OFS Capital Corporation Announces Partial Monetization of Equity Interest for $52.3 Million of Gross Proceeds

OFS Capital retains a 43% partnership interest and control while planning to redeploy capital primarily into interest-earning assets.

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CHICAGO--(BUSINESS WIRE)-- OFS Capital Corporation (Nasdaq: OFS) (“OFS Capital”; the “Company”), a business development company, announced today the closing of a transaction through OFS SBIC I, LP (“SBIC I LP”), a wholly owned subsidiary of OFS Capital. On October 5, 2026, SBIC I LP admitted a third-party investor (the “New Investor”) as a limited partner, which acquired approximately 57% of the limited partnership interests of SBIC I LP in such transaction (the “Transaction”).

SBIC I LP holds 400 Class A shares of Pfanstiehl Holdings, Inc., a global manufacturer of high-purity pharmaceutical ingredients, which represented approximately 84.0% of the Company’s net assets and approximately 31.8% of the Company’s total investments at fair value, in each case as of June 30, 2026.

The New Investor acquired its limited partnership interests in exchange for $52.3 million paid to SBIC I LP, the entirety of which was distributed to the Company. The Company intends to use proceeds from the Transaction, net of fees, expenses and other transaction-related costs, to fund investments in debt and equity securities in accordance with the Company’s investment objectives and for other general corporate purposes.

OFS SBIC I GP, LLC, a wholly owned subsidiary of the Company (“SBIC I GP”), remains the general partner of SBIC I LP. In such capacity, SBIC I GP retains control of SBIC I LP following the Transaction, including sole and exclusive authority to manage, direct and control the business, operations, investments, affairs and policies of SBIC I LP, and no other person, including the New Investor, possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of SBIC I LP.

“We are pleased to complete this strategic transaction,” said Bilal Rashid, Chairman and Chief Executive Officer of OFS Capital Corporation. “We believe that the proceeds from the Transaction will provide us with investment and operational flexibility and will allow us to advance our goal of redeploying capital, primarily into interest-earning assets, through which we anticipate enhancing our net investment income. The transaction also meaningfully reduces portfolio concentration, while our retained 43% interest in SBIC I LP provides us with continued exposure to what we believe will be the underlying investment’s long-term value.”

ABOUT OFS CAPITAL

OFS Capital Corporation is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company. OFS Capital’s investment objective is to provide stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments. OFS Capital invests primarily in privately held middle-market companies in the United States, including lower-middle-market companies, targeting investments of $3 million to $20 million in companies with annual EBITDA between $5 million and $50 million. OFS Capital offers flexible solutions through a variety of asset classes including senior secured loans, which includes first-lien, second-lien and unitranche loans, as well as subordinated loans and, to a lesser extent, warrants and other equity securities. OFS Capital's investment activities are managed by OFS Capital Management, LLC, an investment adviser registered under the Investment Advisers Act of 1940⁽¹⁾ and headquartered in Chicago, Illinois, with additional offices in New York and Los Angeles.

FORWARD-LOOKING STATEMENTS

Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating to: management’s belief that proceeds from the Transaction will provide the Company with significant investment and operational flexibility and will allow the Company to advance its goal of redeploying capital, primarily into interest-earning assets; the expectation that the redeployment of the capital from the Transaction will enhance the Company’s net investment income; management’s belief that the Company’s retained interest in SBIC I LP provides the Company with continued exposure to the underlying investment’s long-term value; and other factors may constitute forward-looking statements for purposes of the safe harbor protection under applicable securities laws. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, including those risks, uncertainties and factors referred to in OFS Capital’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission under the section “Risk Factors,” as well as other documents that may be filed by OFS Capital from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. OFS Capital is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

⁽¹⁾ Registration does not imply a certain level of skill or training

OFS® and OFS Capital® are registered trademarks of Orchard First Source Asset Management, LLC.

OFS Capital Management™ is a trademark of Orchard First Source Asset Management, LLC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261006740619/en/

Steve Altebrando – Investor Relations
847.734.2084 or
investorrelations@ofscapital.com

Source: OFS Capital Corporation

Key Terms

business development company regulatory

A business development company is a publicly traded investment vehicle that lends to and buys stakes in smaller or privately held companies, acting like a combination of a lender, investor, and business partner. It matters to investors because BDCs offer the potential for higher regular income through dividends and diversified exposure to growing businesses, but they can also carry greater credit and liquidity risk than typical stocks or bonds—think higher-yielding but riskier income instruments.

limited partner financial

A limited partner is an investor in a pooled investment vehicle—such as a private equity, venture capital, or real estate fund—who provides capital but does not take part in day‑to‑day management and whose financial responsibility is capped at the amount invested. For investors, being a limited partner matters because it defines how much control they have, how much risk they bear, and how returns are distributed; think of a limited partner as a silent co‑owner who shares in profits and losses while leaving operations to the fund managers.

general partner financial

A general partner is the person or firm that runs an investment partnership and legally represents it — they make the day-to-day decisions, choose which assets to buy or sell, and are responsible for the partnership’s obligations. Investors care because the general partner’s judgment, risk-taking and fee and profit-sharing arrangements determine both the potential returns and the level of exposure to losses; think of the GP as the ship’s captain whose skill and honesty shape the voyage’s outcome.