Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
ýQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
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)
Delaware46-1339639
State or Other Jurisdiction ofI.R.S. Employer Identification No.
Incorporation or Organization
10 S. Wacker Drive, Suite 2500, Chicago, Illinois60606
Address of Principal Executive OfficesZip Code
(847) 734-2000
Registrant’s Telephone Number, Including Area Code
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareOFSThe Nasdaq Global Select Market
4.95% Notes due 2028OFSSHThe Nasdaq Global Select Market

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¨
Non-accelerated filerSmaller 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 2, 2022 was 13,425,429.



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.




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:
TermExplanation or Definition
1940 ActInvestment Company Act of 1940, as amended
Administration AgreementAdministration Agreement between the Company and OFS Services dated November 7, 2012
Affiliated AccountAn account, other than the Company, managed by OFS Advisor or an affiliate of OFS Advisor
Affiliated Fund
Certain other funds, including other BDCs and registered investment companies managed by OFS Advisor or by registered investment advisers controlling, controlled by, or under common control with, OFS Advisor
ASCAccounting Standards Codification, as issued by the FASB
ASUAccounting Standards Updates, as issued by the FASB
BDCBusiness Development Company under the 1940 Act
BLABusiness Loan Agreement, as amended, with Pacific Western Bank, as lender, which provides the Company with a senior secured revolving credit facility
BNP FacilityA secured revolving credit facility that provides for borrowings in an aggregate principal amount up to $150,000,000 issued pursuant to a Revolving Credit and Security Agreement by and among OFSCC-FS, the lenders from time to time parties thereto, BNP Paribas, as administrative agent, OFSCC-FS Holdings, LLC, a wholly owned subsidiary of the Company, as equityholder, the Company, as servicer, Citibank, N.A., as collateral agent and Virtus Group, LP, as collateral administrator
BoardThe Company's board of directors
CLOCollateralized loan obligation
CodeInternal Revenue Code of 1986, as amended
CompanyOFS Capital Corporation and its consolidated subsidiaries
DRIPDistribution reinvestment plan
EBITDAEarnings before interest, taxes, depreciation and amortization
Exchange ActSecurities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
GAAPAccounting principles generally accepted in the United States
HPCIHancock Park Corporate Income, Inc., a Maryland corporation and non-traded BDC for whom OFS Advisor serves as investment adviser
ICTIInvestment company taxable income, which is generally net ordinary income plus net short-term capital gains in excess of net long-term capital losses
Indicative PricesMarket quotations, prices from pricing services or bids from brokers or dealers
Investment Advisory AgreementInvestment Advisory and Management Agreement between the Company and OFS Advisor dated November 7, 2012
LIBORLondon Interbank Offered Rate
NAVNet asset value. NAV is calculated as consolidated total assets less consolidated total liabilities and can be expressed in the aggregate or on a per share basis
Net Loan FeesThe cumulative amount of fees, such as origination fees, discounts, premiums and amendment fees that are deferred and recognized as income over the life of the loan
OCCIOFS Credit Company, Inc., a Delaware corporation and a non-diversified, closed-end management investment company for whom OFS Advisor serves as investment adviser
OFS AdvisorOFS Capital Management, LLC, a wholly owned subsidiary of OFSAM and registered investment advisor under the Investment Advisers Act of 1940, as amended
OFS ServicesOFS Capital Services, LLC, a wholly owned subsidiary of OFSAM and affiliate of OFS Advisor
OFSAMOrchard First Source Asset Management, LLC, a full-service provider of capital and leveraged finance solutions to U.S. corporations
OFSCC-FSOFSCC-FS, LLC, an indirect wholly owned subsidiary of the Company



TermExplanation or Definition
OFSCC-FS AssetsAssets held by the Company through OFSCC-FS
OFSCC-MBOFSCC-MB, Inc., a wholly owned subsidiary taxed under subchapter C of the Code that generally holds the equity investments of the Company that are taxed as pass-through entities
OIDOriginal issue discount
OrderAn exemptive relief order from the SEC to permit us to co-invest in portfolio companies with 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
ParentOFS Capital Corporation
PIKPayment-in-kind, non-cash interest or dividends payable as an addition to the loan or equity security producing the income
Portfolio Company InvestmentA debt or equity investment in a portfolio company. Portfolio Company Investments exclude Structured Finance Notes
Prime RateUnited States Prime interest rate
PWB Credit FacilitySenior secured revolving credit facility between the Company and Pacific Western Bank, as lender
RICRegulated investment company under the Code
SBAUnited States Small Business Administration
SBICA fund licensed under the SBA Small Business Investment Company Program
SBIC AcquisitionThe Company's acquisition of the remaining ownership interests in SBIC I LP and OFS SBIC I GP, LLC on December 4, 2013
SBIC ActSmall Business Investment Act of 1958, as amended
SBIC I LPOFS SBIC I, LP, a wholly owned SBIC subsidiary of the Company
SBIC I GPOFS SBIC I GP, LLC
SECUnited States Securities and Exchange Commission
Securities ActSecurities Act of 1933, as amended
SOFRSecured Overnight Financing Rate
Stock Repurchase ProgramThe open market stock repurchase program for shares of the Company’s common stock under Rule 10b-18 of the Exchange Act
Structured Finance NotesCLO mezzanine debt, CLO subordinated debt and CLO loan accumulation facility positions
Transaction PriceThe price in an arm's length transaction involving the same security
Unsecured NotesThe Unsecured Notes Due September 2023, the Unsecured Notes Due April 2025, the Unsecured Notes Due October 2025, the Unsecured Notes Due October 2026, Unsecured Notes Due February 2026 and the Unsecured Notes Due October 2028
Unsecured Notes Due April 2025 The Company’s $50.0 million aggregate principal amount of 6.375% notes due April 30, 2025, which were redeemed on March 12, 2021
Unsecured Notes Due February 2026    The Company’s $125.0 million aggregate principal amount of 4.75% notes due February 10, 2026
Unsecured Notes Due October 2025The Company’s $48.5 million aggregate principal amount of 6.5% notes due October 30, 2025, which were redeemed on March 12, 2021
Unsecured Notes Due October 2026The Company's $54.3 million aggregate principal amount of 5.95% notes due October 31, 2026, which were redeemed on November 22, 2021
Unsecured Notes Due October 2028The Company’s $55.0 million aggregate principal amount of 4.95% notes due October 31, 2028
Unsecured Notes Due September 2023The Company’s $25.0 million aggregate principal amount of 6.25% notes due September 30, 2023, which were redeemed on November 1, 2021



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;
the belief that the carrying amounts of our financial instruments, such as cash, receivables and payables approximate the fair value of such items due to the short maturity of such instruments and that such financial instruments are held with high credit quality institutions to mitigate the risk of loss due to credit risk;
actual and potential conflicts of interest with OFS Advisor and other affiliates of OFSAM;
restrictions on our ability to enter into transactions with our affiliates;
the impact of interest and inflation rates on our business prospects and the prospects of our portfolio companies;
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 Section 61(a)(2) of the 1940 Act and the impact of such leverage on our net investment income and results of operations;
competition for investment opportunities;
our plans to focus on lower-yielding, first lien senior secured loans to larger borrowers and the impact on our risk profile, including our belief that the seniority of such loans in a borrower's capital structure may provide greater downside protection against the impact of the coronavirus (“COVID-19”) pandemic;
the percentage of investments that will bear interest on a floating rate or fixed rate basis;
interest rate volatility, including the transition from LIBOR to one or more alternative reference rate(s); the related potential disputes between market participants regarding the interpretation and enforceability of provisions related to the economic floors in our LIBOR-based investments (or lack thereof), which may result in a loss or degradation of floor protection;
the ability of SBIC I LP to make distributions enabling us to meet RIC requirements;
plans by SBIC I LP to repay its outstanding SBA debentures;
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;
changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets, including with respect to changes from the impact of the COVID-19 pandemic; the economic impact of the pandemic; the effect of the COVID-19 pandemic on our business, financial condition, results of operations and fair value of our portfolio investments;
the impact of the ongoing conflict between Russia and Ukraine;
1


the belief that we have sufficient levels of liquidity to support our existing portfolio companies and deploy capital in new investment opportunities;
the belief that long-dated financing affords us operational flexibility;
the fluctuation of the fair value of our investments due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value; 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 “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021, filed on March 4, 2022, and this Quarterly Report on Form 10-Q. 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 Report on Form 10-Q are excluded from the safe harbor protection provided by Section 21E of the Exchange Act.
2


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,
2022
December 31,
2021
(unaudited)
Assets
Investments, at fair value:
Non-control/non-affiliate investments (amortized cost of $484,150 and $428,398 respectively)$472,538 $421,567 
Affiliate investments (amortized cost of $17,651 and $17,650, respectively)84,376 72,584 
Control investment (amortized cost of $0 and $11,264, respectively)— 12,948 
Total investments at fair value (amortized cost of $501,801 and $457,312, respectively)556,914 507,099 
Cash10,473 43,048 
Interest receivable2,092 1,475 
Receivable for investments sold— 14,893 
Prepaid expenses and other assets2,256 2,533 
Total assets$571,735 $569,048 
Liabilities
Revolving lines of credit$114,650 $100,000 
SBA debentures (net of deferred debt issuance costs of $367 and $555, respectively)50,553 69,365 
Unsecured notes (net of deferred debt issuance costs of $4,414 and $4,554 respectively)175,586 175,446 
Interest payable1,657 3,685 
Payable to adviser and affiliates (Note 3)5,904 6,217 
Payable for investments purchased13,037 8,788 
Accrued professional fees489 452 
Other liabilities1,473 1,351 
Total liabilities363,349 365,304 
Commitments and contingencies (Note 6)
Net assets
Preferred stock, par value of $0.01 per share, 2,000,000 shares authorized, -0- shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively$— $— 
Common stock, par value of $0.01 per share, 100,000,000 shares authorized, 13,425,429 and 13,422,413 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively134 134 
Paid-in capital in excess of par185,152 185,113 
Total distributable earnings23,100 18,497 
Total net assets208,386 203,744 
Total liabilities and net assets$571,735 $569,048 
Number of shares outstanding13,425,429 13,422,413 
Net asset value per share$15.52 $15.18 

See Notes to Consolidated Financial Statements.
3


OFS Capital Corporation and Subsidiaries
Consolidated Statements of Operations (unaudited)
(Dollar amounts in thousands, except per share data)
Three Months Ended March 31,
20222021
Investment income
Interest income:
Non-control/non-affiliate investments
$9,647 $8,845 
Affiliate investments
— 928 
Control investment
141 367 
Total interest income
9,788 10,140 
Dividend income:
Non-control/non-affiliate investments
713 — 
Affiliate investments
— 47 
Control investment
45 — 
Total dividend income
758 47 
Fee income:
Non-control/non-affiliate investments
394 267 
Affiliate investments
— 37 
Control investment
— 
Total fee income
400 304 
Total investment income
10,946 10,491 
Expenses
Interest expense3,624 4,825 
Management fee2,020 1,834 
Capital Gains Fee1,072 — 
Professional fees407 387 
Administration fee451 568 
Other expenses367 327 
Total expenses7,941 7,941 
     Net investment income
3,005 2,550 
Net realized and unrealized gain (loss) on investments
Net realized gain (loss) on non-control/non-affiliate investments(13)91 
Net realized gain on control investments278 — 
Income tax expense on net realized investment gains(48)— 
Net unrealized appreciation (depreciation) on non-control/non-affiliate investments(4,784)1,584 
Net unrealized appreciation on affiliate investments11,792 1,926 
Net unrealized appreciation (depreciation) on control investment
(1,684)388 
Deferred tax expense on investments net unrealized appreciation(41)(66)
Net gain on investments5,500 3,923 
Loss on extinguishment of debt(144)(2,299)
Net increase in net assets resulting from operations$8,361 $4,174 
Net investment income per common share – basic and diluted
$0.22 $0.19 
Net increase in net assets resulting from operations per common share – basic and diluted$0.62 $0.31 
Distributions declared per common share$0.28 $0.20 
Basic and diluted weighted average shares outstanding13,422,447 13,409,033 
See Notes to Consolidated Financial Statements.
4

OFS Capital Corporation and Subsidiaries
Consolidated Statements of Changes in Net Assets (unaudited)
(Dollar amounts in thousands)


Preferred StockCommon StockPaid-in capital in excess of parTotal distributable earnings (losses)Total net assets
Number of sharesPar valueNumber of sharesPar value
Balances at December 31, 2020— $— 13,409,559 $134 $187,124 $(28,302)$158,956 
Net increase in net assets resulting from operations:
  Net investment income— — — — — 2,550 2,550 
  Net realized gain on investments, net of taxes— — — — — 91 91 
Loss on extinguishment of debt— — — — — (2,299)(2,299)
  Net unrealized appreciation on investments, net of taxes— — — — — 3,832 3,832 
Distributions to stockholders:
  Common stock issued from reinvestment of stockholder distributions
— — 3,103 — 27 — 27 
  Dividends declared— — — — — (2,682)(2,682)
Common stock repurchased under stock repurchase program— — (700)— (5)— (5)
Net increase for the three month period ended March 31, 2021— — 2,403 — 22 1,492 1,514 
Balances at March 31, 2021— $— 13,411,962 $134 $187,146 $(26,810)$160,470 
Balances at December 31, 2021— $— 13,422,413 $134 $185,113 $18,497 $203,744 
Net increase in net assets resulting from operations:
  Net investment income— — — — — 3,005 3,005 
  Net realized gain on investments, net of taxes— — — — — 217 217 
  Loss on extinguishment of debt— — — — — (144)(144)
  Net unrealized appreciation on investments, net of taxes— — — — — 5,283 5,283 
Distributions to stockholders:
  Common stock issued from reinvestment of stockholder distributions
— — 3,016 — 39 — 39 
  Dividends declared— — — — — (3,758)(3,758)
Net increase for the three month period ended March 31, 2022— — 3,016 — 39 4,603 4,642 
Balances at March 31, 2022— $— 13,425,429 $134 $185,152 $23,100 $208,386 

See Notes to Consolidated Financial Statements.
5


OFS Capital Corporation and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(Dollar amounts in thousands)
Three Months Ended March 31,
20222021
Cash flows from operating activities
Net increase in net assets resulting from operations$8,361 $4,174 
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized gain on investments(265)(91)
Income tax expense on net realized investment gains48 — 
Loss on extinguishment of debt
144 2,299 
Net unrealized appreciation on investments, net of taxes(5,283)(3,832)
Amortization of Net Loan Fees
(284)(401)
Amendment fees collected
90 97 
Payment-in-kind interest and dividend income
(270)(487)
Accretion of interest income on Structured Finance Notes(2,282)(2,278)
Amortization of debt issuance costs
375 446 
Amortization of intangible asset
103 54 
Purchase and origination of portfolio investments
(70,164)(68,498)
Proceeds from principal payments on portfolio investments
19,606 48,609 
Proceeds from sale or redemption of portfolio investments
3,143 566 
Proceeds from distributions received from Structured Finance Notes5,743 2,621 
Changes in operating assets and liabilities:
Interest receivable
(617)779 
Interest payable
(2,028)(1,316)
Payable to adviser and affiliates
(313)(454)
Receivable for investment sold
14,893 (474)
Payable for investments purchased
4,249 24,516 
Other assets and liabilities
367 (507)
Net cash provided by (used in) operating activities(24,384)5,823 
Cash flows from financing activities
Distributions paid to stockholders
(3,719)(2,655)
Borrowings under revolving lines of credit
14,650 12,900 
Repayments under revolving lines of credit
— (25,400)
Repayments of SBA debentures
(19,000)(9,765)
Redemption of unsecured notes— (98,525)
Proceeds from unsecured notes offering, net of discounts
— 121,791 
Payment of deferred financing costs
(122)(231)
Repurchases of common stock under Stock Repurchase Program
— (5)
Net cash used in financing activities(8,191)(1,890)
Net increase (decrease) in cash(32,575)3,933 
   Cash at beginning of period43,048 37,708 
   Cash at end of period$10,473 $41,641 
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest
$5,277 $5,695 
Reinvestment of distributions to stockholders
39 27 
See Notes to Consolidated Financial Statements.
6

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (unaudited)
March 31, 2022
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Non-control/Non-affiliate Investments
Debt and Equity Investments
24 Seven Holdco, LLC (15)Temporary Help Services
Senior Secured Loan7.00%(L +6.00%)1/28/202211/16/2027$8,978 $8,912 $8,912 4.3 %
AAdvantage Loyalty IP Ltd. and American Airlines, Inc. (14) (15) (22)Scheduled Passenger Air Transportation
Senior Secured Loan5.50%(L +4.75%)3/10/20214/20/2028364 360 369 0.2 
Aegion Corporation (15) (22)Water and Sewer Line and Related Structures Construction
Senior Secured Loan5.50%(L +4.75%)4/1/20215/17/20282,432 2,400 2,392 1.1 
Allen Media, LLC (14) (15)Cable and Other Subscription Programming
Senior Secured Loan5.73%(SOFR +5.50%)3/2/20212/10/20273,797 3,791 3,773 1.8 
All Star Auto Lights, Inc. (4) (15)Motor Vehicle Parts (Used) Merchant Wholesalers
Senior Secured Loan7.50%(L +6.50%)12/19/20198/20/202523,276 22,970 23,187 11.1 
Astro One Acquisition CorporationOther Miscellaneous Nondurable Goods Merchant Wholesalers
Senior Secured Loan9.51%(L +8.50%)1/31/20229/14/20293,000 2,644 2,644 1.3 
Atlantis Holding, LLC (15)Electronics and Appliance Stores
Senior Secured Loan7.55%(L +7.25%)3/29/20223/29/20298,421 8,108 8,108 3.9 
Autokiniton US Holdings, Inc. (14) (15)Automotive Parts and Accessories Stores
Senior Secured Loan5.00%(L +4.50%)3/26/20214/6/20282,696 2,688 2,665 1.3 
Avison Young (15) (22)Nonresidential Property Managers
Senior Secured Loan6.05%(L +5.75%)11/25/20211/31/20263,977 3,960 3,977 1.9 
Bass Pro Group, LLC (14) (15)Sporting Goods Stores
Senior Secured Loan4.50%(L +3.75%)2/26/20213/6/20281,963 1,953 1,958 0.9 
7

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2022
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Baymark Health Services, Inc. (15)Outpatient Mental Health & Sub. Abuse Centers
Senior Secured Loan9.50%(L +8.50%)6/10/20216/11/2028$4,962 $4,896 $5,012 2.4 %
Senior Secured Loan (Delayed Draw) (5)9.50%(L +8.50%)6/10/20216/11/20282,760 2,640 2,845 1.4 
7,722 7,536 7,857 3.8 
Boca Home Care Holdings, Inc. (20)Services for the Elderly and Persons with Disabilities
Senior Secured Loan (Delayed Draw) (5) (15)7.50%(SOFR +6.50%)2/25/20222/25/20271,290 1,192 1,192 0.6 
Senior Secured Loan (Revolver) (5)n/m (18)(SOFR +6.50%)2/25/20222/25/2027— (13)(13)— 
Common Equity (1,290 Class A units) (10) (13)2/25/2022— 1,290 1,290 0.6 
1,290 2,469 2,469 1.2 
Constellis Holdings, LLC (10)Other Justice, Public Order, and Safety Activities
Common Equity (20,628 common shares)3/27/2020703 29 — 
Convergint Technologies Holdings, LLCSecurity Systems Services (except Locksmiths)
Senior Secured Loan7.50%(L +6.75%)9/28/20183/30/20294,838 4,827 4,887 2.3 
Corel Inc. (14) (15)Software Publishers
Senior Secured Loan5.51%(L +5.00%)3/2/20217/2/20262,242 2,236 2,242 1.1 
Creation Technologies (15) (22)Bare Printed Circuit Board Manufacturing
Senior Secured Loan6.00%(L +5.50%)9/24/202110/5/20282,000 1,985 1,979 0.9 
Dessert HoldingsIce Cream and Frozen Dessert Manufacturing
Senior Secured Loan (15)5.01%(Prime +4.00%)2/2/20226/10/2028963 958 958 0.5 
Senior Secured Loan8.26%(Prime +7.25%)2/2/20226/8/20291,667 1,638 1,638 0.8 
2,630 2,596 2,596 1.3 
DHX Media Ltd. (14) (15) (22)Motion Picture and Video Production
Senior Secured Loan5.00%(L +4.25%)3/19/20213/18/20283,964 3,921 3,940 1.9 
Diamond Sports Group, LLC (14) (15)Television Broadcasting
Senior Secured Loan9.00%(SOFR +8.00%)3/9/20225/25/2026254 247 259 0.1 
Senior Secured Loan3.44%(SOFR +3.25%)11/19/20198/24/20261,950 1,950 676 0.3 
2,204 2,197 935 0.4 
8

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2022
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Directv Financing, LLC (14) (15)Wired Telecommunications Carriers
Senior Secured Loan5.75%(L +5.00%)7/22/20218/2/2027$4,294 $4,287 $4,295 2.1 %
East West Manufacturing (15)Fluid Power Pump and Motor Manufacturing
Senior Secured Loan6.50%(L +5.75%)2/11/202212/22/20281,964 1,945 1,945 0.9 
Senior Secured Loan (Delayed Draw) (5)n/m (18)(L +2.88%)2/11/202212/22/2028— (3)(3)— 
1,964 1,942 1,942 0.9 
Eblens Holdings, Inc. (20)Shoe Store
Subordinated Loan (11)12.00% cash / 1.00% PIKN/A7/13/20171/13/20239,230 9,210 8,917 4.3 
Common Equity (71,250 Class A units) (10)7/13/2017713 240 0.1 
9,230 9,923 9,157 4.4 
Electrical Components International, Inc.Current-Carrying Wiring Device Manufacturing
Senior Secured Loan8.95%(L +8.50%)4/8/20216/26/20263,679 3,293 3,569 1.7 
EnergySolutions, LLC (14) (15)Hazardous Waste Treatment and Disposal
Senior Secured Loan4.76%(L +3.75%)7/8/20215/9/20251,832 1,828 1,800 0.9 
Envocore Holding, LLC (F/K/A LRI Holding, LLC) (4) (19)Electrical Contractors and Other Wiring Installation Contractors
Senior Secured Loan7.50%N/A12/31/202112/31/20256,408 6,409 6,408 3.1 
Senior Secured Loan10.00% PIKN/A12/31/202112/31/20266,584 6,585 4,555 2.2 
Senior Secured Loan (Revolver) (5)n/m (18)N/A11/29/202112/31/2025— — — — 
Equity Participation Rights (23)12/31/2021— 4,722 — — 
12,992 17,716 10,963 5.3 
Excelin Home Health, LLC (4)Home Health Care Services
Senior Secured Loan11.50%(L +9.50%)10/25/20189/30/20254,250 4,187 4,036 1.9 
GGC Aerospace Topco L.P.Other Aircraft Parts and Auxiliary Equipment Manufacturing
Common Equity (368,852 Class A units) (10)12/29/2017450 — — 
Common Equity (40,984 Class B units) (10)12/29/201750 — — 
500 — — 
9

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2022
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Honor HN Buyer IncServices for the Elderly and Persons with Disabilities
Senior Secured Loan (15)7.01%(L +6.00%)10/15/202110/15/2027$6,582 $6,460 $6,443 3.1 %
Senior Secured Loan (Delayed Draw) (5) (15)7.01%(L +6.00%)10/15/202110/15/20271,424 1,372 1,337 0.6 
Senior Secured Loan (Revolver) (5)n/m (18)(L +6.00%)10/15/202110/15/2027— (14)(16)— 
8,006 7,818 7,764 3.7 
IderaComputer and Computer Peripheral Equipment and Software Merchant Wholesalers
Senior Secured Loan7.50%(L +6.75%)1/27/20223/2/20294,000 4,000 4,000 1.9 
Inergex Holdings, LLCOther Computer Related Services
Senior Secured Loan (11)8.00% cash / 1.0% PIK(L +8.00%)10/1/201810/1/202415,260 14,972 15,260 7.3 
Senior Secured Loan (Revolver) (5)8.00%(L +7.00%)10/1/201810/1/2024469 457 469 0.2 
15,729 15,429 15,729 7.5 
Intouch Midco Inc. (15) (22)All Other Professional, Scientific, and Technical Services
Senior Secured Loan5.21%(L +4.75%)12/20/20198/24/20252,901 2,867 2,866 1.4 
Ivanti Software, Inc. (14) (15)Software Publishers
Senior Secured Loan5.00%(L +4.25%)3/26/202112/1/20272,985 2,996 2,950 1.4 
JP Intermediate B, LLC (15)Drugs and Druggists' Sundries Merchant Wholesalers
Senior Secured Loan6.50%(L +5.50%)1/14/202111/15/20255,644 5,454 5,362 2.6 
Karman Buyer Corp (14) (15)Advertising Agencies
Senior Secured Loan5.25%(L +4.50%)3/2/202210/28/20272,302 2,268 2,285 1.1 
KNS Acquisition Corp. (14) (15)Electronic Shopping and Mail-Order Houses
Senior Secured Loan7.26%(L +6.25%)4/16/20214/21/20276,913 6,872 6,773 3.3 
Kreg LLCOther Ambulatory Health Care Services
Senior Secured Loan (15)7.26%(L +6.25%)12/20/202112/20/202620,372 20,228 20,153 9.7 
Senior Secured Loan (Revolver) (5)n/m (18)(L +6.25%)12/20/202112/20/2026— (16)(24)— 
20,372 20,212 20,129 9.7 
10

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2022
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
LogMeIn, Inc. (14) (15)Data Processing, Hosting, and Related Services
Senior Secured Loan5.22%(L +4.75%)3/26/20218/31/2027$2,969 $2,967 $2,922 1.4 %
Magenta Buyer LLC (14) (15)Software Publishers
Senior Secured Loan5.75%(L +5.00%)7/28/20217/27/20284,850 4,837 4,821 2.3 
McGraw Hill Global Education Holdings, LLC (14) (15)All Other Publishers
Senior Secured Loan5.55%(L +4.75%)4/1/20217/28/20282,304 2,283 2,284 1.1 
Milrose Consultants, LLC (4)Administrative Management and General Management Consulting Services
Senior Secured Loan (15)7.51%(L +6.50%)7/16/20197/16/202522,307 22,308 21,980 10.5 
Senior Secured Loan (Revolver)7.51%(L +6.50%)7/16/20197/16/2025476 468 452 0.2 
22,783 22,776 22,432 10.7 
Molded Devices, Inc.Other Industrial Machinery Manufacturing
Senior Secured Loan (15)7.00%(L +6.00%)11/1/202111/1/20268,049 7,975 7,929 3.8 
Senior Secured Loan (Delayed Draw) (5) (15)n/m (18)(Prime +6.00%)11/1/202111/1/2026— (7)(22)— 
Senior Secured Loan (Revolver) (5)7.00%(Prime +6.00%)11/1/202111/1/2026340 331 326 0.2 
8,389 8,299 8,233 4.0 
Odyssey Logistics and Technology Corporation (14) (15)Freight Transportation Arrangement
Senior Secured Loan5.00%(L +4.00%)4/5/202110/12/20241,979 1,957 1,945 0.9 
One GI LLCOffices of Other Holding Companies
Senior Secured Loan (Delayed Draw) (15)7.75%(L +6.75%)12/13/202112/22/20257,564 7,423 7,383 3.5 
Senior Secured Loan (Delayed Draw) (5) (15)n/m (18)(L +6.75%)12/13/202112/13/2023— (34)(95)— 
Senior Secured Loan (Revolver) (5)n/m (18)(L +6.75%)12/13/202112/22/2025— (27)(35)— 
7,564 7,362 7,253 3.5 
Parfums Holding Company, Inc. (14) (15)Cosmetics, Beauty Supplies, and Perfume Stores
Senior Secured Loan 4.46%(L +4.00%)6/25/20196/30/20241,534 1,533 1,520 0.7 
Peraton Inc. (14) (15)Management Consulting Services
Senior Secured Loan4.50%(L +3.75%)4/2/20212/1/2028818 819 814 0.4 
11

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2022
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Planet Bingo, LLC (F/K/A 3rd Rock Gaming Holdings, LLC) (6) (10)Software Publishers
Senior Secured Loan4.00%N/A3/13/20183/12/2023$16,728 $14,192 $7,322 3.5 %
PM Acquisition LLC (20)All Other General Merchandise Stores
Common Equity (499 units) (10) (13)9/30/2017499 1,212 0.6 
Professional Pipe Holdings, LLCPlumbing, Heating, and Air-Conditioning Contractors
Senior Secured Loan9.75% cash / 1.50% PIK(L +10.25%)3/23/20183/24/20253,494 3,480 3,555 1.7 
Resource Label Group, LLC (14) (15)Commercial Printing (except Screen and Books)
Senior Secured Loan5.00%(L +4.25%)7/2/20217/7/20283,429 3,419 3,407 1.6 
RPLF Holdings, LLC (10) (13)Software Publishers
Common Equity (345,339 Class A units)1/17/2018492 868 0.4 
RSA Security (15)Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Senior Secured Loan (14)5.50%(L +4.75%)4/16/20214/27/20282,790 2,775 2,735 1.3 
Senior Secured Loan8.50%(L +7.75%)4/16/20214/27/20294,450 4,393 4,265 2.0 
7,240 7,168 7,000 3.3 
RumbleOn, Inc. (15) (22)Other Industrial Machinery Manufacturing
Senior Secured Loan9.25%(L +8.25%)8/31/20218/31/20264,179 3,966 3,977 1.9 
Senior Secured Loan (Delayed Draw) (5)9.25%(L +8.25%)8/31/20212/23/20231,264 1,250 1,177 0.6 
Warrants (warrants to purchase up to $600,000 in common stock)8/31/20212/28/2023 (12)200 163 0.1 
5,443 5,416 5,317 2.6 
Sentry Centers Holdings, LLC (10) (13)Convention and Trade Show Organizers
Preferred Equity (2,248 Series A units)9/4/202051 — — 
Preferred Equity (1,603 Series B units)9/4/2020160 112 0.1 
Common Equity (269 units) 9/4/2020— — 
214 112 0.1 
12

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2022
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Signal Parent, Inc. (14) (15)New Single-Family Housing Construction (except For-Sale Builders)
Senior Secured Loan4.25%(L +3.50%)3/25/20214/3/2028$1,836 $1,819 $1,654 0.8 %
SourceHOV Tax, Inc. (4)Other Accounting Services
Senior Secured Loan7.50%(L +6.50%)3/16/20203/17/202519,740 19,608 19,740 9.5 
Senior Secured Loan (Revolver) (5)n/m (18)(L +6.50%)5/17/20213/17/2025— (14)— — 
19,740 19,594 19,740 9.5 
Southern Technical Institute, LLC (4) (23)Colleges, Universities, and Professional Schools
Equity appreciation rights6/27/2018— 7,989 3.8 
Spring Education Group, Inc. (F/K/A SSH Group Holdings, Inc.,) (15)Child Day Care Services
Senior Secured Loan9.26%(L +8.25%)7/26/20187/30/20266,399 6,346 5,953 2.9 
SSJA Bariatric Management LLC (15)Offices of Physicians, Mental Health Specialists
Senior Secured Loan6.01%(L +5.00%)8/26/20198/26/20249,750 9,703 9,750 4.7 
Senior Secured Loan6.01%(L +5.00%)12/31/20208/26/20241,053 1,046 1,053 0.5 
Senior Secured Loan6.01%(L +5.00%)12/8/20218/26/20242,653 2,630 2,653 1.3 
Senior Secured Loan (Revolver) (5)n/m (18)(L +5.00%)8/26/20198/26/2024— (3)— — 
13,456 13,376 13,456 6.5 
SS Acquisition, LLC (15)Sports and Recreation Instruction
Senior Secured Loan (8)7.88%(L +6.88%)12/30/202112/30/20263,042 3,013 2,995 1.4 
Senior Secured Loan (Delayed Draw) (5)n/m (18)(L +6.88%)12/30/202112/30/2026— — (28)— 
3,042 3,013 2,967 1.4 
Staples, Inc. (14) (15) (22)Business to Business Electronic Markets
Senior Secured Loan5.32%(L +5.00%)6/24/20194/16/20262,922 2,870 2,768 1.3 
STS Operating, Inc.Industrial Machinery and Equipment Merchant Wholesalers
Senior Secured Loan9.00%(L +8.00%)5/15/20184/30/20269,073 9,071 9,073 4.4 
Teneo Global LLC (14) (15)Management Consulting Services
Senior Secured Loan6.25%(SOFR +5.25%)9/10/20217/11/20251,891 1,881 1,875 0.9 
13

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2022
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
The Escape Game, LLC (4)Other amusement and recreation industries
Senior Secured Loan8.00%(L +7.00%)12/21/202112/22/2024$16,333 $16,333 $16,372 7.9 %
Senior Secured Loan (Revolver) (5)8.00%(L +7.00%)12/21/202112/22/2024933 891 933 0.4 
17,266 17,224 17,305 8.3 
Thryv, Inc. (14) (15)Directory and Mailing List Publishers
Senior Secured Loan9.50%(L +8.50%)2/18/20213/1/20261,983 1,942 1,991 1.0 
Tolemar Acquisition, INC.Motorcycle, Bicycle, and Parts Manufacturing
Senior Secured Loan (15)7.00%(L +6.00%)10/14/202110/14/202615,622 15,551 15,807 7.6 
Senior Secured Loan (Revolver) (5)7.45%(L +6.00%)10/14/202110/14/20261,029 1,018 1,029 0.5 
16,651 16,569 16,836 8.1 
TruGreen Limited PartnershipLandscaping Services
Senior Secured Loan9.46%(L +8.50%)5/13/202111/2/20284,500 4,625 4,590 2.2 
United Biologics Holdings, LLC (4) (10)Medical Laboratories
Preferred Equity (151,787 units)4/16/201316 — 
Warrants (3,976 units) 7/26/20124/16/2023 (12)82 — 
91 24 — 
West Corporation (14) (15)All Other Telecommunications
Senior Secured Loan4.50%(L +3.50%)2/26/202110/10/2024871 860 791 0.4 
Senior Secured Loan5.00%(L +4.00%)7/29/202110/10/20242,564 2,514 2,351 1.1 
3,435 3,374 3,142 1.5 
Yahoo / Verizon Media (14) (15)Internet Publishing and Broadcasting and Web Search Portals
Senior Secured Loan6.25%(L +5.50%)7/21/20219/1/20273,252 3,219 3,242 1.6 
Total Debt and Equity Investments$387,857 $390,575 $382,161 183.5 %
Structured Finance Note Investments
Subordinated Notes and Mezzanine Debt (9) (16) (22)
Apex Credit CLO 2020 Ltd. (7)
Subordinated Notes10.55%11/16/202010/20/2031$11,080 $9,262 $9,226 4.4 %
14

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2022
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Apex Credit CLO 2021 Ltd (7)
Subordinated Notes13.29%5/28/20217/18/2034$8,630 $7,130 $6,584 3.2 %
Ares L CLO
Mezzanine debt - Class E5.89%(L +5.65%)2/17/20221/15/20326,000 5,687 5,687 2.7 
Barings CLO 2019-I Ltd.
Mezzanine debt - Class E7.10%(L +6.86%)2/23/20224/15/20358,000 7,885 7,885 3.8 
Dryden 53 CLO, Ltd. (7)
Subordinated Notes - Income20.75%10/26/20201/15/20312,700 1,567 1,466 0.7 
Subordinated Notes20.73%10/26/20201/15/20312,159 1,254 1,173 0.6 
4,859 2,821 2,639 1.3 
Dryden 76 CLO, Ltd. (7)
Subordinated Notes18.49%9/27/201910/20/20322,750 2,090