee waiver

7,517


5,209

Incentive fee waiver (see Note 3)



(22
)
Total expenses, net of incentive fee waiver

7,517


5,187

Net investment income

4,828


3,816








Net realized and unrealized gain (loss) on investments






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

(804
)

461

Net realized loss on affiliate investments



(541
)
Net unrealized appreciation (depreciation) on non-control/non-affiliate investments

658


(1,563
)
Net unrealized appreciation (depreciation) on affiliate investments

(1,120
)

1,245

Net unrealized appreciation on control investment

170


75








Net loss on investments

(1,096
)

(323
)







Net increase in net assets resulting from operations

$
3,732


$
3,493








Net investment income per common share – basic and diluted

$
0.36


$
0.29

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

$
0.28


$
0.26

Distributions declared per common share

$
0.34


$
0.71

Basic and diluted weighted average shares outstanding

13,357,464


13,340,502

See Notes to Consolidated Financial Statements.

7


OFS Capital Corporation and Subsidiaries
Consolidated Statements of Changes in Net Assets (unaudited)
(Dollar amounts in thousands)
 
Preferred stock
 
Common Stock
 
 
 
 
 
 
 
Number of shares
 
Par value
 
Number of shares
 
Par value
 
Paid-in capital in excess of par
 
Total distributable earnings (losses)
 
Total net assets
Balances at January 1, 2018

 

 
13,340,217


$
133


$
187,398


$
805


$
188,336

Net increase in net assets resulting from operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
  Net investment income

 

 

 

 

 
3,816

 
3,816

  Net realized loss on investments

 

 

 

 

 
(80
)
 
(80
)
  Net unrealized depreciation on investments

 

 






(243
)

(243
)
  Tax reclassifications of permanent differences

 

 

 

 
18

 
(18
)
 

Distributions to stockholders:
 
 
 
 
 
 
 
 
 
 
 
 
 
  Common stock issued from reinvestment of stockholder distributions

 

 
8,557

 

 
96

 

 
96

  Dividends declared

 

 






(9,472
)

(9,472
)
Total increase (decrease) for the period ended March 31, 2018

 

 
8,557

 

 
114

 
(5,997
)
 
(5,883
)
Balances at March 31, 2018

 

 
13,348,774

 
$
133

 
$
187,512

 
$
(5,192
)
 
$
182,453

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances at January 1, 2019

 

 
13,357,337


$
134


$
187,540


$
(12,651
)

$
175,023

Net increase in net assets resulting from operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
  Net investment income

 

 

 

 

 
4,828

 
4,828

  Net realized loss on investments

 

 

 

 

 
(804
)
 
(804
)
  Net unrealized depreciation on investments

 

 

 

 

 
(292
)
 
(292
)
  Tax reclassifications of permanent differences

 

 

 

 
19

 
(19
)
 

Distributions to stockholders:
 
 
 
 
 
 
 
 
 
 
 
 
 
  Common stock issued from reinvestment of stockholder distributions

 

 
3,797

 

 
45

 

 
45

  Dividends declared

 

 

 

 

 
(4,542
)
 
(4,542
)
Total increase (decrease) for the period ended March 31, 2019

 

 
3,797

 

 
64

 
(829
)
 
(765
)
Balances at March 31, 2019

 

 
13,361,134

 
$
134

 
$
187,604

 
$
(13,480
)
 
$
174,258


See Notes to Consolidated Financial Statements.

8


OFS Capital Corporation and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(Dollar amounts in thousands)
 
Three Months Ended March 31,
 
2019
 
2018
Cash flows from operating activities
 
 
 
Net increase in net assets resulting from operations
$
3,732


$
3,493

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





Net realized loss on investments
804


80

Net unrealized depreciation on investments
292


243

Amortization of Net Loan Fees
(178
)

(275
)
Payment-in-kind interest and dividend income
(377
)

(712
)
Accretion of interest income on structured-finance notes
(467
)
 

Amortization of debt issuance costs
277


144

Amortization of intangible asset
49


49

Purchase and origination of portfolio investments
(63,630
)

(98,208
)
Proceeds from principal payments on portfolio investments
6,013


13,025

Proceeds from sale or redemption of portfolio investments
16,328


28,203

Proceeds from distributions received from portfolio investments
433



Changes in operating assets and liabilities:



 
Interest receivable
(1,000
)

(181
)
Interest payable
(1,313
)

(1,186
)
Payable to adviser and affiliates
67


361

Other assets and liabilities
(3,297
)

137

Net cash used in operating activities
(42,267
)

(54,827
)
 
 
 
 
Cash flows from financing activities
 
 
 
Distributions paid to stockholders
(4,496
)

(9,376
)
Borrowings under revolving line of credit
36,500


46,250

Repayments under revolving line of credit
(12,750
)

(22,900
)
Payment of debt issuance costs


(173
)
Repurchases of common stock under Stock Repurchase Program
(3
)
 

Net cash provided by financing activities
19,251


13,801

Net decrease in cash
(23,016
)

(41,026
)
   Cash — beginning of period
38,172


72,952

   Cash — end of period
$
15,156


$
31,926

 
 
 
 
Supplemental Disclosure of Cash Flow Information:
 
 
 
Cash paid during the period for interest
$
4,491


$
2,676

Reinvestment of stockholder common stock
45


96


See Notes to Consolidated Financial Statements.

9

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments
March 31, 2019
(Dollar amounts in thousands)


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




















Debt and Equity Investments
 
 




















Baymark Health Services, Inc.

Outpatient Mental Health & Sub. Abuse Centers




















Senior Secured Loan



10.74%

(L +8.25%)

3/22/2018

3/1/2025

$
4,000


$
3,966


$
3,960


2.3
%























Brookfield WEC Holdings Inc.,

Business to Business Electronic Markets




















Senior Secured Loan



9.25%

(L +6.75%)

12/6/2018

8/3/2026

1,959


1,959


1,969


1.1
























Carolina Lubes, Inc. (4)

Automotive Oil Change and Lubrication Shops




















Senior Secured Loan (8)



10.61%

(L +7.82%)

8/23/2017

8/23/2022

20,696


20,572


20,920


12.0

Senior Secured Loan (Revolver)



0.25% (18)

(L +7.25%)

8/23/2017

8/23/2022



(10
)
















20,696

 
20,562

 
20,920

 
12.0

Cenexel Clinical Research Holdings, Inc. (f/k/a JBR Clinical Research, Inc.) (4) (8)

Research and Development in the Social Sciences and Humanities




















Senior Secured Loan



10.61%

(L +7.79%)

8/2/2018

8/2/2023

22,419


22,283


22,059


12.8
























Cirrus Medical Staffing, Inc. (4)

Temporary Help Services




















Senior Secured Loan



10.85%

(L +8.25%)

3/5/2018

10/19/2022

12,835


12,699


12,573


7.2

Senior Secured Loan (Revolver)



10.85%

(L +8.25%)

3/5/2018

10/19/2022

26


26


25















12,861


12,725


12,598


7.2

Community Intervention Services, Inc. (4) (6) (10) (11)

Outpatient Mental Health and Substance Abuse Centers




















Subordinated  Loan



7.0% cash / 6.0% PIK

N/A

7/16/2015

1/16/2021

9,196


7,639




























Confie Seguros Holdings II Co.

Insurance Agencies and Brokerages




















Senior Secured Loan



11.13%

(L +8.50%)

7/7/2015

11/1/2025

9,678


9,495


9,417


5.4
























Constellis Holdings, LLC

Other Justice, Public Order, and Safety Activities




















Senior Secured Loan



11.74%

(L +9.00%)

4/28/2017

4/21/2025

9,950


9,836


9,442


5.4

























10

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
March 31, 2019
(Dollar amounts in thousands)


Portfolio Company (1)
Investment Type
 
Industry
 
Interest Rate (2)
 
Spread Above Index (2)
 
Initial Acquisition Date
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value (3)
 
Percent of Net Assets
Convergint Technologies

Security Systems Services (except Locksmiths)




















Senior Secured Loan



9.25%

(L +6.75%)

9/28/2018

2/2/2026

$
3,481


$
3,424


$
3,433


2.0
%























Davis Vision, Inc.

Direct Health and Medical Insurance Carriers




















Senior Secured Loan



9.25%

(L +6.75%)

7/17/2018

12/1/2025

5,854


5,705


5,749


3.3
























DuPage Medical Group

Offices of Physicians, Mental Health Specialists




















Senior Secured Loan



9.49%

(L +7.00%)

8/22/2017

8/15/2025

10,099


10,181


10,079


5.8
























Eblens Holdings, Inc.

Shoe Store




















Subordinated Loan (11)



12.0% cash / 1.0% PIK

N/A

7/13/2017

1/13/2023

8,942


8,881


8,843


5.1

Common Equity (71,250 Class A units) (10)







7/13/2017






713


813


0.5













8,942


9,594


9,656


5.6

Elgin Fasteners Group

Bolt, Nut, Screw, Rivet, and Washer Manufacturing




















Senior Secured Loan



9.10%

(L +6.50%)

10/31/2011

8/27/2018

3,591


3,591


3,427


2.0
























Envocore Holding, LLC (FKA LRI Holding, LLC) (4)

Electrical Contractors and Other Wiring Installation Contractors




















Senior Secured Loan



11.85%

(L +9.25%)

6/30/2017

6/30/2022

17,112


16,993


15,760


9.0

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







6/30/2017






300


74



Preferred Equity (13,315 Series C units) (10)







8/13/2018






13


15















17,112


17,306


15,849


9.0

Excelin Home Health, LLC

Home Health Care Services




















Senior Secured Loan



12.10%

(L +9.50%)

10/25/2018

4/25/2024

4,250


4,172


4,161


2.4
























GGC Aerospace Topco L.P.

Other Aircraft Parts and Auxiliary Equipment Manufacturing




















Senior Secured Loan



11.37%

(L +8.75%)

12/29/2017

9/8/2024

5,000


4,898


4,000


2.3

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







12/29/2017






450


140


0.1

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







12/29/2017






50


6















5,000


5,398


4,146


2.4


11

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
March 31, 2019
(Dollar amounts in thousands)


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

Supermarkets and Other Grocery (except Convenience) Stores




















Senior Secured Loan



9.85%

(L +7.25%)

10/17/2018

10/22/2026

$
1,400


$
1,387


$
1,403


0.8
%























Hyland Software, Inc.

Software Publishers




















Senior Secured Loan



6.00%

(L +3.50%)

10/24/2018

7/1/2024

173


173


173


0.1

Senior Secured Loan



9.50%

(L +7.00%)

10/24/2018

7/7/2025

2,601


2,619


2,598


1.5













2,774


2,792


2,771


1.6

Inergex Holdings, LLC

Other Computer Related Services




















Senior Secured Loan



9.80%

(L +7.00%)

10/1/2018

10/1/2024

13,092


12,911


12,790


7.3

Senior Secured Loan (Revolver)



11.50%

(Prime + 6.00%)

10/1/2018

10/1/2024

516


490


504


0.3













13,608


13,401


13,294


7.6

Institutional Shareholder Services Inc.

Administrative Management and General Management Consulting Services




















Senior Secured Loan



11.12%

(L +8.50%)

3/4/2019

3/5/2027

6,244


6,058


6,058


3.5
























MAI Holdings, Inc. (4)

Printing Machinery and Equipment Manufacturing




















Senior Secured Loan



9.50%

N/A

6/21/2018

6/1/2023

5,000


5,000


2,950


1.7
























My Alarm Center, LLC (4) (10) (13)

Security Systems Services (except Locksmiths)




















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







7/14/2017






1,571


1,221


0.7

Preferred Equity (1,198 Class B units)







7/14/2017






1,198





Preferred Equity (335 Class Z units)







9/12/2018






325


1,038


0.6

Common Equity (64,149 units)







7/14/2017


























3,094


2,259


1.3

Online Tech Stores, LLC (4)

Stationary & Office Supply Merchant Wholesaler




















Subordinated Loan



10.50% cash / 1.0% PIK

N/A

2/1/2018

8/1/2023

16,188


15,936


16,121


9.3
























OnSite Care, PLLC (4) (8)

Home Health Care Services




















Senior Secured Loan



10.34%

(L +7.83%)

8/10/2018

8/10/2023

7,100


7,038


6,994


4.0

























12

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
March 31, 2019
(Dollar amounts in thousands)


Portfolio Company (1)
Investment Type
 
Industry
 
Interest Rate (2)
 
Spread Above Index (2)
 
Initial Acquisition Date
 
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



11.36%

(L +8.75%)

11/16/2017

6/30/2025

$
6,320


$
6,333


$
6,352


3.6
%



















Pelican Products, Inc.

Unlaminated Plastics Profile Shape Manufacturing




















Senior Secured Loan



10.23%

(L +7.75%)

9/24/2018

5/1/2026

6,055


6,060


5,982


3.4
























Performance Team LLC (4)

General Warehousing and Storage




















Senior Secured Loan



12.50%

(L +10.00%)

5/24/2018

11/24/2023

20,300


20,128


20,502


11.8
























PM Acquisition LLC

All Other General Merchandise Stores
















Senior Secured Loan



11.50% cash / 2.5% PIK

N/A

9/30/2017

10/29/2021

5,497


5,424


5,195


3.0

Common Equity (499 units) (10) (13)







9/30/2017






499


107


0.1













5,497


5,923


5,302


3.1

Resource Label Group, LLC

Commercial Printing (except Screen and Books)




















Senior Secured Loan



11.30%

(L +8.50%)

6/7/2017

11/26/2023

4,821


4,769


4,739


2.7
























Rocket Software, Inc.

Software Publishers




















Senior Secured Loan



6.75%

(L +4.25%)

11/20/2018

11/28/2025

670


667


670


0.4

Senior Secured Loan



10.75%

(L +8.25%)

11/20/2018

11/19/2026

6,275


6,165


6,319


3.6













6,945


6,832


6,989


4.0

RPLF Holdings, LLC (10) (13)

Software Publishers




















Common Equity (254,110 Class A units)







1/17/2018






254


285


0.2
























Sentry Centers Holdings, LLC

Other Professional, Scientific, and Technical Services




















Senior Secured Loan (15)



13.50%

(L +11.50%)

1/25/2016

7/24/2020

8,850


8,805


8,757


5.0

Common Equity (5,000 Series C units) (10) (13)







3/31/2014





500


1,160


0.7













8,850


9,305


9,917


5.7


13

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued
March 31, 2019
(Dollar amounts in thousands)


Portfolio Company (1)
Investment Type
 
Industry
 
Interest Rate (2)
 
Spread Above Index (2)
 
Initial Acquisition Date
 
Maturity
 
Principal Amount
 
Amortized Cost
 
Fair Value (3)
 
Percent of Net Assets
Southern Technical Institute, LLC (4) (6) (10)

Colleges, Universities, and Professional Schools




















Subordinated Loan



6.00% PIK

N/A

6/27/2018

12/31/2021

$
1,540


$


$


%
Other