ofs-20220630
0001487918falseDec 312022Q200014879182022-01-012022-06-300001487918us-gaap:CommonStockMember2022-01-012022-06-300001487918ofs:NotesDue2028Member2022-01-012022-06-3000014879182022-08-03xbrli:shares0001487918ofs:SBADebenturesMember2022-01-012022-06-300001487918ofs:PWBCreditFacilityMember2022-01-012022-06-300001487918ofs:UnsecuredNotesMember2022-01-012022-06-300001487918ofs:BNPFacilityMember2022-01-012022-06-30


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 June 30, 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, Illinois
60606
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 August 3, 2022 was 13,429,777.



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
Adjusted NII
A financial measure calculated and presented on a basis other than in accordance with GAAP and represents net investment income excluding the capital gains incentive fee
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
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, as amended, that provides for borrowings in an aggregate principal amount up to $150,000,000 issued pursuant to a Revolving Credit and Security Agreement, as amended, 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 FacilityA senior secured revolving credit facility, as amended, with Pacific Western Bank, as lender, that provides for borrowings to the Company in an aggregate principal amount up to $35,000,000
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 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, the 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 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 adverse economic changes, including those caused by the ongoing impacts of the coronavirus (“COVID-19”) pandemic, the ongoing conflict between Russia and Ukraine, and rising interest and inflation rates;
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 SOFR and/or other alternative reference rate(s);
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;
the impact of current political, economic and industry conditions, including changes in the interest rate environment, significant market volatility, supply chain disruptions, other conditions affecting the financial and capital markets, and the ongoing impacts 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;
the belief that we have sufficient levels of liquidity to support our existing portfolio companies and deploy capital in new investment opportunities;
1


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 “Part II, Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, filed on May 6, 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)
June 30,
2022
December 31,
2021
(unaudited)
Assets
Investments, at fair value:
Non-control/non-affiliate investments (amortized cost of $489,849 and $428,398, respectively)$456,076 $421,567 
Affiliate investments (amortized cost of $17,635 and $17,650, respectively)91,601 72,584 
Control investment (amortized cost of $0 and $11,264, respectively)— 12,948 
Total investments, at fair value (amortized cost of $507,484 and $457,312, respectively)547,677 507,099 
Cash14,844 43,048 
Interest receivable1,883 1,475 
Receivable for investments sold— 14,893 
Prepaid expenses and other assets2,917 2,533 
Total assets$567,321 $569,048 
Liabilities
Revolving lines of credit$134,100 $100,000 
SBA debentures (net of deferred debt issuance costs of $319 and $555, respectively)50,601 69,365 
Unsecured notes (net of deferred debt issuance costs of $4,155 and $4,554, respectively)175,845 175,446 
Interest payable3,714 3,685 
Payable to adviser and affiliates (Note 3)2,672 6,217 
Payable for investments purchased3,905 8,788 
Accrued professional fees383 452 
Other liabilities389 1,351 
Total liabilities371,609 365,304 
Commitments and contingencies (Note 6)
Net assets
Preferred stock, par value of $0.01 per share, 2,000,000 shares authorized, -0- shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively$— $— 
Common stock, par value of $0.01 per share, 100,000,000 shares authorized, 13,429,777 and 13,422,413 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively134 134 
Paid-in capital in excess of par185,195 185,113 
Total distributable earnings10,383 18,497 
Total net assets195,712 203,744 
Total liabilities and net assets$567,321 $569,048 
Number of shares outstanding13,429,777 13,422,413 
Net asset value per share$14.57 $15.18 

See Notes to Consolidated Financial Statements (unaudited).
3


OFS Capital Corporation and Subsidiaries
Consolidated Statements of Operations (unaudited)
(Dollar amounts in thousands, except per share data)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Investment income
Interest income:
Non-control/non-affiliate investments
$10,345 $9,384 $20,047 $18,245 
Affiliate investments
— 932 — 1,860 
Control investment
— 322 141 689 
Total interest income
10,345 10,638 20,188 20,794 
Dividend income:
Non-control/non-affiliate investments
— — 713 — 
Affiliate investments
59 106 
Control investment
— 136 45 136 
Total dividend income
195 763 242 
Fee income:
Non-control/non-affiliate investments
82 583 421 834 
Affiliate investments
— — — 37 
Control investment
— — — 
Total fee income
82 583 427 871 
Total investment income
10,432 11,416 21,378 21,907 
Expenses
Interest expense3,943 4,241 7,567 9,066 
Management fee2,056 1,876 4,076 3,710 
Income Incentive Fee— 809 — 809 
Capital Gains Fee(2,988)— (1,916)— 
Professional fees352 489 759 876 
Administration fee423 439 874 1,007 
Other expenses398 327 765 654 
Total expenses4,184 8,181 12,125 16,122 
     Net investment income
6,248 3,235 9,253 5,785 
Net realized and unrealized gain (loss) on investments
Net realized loss on non-control/non-affiliate investments(190)(10,841)(203)(10,750)
Net realized gain on control investments— — 278 — 
Income tax expense on net realized investment gains— — (48)— 
Net unrealized appreciation (depreciation) on non-control/non-affiliate investments(22,158)18,071 (26,942)19,655 
Net unrealized appreciation on affiliate investments7,241 11,465 19,033 13,391 
Net unrealized appreciation (depreciation) on control investment
— 716 (1,684)1,104 
Deferred tax benefit (expense) on investments net unrealized appreciation/depreciation35 (205)(6)(271)
Net gain (loss) on investments(15,072)19,206 (9,572)23,129 
Loss on extinguishment of debt— — (144)(2,299)
Net increase (decrease) in net assets resulting from operations$(8,824)$22,441 $(463)$26,615 
Net investment income per common share – basic and diluted
$0.47 $0.24 $0.69 $0.43 
Net increase (decrease) in net assets resulting from operations per common share – basic and diluted$(0.66)$1.67 $(0.03)$1.98 
Distributions declared per common share$0.29 $0.22 $0.57 $0.42 
Basic and diluted weighted average shares outstanding13,425,477 13,411,998 13,423,970 13,410,524 
See Notes to Consolidated Financial Statements (unaudited).
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— — — — — 5,785 5,785 
  Net realized loss on investments, net of taxes— — — — — (10,750)(10,750)
Loss on extinguishment of debt— — — — — (2,299)(2,299)
  Net unrealized appreciation on investments, net of taxes— — — — — 33,879 33,879 
Distributions to stockholders:
  Common stock issued from reinvestment of stockholder distributions
— — 6,376 — 60 — 60 
  Dividends declared— — — — — (5,633)(5,633)
Common stock repurchased under Stock Repurchase Program— — (700)— (5)— (5)
Net increase for the six month period ended June 30, 2021— — 5,676 — 55 20,982 21,037 
Balances at June 30, 2021— $— 13,415,235 $134 $187,179 $(7,320)$179,993 
Balances at March 31, 2021— $— 13,411,962 $134 $187,146 $(26,810)$160,470 
Net increase in net assets resulting from operations:
  Net investment income— — — — — 3,235 3,235 
  Net realized loss on investments, net of taxes— — — — — (10,841)(10,841)
  Net unrealized appreciation on investments, net of taxes— — — — — 30,047 30,047 
Distributions to stockholders:
  Common stock issued from reinvestment of stockholder distributions
3,273 — 33 — 33 
  Dividends declared— — — — — (2,951)(2,951)
Net increase for the three month period ended June 30, 2021— — 3,273 — 33 19,490 19,523 
Balances at June 30, 2021— $— 13,415,235 $134 $187,179 $(7,320)$179,993 
5

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, 2021— $— 13,422,413 $134 $185,113 $18,497 $203,744 
Net decrease in net assets resulting from operations:
  Net investment income— — — — — 9,253 9,253 
  Net realized gain on investments, net of taxes— — — — — 27 27 
  Loss on extinguishment of debt— — — — — (144)(144)
  Net unrealized depreciation on investments, net of taxes— — — — — (9,599)(9,599)
Distributions to stockholders:
  Common stock issued from reinvestment of stockholder distributions
— — 7,364 — 82 — 82 
  Dividends declared— — — — — (7,651)(7,651)
Net increase (decrease) for the six month period ended June 30, 2022— — 7,364 — 82 (8,114)(8,032)
Balances at June 30, 2022— $— 13,429,777 $134 $185,195 $10,383 $195,712 
Balances at March 31, 2022— $— 13,425,429 $134 $185,152 $23,100 $208,386 
Net decrease in net assets resulting from operations:
Net investment income— — — — — 6,248 6,248 
Net realized loss on investments, net of taxes— — — — — (190)(190)
Net unrealized depreciation on investments, net of taxes— — — — — (14,882)(14,882)
Distributions to stockholders:
  Common stock issued from reinvestment of stockholder distributions
— — 4,348 — 43 — 43 
Dividends declared— — — — — (3,893)(3,893)
Net increase (decrease) for the three month period ended June 30, 2022— — 4,348 — 43 (12,717)(12,674)
Balances at June 30, 2022— $— 13,429,777 $134 $185,195 $10,383 $195,712 

See Notes to Consolidated Financial Statements (unaudited).
6


OFS Capital Corporation and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(Dollar amounts in thousands)
Six Months Ended June 30,
20222021
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations$(463)$26,615 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Net realized (gain) loss on investments(75)10,750 
Income tax expense on net realized investment gains48 — 
Loss on extinguishment of debt
144 2,299 
Net unrealized (appreciation) depreciation on investments, net of taxes9,599 (33,879)
Amortization of Net Loan Fees
(794)(1,521)
Amendment fees collected
112 97 
Payment-in-kind interest and dividend income
(316)(943)
Accretion of interest income on Structured Finance Notes(4,785)(4,670)
Amortization of debt issuance costs
751 888 
Amortization of intangible asset
205 111 
Purchase and origination of portfolio investments
(122,608)(128,848)
Proceeds from principal payments on portfolio investments
54,525 100,817 
Proceeds from sale or redemption of portfolio investments
12,179 10,294 
Proceeds from distributions received from Structured Finance Notes11,214 6,356 
Changes in operating assets and liabilities:
Interest receivable
(408)247 
Interest payable
29 912 
Payable to adviser and affiliates
(3,545)100 
Receivable for investment sold
14,893 — 
Payable for investments purchased
(4,883)7,952 
Other assets and liabilities
(535)249 
Net cash used in operating activities(34,713)(2,174)
Cash flows from financing activities
Distributions paid to stockholders
(7,569)(5,573)
Borrowings under revolving lines of credit
49,850 42,400 
Repayments under revolving lines of credit
(15,750)(50,400)
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
(1,022)(298)
Repurchases of common stock under Stock Repurchase Program
— (5)
Net cash provided by (used in) financing activities6,509 (375)
Net decrease in cash(28,204)(2,549)
   Cash at beginning of period43,048 37,708 
   Cash at end of period$14,844 $35,159 
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest
$6,787 $7,266 
Reinvestment of distributions to stockholders
82 60 
See Notes to Consolidated Financial Statements (unaudited).
7

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (unaudited)
June 30, 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 Loan7.60%(L +6.00%)1/28/202211/16/2027$8,955 $8,893 $8,861 4.4 %
Aegion Corporation (15) (22)Water and Sewer Line and Related Structures Construction
Senior Secured Loan6.27%(L +4.75%)4/1/20215/17/20282,426 2,395 2,250 1.1 
Allen Media, LLC (14) (15)Cable and Other Subscription Programming
Senior Secured Loan7.70%(SOFR +5.50%)3/2/20212/10/20273,788 3,782 3,393 1.7 
All Star Auto Lights, Inc. (4) (15)Motor Vehicle Parts (Used) Merchant Wholesalers
Senior Secured Loan8.41%(L +6.50%)12/19/20198/20/202523,217 22,935 23,217 11.9 
Astro One Acquisition CorporationOther Miscellaneous Nondurable Goods Merchant Wholesalers
Senior Secured Loan10.75%(L +8.50%)1/31/20229/14/20293,000 2,656 2,486 1.3 
Asurion, LLCCommunication Equipment Repair and Maintenance
Senior Secured Loan6.92%(L +5.25%)6/28/20221/31/20282,000 1,745 1,718 0.9 
Atlantis Holding, LLC (15)Electronics and Appliance Stores
Senior Secured Loan9.30%(SOFR +7.25%)3/29/20223/31/20298,421 8,116 7,716 3.9 
Autokiniton US Holdings, Inc. (14) (15)Automotive Parts and Accessories Stores
Senior Secured Loan5.62%(L +4.50%)3/26/20214/6/20282,683 2,675 2,488 1.3 
Avison Young (15) (22)Nonresidential Property Managers
Senior Secured Loan6.99%(L +5.75%)11/25/20211/31/20263,966 3,951 3,940 2.0 
Bass Pro Group, LLC (14) (15)Sporting Goods Stores
Senior Secured Loan5.42%(L +3.75%)2/26/20213/6/2028979 974 895 0.5 
8

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
June 30, 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 Loan10.17%(L +8.50%)6/10/20216/11/2028$4,962 $4,898 $4,997 2.6 %
Senior Secured Loan (Delayed Draw) (5)10.17%(L +8.50%)6/10/20216/11/20282,760 2,645 2,818 1.4 
7,722 7,543 7,815 4.0 
Boca Home Care Holdings, Inc. (20)Services for the Elderly and Persons with Disabilities
Senior Secured Loan (Delayed Draw) (5) (15)8.80%(SOFR +6.50%)2/25/20222/25/20279,669 9,579 9,421 4.8 
Senior Secured Loan (Revolver) (5)n/m (18)(SOFR +6.50%)2/25/20222/25/2027— (12)(33)— 
Common Equity (1,290 Class A units) (10) (13)2/25/2022— 1,290 1,178 0.6 
9,669 10,857 10,566 5.4 
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 Loan8.42%(L +6.75%)9/28/20183/30/20294,838 4,827 4,795 2.5 
Corel Inc. (14) (15)Software Publishers
Senior Secured Loan6.57%(L +5.00%)3/2/20217/2/2026636 635 610 0.3 
Creation Technologies (15) (22)Bare Printed Circuit Board Manufacturing
Senior Secured Loan6.46%(L +5.50%)9/24/202110/5/20282,000 1,986 1,761 0.9 
Dessert HoldingsIce Cream and Frozen Dessert Manufacturing
Senior Secured Loan9.50%(L +7.25%)2/2/20226/8/20291,667 1,639 1,593 0.8 
DHX Media Ltd. (14) (15) (22)Motion Picture and Video Production
Senior Secured Loan5.92%(L +4.25%)3/19/20213/18/20283,954 3,913 3,741 1.9 
Diamond Sports Group, LLC (14) (15)Television Broadcasting
Senior Secured Loan9.18%(SOFR +8.00%)3/9/20225/25/2026254 247 253 0.1 
Senior Secured Loan4.43%(SOFR +3.25%)11/19/20198/24/20261,945 1,945 473 0.2 
2,199 2,192 726 0.3 
9

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
June 30, 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 Loan6.67%(L +5.00%)7/22/20218/2/2027$2,097 $2,093 $1,936 1.0 %
East West Manufacturing (15)Fluid Power Pump and Motor Manufacturing
Senior Secured Loan7.28%(SOFR +5.75%)2/11/202212/22/20281,959 1,941 1,891 1.0 
Senior Secured Loan (Delayed Draw) (5)n/m (18)(SOFR +2.88%)2/11/202212/22/2028— (3)(10)— 
1,959 1,938 1,881 1.0 
Eblens Holdings, Inc. (20)Shoe Store
Subordinated Loan (6) (11)12.50% cash / 1.50% PIKN/A7/13/20171/13/20239,261 9,210 7,142 3.6 
Common Equity (71,250 Class A units) (10)7/13/2017713 — — 
9,261 9,923 7,142 3.6 
Electrical Components International, Inc.Current-Carrying Wiring Device Manufacturing
Senior Secured Loan10.03%(L +8.50%)4/8/20216/26/20263,679 3,314 3,471 1.8 
EnergySolutions, LLC (14) (15)Hazardous Waste Treatment and Disposal
Senior Secured Loan6.00%(L +3.75%)7/8/20215/9/20251,778 1,775 1,663 0.8 
Envocore Holding, LLC (F/K/A LRI Holding, LLC) (4) (19)Electrical Contractors and Other Wiring Installation Contractors
Senior Secured Loan7.50%N/A12/31/202112/31/20256,391 6,391 6,391 3.3 
Senior Secured Loan (6)10.00% PIKN/A12/31/202112/31/20266,751 6,584 3,221 1.6 
Senior Secured Loan (Revolver) (5)7.50%N/A11/29/202112/31/2025771 771 771 0.4 
Equity Participation Rights (23)12/31/2021— 4,722 — — 
13,913 18,468 10,383 5.3 
Excelin Home Health, LLC (4)Home Health Care Services
Senior Secured Loan11.75%(L +9.50%)10/25/20189/30/20254,250 4,172 4,208 2.2 
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 — — 
10

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
June 30, 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)8.25%(L +6.00%)10/15/202110/15/2027$6,565 $6,449 $6,352 3.2 %
Senior Secured Loan (Delayed Draw) (5) (15)8.25%(L +6.00%)10/15/202110/15/20271,913 1,859 1,779 0.9 
Senior Secured Loan (Revolver) (5)n/m (18)(L +6.00%)10/15/202110/15/2027— (13)(25)— 
8,478 8,295 8,106 4.1 
IderaComputer and Computer Peripheral Equipment and Software Merchant Wholesalers
Senior Secured Loan7.82%(L +6.75%)1/27/20223/2/20294,000 4,000 3,744 1.9 
Inergex Holdings, LLCOther Computer Related Services
Senior Secured Loan (11)9.25% cash / 1.0% PIK(L +8.00%)10/1/201810/1/202415,260 15,001 15,260 7.8 
Senior Secured Loan (Revolver) (5)n/m (18)(L +7.00%)10/1/201810/1/2024— (11)— — 
15,260 14,990 15,260 7.8 
Intouch Midco Inc. (15) (22)All Other Professional, Scientific, and Technical Services
Senior Secured Loan6.42%(L +4.75%)12/20/20198/24/20252,894 2,862 2,846 1.5 
Ivanti Software, Inc. (14) (15)Software Publishers
Senior Secured Loan5.85%(L +4.25%)3/26/202112/1/20272,978 2,988 2,573 1.3 
JP Intermediate B, LLC (15)Drugs and Druggists' Sundries Merchant Wholesalers
Senior Secured Loan6.74%(L +5.50%)1/14/202111/15/20255,553 5,379 4,859 2.5 
Karman Buyer Corp (14) (15)Advertising Agencies
Senior Secured Loan6.17%(L +4.50%)3/2/202210/28/20272,296 2,264 2,119 1.1 
KNS Acquisition Corp. (14) (15)Electronic Shopping and Mail-Order Houses
Senior Secured Loan8.50%(L +6.25%)4/16/20214/21/20276,869 6,830 6,635 3.4 
Kreg LLCOther Ambulatory Health Care Services
Senior Secured Loan (15)8.50%(L +6.25%)12/20/202112/20/202620,244 20,108 19,889 10.2 
Senior Secured Loan (Revolver) (5)n/m (18)(L +6.25%)12/20/202112/20/2026— (15)(39)— 
20,244 20,093 19,850 10.2 
11

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
June 30, 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 Loan6.35%(L +4.75%)3/26/20218/31/2027$2,961 $2,960 $2,287 1.2 %
Magenta Buyer LLC (14) (15)Software Publishers
Senior Secured Loan5.98%(L +4.75%)7/28/20217/27/20284,838 4,825 4,363 2.2 
McGraw Hill Global Education Holdings, LLC (14) (15)All Other Publishers
Senior Secured Loan5.55%(L +4.75%)4/1/20217/28/20282,298 2,278 2,088 1.1 
Metasource (15)All Other Business Support Services
Senior Secured Loan7.78%(SOFR +6.25%)5/17/20225/17/20272,793 2,766 2,766 1.4 
Senior Secured Loan (Delayed Draw) (5)n/m (18)(SOFR +6.25%)5/17/20225/17/2024— (11)(11)— 
2,793 2,755 2,755 1.4 
Milrose Consultants, LLC (4)Administrative Management and General Management Consulting Services
Senior Secured Loan (15)8.75%(L +6.50%)7/16/20197/16/202522,250 22,250 21,803 11.1 
Senior Secured Loan (Revolver) (5)8.75%(L +6.50%)7/16/20197/16/2025476 469 444 0.2 
22,726 22,719 22,247 11.3 
Molded Devices, Inc.Other Industrial Machinery Manufacturing
Senior Secured Loan (15)7.00%(L +6.00%)11/1/202111/1/20268,029 7,959 7,798 4.0 
Senior Secured Loan (Delayed Draw) (5) (15)n/m (18)(L +6.00%)11/1/202111/1/2026— (6)(42)— 
Senior Secured Loan (Revolver) (5)7.00%(L +6.00%)11/1/202111/1/2026603 594 575 0.3 
8,632 8,547 8,331 4.3 
Odyssey Logistics and Technology Corporation (14) (15)Freight Transportation Arrangement
Senior Secured Loan5.24%(L +4.00%)4/5/202110/12/2024987 977 950 0.5 
One GI LLCOffices of Other Holding Companies
Senior Secured Loan (Delayed Draw) (15)8.42%(L +6.75%)12/13/202112/22/20257,545 7,414 7,221 3.7 
Senior Secured Loan (Delayed Draw) (5) (15)n/m (18)(L +6.75%)12/13/202112/13/2023— (29)(171)(0.1)
Senior Secured Loan (Revolver) (5)n/m (18)(L +6.75%)12/13/202112/22/2025— (25)(62)— 
7,545 7,360 6,988 3.6 
12

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
June 30, 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
Parfums Holding Company, Inc. (14) (15)Cosmetics, Beauty Supplies, and Perfume Stores
Senior Secured Loan 5.67%(L +4.00%)6/25/20196/30/2024$1,462 $1,462 $1,384 0.7 %
Peraton Inc. (14) (15)Management Consulting Services
Senior Secured Loan5.42%(L +3.75%)4/2/20212/1/2028408 408 384 0.2 
Planet Bingo, LLC (F/K/A 3rd Rock Gaming Holdings, LLC) (6) (10)Software Publishers
Senior Secured Loan4.00%N/A3/13/20183/12/202316,728 14,192 7,303 3.7 
PM Acquisition LLC (10) (20)All Other General Merchandise Stores
Common Equity (499 units)9/30/2017499 1,119 0.6 
Professional Pipe Holdings, LLCPlumbing, Heating, and Air-Conditioning Contractors
Senior Secured Loan9.75% cash / 1.00% PIK(L +9.75%)3/23/20183/24/20252,559 2,550 2,584 1.3 
RC Buyer, Inc.Other Automotive Mechanical and Electrical Repair and Maintenance
Senior Secured Loan8.75%(L +6.50%)6/24/20227/30/20291,125 1,080 1,080 0.6 
Reception Purchaser LLC (15)Transportation and Warehousing
Senior Secured Loan8.20%(SOFR +6.00%)4/28/20223/24/20285,109 5,034 5,034 2.6 
Resource Label Group, LLC (14) (15)Commercial Printing (except Screen and Books)
Senior Secured Loan5.92%(L +4.25%)7/2/20217/7/20283,420 3,411 3,207 1.6 
RPLF Holdings, LLC (10) (13)Software Publishers
Common Equity (345,339 Class A units)1/17/2018492 735 0.4 
13

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
June 30, 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
RSA Security (15)Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Senior Secured Loan (14)5.93%(L +4.75%)4/16/20214/27/2028$2,783 $2,769 $2,412 1.2 %
Senior Secured Loan8.97%(L +7.75%)4/16/20214/27/20294,450 4,396 4,049 2.1 
7,233 7,165 6,461 3.3 
RumbleOn, Inc. (15) (22)Other Industrial Machinery Manufacturing
Senior Secured Loan9.25%(L +8.25%)8/31/20218/31/20264,169 3,968 3,884 2.0 
Senior Secured Loan (Delayed Draw) (5)9.25%(L +8.25%)8/31/20212/23/20231,261 1,249 1,139 0.6 
Warrants (warrants to purchase up to $600,000 in common stock)8/31/20212/28/2023 (12)200 — 
5,430 5,417 5,025 2.6 
Sentry Centers Holdings, LLC (10) (13)Convention and Trade Show Organizers
Preferred Equity (1,603 Series B units)9/4/2020160 101 0.1 
Signal Parent, Inc. (14) (15)New Single-Family Housing Construction (except For-Sale Builders)
Senior Secured Loan5.17%(L +3.50%)3/25/20214/3/20281,831 1,815 1,611 0.8 
Southern Technical Institute, LLC (4) (23)Colleges, Universities, and Professional Schools
Equity appreciation rights6/27/2018— 7,192 3.7 
Spring Education Group, Inc. (F/K/A SSH Group Holdings, Inc.,) (15)Child Day Care Services
Senior Secured Loan10.50%(L +8.25%)7/26/20187/30/20266,399 6,355 6,034 3.1 
SSJA Bariatric Management LLC (15)Offices of Physicians, Mental Health Specialists
Senior Secured Loan7.20%(SOFR +5.00%)8/26/20198/26/20249,725 9,683 9,679 4.9 
Senior Secured Loan7.20%(SOFR +5.00%)12/31/20208/26/20241,051 1,044 1,046 0.5 
Senior Secured Loan7.20%(SOFR +5.00%)12/8/20218/26/20242,647 2,626 2,634 1.3 
Senior Secured Loan (Revolver) (5)n/m (18)(SOFR +5.00%)8/26/20198/26/2024— (3)(3)— 
13,423 13,350 13,356 6.7 
14

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
June 30, 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
SS Acquisition, LLC (15)Sports and Recreation Instruction
Senior Secured Loan (8)7.87%(L +6.87%)12/30/202112/30/2026$3,042 $3,014 $3,016 1.5 %
Senior Secured Loan (Delayed Draw) (5)n/m (18)(L +6.87%)12/30/202112/30/2026— — (15)— 
3,042 3,014 3,001 1.5 
Staples, Inc. (14) (15) (22)Business to Business Electronic Markets
Senior Secured Loan6.29%(L +5.00%)6/24/20194/16/20262,915 2,866 2,548 1.2