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OFS Capital (OFS) 10-Q outlines high-yield loans and CLO holdings

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
10-Q

Rhea-AI Filing Summary

OFS Capital Corporation provides a detailed look at its investment portfolio, focusing on non-control, non-affiliate and affiliate positions across many borrowers and sectors. The portfolio is built mainly around first lien term loans and revolvers, with additional second lien debt, preferred equity, common equity and structured finance securities such as CLO subordinated notes.

Many loans reference SOFR with sizeable credit spreads, often in the SOFR + 4.75% to SOFR + 8.50% range, and several positions combine cash interest with payment-in-kind (PIK) components. Stated interest rates span mid‑single digits for senior loans up to the mid‑20% range for certain CLO and mezzanine tranches. Maturities extend largely from 2026 through the late 2030s, reflecting a long-dated, diversified credit book tied to industries including software, healthcare services, business support, real estate services, and specialty manufacturing.

Positive

  • None.

Negative

  • None.
Avison Young Inc. loan rate 3.70% cash / 8.50% PIK First lien debt, spread SOFR + 8.50%
BayMark Health second lien 14.70% interest Second lien debt, spread SOFR + 10.50%
ICG US CLO 2021-3 yield 26.57% interest rate Subordinated notes, maturity 10/20/2034
Brightwood MM CLO 2023-1 24.50% interest rate Subordinated notes, maturity 10/15/2035
Boca Home Care first lien 10.59% interest First lien debt, spread SOFR + 6.50%
Metasource first lien 10.21% cash / 0.50% PIK First lien debt, spread SOFR + 6.25%
Signal Parent first lien 7.44% interest First lien debt, spread SOFR + 3.50%
Excelin Home Health second lien 18.00% PIK Second lien debt, maturity 10/1/2026
First Lien Debt financial
"Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers"
First lien debt is a loan secured by specific company assets that gives the lender the top legal claim on those assets if the borrower defaults or is liquidated — like a first mortgage on a house. Investors care because first-lien holders have a higher likelihood of being repaid and thus lower risk (and usually lower interest) than unsecured or later-ranking creditors, which affects recovery prospects and the overall risk profile of the company’s capital structure.
Second Lien Debt financial
"Debt and Equity Investments BayMark Health Services, Inc. Second Lien Debt Industry Outpatient Mental Health and Substance Abuse Centers"
A second lien debt is a loan that is secured by a company's assets but is repaid only after the first lien (senior) lenders are paid in full; think of it as standing second in line for the same collateral. For investors this matters because second lien loans carry higher risk of loss in a default than first-lien loans, so they typically offer higher interest or returns to compensate for that greater risk.
Subordinated Notes financial
"Structured Finance Securities Brightwood Capital MM CLO 2023-1, Ltd. Subordinated Notes Interest Rate 24.50%"
Subordinated notes are loans companies issue that rank below other debts for repayment, meaning holders get paid only after higher-priority creditors if the issuer runs into trouble. Because they act like being farther back in line at a buffet, they usually offer higher interest to compensate for greater risk, so investors watch them for potential higher returns but also increased chance of loss and sensitivity to the issuer’s financial health.
Payment-in-kind (PIK) financial
"Preferred Equity (3,446 Class A Units), 12% cash / 2% PIK Industry Services for the Elderly and Persons with Disabilities"
Revolver financial
"First Lien Debt (Revolver) Industry Software Publishers Spread Above Index SOFR + 5.75%"
A revolver is a revolving credit facility — a line of borrowing a company can draw, repay and draw again as needed, similar to a corporate credit card for short-term cash needs. It matters to investors because it provides liquidity and flexibility to cover expenses, smooth cash flow swings, or bridge financing gaps; the size, cost and covenants of the revolver affect a company’s interest costs, financial health and default risk.
10-Q Quarterly Reports: What Changes Quarter to Quarter →
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Company Avison Young Inc. Investment Type First Lien Debt Three2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Inergex Holdings, LLC First Lien Debt (Revolver) Industry Other Computer Related Services Interest Rate 10.85% cash / 2.00% PIK Spread Above Index SOFR+ 7.00% Initial Acquisition Date 10/1/2028 Maturity 10/1/20262026-01-012026-03-310001487918ofs:FirstLienDebtInvestmentsMemberofs:FeeIncomeMember2025-01-012025-03-310001487918us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMember2025-12-310001487918ofs:JPIntermediateBLLCMemberofs:DrugsAndDruggistsSundriesMerchantWholesalersMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 3.70% cash / 8.50% PIK Spread Above Index SOFR + 8.50% Initial Acquisition Date 12/18/2025 Maturity 12/12/20272025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMemberus-gaap:MeasurementInputRevenueMultipleMember2025-12-310001487918ofs:FirstAmericanTreasuryObligationsFundClassZMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Constellis Holdings, LLC Common Equity (20,628 common shares) Industry Other Justice, Public Order, and Safety Activities Initial Acquisition Date 3/27/20202025-01-012025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputQuotedPriceMember2025-12-310001487918Portfolio Company RideNow Group, Inc. (F/K/A RumbleOn, Inc.) Investment Type First Lien Debt Onesrt:MinimumMember2026-03-310001487918SSJA Bariatric Management LLC, First Lien Debt (Delayed Draw)2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments M2S Group Intermediate Holdings Inc. First Lien Debt Industry Plastics Packaging Film and Sheet (including Laminated) Manufacturing Interest Rate 8.59% Spread Above Index SOFR+ 4.75% Initial Acquisition Date 10/28/2025 Maturity 8/25/20312025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt (Delayed Draw) Industry Nonresidential Property Managers Spread Above Index SOFR + 8.50% Initial Acquisition Date 12/18/2025 Maturity 12/12/20272025-01-012025-12-310001487918ofs:OtherServicesExceptPublicAdministrationMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Staples, Inc. First Lien Debt Industry Business to Business Electronic Markets Interest Rate 9.60% Spread Above Index SOFR+5.75% Initial Acquisition Date 5/23/2024 Maturity 9/4/20292025-01-012025-12-3100014879182024-03-310001487918srt:MinimumMemberPortfolio Company Avison Young Inc. Investment Type First Lien Debt Three2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMemberus-gaap:MeasurementInputRevenueMultipleMemberofs:CommonEquityWarrantsAndOtherMember2025-12-310001487918ofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMemberofs:CommonEquityWarrantsAndOtherMember2025-01-012025-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMemberofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDiscountRateMember2026-03-310001487918Portfolio Company Investment Type Affiliate Investments Pfanstiehl Holdings, Inc. Common Equity (400 Class A shares) Industry Pharmaceutical Preparation Manufacturing Initial Acquisition Date 1/1/20242026-01-012026-03-310001487918Medrina LLC, First Lien Debt (Revolver)2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:PreferredStockMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments PSB Group, LLC First Lien Debt Industry Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) Interest Rate 10.47% Spread Above Index SOFR+6.75% Initial Acquisition Date 4/17/2025 Maturity 4/17/20302025-12-3100014879182024-06-300001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments One GI LLC First Lien Debt Industry Offices of Other Holding Companies Interest Rate 10.57% Spread Above Index SOFR+6.75% Initial Acquisition Date 12/13/2021 Maturity 12/22/20252025-12-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Common Equity (11,273 shares) Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 6/28/20162025-01-012025-12-310001487918us-gaap:FairValueInputsLevel2Memberus-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueFebruary2026Member2025-12-310001487918Portfolio Company Inergex Holdings, LLC Investment Type First Lien Debtsrt:MaximumMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputQuotedPriceMember2026-03-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments SS Acquisition, LLC First Lien Debt (Revolver) Industry Sports and Recreation Instruction Interest Rate 9.45% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 12/20/2024 Maturity 12/20/20292026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. Preferred Equity (1,715 Class A units) 12.5% PIK Industry Nonresidential Property Managers Initial Acquisition Date 3/12/20242025-01-012025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:WholesaleTradeMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments PSB Group, LLC First Lien Debt Industry Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) Interest Rate 10.42% Spread Above Index SOFR+6.75% Intitial Acquisition Date 4/17/2025 Maturity 4/17/20302026-01-012026-03-310001487918ofs:OutpatientMentalHealthAndSubstanceAbuseCentersMemberofs:BayMarkHealthServicesIncMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918ofs:AvisonYoungInc.Memberofs:NonresidentialPropertyManagersMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918us-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueOctober2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Sentry Centers Holdings, LLC Preferred Equity (1,603 Series B units) Industry Convention and Trade Show Organizer Initial Acquisition Date 9/4/20202025-01-012025-12-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMembersrt:WeightedAverageMemberus-gaap:MeasurementInputDiscountRateMember2026-03-310001487918ofs:SecondLienDebtInvestmentsMember2024-12-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:MinimumMemberofs:MeasurementInputRecoveryRateMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2026-03-310001487918ofs:OfficesOfPhysiciansAndMentalHealthSpecialistsMemberofs:SSJABariatricManagementLLCMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments JP Intermediate B, LLC Common Equity (12,663 Units) Industry Drugs and Druggists' Sundries Merchant Wholesalers Initial Acquisition Date 9/30/20252026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments RideNow Group, Inc. (F/K/A RumbleOn, Inc. Warrants (warrants to purchase up to in common stock Industry Other Industrial Machinery Manufacturing Initial Acquisition Date 8/31/2021 Maturity 8/10/20302025-12-310001487918us-gaap:UnsecuredDebtMember2025-01-012025-03-310001487918us-gaap:SeriesBPreferredStockMemberofs:ConventionAndTradeShowOrganizersMember2026-03-310001487918ofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:StructuredFinanceSecuritiesMember2026-03-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt Two2025-12-310001487918ofs:VariableRateLoansMember2026-03-310001487918ofs:AIDCIntermediateCo2LLCMemberofs:DebtAndEquityInvestmentsMemberofs:ComputerSystemsDesignServicesMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:ProfessionalScientificAndTechnicalServicesMember2025-12-310001487918ofs:AdministrativeAndSupportAndWasteManagementAndRemediationServicesMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918us-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMemberofs:OFSCCFSMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Venture 45 CLO, Limited Mezzanine Debt - Class E Interest Rate 11.58% Spread Above Index SOFR+7.70% Initial Acquisition Date 4/18/2022 Maturity 7/20/20352025-01-012025-12-310001487918us-gaap:PreferredClassAMemberofs:ServicesForTheElderlyAndPersonsWithDisabilitiesMember2025-12-310001487918ofs:DrugsAndDruggistsSundriesMerchantWholesalersMemberus-gaap:CommonStockMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments AIDC IntermediateCo 2, LLC First Lien Debt Industry Computer Systems Design Services Interest Rate 8.97% Spread Above Index SOFR+5.25% Initial Acquisition Date 7/22/2022 Maturity 7/22/20272025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:ProfessionalScientificAndTechnicalServicesMember2026-03-310001487918srt:MaximumMemberPortfolio Company RideNow Group, Inc. (F/K/A RumbleOn, Inc.) Investment Type First Lien Debt2026-03-310001487918us-gaap:AdditionalPaidInCapitalMember2024-12-310001487918ofs:MorganStanleyInstitutionalLiquidityFunds-GovernmentPortfolioAdvisoryClassMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Metasource, LLC First Lien Debt Industry All Other Business Support Services Interest Rate 10.18% cash / 0.50% PIK Spread Above Index SOFR+ 6.25% Initial Acquisition Date 5/17/2022 Maturity 5/17/20272025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments PSB Group, LLC First Lien Debt (Revolver) Industry Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) Interest Rate 10.42% Spread Above Index SOFR+6.75% Intitial Acquisition Date 4/17/2025 Maturity 4/17/20302026-01-012026-03-310001487918ofs:ContractDatascanHoldingsIncMemberus-gaap:InvestmentAffiliatedIssuerMember2026-01-012026-03-310001487918us-gaap:UnsecuredDebtMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Allen Media, LLC First Lien Debt Industry Cable and Other Subscription Programming Interest Rate 9.35% Spread Above Index SOFR+ 5.50% Initial Acquisition Date 3/2/2021 Maturity 2/10/20272026-01-012026-03-310001487918us-gaap:FairValueInputsLevel2Memberus-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueOctober2028Member2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments 12 Interactive, LLC (D/B/A PerkSpot) First Lien Debt (Revolver) Industry Software Publisher Spread Above Index SOFR + 5.75% Initial Acquisition Date 9/5/2025 Maturity 9/5/20302025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments M2S Group Intermediate Holdings Inc. First Lien Debt Industry Plastics Packaging Film and Sheet (including Laminated) Manufacturing Interest Rate 8.42% Spread Above Index SOFR+4.75% Intitial Acquisition Date 10/28/2025 Maturity 8/25/20312026-01-012026-03-310001487918ofs:UnsecuredNotesMember2026-01-012026-03-310001487918ofs:PharmaceuticalPreparationManufacturingMemberus-gaap:CommonClassAMember2026-03-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMember2026-03-310001487918srt:AffiliatedEntityMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Blackhawk Network Holdings, Inc. First Lien Debt Industry Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Interest Rate 7.17% Spread Above Index SOFR+ 3.50% Initial Acquisition Date 3/25/2026 Maturity 3/12/20292026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMemberofs:MeasurementInputDiscountMarginMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Clevertech Bidco, LLC First Lien Debt Industry Commodity Contracts Dealing Interest Rate 10.57% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 11/3/2023 Maturity 12/30/20272025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 9.57% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 10/15/2021 Maturity 10/15/2027 One2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments PM Acquisition LLC Common Equity (499 units) Industry All Other General Merchandise Stores Initial Acquisition Date 9/30/20172025-12-310001487918ofs:SecondLienDebtInvestmentMember2025-12-310001487918PSB Group, LLC, First Lien Debt (Revolver)2025-12-310001487918ofs:ComputerAndComputerPeripheralEquipmentAndSoftwareMerchantWholesalersMemberofs:RedstoneHoldco2LPFKARSASecurityMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Associated Spring, LLC First Lien Debt (Delayed Draw) Industry Spring Manufacturing Interest Rate 8.57% Spread Above Index SOFR + 4.75% Initial Acquisition Date 12/10/2024 Maturity 4/4/20302025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments United Biologics Holdings, LLC Preferred Equity Industry Medical Laboratories Initial Acquisition Date 4/16/20132026-03-310001487918Portfolio Company Kreg, LLC Investment Type First Lien Debtsrt:MaximumMember2026-03-310001487918ofs:OfficeMachineryAndEquipmentRentalAndLeasingMemberus-gaap:SeriesCPreferredStockMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:PreferredStockMembersrt:MaximumMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments SS Acquisition, LLC First Lien Debt Industry Sports and Recreation Instruction Interest Rate 9.45% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 12/20/2024 Maturity 12/20/20292026-01-012026-03-310001487918ofs:StructuredFinanceSecuritiesMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 5.81% cash / 6.50% PIK Spread Above Index SOFR+ 8.50% Initial Acquisition Date 12/18/2025 Maturity 46733 12/12/20272026-03-310001487918ofs:CommonEquityWarrantsAndOtherMember2026-03-310001487918ofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMemberus-gaap:FairValueInputsLevel1Member2025-12-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Warrants (warrants to purchase 1,946 shares of common equity) Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/21/2025 Maturity 8/20/20352025-01-012025-12-310001487918country:JE2025-12-310001487918Portfolio Company Investment Type Affiliate Investments SSJA Bariatric Management LLC First Lien Debt Industry Offices of Physicians and Mental Health Specialists Interest Rate 9.07% Spread Above Index SOFR+ 5.25 % Initial Acquisition Date 10/31/2025 Maturity 10/31/20282026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:FirstLienDebtInvestmentsMembersrt:MinimumMemberus-gaap:MeasurementInputDiscountRateMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Signal Parent, Inc First Lien Debt Industry New Single-Family Housing Construction (except For-Sale Builders) Interest Rate 7.44% Spread Above Index SOFR+3.50% Initial Acquisition Date 3/25/2021 Maturity 4/3/20282025-12-310001487918us-gaap:RevolvingCreditFacilityMemberofs:OFSCCFSMemberofs:BNPFacilityMember2025-12-310001487918ofs:NonresidentialPropertyManagersMemberus-gaap:CommonClassBMember2026-03-310001487918Portfolio Company Investment Type Affiliate Investments DRS Imaging Services, LLC Common Equity Industry Data Processing, Hosting, and Related Services Initial Acquisition Date 3/8/20182025-12-310001487918ofs:NonresidentialPropertyManagersMemberus-gaap:CommonClassBMember2025-12-310001487918ofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMemberofs:FirstLienDebtInvestmentsMember2026-01-012026-03-310001487918ofs:AffiliatesOfOFSAdvisorMemberofs:OFSCapitalCorporationMember2026-03-310001487918ofs:DebtAndEquityInvestmentsMemberofs:HealthCareAndSocialAssistanceMember2025-12-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:StructuredFinanceSecuritiesSubordinatedNotesMembersrt:MinimumMemberus-gaap:MeasurementInputDiscountRateMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments GoTo Group (F/K/A LogMeIn, Inc.) First Lien Debt Industry Data Processing, Hosting, and Related Services Interest Rate 8.57% Spread Above Index SOFR+ 4.75% Initial Acquisition Date 3/26/2021 Maturity 4/28/20282026-03-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments RPLF Holdings, LLC Common Equity Industry Software Publishers Initial Acquisition Date 1/17/20182026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Kreg LLC First Lien Debt (Revolver) Industry Other Ambulatory Health Care Services Interest Rate 10.10% Spread Above Index SOFR+ 6.25% Initial Acquisition Date 12/20/2021 Maturity 12/20/20262026-03-310001487918us-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMemberofs:CommonEquityWarrantsAndOtherMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMemberus-gaap:MeasurementInputRevenueMultipleMember2025-12-310001487918ofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMemberus-gaap:FairValueInputsLevel1Member2026-03-310001487918ofs:Security1CommonMember2024-12-310001487918Portfolio Company Investment Type Affiliate Investments SSJA Bariatric Management LLC First Lien Debt Industry Offices of Physicians, Mental Health Specialists Interest Rate 9.24% PIK Spread Above Index SOFR+5.25% Initial Acquisition Date 12/31/2020 Maturity 10/31/20282025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Tolemar Acquisition, Inc. First Lien Debt (Revolver) Industry Motorcycle, Bicycle, and Parts Manufacturing Interest Rate 9.82% Spread Above Index SOFR+6.00% Initial Acquisition Date 10/14/2021 Maturity 10/14/20272025-01-012025-12-310001487918ofs:UnsecuredNotesDueOctober2028Member2021-11-0100014879182025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 5.81% cash / 6.50% PIK Spread Above Index SOFR+ 8.50% Initial Acquisition Date 12/18/2025 Maturity 12/12/20272026-03-310001487918ofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMemberofs:CommonEquityWarrantsAndOtherMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments RideNow Group, Inc. (F/K/A RumbleOn, Inc. Warrants (warrants to purchase up to in common stock Industry Other Industrial Machinery Manufacturing Initial Acquisition Date 8/31/2021 Maturity 8/10/20302025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments AIDC IntermediateCo 2, LLC First Lien Debt Industry Computer Systems Design Services Interest Rate 8.92% Spread Above Index SOFR+ 5.25% Initial Acquisition Date 7/31/2023 Maturity 7/22/20272026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 5.49% cash / 6.50% PIK Spread Above Index SOFR + 8.00% Initial Acquisition Date 11/25/2021 Maturity 3/12/20292025-01-012025-12-310001487918us-gaap:AdditionalPaidInCapitalMember2026-01-012026-03-310001487918ofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Canyon CLO 2019-1, Ltd Subordinated Notes Interest Rate 21.30% Initial Acquisition Date 8/22/2024 Maturity 7/15/20372025-01-012025-12-310001487918srt:MinimumMemberPortfolio Company Avison Young Inc. Investment Type First Lien Debt One2026-03-310001487918srt:AffiliatedEntityMemberofs:InvestmentAdvisoryAgreementIncentiveFeeRateRealizedCapitalGainsMember2026-01-012026-03-310001487918Portfolio Company Investment Type Affiliate Investments SSJA Bariatric Management LLC First Lien Debt Industry Offices of Physicians, Mental Health Specialists Interest Rate 9.24% PIK Spread Above Index SOFR+5.25% Initial Acquisition Date 12/31/2020 Maturity 10/31/20282025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Integrated Energy Services, LLC First Lien Debt Industry Computer Systems Design Services Interest Rate 9.20% Spread Above Index SOFR+ 5.50% Initial Acquisition Date 12/18/2025 Maturity 12/19/20302025-01-012025-12-310001487918ofs:UnsecuredNotesDueAugust2029Memberus-gaap:FairValueInputsLevel2Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueOctober2028Member2026-03-310001487918ofs:Security1CommonMember2025-04-012025-06-300001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments GoTo Group (F/K/A LogMeIn, Inc.) First Lien Debt Industry Data Processing, Hosting, and Related Services Interest Rate 8.79% Spread Above Index SOFR+ 4.75% Initial Acquisition Date 3/26/2021 Maturity 4/28/20282025-12-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:MeasurementInputDiscountMarginMembersrt:MaximumMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2025-12-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:MinimumMemberofs:MeasurementInputRecoveryRateMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2025-12-310001487918ofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMemberus-gaap:PreferredStockMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. Common Equity (1,290 Class A units) Industry Services for the Elderly and Persons with Disabilities Initial Acquisition Date 2/25/20222025-01-012025-12-310001487918srt:MinimumMemberPortfolio Company RideNow Group, Inc. (F/K/A RumbleOn, Inc.) Investment Type First Lien Debt2026-03-310001487918ofs:AvisonYoungInc.Memberofs:NonresidentialPropertyManagersMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities Canyon CLO 2019-1, Ltd. Subordinated Notes Interest Rate 17.18% Initial Acquisition Date 8/22/2024 Maturity 7/15/20372026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. Preferred Equity (3,446 Class A Units), 12% cash / 2% PIK Industry Services for the Elderly and Persons with Disabilities Initial Acquisition Date 3/3/20232026-01-012026-03-310001487918I Love Produce, LLC First Lien Debt (Revolver)2026-03-310001487918us-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:PreferredStockMember2025-12-310001487918us-gaap:ConstructionSectorMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918ofs:StructuredFinanceSecuritiesMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMemberofs:CommonEquityWarrantsAndOtherMembersrt:MaximumMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Inergex Holdings, LLC First Lien Debt Industry Other Computer Related Services Interest Rate 10.85% cash / 2.00% PIK Spread Above Index SOFR+ 7.00% Initial Acquisition Date 10/1/2028 Maturity 10/1/20262026-03-310001487918ofs:UnsecuredNotesDueAugust2029Member2025-08-080001487918Envocore Holding, LLC (F/K/A LRI Holding, LLC), First Lien Debt (Revolver)2025-12-310001487918us-gaap:RetainedEarningsMember2026-01-012026-03-310001487918us-gaap:ConstructionSectorMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918us-gaap:EstimateOfFairValueFairValueDisclosureMember2026-03-310001487918ofs:InterestIncomeOperatingAccretionOfInterestIncomeMemberus-gaap:PreferredStockMember2026-01-012026-03-310001487918Tolemar Acquisition, Inc., First Lien Debt (Revolver)2025-12-310001487918ofs:FeeIncomeMemberofs:SecondLienDebtInvestmentsMember2026-01-012026-03-310001487918Contract Datascan Holdings, Inc., Preferred Equity 22026-03-310001487918ofs:ServicesForTheElderlyAndPersonsWithDisabilitiesMemberofs:HonorHNBuyerIncMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments RPLF Holdings, LLC Common Equity (345,339 Class A units) Industry Software Publishers Initial Acquisition Date 1/17/20182025-12-310001487918ofs:SoftwarePublishersMemberus-gaap:CommonClassAMember2025-12-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberus-gaap:MeasurementInputDefaultRateMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:EquitySecuritiesMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMember2025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments 12 Interactive, LLC (D/B/A PerkSpot) First Lien Debt Industry Software Publishers Interest Rate 9.42% Spread Above Index SOFR + 5.75% Initial Acquisition Date 9/5/2025 Maturity 9/5/20302025-01-012025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt (Delayed Draw)2025-12-310001487918us-gaap:FairValueInputsLevel2Member2025-12-310001487918Contract Datascan Holdings, Inc., Warrants 22026-03-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debtsrt:MinimumMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Idera Inc. Second Lien Debt Industry Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Interest Rate 10.56% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 1/27/2022 Maturity 3/2/20292026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Apex Credit CLO 2021 Ltd. Subordinated Notes Interest Rate 6.51% Acquisition Date 5/28/2021 Maturity 7/18/20342025-12-310001487918ofs:ContractDatascanHoldingsIncMemberofs:PortfolioCustomersOverTenPercentMember2026-03-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeRateQuarterlyHurdleRateMembersrt:AffiliatedEntityMember2026-01-012026-03-310001487918ofs:DebtAndEquitySecuritiesRealizedGainLossMember2026-01-012026-03-310001487918Portfolio Company Investment Type Affiliate Investments SSJA Bariatric Management LLC Common Equity (Class A units) Industry Offices of Physicians, Mental Health Specialists Initial Acquisition Date 10/31/20252025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 9.60% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 10/15/2021 Maturity 10/15/20272026-03-310001487918us-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueFebruary2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Apex Credit CLO 2022-1 Ltd. Subordinated Notes Interest Rate 20.68% Acquisition Date 4/28/2022 Maturity 10/22/20382025-12-310001487918ofs:StructuredFinanceSecuritiesMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. Common Equity (1,185 Class B units) Acquisition Date 3/12/20242026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Idera Inc. Second Lien Debt Industry Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Interest Rate 10.56% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 1/27/2022 Maturity 3/2/20292026-01-012026-03-310001487918ofs:DebtAndEquitySecuritiesUnrealizedGainLossMemberus-gaap:PreferredStockMember2026-01-012026-03-310001487918ofs:ManagementOfCompaniesAndEnterprisesMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Affiliate Investments DRS Imaging Services, LLC Common Equity (1,135 units) Industry Data Processing, Hosting, and Related Services Initial Acquisition Date 3/8/20182026-03-310001487918ofs:DebtAndEquitySecuritiesRealizedGainLossMemberofs:CommonEquityWarrantsAndOtherMember2026-01-012026-03-310001487918ofs:TolemarAcquisitionINCMemberofs:MotorcycleBicycleAndPartsManufacturingMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMember2025-01-012025-03-310001487918us-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueOctober2028Memberus-gaap:FairValueInputsLevel1Member2025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:SecondLienDebtInvestmentsMembersrt:MinimumMemberus-gaap:MeasurementInputDiscountRateMember2026-03-3100014879182026-04-282026-04-280001487918Portfolio Company Investment Type Affiliate Investments Pfanstiehl Holdings, Inc. Common Equity (400 Class A shares) Industry Pharmaceutical Preparation Manufacturing Initial Acquisition Date 1/1/20242026-03-310001487918ofs:SecondLienDebtInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Affiliate Investments DRS Imaging Services, LLC Common Equity Industry Data Processing, Hosting, and Related Services Initial Acquisition Date 3/8/20182025-01-012025-12-310001487918ofs:JPIntermediateBLLCMemberofs:DrugsAndDruggistsSundriesMerchantWholesalersMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918us-gaap:PreferredStockMember2025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Planet Bingo, LLC (F/K/A 3rd Rock Gaming Holdings, LLC) First Lien Debt Industry Software Publishers Interest Rate 6.50% Intitial Acquisition Date 3/13/2018 Maturity 12/31/20272026-03-310001487918Portfolio Company JP Intermediate B, LLC Investment Type First Lien Debtsrt:MaximumMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:PreferredStockMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities First Lien Debt Apex Credit CLO 2021 Ltd. Subordinated Notes Interest Rate 0.81% Initial Acquisition Date 5/28/2021 Maturity 7/18/20342026-01-012026-03-310001487918us-gaap:InvestmentAffiliatedIssuerMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments JP Intermediate B, LLC Common Equity (12,663 Units) Industry Drugs and Druggists' Sundries Merchant Wholesalers Initial Acquisition Date 9/30/20252025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Voya CLO 2024-7, Ltd. Subordinated Notes Interest Rate 16.31% Initial Acquisition Date 1/7/2025 Maturity 1/20/20382025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2026-03-310001487918ofs:NewSingleFamilyHousingConstructionExceptForSaleBuildersMemberofs:SSAcquisitionLLCMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:StructuredFinanceSecuritiesSubordinatedNotesMembersrt:MaximumMemberus-gaap:MeasurementInputDefaultRateMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMembersrt:MaximumMember2025-12-310001487918ofs:DebtAndEquitySecuritiesRealizedGainLossMemberus-gaap:PreferredStockMember2025-01-012025-03-310001487918us-gaap:EquitySecuritiesMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Apex Credit CLO 2020 Ltd. Subordinated Notes Interest Rate 9.87% Acquisition Date 11/16/2020 Maturity 4/20/20352025-01-012025-12-310001487918ofs:FeeIncomeMemberus-gaap:PreferredStockMember2026-01-012026-03-310001487918ofs:UnsecuredNotesDueJuly2028Memberus-gaap:FairValueInputsLevel2Memberus-gaap:UnsecuredDebtMember2026-03-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueFebruary2026Member2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt (Delayed Draw) Industry Services for the Elderly and Persons with Disabilities Spread Above Index SOFR+ 5.75% Initial Acquisition Date 10/15/2024 Maturity 10/15/20272026-01-012026-03-310001487918ofs:OneGILLCMemberofs:DebtAndEquityInvestmentsMemberofs:OfficesOfOtherHoldingCompaniesMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueOctober2028Member2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2026-01-012026-03-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberofs:NatixisFacilityMember2025-12-310001487918us-gaap:InvestmentUnaffiliatedIssuerMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Medrina LLC First Lien Debt Industry All Other Outpatient Care Centers Interest Rate 9.69% Spread Above Index SOFR+6.00% Intitial Acquisition Date 10/20/2023 Maturity 10/20/20292026-01-012026-03-310001487918SSJA Bariatric Management LLC, Common Equity 12026-01-012026-03-310001487918us-gaap:NonrelatedPartyMember2025-12-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:StructuredFinanceSecuritiesSubordinatedNotesMembersrt:MinimumMemberus-gaap:MeasurementInputDefaultRateMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Redstone Holdco 2 LP (F/K/A RSA Security) First Lien Debt Industry Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Interest Rate 8.92% Spread Above Index SOFR+5.25% Intitial Acquisition Date 4/16/2021 Maturity 12/31/20302026-03-310001487918ofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2025-01-012025-03-310001487918Contract Datascan Holdings, Inc., Warrants 22025-12-310001487918ofs:StructuredFinanceSecuritiesMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities BlueMountain CLO XXXV Ltd. Subordinated Notes Interest Rate 16.68% Initial Acquisition Date 10/30/2024 Maturity 10/22/19372026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:MeasurementInputRecoveryRateMembersrt:MaximumMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt (Revolver) Industry Services for the Elderly and Persons with Disabilities Interest Rate 11.50% Spread Above Index Prime+ 4.75% Initial Acquisition Date 10/15/2021 Maturity 10/15/20272025-12-310001487918ofs:A7.50PercentNotesDue2028Member2026-01-012026-03-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDiscountRateMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Planet Bingo, LLC (F/K/A 3rd Rock Gaming Holdings, LLC) First Lien Debt Industry Software Publishers Interest Rate 6.50% Initial Acquisition Date 3/13/2018 Maturity 12/31/20272025-01-012025-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2026-01-012026-03-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Preferred Equity (2750 Series C shares), 14% PIK Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/21/20252025-01-012025-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:FeeIncomeMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Medrina LLC First Lien Debt Industry All Other Outpatient Care Centers Interest Rate 9.63% Spread Above Index SOFR+6.00% Intitial Acquisition Date 10/20/2023 Maturity 10/20/2029 One2026-03-310001487918ofs:FirstLienDebtInvestmentsUnitrancheMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:FeeIncomeMember2025-01-012025-03-310001487918ofs:StructuredFinanceSecuritiesMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2026-01-012026-03-310001487918SSJA Bariatric Management LLC, First Lien Debt 12026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Clevertech Bidco, LLC First Lien Debt Industry Commodity Contracts Dealing Interest Rate 10.57% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 11/3/2023 Maturity 12/30/20272025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:PreferredStockMember2025-12-310001487918us-gaap:AdditionalPaidInCapitalMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Associated Spring, LLC First Lien Debt (Delayed Draw) Industry Spring Manufacturing Interest Rate 8.52% Spread Above Index SOFR+ 4.75% Initial Acquisition Date 12/10/2024 Maturity 4/4/20302026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Integrated Energy Services, LLC First Lien Debt (Revolver) Industry Computer Systems Design Services Spread Above Index SOFR+ 5.50% Initial Acquisition Date 12/18/2025 Maturity 12/19/20302026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Apex Credit CLO 2020 Ltd. Subordinated Notes Interest Rate 9.87% Acquisition Date 11/16/2020 Maturity 4/20/20352025-12-310001487918Associated Spring, LLC, First Lien Debt (Delayed Draw)2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments One GI LLC First Lien Debt (Revolver) Industry Offices of Other Holding Companies Interest Rate 10.57% Spread Above Index SOFR+6.75% Initial Acquisition Date 12/13/2021 Maturity 12/22/20252025-01-012025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMembersrt:WeightedAverageMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Planet Bingo, LLC (F/K/A 3rd Rock Gaming Holdings, LLC) First Lien Debt Industry Software Publishers Interest Rate 6.50% Intitial Acquisition Date 3/13/2018 Maturity 12/31/20272026-01-012026-03-310001487918ofs:StructuredFinanceSecuritiesMemberus-gaap:FairValueInputsLevel1Member2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities Canyon CLO 2019-1, Ltd. Subordinated Notes Interest Rate 17.18% Initial Acquisition Date 8/22/2024 Maturity 7/15/20372026-01-012026-03-310001487918Portfolio Company Investment Type Affiliate Investments Pfanstiehl Holdings, Inc. Common (Class A shares) Equity Industry Pharmaceutical Preparation Manufacturing Initial Acquisition Date 1/1/20142025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments I Love Produce, LLC First Lien Debt Industry Spice and Extract Manufacturing Interest Rate 9.81% Spread Above Index SOFR+ 6.00% Initial Acquisition Date 3/24/2026 Maturity 3/24/20312026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. Preferred Equity (1,715 Class A units) 12.5% PIK Initial Acquisition Date 3/12/20242026-01-012026-03-310001487918ofs:ILoveProduceLLCMemberofs:SpiceAndExtractManufacturingMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918ofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Integrated Energy Services, LLC First Lien Debt Industry Computer Systems Design Services Interest Rate 9.20% Spread Above Index SOFR+ 5.50% Initial Acquisition Date 12/18/2025 Maturity 12/19/20302025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMemberus-gaap:MeasurementInputDefaultRateMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Sentry Centers Holdings, LLC Preferred Equity (1,603 Series B units) Industry Convention and Trade Show Organizer Initial Acquisition Date 9/4/20202025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments TalentSmart Holdings, LLC Common Equity (1,595,238 Class A shares) Professional and Management Development Training Initial Acquisition Date 10/11/20192025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities Trinitas CLO VIII, Ltd. Subordinated Notes Interest Rate 0.00% Initial Acquisition Date 3/4/2021 Maturity 7/20/21172026-03-310001487918Portfolio Company RideNow Group, Inc. (F/K/A RumbleOn, Inc.) Investment Type First Lien Debt2025-12-310001487918us-gaap:RetainedEarningsMember2025-03-310001487918ofs:PortfolioCustomersOverTenPercentMemberofs:KregLLCMember2026-03-310001487918ofs:TolemarAcquisitionINCMemberofs:MotorcycleBicycleAndPartsManufacturingMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918ofs:AdviserConcentrationRiskMemberofs:InvestmentPortfolioFairValueMemberofs:SingleAdviserMember2026-01-012026-03-310001487918ofs:UnsecuredNotesDueAugust2029Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:UnsecuredDebtMember2025-12-310001487918ofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMemberus-gaap:FairValueInputsLevel1Member2026-03-3100014879182026-01-012026-03-310001487918us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberofs:NatixisFacilityMember2026-03-310001487918us-gaap:LineOfCreditMemberofs:BNPFacilityMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMembersrt:WeightedAverageMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Constellis Holdings, LLC Common Equity (20,628 common shares) Industry Other Justice, Public Order, and Safety Activities Initial Acquisition Date 3/27/20202026-03-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeRatePreIncentiveFeeNetIncomeMembersrt:AffiliatedEntityMember2026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:PreferredStockMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments One GI LLC First Lien Debt Industry Offices of Other Holding Companies Interest Rate 10.57% Spread Above Index SOFR+6.75% Initial Acquisition Date 12/13/2021 Maturity 12/22/2025 One2025-01-012025-12-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments SS Acquisition, LLC First Lien Debt (Revolver) Industry Sports and Recreation Instruction Interest Rate 9.45% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 12/20/2024 Maturity 12/20/20292026-01-012026-03-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueOctober2028Member2025-12-310001487918ofs:EnvocoreHoldingLLCFKALRIHoldingLLCMemberofs:ElectricalContractorsAndOtherWiringInstallationContractorsMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Integrated Energy Services, LLC First Lien Debt (Delayed Draw) Industry Computer Systems Design Services Spread Above Index SOFR+ 5.50% Initial Acquisition Date 12/18/2025 Maturity 12/19/20302025-12-310001487918us-gaap:RetainedEarningsMember2026-03-310001487918ofs:FinanceAndInsuranceMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMemberus-gaap:MeasurementInputEbitdaMultipleMember2026-03-310001487918ofs:StructuredFinanceSecuritiesMemberus-gaap:InvestmentUnaffiliatedIssuerMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Tolemar Acquisition, Inc First Lien Debt (Revolver) Industry Motorcycle, Bicycle, and Parts Manufacturing Interest Rate 9.77% Spread Above Index SOFR+ 6.00% Initial Acquisition Date 10/14/2021 Maturity 10/14/20272026-03-310001487918ofs:StructuredFinanceSecuritiesMemberofs:FeeIncomeMember2026-01-012026-03-310001487918ofs:OutpatientMentalHealthAndSubstanceAbuseCentersMemberofs:BayMarkHealthServicesIncMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918Portfolio Company Kreg, LLC Investment Type First Lien Debtsrt:MaximumMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments One GI LLC First Lien Debt Industry Offices of Other Holding Companies Interest Rate 10.57% Spread Above Index SOFR+6.75% Initial Acquisition Date 12/13/2021 Maturity 12/22/20252025-01-012025-12-310001487918ofs:OtherJusticePublicOrderAndSafetyActivitiesMemberus-gaap:CommonStockMember2026-03-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Common Equity (11,273 shares) Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 6/28/20162026-03-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Preferred Equity (2750 Series C shares), 14% PIK Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/21/20252025-12-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2026-03-310001487918ofs:UnsecuredNotesDueJuly2028OverallotmentsMember2025-07-230001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Preferred Equity (3,061 Series A shares), 10% PIK Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/5/20152025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments SS Acquisition, LLC First Lien Debt (Revolver) Industry Sports and Recreation Instruction Interest Rate 9.42% Spread Above Index SOFR+5.75% Initial Acquisition Date 12/20/2024 Maturity 12/20/20292025-01-012025-12-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Common Equity (11,273 shares) Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 6/28/20162026-01-012026-03-310001487918ofs:Security1CommonMember2025-09-300001487918ofs:ContractDatascanHoldingsIncMemberofs:OfficeMachineryAndEquipmentRentalAndLeasingMember2025-12-310001487918Portfolio Company Investment Type Affiliate Investments SSJA Bariatric Management LLC Common Equity (Class A units) Industry Offices of Physicians, Mental Health Specialists Initial Acquisition Date 10/31/20252025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Redstone Holdco 2 LP (F/K/A RSA Security) First Lien Debt Industry Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Interest Rate 8.85% Spread Above Index SOFR+4.75% Initial Acquisition Date 4/16/2021 Maturity 4/27/20282025-12-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:StructuredFinanceSecuritiesSubordinatedNotesMembersrt:MinimumMemberofs:MeasurementInputRecoveryRateMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Heritage Grocers Group, LLC. (F/K/A Tony's Fresh Market / Cardenas Markets) First Lien Debt Industry Supermarkets and Other Grocery (except Convenience) Stores Interest Rate 10.52% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 7/20/2022 Maturity 8/1/20292025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments AIDC IntermediateCo 2, LLC First Lien Debt Industry Computer Systems Design Services Interest Rate 8.92% Spread Above Index SOFR+ 5.25% Initial Acquisition Date 7/22/2022 Maturity 7/22/20272026-01-012026-03-3100014879182026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Medrina LLC First Lien Debt Industry All Other Outpatient Care Centers Interest Rate 9.69% Spread Above Index SOFR+ 6.00% Initial Acquisition Date 10/20/2023 Maturity 10/20/20292025-12-310001487918ofs:FeeIncomeMember2025-01-012025-03-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt Twosrt:MaximumMember2025-12-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel1Member2026-03-310001487918ofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMemberofs:SecondLienDebtInvestmentsMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Staples, Inc. First Lien Debt Industry Business to Business Electronic Markets Interest Rate 9.41% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 5/23/2024 Maturity 9/4/20292026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments RPLF Holdings, LLC Common Equity (345,339 Class A units) Industry Software Publishers Initial Acquisition Date 1/17/20182025-01-012025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMembersrt:MaximumMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments 24 Seven Holdco, LLC First Lien Debt Industry Temporary Help Services Interest Rate 10.91% Spread Above Index SOFR+ 7.13% Initial Acquisition Date 1/28/2022 Maturity 11/16/20272026-01-012026-03-310001487918ofs:OtherComputerRelatedServicesMemberofs:InergexHoldingsLLCMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918ofs:InterestIncomeOperatingAccretionOfInterestIncomeMemberofs:CommonEquityWarrantsAndOtherMember2026-01-012026-03-310001487918ofs:O2025Q1AggregateDividendsMember2025-01-012025-03-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Warrants (warrants to purchase 1,946 shares of common equity) Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/21/2025 Maturity 8/20/20352026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities Apex Credit CLO 2022-1 Ltd. Subordinated Notes Interest Rate 17.49% Initial Acquisition Date 4/28/2022 Maturity 10/22/20382026-03-310001487918Contract Datascan Holdings, Inc., Preferred Equity 22026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Sentry Centers Holdings, LLC Preferred Equity Industry Convention and Trade Show Organizers Initial Acquisition Date 9/4/2020 Maturity2026-01-012026-03-310001487918ofs:InvestmentAdvisoryAgreementBaseManagementFeeRateAnnualizedMembersrt:AffiliatedEntityMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Envocore Holding, LLC (F/K/A LRI Holding, LLC) First Lien Debt Industry Electrical Contractors and Other Wiring Installation Contractors Interest Rate 7.50% Initial Acquisition Date 6/30/2017 Maturity 12/31/20272025-01-012025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2025-12-310001487918Integrated Energy Services, LLC, First Lien Debt (Delayed Draw)2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Associated Spring, LLC First Lien Debt Industry Spring Manufacturing Interest Rate 8.59% Spread Above Index SOFR + 4.75% Initial Acquisition Date 12/10/2024 Maturity 4/4/20302025-12-310001487918ofs:StructuredFinanceSecuritiesMemberus-gaap:FairValueInputsLevel1Member2026-03-310001487918ofs:SpringManufacturingMemberofs:AssociatedSpringLLCMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments BayMark Health Services, Inc. Second Lien Debt Industry Outpatient Mental Health and Substance Abuse Centers Interest Rate 14.46% Spread Above Index SOFR+ 10.50% Initial Acquisition Date 6/10/2021 Maturity 6/11/2028 One2026-03-310001487918Contract Datascan Holdings, Inc., Common Equity2025-12-310001487918ofs:ContractDatascanHoldingsIncMemberofs:OfficeMachineryAndEquipmentRentalAndLeasingMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2026-03-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt (Delayed Draw) Industry Services for the Elderly and Persons with Disabilities Spread Above Index SOFR+ 5.75% Initial Acquisition Date 10/15/2024 Maturity 10/15/20262025-01-012025-12-310001487918ofs:MedrinaLLCMemberofs:AllOtherOutpatientCareCentersMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Idera Inc. Second Lien Debt Industry Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Interest Rate 10.75% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 1/27/2022 Maturity 3/2/20292025-01-012025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMemberus-gaap:MeasurementInputDefaultRateMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2026-03-310001487918us-gaap:FairValueInputsLevel2Memberus-gaap:DebtSecuritiesMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities BlueMountain CLO XXXV Ltd. Subordinated Notes Interest Rate 16.45% Acquisition Date 10/30/2024 Maturity 10/22/20372025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt (Revolver) Industry Services for the Elderly and Persons with Disabilities Interest Rate 11.50% Spread Above Index Prime+ 4.75% Initial Acquisition Date 10/15/2021 Maturity 10/15/20272025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Sentry Centers Holdings, LLC Preferred Equity Industry Convention and Trade Show Organizers Initial Acquisition Date 9/4/2020 Maturity2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities Venture 45 CLO, Limited Mezzanine Debt - Class E Interest Rate 11.37% Spread Above Index SOFR+7.70 % Initial Acquisition Date 4/18/2022 Maturity 7/20/20352026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Metasource, LLC First Lien Debt Industry All Other Business Support Services Interest Rate 10.21% cash / 0.50% PIK Spread Above Index SOFR+6.25% Intitial Acquisition Date 5/17/2022 Maturity 5/17/20272026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments SS Acquisition, LLC First Lien Debt (Revolver) Industry Sports and Recreation Instruction Interest Rate 9.42% Spread Above Index SOFR+5.75% Initial Acquisition Date 12/20/2024 Maturity 12/20/20292025-12-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debtsrt:MinimumMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:MeasurementInputDefaultRateMembersrt:MaximumMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments PSB Group, LLC First Lien Debt (Revolver) Industry Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) Interest Rate 10.47% Spread Above Index SOFR+6.75% Initial Acquisition Date 4/17/2025 Maturity 4/17/20302025-01-012025-12-310001487918ofs:CommonEquityWarrantsAndOtherMember2024-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueOctober2028Member2026-03-310001487918ofs:Security1CommonMember2025-06-300001487918us-gaap:RevolvingCreditFacilityMemberofs:NatixisFacilityMember2026-03-310001487918ofs:SecondLienDebtInvestmentsMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2026-01-012026-03-310001487918ofs:AIDCIntermediateCo2LLCMemberofs:DebtAndEquityInvestmentsMemberofs:ComputerSystemsDesignServicesMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMemberofs:CommonEquityWarrantsAndOtherMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities CBAMR 2017-1, Ltd. Subordinated Notes Interest Rate 21.02% Initial Acquisition Date 8/12/2025 Maturity 1/20/20382025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. Common Equity (1,185 Class B units) Industry Nonresidential Property Managers Initial Acquisition Date 3/12/20242025-01-012025-12-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt Three2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 5.20% cash / 5.85% PIK Spread Above Index SOFR + 7.35% Initial Acquisition Date 12/18/2025 Maturity 12/12/20272025-01-012025-12-310001487918DRS Imaging Services, LLC, Common Equity2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Constellis Holdings, LLC Common Equity (20,628 common shares) Industry Other Justice, Public Order, and Safety Activities Initial Acquisition Date 3/27/20202026-01-012026-03-310001487918us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMember2025-12-310001487918ofs:OtherAmbulatoryHealthCareServicesMemberofs:KregLLCMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Redstone Holdco 2 LP (F/K/A RSA Security) First Lien Debt Industry Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Interest Rate 9.17% Spread Above Index SOFR+5.50% Intitial Acquisition Date 1/30/2026 Maturity 12/31/20302026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities CBAMR 2017-1, Ltd. Subordinated Notes Interest Rate 21.02% Initial Acquisition Date 8/12/2025 Maturity 1/20/20382025-01-012025-12-310001487918us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-12-310001487918srt:MinimumMemberPortfolio Company Kreg, LLC Investment Type First Lien Debt2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMemberofs:CommonEquityWarrantsAndOtherMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments One GI LLC First Lien Debt (Revolver) Industry Offices of Other Holding Companies Interest Rate 10.52% Spread Above Index SOFR+6.75% Intitial Acquisition Date 12/13/2021 Maturity 12/22/20252026-01-012026-03-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:MinimumMemberus-gaap:MeasurementInputDefaultRateMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2026-03-3100014879182025-06-300001487918ofs:SSAcquisitionLLCMemberofs:DebtAndEquityInvestmentsMemberofs:SportsAndRecreationInstructionMember2026-03-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 5.81% cash / 6.50% PIK Spread Above Index SOFR+ 8.50% Initial Acquisition Date 12/18/2025 Maturity 46733 12/12/20272026-01-012026-03-310001487918us-gaap:UnsecuredDebtMemberofs:NatixisFacilityMember2026-02-182026-02-180001487918ofs:InvestmentAdvisoryAgreementBaseManagementFeeRateAnnualizedMembersrt:AffiliatedEntityMember2025-01-012025-12-310001487918ofs:Security1CommonMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments 12 Interactive, LLC (D/B/A PerkSpot) First Lien Debt (Revolver) (5) Industry Software Publishers Spread Above Index SOFR+ 5.75% Initial Acquisition Date 9/5/2025 Maturity 9/5/20302026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments One GI LLC First Lien Debt Industry Offices of Other Holding Companies Interest Rate 10.52% Spread Above Index SOFR+6.75% Intitial Acquisition Date 12/13/2021 Maturity 12/22/2025 One2026-03-310001487918ofs:StructuredFinanceSecuritiesMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments I Love Produce, LLC First Lien Debt (Revolver) Industry Spice and Extract Manufacturing Interest Rate 11.75% Spread Above Index Prime+ 5.00% Initial Acquisition Date 3/24/2026 Maturity 3/24/20312026-03-310001487918ofs:ServicesForTheElderlyAndPersonsWithDisabilitiesMemberus-gaap:CommonClassAMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments I Love Produce, LLC First Lien Debt (Delayed Draw) Industry Spice and Extract Manufacturing Spread Above Index SOFR+ 6.00% Initial Acquisition Date 3/24/2026 Maturity 3/24/20312026-03-310001487918us-gaap:UnsecuredDebtMemberofs:NatixisFacilityMember2026-02-180001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Preferred Equity (2750 Series C shares), 14% PIK Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/21/20252026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMembersrt:WeightedAverageMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2026-03-310001487918us-gaap:PreferredClassAMemberofs:ServicesForTheElderlyAndPersonsWithDisabilitiesMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:StructuredFinanceSecuritiesMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments RideNow Group, Inc. (F/K/A. RumbleOn, Inc.) Warrants Initial Acquisition Date 8/31/2021 Maturity 8/10/20302026-01-012026-03-310001487918Portfolio Company Investment Type Affiliate Investments Pfanstiehl Holdings, Inc. Common (Class A shares) Equity Industry Pharmaceutical Preparation Manufacturing Initial Acquisition Date 1/1/20142025-01-012025-12-3100014879182024-12-310001487918us-gaap:CommonStockMember2024-12-310001487918us-gaap:DebtSecuritiesMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Tolemar Acquisition, Inc First Lien Debt Industry Motorcycle, Bicycle, and Parts Manufacturing Interest Rate 9.77% cash / 1.25% PIK Spread Above Index SOFR+ 6.00% Initial Acquisition Date 10/14/2021 Maturity 10/14/20272026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Asurion, LLC First Lien Debt Industry Communication Equipment Repair and Maintenance Interest Rate 7.92% Spread Above Index SOFR+ 4.25% Initial Acquisition Date 10/28/2025 Maturity 9/19/20302026-01-012026-03-310001487918us-gaap:InvestmentUnaffiliatedIssuerMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918srt:MinimumMemberPortfolio Company Kreg, LLC Investment Type First Lien Debt2025-12-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2025-12-310001487918ofs:FinanceAndInsuranceMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Excelin Home Health, LLC Second Lien Debt Industry Home Health Care Services Interest Rate 18.00% PIK Initial Acquisition Date 10/25/2018 Maturity 10/1/20262025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 9.60% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 3/31/2023 Maturity 10/15/20272026-01-012026-03-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:MeasurementInputDiscountMarginMembersrt:MaximumMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2026-03-310001487918Contract Datascan Holdings, Inc., Warrants 12025-12-310001487918ofs:CommodityContractsDealingMemberofs:ClevertechBidcoLLCMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Kreg, LLC Investment Type First Lien Debt2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:FirstLienDebtInvestmentsMembersrt:WeightedAverageMemberus-gaap:MeasurementInputDiscountRateMember2026-03-310001487918ofs:StructuredFinanceSecuritiesMember2024-12-310001487918ofs:OtherComputerRelatedServicesMemberofs:InergexHoldingsLLCMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberofs:MeasurementInputNetAssetValueLiquidationMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2026-03-310001487918Contract Datascan Holdings, Inc., Warrants 22026-01-012026-03-310001487918ofs:DrugsAndDruggistsSundriesMerchantWholesalersMemberus-gaap:CommonStockMember2026-03-310001487918ofs:OfficeMachineryAndEquipmentRentalAndLeasingMemberus-gaap:SeriesCPreferredStockMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:RetailTradeMember2025-12-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2018-03-072018-03-070001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2025-12-310001487918ofs:AdviserConcentrationRiskMemberofs:InvestmentPortfolioNetAssetsMemberofs:SingleAdviserMember2026-01-012026-03-310001487918ofs:SSJABariatricManagementLLCMemberus-gaap:InvestmentAffiliatedIssuerMember2026-03-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Preferred Equity (2750 Series C shares), 14% PIK Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/21/20252026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberofs:StructuredFinanceSecuritiesSubordinatedNotesMemberofs:MeasurementInputNetAssetValueLiquidationMember2025-12-310001487918ofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMemberofs:SecondLienDebtInvestmentsMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt (Delayed Draw) Industry Services for the Elderly and Persons with Disabilities Spread Above Index SOFR+ 5.75% Initial Acquisition Date 10/15/2024 Maturity 10/15/20272026-03-310001487918ofs:RideNowGroupIncFKARumbleOnIncMemberofs:DebtAndEquityInvestmentsMemberofs:OtherIndustrialMachineryManufacturingMember2025-12-310001487918Pfanstiehl Holdings, Inc., Common Equity2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Envocore Holding, LLC (F/K/A LRI Holding, LLC) Equity Participation Rights Industry Electrical Contractors and Other Wiring Installation Contractors Initial Acquisition Date 12/31/20212025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments RideNow Group, Inc. (F/K/A RumbleOn, Inc. First Lien Debt Industry Other Industrial Machinery Manufacturing Interest Rate 12.10% cash / 1.50% PIK Spread Above Index SOFR+7.75% Initial Acquisition Date 8/31/2021 Maturity 9/30/20272025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Tolemar Acquisition, Inc First Lien Debt (Revolver) Industry Motorcycle, Bicycle, and Parts Manufacturing Interest Rate 9.77% Spread Above Index SOFR+ 6.00% Initial Acquisition Date 10/14/2021 Maturity 10/14/20272026-01-012026-03-310001487918us-gaap:WarrantMemberofs:OfficeMachineryAndEquipmentRentalAndLeasingMemberus-gaap:SeriesAPreferredStockMember2025-12-310001487918ofs:OfficesOfPhysiciansAndMentalHealthSpecialistsMemberus-gaap:CommonClassAMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments 12 Interactive, LLC (D/B/A PerkSpot) First Lien Debt Industry Software Publishers Interest Rate 9.45% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 9/5/2025 Maturity 9/5/20302026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. Common Equity (1,290 Class A units) Industry Services for the Elderly and Persons with Disabilities Initial Acquisition Date 2/25/20222026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMembersrt:MaximumMember2026-03-310001487918SSJA Bariatric Management LLC, First Lien Debt 22026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities ICG US CLO 2021-3, Ltd. Subordinated Notes Interest Rate 26.57% Initial Acquisition Date 8/8/2024 Maturity 10/20/20342025-12-310001487918ofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMemberus-gaap:PreferredStockMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments JP Intermediate B, LLC First Lien Debt Industry Drugs and Druggists' Sundries Merchant Wholesalers Interest Rate 5.17% cash / 4.00% PIK Spread Above Index SOFR+ 5.50% Initial Acquisition Date 1/14/2021 Maturity 3/31/20312025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 22025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments 12 Interactive, LLC (D/B/A PerkSpot) First Lien Debt Industry Software Publishers Interest Rate 9.42% Spread Above Index SOFR + 5.75% Initial Acquisition Date 9/5/2025 Maturity 3/5/20272025-01-012025-12-310001487918ofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2025-12-310001487918country:KY2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments PSB Group, LLC First Lien Debt Industry Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) Interest Rate 10.42% Spread Above Index SOFR+6.75% Intitial Acquisition Date 4/17/2025 Maturity 4/17/20302026-03-310001487918Pfanstiehl Holdings, Inc., Common Equity2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:PreferredStockMembersrt:MaximumMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments TalentSmart Holdings, LLC Common Equity Industry Professional and Management Development Training Initial Acquisition Date 10/11/20192026-01-012026-03-310001487918us-gaap:FairValueInputsLevel1Member2026-03-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt2026-03-310001487918ofs:UnsecuredNotesDueOctober2028Member2026-03-310001487918Portfolio Company JP Intermediate B, LLC Investment Type First Lien Debt2025-12-310001487918us-gaap:PreferredStockMember2024-12-310001487918us-gaap:PreferredStockMemberofs:MedicalLaboratoriesMember2025-12-310001487918ofs:Security1CommonMember2025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Apex Credit CLO 2021 Ltd. Subordinated Notes Interest Rate 6.51% Acquisition Date 5/28/2021 Maturity 7/18/20342025-01-012025-12-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeRatePreIncentiveFeeNetInvestmentIncomeBelowCatchUpThresholdMembersrt:AffiliatedEntityMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Battalion CLO XI Ltd. Mezzanine Debt - Class E Interest Rate 10.98% Spread Above Index SOFR+6.85% Acquisition Date 4/25/2022 Maturity 4/24/20342025-12-310001487918us-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:PreferredStockMember2026-03-310001487918srt:MaximumMemberPortfolio Company Avison Young Inc. Investment Type First Lien Debt One2026-03-310001487918Portfolio Company Wellful Inc. (F/K/A KNS Acquisition Corp.) Investment Type First Lien Debtsrt:MinimumMember2025-12-310001487918Medrina LLC, First Lien Debt (Revolver)2025-12-310001487918ofs:NatixisFacilityMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Tolemar Acquisition, Inc. First Lien Debt (Revolver) Industry Motorcycle, Bicycle, and Parts Manufacturing Interest Rate 9.82% Spread Above Index SOFR+6.00% Initial Acquisition Date 10/14/2021 Maturity 10/14/20272025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMemberus-gaap:MeasurementInputRevenueMultipleMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities LCM 42 Ltd. Subordinated Notes Interest Rate 18.54% Initial Acquisition Date 12/19/2024 Maturity 1/15/20382025-12-310001487918Portfolio Company Inergex Holdings, LLC Investment Type First Lien Debt (Revolver)2026-03-310001487918SSJA Bariatric Management LLC, Common Equity 12026-03-310001487918ofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2025-01-012025-03-310001487918ofs:OtherAmbulatoryHealthCareServicesMemberofs:KregLLCMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Preferred Equity (3,061 Series A shares), 10% PIK Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/5/20152026-01-012026-03-310001487918ofs:EducationServicesMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Heritage Grocers Group, LLC. (F/K/A Tony's Fresh Market / Cardenas Markets) First Lien Debt Industry Supermarkets and Other Grocery (except Convenience) Stores Interest Rate 10.55% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 7/20/2022 Maturity 8/1/20292026-01-012026-03-310001487918ofs:UnsecuredNotesDueAugust2029Memberus-gaap:FairValueInputsLevel3Memberus-gaap:UnsecuredDebtMember2026-03-310001487918us-gaap:PreferredStockMember2026-03-310001487918ofs:A495PercentNotesDue2028Member2026-01-012026-03-310001487918Portfolio Company RideNow Group, Inc. (F/K/A RumbleOn, Inc.) Investment Type First Lien Debt2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 10.59% Spread Above Index SOFR+ 6.50% Initial Acquisition Date 2/25/2022 Maturity 2/25/20272025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities Brightwood Capital MM CLO 2023-1, Ltd. Subordinated Notes Interest Rate 24.50% Initial Acquisition Date 9/28/2023 Maturity 10/15/20352026-01-012026-03-310001487918us-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueOctober2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments AIDC IntermediateCo 2, LLC First Lien Debt Industry Computer Systems Design Services Interest Rate 8.97% Spread Above Index SOFR+5.25% Initial Acquisition Date 7/31/2023 Maturity 7/22/20272025-12-310001487918ofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMemberus-gaap:PreferredStockMember2025-01-012025-03-310001487918ofs:FirstLienDebtInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. First Lien Debt (Revolver) Industry Services for the Elderly and Persons with Disabilities Interest Rate 10.42% Spread Above Index SOFR+ 6.50% Initial Acquisition Date 2/25/2022 Maturity 2/25/20272026-03-310001487918ofs:DebtAndEquitySecuritiesRealizedGainLossMemberofs:SecondLienDebtInvestmentsMember2026-01-012026-03-310001487918ofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2026-01-012026-03-310001487918ofs:ServicesForTheElderlyAndPersonsWithDisabilitiesMemberofs:DebtAndEquityInvestmentsMemberofs:BocaHomeCareHoldingsIncMember2025-12-310001487918us-gaap:RetainedEarningsMember2024-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Associated Spring, LLC First Lien Debt Industry Spring Manufacturing Interest Rate 8.59% Spread Above Index SOFR + 4.75% Initial Acquisition Date 12/10/2024 Maturity 4/4/20302025-01-012025-12-310001487918ofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMemberofs:SecondLienDebtInvestmentsMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Clevertech Bidco, LLC Industry Commodity Contracts Dealing Interest Rate 10.60% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 11/3/2023 Maturity 12/30/20272026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments JP Intermediate B, LLC First Lien Debt Industry Drugs and Druggists' Sundries Merchant Wholesalers Interest Rate 10.70% Spread Above Index SOFR+ 7.00% Initial Acquisition Date 10/2/2021 Maturity 9/30/20302026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMemberofs:CommonEquityWarrantsAndOtherMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments SS Acquisition, LLC First Lien Debt Industry Sports and Recreation Instruction Interest Rate 9.42% Spread Above Index SOFR+5.75% Initial Acquisition Date 12/20/2024 Maturity 12/20/20292025-12-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt Twosrt:MinimumMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Wellful Inc. (F/K/A KNS Acquisition Corp.) First Lien Debt Industry Electronic Shopping and Mail-Order Houses Interest Rate 8.33% cash / 1.75% PIK Spread Above Index SOFR+6.25% Initial Acquisition Date 4/16/2021 Maturity 10/19/20302025-01-012025-12-310001487918srt:MinimumMemberPortfolio Company JP Intermediate B, LLC Investment Type First Lien Debt2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Envocore Holding, LLC (F/K/A LRI Holding, LLC) First Lien Debt (Revolver) Industry Electrical Contractors and Other Wiring Installation Contractors Initial Acquisition Date 11/29/2021 Maturity 12/31/20272025-12-310001487918Portfolio Company RideNow Group, Inc. (F/K/A RumbleOn, Inc.) Investment Type First Lien Debt Onesrt:MaximumMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities CBAMR 2017-1, Ltd. Subordinated Notes Interest Rate 20.26% Initial Acquisition Date 8/12/2025 Maturity 1/20/20382026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:StructuredFinanceSecuritiesSubordinatedNotesMembersrt:MinimumMemberus-gaap:MeasurementInputDiscountRateMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Blackhawk Network Holdings, Inc. First Lien Debt Industry Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Interest Rate 7.17% Spread Above Index SOFR+ 3.50% Initial Acquisition Date 3/25/2026 Maturity 3/12/20292026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities LCM 42 Ltd. Subordinated Notes Interest Rate 17.60% Initial Acquisition Date 12/19/2024 Maturity 1/15/20382026-03-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberofs:NatixisFacilityMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 9.57% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 3/31/2023 Maturity 10/15/20272025-01-012025-12-310001487918us-gaap:FairValueInputsLevel2Memberus-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueOctober2028Member2026-03-310001487918ofs:DebtAndEquitySecuritiesRealizedGainLossMemberofs:SecondLienDebtInvestmentsMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments GoTo Group (F/K/A LogMeIn, Inc.) First Lien Debt Industry Data Processing, Hosting, and Related Services Interest Rate 8.79% Spread Above Index SOFR+ 4.75% Initial Acquisition Date 3/26/2021 Maturity 4/28/20282025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Redstone Holdco 2 LP (F/K/A RSA Security) First Lien Debt Industry Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Interest Rate 8.92% Spread Above Index SOFR+5.25% Intitial Acquisition Date 4/16/2021 Maturity 12/31/20302026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments SS Acquisition, LLC First Lien Debt Industry Sports and Recreation Instruction Interest Rate 9.45% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 12/20/2024 Maturity 12/20/20292026-03-310001487918us-gaap:CommonStockMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 10.59% Spread Above Index SOFR+ 6.50% Initial Acquisition Date 2/25/2022 Maturity 2/25/20272025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMembersrt:MaximumMember2026-03-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt Twosrt:MinimumMember2026-03-310001487918us-gaap:CommonStockMemberofs:OtherIndustrialMachineryManufacturingMember2026-03-310001487918us-gaap:CommonStockMemberofs:DataProcessingHostingAndRelatedServicesMember2026-03-310001487918ofs:UnsecuredNotesDueFebruary2026Member2026-01-082026-01-080001487918us-gaap:DebtSecuritiesMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Wellful Inc. (F/K/A KNS Acquisition Corp.) First Lien Debt Industry Electronic Shopping and Mail-Order Houses Interest Rate 8.33% cash / 1.75% PIK Spread Above Index SOFR+6.25% Initial Acquisition Date 4/16/2021 Maturity 10/19/20302025-12-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Preferred Equity (3,061 Series A shares), 10% PIK Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/5/20152025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Canyon CLO 2019-1, Ltd Subordinated Notes Interest Rate 21.30% Initial Acquisition Date 8/22/2024 Maturity 7/15/20372025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments 12 Interactive, LLC (D/B/A PerkSpot) First Lien Debt Industry Software Publishers Interest Rate 9.45% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 9/5/2025 Maturity 9/5/20302026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. First Lien Debt (Revolver) Industry Services for the Elderly and Persons with Disabilities Interest Rate 10.59% Spread Above Index SOFR+ 6.50% Initial Acquisition Date 2/25/2022 Maturity 2/25/20272025-01-012025-12-310001487918Tolemar Acquisition, Inc., First Lien Debt (Revolver)2026-03-310001487918Portfolio Company Wellful Inc. (F/K/A KNS Acquisition Corp.) Investment Type First Lien Debt2025-12-310001487918ofs:SSJABariatricManagementLLCMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-12-310001487918Contract Datascan Holdings, Inc., Preferred Equity 12026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments BayMark Health Services, Inc. Second Lien Debt Industry Outpatient Mental Health and Substance Abuse Centers Interest Rate 14.70% Spread Above Index SOFR + 10.50% Initial Acquisition Date 6/10/2021 Maturity 6/11/20282025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments PSB Group, LLC First Lien Debt (Revolver) Industry Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) Interest Rate 10.42% Spread Above Index SOFR+6.75% Intitial Acquisition Date 4/17/2025 Maturity 4/17/20302026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments M2S Group Intermediate Holdings Inc. First Lien Debt Industry Plastics Packaging Film and Sheet (including Laminated) Manufacturing Interest Rate 8.42% Spread Above Index SOFR+4.75% Intitial Acquisition Date 10/28/2025 Maturity 8/25/20312026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments One GI LLC First Lien Debt Industry Offices of Other Holding Companies Interest Rate 10.52% Spread Above Index SOFR+6.75% Intitial Acquisition Date 12/13/2021 Maturity 12/22/20252026-03-310001487918us-gaap:CommonStockMember2026-03-310001487918ofs:ServicesForTheElderlyAndPersonsWithDisabilitiesMemberus-gaap:CommonClassAMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments GoTo Group (F/K/A LogMeIn, Inc.) First Lien Debt Industry Data Processing, Hosting, and Related Services Interest Rate 8.57% Spread Above Index SOFR+ 4.75% Initial Acquisition Date 3/26/2021 Maturity 4/28/2028 One2026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMemberofs:StructuredFinanceSecuritiesSubordinatedNotesMemberofs:MeasurementInputRecoveryRateMember2026-03-310001487918ofs:InformationMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMember2025-01-012025-03-310001487918us-gaap:FairValueInputsLevel3Member2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments SS Acquisition, LLC First Lien Debt Industry Sports and Recreation Instruction Interest Rate 9.42% Spread Above Index SOFR+5.75% Initial Acquisition Date 12/20/2024 Maturity 12/20/20292025-01-012025-12-310001487918ofs:AllOtherGeneralMerchandiseStoresMemberus-gaap:CommonStockMember2025-12-310001487918us-gaap:FairValueInputsLevel2Memberofs:StructuredFinanceSecuritiesMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments JP Intermediate B, LLC First Lien Debt Industry Drugs and Druggists' Sundries Merchant Wholesalers Interest Rate 10.67% Spread Above Index SOFR+ 7.00% Initial Acquisition Date 10/2/2025 Maturity 9/30/20302025-01-012025-12-310001487918ofs:UnsecuredNotesDueFebruary2026Member2021-02-100001487918us-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueFebruary2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2025-12-310001487918ofs:DebtAndEquitySecuritiesUnrealizedGainLossMemberofs:CommonEquityWarrantsAndOtherMember2026-01-012026-03-310001487918us-gaap:UnsecuredDebtMember2025-03-310001487918ofs:Security1CommonMember2024-07-012024-09-300001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Integrated Energy Services, LLC First Lien Debt (Revolver) Industry Computer Systems Design Services Spread Above Index SOFR+ 5.50% Initial Acquisition Date 12/18/2025 Maturity 12/19/20302025-01-012025-12-310001487918PSB Group, LLC, First Lien Debt (Revolver)2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities Madison Park Funding XXIX, Ltd. Subordinated Notes Interest Rate 15.10% Initial Acquisition Date 12/22/2020 Maturity 3/25/20382026-01-012026-03-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt Threesrt:MaximumMember2025-12-310001487918ofs:FeeIncomeMemberofs:CommonEquityWarrantsAndOtherMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities Madison Park Funding XXIX, Ltd. Subordinated Notes Interest Rate 15.10% Initial Acquisition Date 12/22/2020 Maturity 3/25/20382026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Asurion, LLC First Lien Debt Industry Communication Equipment Repair and Maintenance Interest Rate 7.97% Spread Above Index SOFR + 4.25% Initial Acquisition Date 10/28/2025 Maturity 9/19/20302025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Kreg LLC First Lien Debt (Revolver) Industry Other Ambulatory Health Care Services Interest Rate 10.10% Spread Above Index SOFR+ 6.25% Initial Acquisition Date 12/20/2021 Maturity 12/20/20262026-01-012026-03-310001487918Portfolio Company Kreg, LLC Investment Type First Lien Debt2025-12-310001487918srt:AffiliatedEntityMember2025-12-310001487918us-gaap:EquitySecuritiesMember2025-12-310001487918us-gaap:CommonStockMember2026-01-012026-03-310001487918ofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMemberofs:StructuredFinanceSecuritiesMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. Common Equity (1,185 Class B units) Acquisition Date 3/12/20242026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments BayMark Health Services, Inc. Second Lien Debt Industry Outpatient Mental Health and Substance Abuse Centers Interest Rate 14.46% Spread Above Index SOFR+ 10.50% Initial Acquisition Date 6/10/2021 Maturity 6/11/2028 One2026-01-012026-03-310001487918us-gaap:RetainedEarningsMember2025-12-310001487918ofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2026-01-012026-03-310001487918ofs:StructuredFinanceSecuritiesMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2025-01-012025-03-310001487918us-gaap:PreferredStockMemberofs:MedicalLaboratoriesMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. Preferred Equity (3,446 Class A Units), 12% cash / 2% PIK Industry Services for the Elderly and Persons with Disabilities Initial Acquisition Date 3/3/20232026-03-310001487918us-gaap:FairValueInputsLevel2Memberofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMember2026-03-310001487918ofs:A12InteractiveLLCMemberofs:SoftwarePublishersMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918ofs:FeeIncomeMemberus-gaap:PreferredStockMember2025-01-012025-03-310001487918Portfolio Company Investment Type Affiliate Investments SSJA Bariatric Management LLC First Lien Debt Industry Offices of Physicians, Mental Health Specialists Interest Rate 9.24% Spread Above Index SOFR+5.25% Initial Acquisition Date 10/31/2025 Maturity 10/31/20282025-12-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. 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Common Equity (1,290 Class A units) Industry Services for the Elderly and Persons with Disabilities Initial Acquisition Date 2/25/20222026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Madison Park Funding XXIX, Ltd. Subordinated Notes Interest Rate 17.42% Initial Acquisition Date 12/22/2020 Maturity 3/25/20382025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Redstone Holdco 2 LP (F/K/A RSA Security) First Lien Debt Industry Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Interest Rate 8.85% Spread Above Index SOFR+4.75% Initial Acquisition Date 4/16/2021 Maturity 4/27/20282025-01-012025-12-310001487918us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2026-03-310001487918ofs:BancOfCaliforniaCreditFacilityMember2026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueFebruary2026Member2025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMemberus-gaap:MeasurementInputEbitdaMultipleMember2026-03-310001487918us-gaap:SeriesBPreferredStockMemberofs:ConventionAndTradeShowOrganizersMember2025-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueFebruary2026Member2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities CBAMR 2017-1, Ltd. 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Investment Type First Lien Debt Foursrt:MaximumMember2026-03-310001487918us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Medrina LLC First Lien Debt (Revolver) Industry All Other Outpatient Care Centers Spread Above Index SOFR+6.00% Intitial Acquisition Date 10/20/2023 Maturity 10/20/20292026-01-012026-03-310001487918Portfolio Company Investment Type Affiliate Investments DRS Imaging Services, LLC Common Equity (1,135 units) Industry Data Processing, Hosting, and Related Services Initial Acquisition Date 3/8/20182026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Inergex Holdings, LLC First Lien Debt (Revolver) Industry Other Computer Related Services Interest Rate 10.85% cash / 2.00% PIK Spread Above Index SOFR+ 7.00% Initial Acquisition Date 10/1/2028 Maturity 10/1/20262026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities ICG US CLO 2021-3, Ltd. Subordinated Notes Interest Rate 26.57% Initial Acquisition Date 8/8/2024 Maturity 10/20/20342025-01-012025-12-310001487918us-gaap:WarrantMemberofs:OfficeMachineryAndEquipmentRentalAndLeasingMemberus-gaap:CommonStockMember2025-12-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Warrants (warrants to purchase 1,946 shares of common equity) Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/21/2025 Maturity 8/20/20352026-01-012026-03-310001487918ofs:DebtAndEquitySecuritiesUnrealizedGainLossMemberofs:CommonEquityWarrantsAndOtherMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 4.90% cash / 6.50% PIK Spread Above Index SOFR+ 7.50% Initial Acquisition Date 11/25/2021 Maturity 47189 3/12/20292026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments RideNow Group, Inc. (F/K/A. RumbleOn, Inc.) First Lien Debt Industry Interest Rate 9.68% cash / 1.00% PIK Spread Above Index SOFR+ 6.75% Initial Acquisition Date 8/31/2021 Maturity 9/30/20272026-01-012026-03-310001487918ofs:FirstLienDebtInvestmentsMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Tolemar Acquisition, Inc. 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Preferred Equity (3,446 Class A Units), 12% cash / 2.0% PIK Industry Services for the Elderly and Persons with Disabilities Spread Above Index 0.00% Initial Acquisition Date 3/3/20232025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Kreg LLC First Lien Debt Industry Other Ambulatory Health Care Services Interest Rate 10.07% cash / 0.50% PIK Spread Above Index SOFR+ 6.25% Initial Acquisition Date 12/20/2021 Maturity 12/20/20262025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Inergex Holdings, LLC First Lien Debt Industry Other Computer Related Services Interest Rate 10.82% Spread Above Index SOFR+ 7.00% Initial Acquisition Date 10/1/2018 Maturity 10/1/20262025-12-310001487918us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-01-012025-03-310001487918SSJA Bariatric Management LLC, Common Equity 12025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Medrina LLC First Lien Debt Industry All Other Outpatient Care Centers Interest Rate 10.22% Spread Above Index SOFR+ 6.00% Initial Acquisition Date 10/20/2023 Maturity 10/20/20292025-01-012025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDiscountRateMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMemberofs:CommonEquityWarrantsAndOtherMembersrt:MaximumMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Clevertech Bidco, LLC Industry Commodity Contracts Dealing Interest Rate 10.60% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 11/3/2023 Maturity 12/30/2027 One2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Signal Parent, Inc First Lien Debt Industry New Single-Family Housing Construction (except For-Sale Builders) Interest Rate 7.44% Spread Above Index SOFR+3.50% Initial Acquisition Date 3/25/2021 Maturity 4/3/20282025-01-012025-12-310001487918ofs:FirstLienDebtInvestmentsMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:PreferredStockMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Brightwood Capital MM CLO 2023-1, Ltd. 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Investment Type First Lien Debt2025-12-310001487918ofs:FeeIncomeMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments 24 Seven Holdco, LLC Debt and Equity Investments First Lien Debt Industry Temporary Help Services Interest Rate 10.96% Spread Above Index SOFR + 7.13% Initial Acquisition Date 1/28/2022 Maturity 11/16/20272025-12-310001487918ofs:NatixisFacilityMember2025-01-012025-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:PreferredStockMembersrt:MaximumMember2025-12-310001487918country:JE2026-03-310001487918ofs:OfficeMachineryAndEquipmentRentalAndLeasingMemberus-gaap:SeriesAPreferredStockMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Allen Media, LLC First Lien Debt Industry Cable and Other Subscription Programming Interest Rate 9.35% Spread Above Index SOFR+ 5.50% Initial Acquisition Date 3/2/2021 Maturity 2/10/20272026-03-310001487918ofs:FirstLienDebtInvestmentsMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2025-01-012025-03-310001487918ofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueOctober2028Memberus-gaap:FairValueInputsLevel1Member2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments TalentSmart Holdings, LLC Common Equity Industry Professional and Management Development Training Initial Acquisition Date 10/11/20192026-03-310001487918ofs:ManagementOfCompaniesAndEnterprisesMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. Preferred Equity (3,446 Class A Units), 12% cash / 2.0% PIK Industry Services for the Elderly and Persons with Disabilities Spread Above Index 0.00% Initial Acquisition Date 3/3/20232025-01-012025-12-310001487918ofs:FirstLienDebtInvestmentsMember2025-12-310001487918ofs:FirstAmericanTreasuryObligationsFundClassZMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Redstone Holdco 2 LP (F/K/A RSA Security) First Lien Debt Industry Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Interest Rate 9.17% Spread Above Index SOFR+5.50% Intitial Acquisition Date 1/30/2026 Maturity 12/31/20302026-01-012026-03-310001487918us-gaap:InvestmentUnaffiliatedIssuerMember2026-03-310001487918Boca Home Care Holdings, Inc., First Lien Debt (Revolver)2025-12-310001487918srt:AffiliatedEntityMemberofs:InvestmentAdvisoryAgreementBaseManagementFeeRateQuarterlyMember2026-01-012026-03-310001487918us-gaap:EquitySecuritiesMember2026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2025-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Clevertech Bidco, LLC First Lien Debt (Revolver) Industry Commodity Contracts Dealing Interest Rate 10.57% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 11/3/2023 Maturity 12/30/20272025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:PreferredStockMember2025-12-310001487918ofs:UnsecuredNotesDueFebruary2026Member2026-03-310001487918us-gaap:UnsecuredDebtMemberus-gaap:FairValueInputsLevel1Memberofs:UnsecuredNotesDueFebruary2026Member2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Medrina LLC First Lien Debt Industry All Other Outpatient Care Centers Interest Rate 10.22% Spread Above Index SOFR+ 6.00% Initial Acquisition Date 10/20/2023 Maturity 10/20/20292025-12-310001487918ofs:ContractDatascanHoldingsIncMemberus-gaap:InvestmentAffiliatedIssuerMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMemberofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDefaultRateMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMembersrt:WeightedAverageMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMember2025-12-310001487918us-gaap:PreferredStockMember2026-03-310001487918us-gaap:RetainedEarningsMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Kreg LLC First Lien Debt Industry Other Ambulatory Health Care Services Interest Rate 0.10% cash / 0.50% PIK Spread Above Index SOFR+ 6.25% Initial Acquisition Date 12/20/2021 Maturity 12/20/20262026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments 12 Interactive, LLC (D/B/A PerkSpot) First Lien Debt Industry Software Publishers Interest Rate 9.42% Spread Above Index SOFR + 5.75% Initial Acquisition Date 9/5/2025 Maturity 3/5/20272025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Trinitas CLO VIII, Ltd. 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First Lien Debt Industry Interest Rate 9.68% cash / 1.00% PIK Spread Above Index SOFR+ 6.75% Initial Acquisition Date 8/31/2021 Maturity 9/30/20272026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments I Love Produce, LLC First Lien Debt Industry Spice and Extract Manufacturing Interest Rate 9.81% Spread Above Index SOFR+ 6.00% Initial Acquisition Date 3/24/2026 Maturity 3/24/20312026-03-310001487918Honor HN Buyer Inc., First Lien Debt (Revolver)2026-03-310001487918ofs:CommonEquityWarrantsAndOtherMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMembersrt:WeightedAverageMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMember2026-03-310001487918ofs:OtherServicesExceptPublicAdministrationMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918Boca Home Care Holdings, Inc., First Lien Debt (Revolver)2026-03-310001487918Clevertech Bidco, LLC, First Lien Debt (Revolver)2026-03-3100014879182025-01-012025-03-310001487918ofs:O2026Q1AggregateDividendsMember2026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2026-03-310001487918Contract Datascan Holdings, Inc., Common Equity2026-03-310001487918ofs:OFSCCFSMemberofs:NatixisFacilityMember2026-03-310001487918srt:MinimumMemberPortfolio Company Inergex Holdings, LLC Investment Type First Lien Debt (Revolver)2026-03-310001487918us-gaap:EstimateOfFairValueFairValueDisclosureMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Envocore Holding, LLC (F/K/A LRI Holding, LLC) First Lien Debt Industry Electrical Contractors and Other Wiring Installation Contractors Interest Rate 7.50% Initial Acquisition Date 6/30/2017 Maturity 12/31/20272025-12-310001487918ofs:CommonEquityWarrantsAndOtherMember2026-01-012026-03-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt Two2026-03-310001487918Portfolio Company RideNow Group, Inc. (F/K/A RumbleOn, Inc.) Investment Type First Lien Debt Onesrt:MaximumMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMember2026-03-310001487918ofs:SecondLienDebtInvestmentsMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2025-01-012025-03-310001487918Pfanstiehl Holdings, Inc., Common Equity2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments PM Acquisition LLC Common Equity Industry All Other General Merchandise Stores Intitial Acquisition Date 9/30/20172026-03-310001487918ofs:FeeIncomeMemberofs:SecondLienDebtInvestmentsMember2025-01-012025-03-310001487918ofs:PortfolioCustomersOverTenPercentMemberofs:PfanstiehlHoldingsIncMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Apex Credit CLO 2022-1 Ltd. Subordinated Notes Interest Rate 20.68% Acquisition Date 4/28/2022 Maturity 10/22/20382025-01-012025-12-310001487918ofs:Security1CommonMember2026-01-012026-03-310001487918ofs:ServicesForTheElderlyAndPersonsWithDisabilitiesMemberofs:HonorHNBuyerIncMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt Onesrt:MaximumMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. Preferred Equity (1,715 Class A units) 12.5% PIK Initial Acquisition Date 3/12/20242026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments RideNow Group, Inc. (F/K/A. RumbleOn, Inc.) Warrants Initial Acquisition Date 8/31/2021 Maturity 8/10/20302026-03-310001487918us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments JP Intermediate B, LLC First Lien Debt Industry Drugs and Druggists' Sundries Merchant Wholesalers Interest Rate 5.20% cash / 4.00% PIK Spread Above Index SOFR+ 5.50% Initial Acquisition Date 1/14/2021 Maturity 3/31/20312026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Excelin Home Health, LLC Second Lien Debt Industry Home Health Care Services Interest Rate 18.00% PIK Initial Acquisition Date 10/25/2018 Maturity 10/1/20262025-01-012025-12-310001487918srt:MinimumMemberPortfolio Company Inergex Holdings, LLC Investment Type First Lien Debt2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. 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Warrants (warrants to purchase 224 Series A preferred equity shares) Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/21/2025 Maturity 8/20/20352025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments United Biologics Holdings, LLC Preferred Equity (151,786 units) Industry Medical Laboratories Initial Acquisition Date 4/16/20132025-12-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:StructuredFinanceSecuritiesSubordinatedNotesMemberofs:MeasurementInputRecoveryRateMembersrt:MaximumMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Tolemar Acquisition, Inc. First Lien Debt Industry Motorcycle, Bicycle, and Parts Manufacturing Interest Rate 9.82% cash / 1.25% PIK Spread Above Index SOFR+6.00% Initial Acquisition Date 10/14/2021 Maturity 10/14/20272025-12-310001487918Portfolio Company Investment Type Affiliate Investments SSJA Bariatric Management LLC First Lien Debt Industry Offices of Physicians, Mental Health Specialists Interest Rate 9.24% Spread Above Index SOFR+5.25% Initial Acquisition Date 10/31/2025 Maturity 10/31/20282025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 3.70% cash / 8.50% PIK Spread Above Index SOFR + 8.50% Initial Acquisition Date 12/18/2025 Maturity 12/12/20272025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Associated Spring, LLC First Lien Debt (Delayed Draw) Industry Spring Manufacturing Interest Rate 8.57% Spread Above Index SOFR + 4.75% Initial Acquisition Date 12/10/2024 Maturity 4/4/20302025-01-012025-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2025-01-012025-03-3100014879182024-09-300001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMembersrt:MaximumMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Integrated Energy Services, LLC First Lien Debt (Delayed Draw) Industry Computer Systems Design Services Spread Above Index SOFR+ 5.50% Initial Acquisition Date 12/18/2025 Maturity 12/19/20302025-01-012025-12-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt One2025-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Warrants (warrants to purchase 224 Series A preferred equity shares) Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/21/2025 Maturity 8/20/20352026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMemberus-gaap:MeasurementInputEbitdaMultipleMemberofs:CommonEquityWarrantsAndOtherMember2025-12-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberofs:MeasurementInputRecoveryRateMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2025-12-310001487918us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2026-01-012026-03-310001487918ofs:RealEstateAndRentalAndLeasingMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities BlueMountain CLO XXXV Ltd. Subordinated Notes Interest Rate 16.68% Initial Acquisition Date 10/30/2024 Maturity 10/22/19372026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities LCM 42 Ltd. Subordinated Notes Interest Rate 17.60% Initial Acquisition Date 12/19/2024 Maturity 1/15/20382026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 9.60% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 10/15/2021 Maturity 10/15/2027 One2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments One GI LLC First Lien Debt Industry Offices of Other Holding Companies Interest Rate 10.52% Spread Above Index SOFR+6.75% Intitial Acquisition Date 12/13/2021 Maturity 12/22/20252026-01-012026-03-310001487918Portfolio Company JP Intermediate B, LLC Investment Type First Lien Debt2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities LCM 42 Ltd. Subordinated Notes Interest Rate 18.54% Initial Acquisition Date 12/19/2024 Maturity 1/15/20382025-01-012025-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMember2025-12-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Warrants (warrants to purchase 1,946 shares of common equity) Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/21/2025 Maturity 8/20/20352025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberofs:NatixisFacilityMember2026-03-310001487918srt:MinimumMemberPortfolio Company Avison Young Inc. Investment Type First Lien Debt One2025-12-310001487918us-gaap:InvestmentAffiliatedIssuerMember2026-03-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Warrants (warrants to purchase 224 Series A preferred equity shares) Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/21/2025 Maturity 8/20/20352026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments I Love Produce, LLC First Lien Debt (Revolver) Industry Spice and Extract Manufacturing Interest Rate 11.75% Spread Above Index Prime+ 5.00% Initial Acquisition Date 3/24/2026 Maturity 3/24/20312026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments RideNow Group, Inc. (F/K/A. RumbleOn, Inc.) First Lien Debt Industry Interest Rate 9.68% cash / 1.00% PIK Spread Above Index SOFR+ 6.75% Initial Acquisition Date 8/31/2021 Maturity 9/30/2027 One2026-03-310001487918us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2025-12-310001487918ofs:OfficeMachineryAndEquipmentRentalAndLeasingMemberus-gaap:CommonStockMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Brightwood Capital MM CLO 2023-1, Ltd. Subordinated Notes Interest Rate 24.50% Initial Acquisition Date 9/28/2023 Maturity 10/15/20352025-12-310001487918ofs:Security1CommonMember2024-06-300001487918ofs:SecondLienDebtInvestmentsMember2026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMemberofs:StructuredFinanceSecuritiesSubordinatedNotesMemberofs:MeasurementInputRecoveryRateMember2025-12-310001487918Associated Spring, LLC, First Lien Debt (Delayed Draw)2025-12-310001487918ofs:FirstLienDebtInvestmentsMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Signal Parent, Inc. First Lien Debt Industry New Single-Family Housing Construction (except For-Sale Builders) Interest Rate 7.27% Spread Above Index SOFR+ 3.50% Initial Acquisition Date 3/25/2021 Maturity 4/3/20282026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2025-12-310001487918ofs:Security1CommonMember2024-04-012024-06-300001487918ofs:CommonEquityWarrantsAndOtherMember2025-01-012025-03-310001487918Honor HN Buyer Inc., First Lien Debt (Delayed Draw)2025-12-310001487918I Love Produce, LLC First Lien Debt (Delayed Draw)2026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2025-12-310001487918us-gaap:InvestmentUnaffiliatedIssuerMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. Preferred Equity (1,715 Class A units) 12.5% PIK Industry Nonresidential Property Managers Initial Acquisition Date 3/12/20242025-12-310001487918ofs:CommonEquityWarrantsAndOtherMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 4.66% cash / 6.50% PIK Spread Above Index SOFR+ 7.35% Initial Acquisition Date 12/18/2025 Maturity 12/12/20272026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Excelin Home Health, LLC Second Lien Debt Industry Home Health Care Services Interest Rate 18.00% PIK Initial Acquisition Date 10/25/2018 Maturity 10/1/20262026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments One GI LLC First Lien Debt Industry Offices of Other Holding Companies Interest Rate 10.52% Spread Above Index SOFR+6.75% Intitial Acquisition Date 12/13/2021 Maturity 12/22/2025 One2026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:SecondLienDebtInvestmentsMembersrt:WeightedAverageMemberus-gaap:MeasurementInputDiscountRateMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments RPLF Holdings, LLC Common Equity Industry Software Publishers Initial Acquisition Date 1/17/20182026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 4.66% cash / 6.50% PIK Spread Above Index SOFR+ 7.35% Initial Acquisition Date 12/18/2025 Maturity 12/12/20272026-01-012026-03-310001487918us-gaap:CommonStockMemberofs:OtherIndustrialMachineryManufacturingMember2025-12-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debtsrt:MaximumMember2026-03-310001487918ofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMemberofs:FirstLienDebtInvestmentsMember2025-01-012025-03-310001487918ofs:SecondLienDebtInvestmentMember2026-03-310001487918ofs:InformationMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments JP Intermediate B, LLC First Lien Debt Industry Drugs and Druggists' Sundries Merchant Wholesalers Interest Rate 10.70% Spread Above Index SOFR+ 7.00% Initial Acquisition Date 10/2/2021 Maturity 9/30/20302026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments GoTo Group (F/K/A LogMeIn, Inc.) First Lien Debt Industry Data Processing, Hosting, and Related Services Interest Rate 8.79% Spread Above Index SOFR+ 4.75% Initial Acquisition Date 3/26/2021 Maturity 4/28/2028 One2025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Staples, Inc. First Lien Debt Industry Business to Business Electronic Markets Interest Rate 9.60% Spread Above Index SOFR+5.75% Initial Acquisition Date 5/23/2024 Maturity 9/4/20292025-12-310001487918ofs:ContractDatascanHoldingsIncMemberus-gaap:InvestmentAffiliatedIssuerMember2026-03-310001487918ofs:DataProcessingHostingAndRelatedServicesMemberus-gaap:CommonStockMember2025-12-310001487918us-gaap:WarrantMemberofs:OfficeMachineryAndEquipmentRentalAndLeasingMemberus-gaap:SeriesAPreferredStockMember2026-03-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMember2026-03-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeRateQuarterlyCatchUpThresholdMembersrt:AffiliatedEntityMember2026-01-012026-03-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 9.57% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 10/15/2021 Maturity 10/15/20272025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Clevertech Bidco, LLC Industry Commodity Contracts Dealing Interest Rate 10.60% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 11/3/2023 Maturity 12/30/2027 One2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. First Lien Debt (Revolver) Industry Services for the Elderly and Persons with Disabilities Interest Rate 10.59% Spread Above Index SOFR+ 6.50% Initial Acquisition Date 2/25/2022 Maturity 2/25/20272025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments RideNow Group, Inc. (F/K/A RumbleOn, Inc. First Lien Debt Industry Other Industrial Machinery Manufacturing Interest Rate 12.10% cash / 1.50% PIK Spread Above Index SOFR+7.75% Initial Acquisition Date 8/31/2021 Maturity 9/30/2027 One2025-01-012025-12-310001487918us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:NatixisFacilityMember2025-12-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt Foursrt:MinimumMember2026-03-310001487918Clevertech Bidco, LLC, First Lien Debt (Revolver)2025-12-310001487918us-gaap:UnsecuredDebtMemberofs:UnsecuredNotesDueOctober2028Member2025-12-310001487918us-gaap:AdditionalPaidInCapitalMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:WholesaleTradeMember2026-03-310001487918ofs:AdministrativeAndSupportAndWasteManagementAndRemediationServicesMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments 12 Interactive, LLC (D/B/A PerkSpot) First Lien Debt Industry Software Publishers Interest Rate 9.45% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 9/5/2025 Maturity 3/5/20272026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments BayMark Health Services, Inc. Second Lien Debt Industry Outpatient Mental Health and Substance Abuse Centers Interest Rate 14.43% Spread Above Index SOFR + 10.50% Initial Acquisition Date 6/10/2021 Maturity 6/11/20282025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Associated Spring, LLC First Lien Debt Industry Spring Manufacturing Interest Rate 8.53% Spread Above Index SOFR+ 4.75% Initial Acquisition Date 12/10/2024 Maturity 4/4/20302026-01-012026-03-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMembersrt:WeightedAverageMemberus-gaap:MeasurementInputDiscountRateMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments United Biologics Holdings, LLC Preferred Equity (151,786 units) Industry Medical Laboratories Initial Acquisition Date 4/16/20132025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments BayMark Health Services, Inc. Second Lien Debt Industry Outpatient Mental Health and Substance Abuse Centers Interest Rate 14.43% Spread Above Index SOFR + 10.50% Initial Acquisition Date 6/10/2021 Maturity 6/11/20282025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMemberus-gaap:MeasurementInputEbitdaMultipleMember2025-12-310001487918ofs:PharmaceuticalPreparationManufacturingMemberus-gaap:CommonClassAMember2025-12-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities ICG US CLO 2021-3, Ltd. Subordinated Notes Interest Rate 22.54% Initial Acquisition Date 8/8/2024 Maturity 10/20/20342026-03-310001487918ofs:FirstLienDebtInvestmentsUnitrancheMember2026-03-310001487918ofs:MedrinaLLCMemberofs:AllOtherOutpatientCareCentersMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 9.60% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 10/15/2021 Maturity 10/15/20272026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Venture 45 CLO, Limited Mezzanine Debt - Class E Interest Rate 11.58% Spread Above Index SOFR+7.70% Initial Acquisition Date 4/18/2022 Maturity 7/20/20352025-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2026-03-310001487918us-gaap:FairValueInputsLevel2Memberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberofs:NatixisFacilityMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments GoTo Group (F/K/A LogMeIn, Inc.) First Lien Debt Industry Data Processing, Hosting, and Related Services Interest Rate 8.57% Spread Above Index SOFR+ 4.75% Initial Acquisition Date 3/26/2021 Maturity 4/28/2028 One2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Envocore Holding, LLC (F/K/A LRI Holding, LLC) Second Lien Debt Industry Electrical Contractors and Other Wiring Installation Contractors Interest Rate 10.00% PIK Initial Acquisition Date 6/30/2017 Maturity 12/31/20282025-12-310001487918us-gaap:RevolvingCreditFacilityMember2025-01-012025-03-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Warrants (warrants to purchase 224 Series A preferred equity shares) Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/21/2025 Maturity 8/20/20352025-12-310001487918ofs:Security1CommonMember2024-01-012024-03-310001487918Contract Datascan Holdings, Inc., Preferred Equity 22025-12-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:StructuredFinanceSecuritiesSubordinatedNotesMembersrt:MaximumMemberus-gaap:MeasurementInputDefaultRateMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:StructuredFinanceSecuritiesSubordinatedNotesMembersrt:MinimumMemberofs:MeasurementInputRecoveryRateMember2026-03-310001487918ofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2026-03-310001487918country:US2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments 12 Interactive, LLC (D/B/A PerkSpot) First Lien Debt (Revolver) Industry Software Publisher Spread Above Index SOFR + 5.75% Initial Acquisition Date 9/5/2025 Maturity 9/5/20302025-01-012025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMemberofs:MeasurementInputDiscountMarginMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2026-03-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMembersrt:MinimumMemberus-gaap:MeasurementInputDiscountRateMember2026-03-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2026-03-310001487918Contract Datascan Holdings, Inc., Preferred Equity 12026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments PSB Group, LLC First Lien Debt (Revolver) Industry Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) Interest Rate 10.47% Spread Above Index SOFR+6.75% Initial Acquisition Date 4/17/2025 Maturity 4/17/20302025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments JP Intermediate B, LLC First Lien Debt Industry Drugs and Druggists' Sundries Merchant Wholesalers Interest Rate 10.67% Spread Above Index SOFR+ 7.00% Initial Acquisition Date 10/2/2025 Maturity 9/30/20302025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Envocore Holding, LLC (F/K/A LRI Holding, LLC) First Lien Debt (Revolver) Industry Electrical Contractors and Other Wiring Installation Contractors Initial Acquisition Date 11/29/2021 Maturity 12/31/20272025-01-012025-12-310001487918SS Acquisition, LLC, First Lien Debt (Revolver)2025-12-310001487918us-gaap:EquitySecuritiesMember2025-01-012025-03-310001487918ofs:OFSCCFSMemberofs:NatixisFacilityMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments GoTo Group (F/K/A LogMeIn, Inc.) 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Subordinated Notes Interest Rate 16.31% Initial Acquisition Date 1/7/2025 Maturity 1/20/20382025-01-012025-12-310001487918us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:NatixisFacilityMember2026-03-310001487918ofs:GoToGroupFKALogMeInInc.Memberofs:DataProcessingHostingAndRelatedServicesMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918srt:AffiliatedEntityMemberofs:InvestmentAdvisoryAgreementMember2026-03-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMembersrt:MinimumMember2025-12-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2026-03-310001487918ofs:FirstLienDebtInvestmentsMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Integrated Energy Services, LLC First Lien Debt (Revolver) Industry Computer Systems Design Services Spread Above Index SOFR+ 5.50% Initial Acquisition Date 12/18/2025 Maturity 12/19/20302026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Planet Bingo, LLC (F/K/A 3rd Rock Gaming Holdings, LLC) First Lien Debt Industry Software Publishers Interest Rate 6.50% Initial Acquisition Date 3/13/2018 Maturity 12/31/20272025-12-310001487918ofs:UnsecuredNotesDueAugust2029Member2025-08-082025-08-080001487918ofs:FirstLienDebtInvestmentsMember2024-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Medrina LLC First Lien Debt (Revolver) Industry All Other Outpatient Care Centers Spread Above Index SOFR+ 6.00% Initial Acquisition Date 10/20/2023 Maturity 10/20/20292025-01-012025-12-310001487918srt:AffiliatedEntityMemberofs:InvestmentAdvisoryAgreementBaseManagementFeeRateQuarterlyMember2025-01-012025-12-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt One2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Envocore Holding, LLC (F/K/A LRI Holding, LLC) Equity Participation Rights Industry Electrical Contractors and Other Wiring Installation Contractors Initial Acquisition Date 12/31/20212025-01-012025-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Asurion, LLC First Lien Debt Industry Communication Equipment Repair and Maintenance Interest Rate 7.92% Spread Above Index SOFR+ 4.25% Initial Acquisition Date 10/28/2025 Maturity 9/19/20302026-03-310001487918ofs:InterestIncomeOperatingAccretionOfInterestIncomeMemberofs:CommonEquityWarrantsAndOtherMember2025-01-012025-03-310001487918us-gaap:FairValueInputsLevel2Memberus-gaap:DebtSecuritiesMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:StructuredFinanceSecuritiesSubordinatedNotesMembersrt:MinimumMemberus-gaap:MeasurementInputDefaultRateMember2025-12-310001487918Contract Datascan Holdings, Inc., Common Equity2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities First Lien Debt Apex Credit CLO 2021 Ltd. Subordinated Notes Interest Rate 0.81% Initial Acquisition Date 5/28/2021 Maturity 7/18/20342026-03-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2018-03-070001487918Portfolio Company Wellful Inc. (F/K/A KNS Acquisition Corp.) Investment Type First Lien Debtsrt:MaximumMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 5.20% cash / 5.85% PIK Spread Above Index SOFR + 7.35% Initial Acquisition Date 12/18/2025 Maturity 12/12/20272025-12-3100014879182025-09-300001487918ofs:PublicAdministrationMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918ofs:SoftwarePublishersMemberus-gaap:CommonClassAMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:PreferredStockMembersrt:MaximumMember2025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 12025-12-310001487918Portfolio Company Investment Type Affiliate Investments SSJA Bariatric Management LLC First Lien Debt Industry Offices of Physicians and Mental Health Specialists Interest Rate 9.07%PIK Spread Above Index SOFR+ 5.25 % Initial Acquisition Date 12/31/2020 Maturity 10/31/20282026-03-310001487918ofs:StructuredFinanceSecuritiesMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2025-01-012025-03-310001487918ofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMemberus-gaap:PreferredStockMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Associated Spring, LLC First Lien Debt (Delayed Draw) Industry Spring Manufacturing Interest Rate 8.52% Spread Above Index SOFR+ 4.75% Initial Acquisition Date 12/10/2024 Maturity 4/4/20302026-01-012026-03-310001487918us-gaap:UnsecuredDebtMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 10.42% Spread Above Index SOFR+ 6.50% Initial Acquisition Date 2/25/2022 Maturity 2/25/20272026-01-012026-03-310001487918ofs:FirstLienDebtInvestmentsMember2025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments PM Acquisition LLC Common Equity Industry All Other General Merchandise Stores Intitial Acquisition Date 9/30/20172026-01-012026-03-310001487918us-gaap:WarrantMemberofs:OfficeMachineryAndEquipmentRentalAndLeasingMemberus-gaap:CommonStockMember2026-03-310001487918Avison Young Inc. , First Lien Debt (Delayed Draw)2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 5.60% cash / 6.50% PIK Spread Above Index SOFR + 8.00% Initial Acquisition Date 11/25/2021 Maturity 3/12/20292025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments RideNow Group, Inc. (F/K/A RumbleOn, Inc. First Lien Debt Industry Other Industrial Machinery Manufacturing Interest Rate 12.10% cash / 1.50% PIK Spread Above Index SOFR+7.75% Initial Acquisition Date 8/31/2021 Maturity 9/30/20272025-01-012025-12-310001487918SS Acquisition, LLC, First Lien Debt (Revolver)2026-03-31000148791812 Interactive, LLC (D/B/A PerkSpot), First Lien Debt (Revolver)2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt (Delayed Draw) Industry Nonresidential Property Managers Spread Above Index SOFR + 8.50% Initial Acquisition Date 12/18/2025 Maturity 12/12/20272025-12-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeMembersrt:AffiliatedEntityMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt (Revolver) Industry Services for the Elderly and Persons with Disabilities Interest Rate 11.50% Spread Above Index Prime+ 4.75% Initial Acquisition Date 10/15/2021 Maturity 10/15/20272026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities Battalion CLO XI Ltd. Mezzanine Debt - Class E Interest Rate 10.78% Spread Above Index SOFR+6.85 % Initial Acquisition Date 4/25/2022 Maturity 4/24/20342026-01-012026-03-310001487918ofs:OfficesOfPhysiciansAndMentalHealthSpecialistsMemberus-gaap:CommonClassAMember2025-12-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeRateAnnualizedHurdleRateMembersrt:AffiliatedEntityMember2026-01-012026-03-310001487918ofs:UnsecuredNotesDueJuly2028Member2025-07-230001487918Portfolio Company Investment Type Affiliate Investments SSJA Bariatric Management LLC First Lien Debt Industry Offices of Physicians and Mental Health Specialists Interest Rate 9.07%PIK Spread Above Index SOFR+ 5.25 % Initial Acquisition Date 12/31/2020 Maturity 10/31/20282026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Medrina LLC First Lien Debt Industry All Other Outpatient Care Centers Interest Rate 9.69% Spread Above Index SOFR+6.00% Intitial Acquisition Date 10/20/2023 Maturity 10/20/20292026-03-310001487918us-gaap:FairValueInputsLevel1Memberus-gaap:DebtSecuritiesMember2025-12-310001487918Portfolio Company RideNow Group, Inc. (F/K/A RumbleOn, Inc.) Investment Type First Lien Debt Onesrt:MinimumMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities ICG US CLO 2021-3, Ltd. Subordinated Notes Interest Rate 22.54% Initial Acquisition Date 8/8/2024 Maturity 10/20/20342026-01-012026-03-310001487918us-gaap:InvestmentAffiliatedIssuerMember2025-12-310001487918country:CA2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. Common Equity (1,290 Class A units) Industry Services for the Elderly and Persons with Disabilities Initial Acquisition Date 2/25/20222025-12-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt Four2026-03-310001487918ofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMemberofs:CommonEquityWarrantsAndOtherMember2026-01-012026-03-310001487918us-gaap:NonrelatedPartyMember2026-03-310001487918ofs:GoToGroupFKALogMeInInc.Memberofs:DebtAndEquityInvestmentsMemberofs:DataProcessingHostingAndRelatedServicesMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 9.57% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 10/15/2021 Maturity 10/15/2027 One2025-01-012025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMembersrt:WeightedAverageMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2026-03-310001487918ofs:VariableRateLoansMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Staples, Inc. First Lien Debt Industry Business to Business Electronic Markets Interest Rate 9.41% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 5/23/2024 Maturity 9/4/20292026-01-012026-03-310001487918ofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMemberofs:CommonEquityWarrantsAndOtherMember2026-01-012026-03-310001487918ofs:DebtAndEquityInvestmentsMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 5.81% cash / 6.50% PIK Spread Above Index SOFR+ 8.50% Initial Acquisition Date 12/18/2025 Maturity 12/12/20272026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments I Love Produce, LLC First Lien Debt (Delayed Draw) Industry Spice and Extract Manufacturing Spread Above Index SOFR+ 6.00% Initial Acquisition Date 3/24/2026 Maturity 3/24/20312026-01-012026-03-310001487918us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel1Memberofs:NatixisFacilityMember2026-03-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debtsrt:MaximumMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments BayMark Health Services, Inc. Second Lien Debt Industry Outpatient Mental Health and Substance Abuse Centers Interest Rate 14.70% Spread Above Index SOFR + 10.50% Initial Acquisition Date 6/10/2021 Maturity 6/11/20282025-12-310001487918ofs:NatixisFacilityMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments JP Intermediate B, LLC First Lien Debt Industry Drugs and Druggists' Sundries Merchant Wholesalers Interest Rate 5.20% cash / 4.00% PIK Spread Above Index SOFR+ 5.50% Initial Acquisition Date 1/14/2021 Maturity 3/31/20312026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments RideNow Group, Inc. (F/K/A. RumbleOn, Inc.) First Lien Debt Industry Interest Rate 9.68% cash / 1.00% PIK Spread Above Index SOFR+ 6.75% Initial Acquisition Date 8/31/2021 Maturity 9/30/2027 One2026-01-012026-03-310001487918ofs:DebtAndEquitySecuritiesRealizedGainLossMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 4.94% cash / 6.50% PIK Spread Above Index SOFR+ 7.50% Initial Acquisition Date 11/25/2021 Maturity 3/12/20292026-03-310001487918us-gaap:PreferredClassAMemberofs:NonresidentialPropertyManagersMember2026-03-310001487918us-gaap:PreferredClassAMemberofs:NonresidentialPropertyManagersMember2025-12-310001487918us-gaap:PreferredStockMember2025-01-012025-03-310001487918ofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMemberofs:StructuredFinanceSecuritiesMember2026-01-012026-03-310001487918ofs:Security1CommonMember2024-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Excelin Home Health, LLC Second Lien Debt Industry Home Health Care Services Interest Rate 18.00% PIK Initial Acquisition Date 10/25/2018 Maturity 10/1/20262026-01-012026-03-310001487918ofs:BNPFacilityMember2026-01-012026-03-310001487918SS Acquisition, LLC, First Lien Debt2026-03-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments AIDC IntermediateCo 2, LLC First Lien Debt Industry Computer Systems Design Services Interest Rate 8.97% Spread Above Index SOFR+5.25% Initial Acquisition Date 7/31/2023 Maturity 7/22/20272025-01-012025-12-310001487918us-gaap:EquitySecuritiesMember2025-12-310001487918ofs:Security1CommonMember2025-10-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Signal Parent, Inc. First Lien Debt Industry New Single-Family Housing Construction (except For-Sale Builders) Interest Rate 7.27% Spread Above Index SOFR+ 3.50% Initial Acquisition Date 3/25/2021 Maturity 4/3/20282026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2026-03-310001487918SSJA Bariatric Management LLC, First Lien Debt 12026-01-012026-03-310001487918ofs:LessorsOfNonfinancialIntangibleAssetsExceptCopyrightedWorksMemberofs:PSBGroupLLCMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918ofs:OfficeMachineryAndEquipmentRentalAndLeasingMemberus-gaap:CommonStockMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Integrated Energy Services, LLC First Lien Debt Industry Computer Systems Design Services Interest Rate 9.20% Spread Above Index SOFR+ 5.50% Initial Acquisition Date 12/18/2025 Maturity 12/19/20302026-01-012026-03-310001487918ofs:FirstLienDebtInvestmentsMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Metasource, LLC First Lien Debt Industry All Other Business Support Services Interest Rate 10.18% cash / 0.50% PIK Spread Above Index SOFR+ 6.25% Initial Acquisition Date 5/17/2022 Maturity 5/17/20272025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments GoTo Group (F/K/A LogMeIn, Inc.) First Lien Debt Industry Data Processing, Hosting, and Related Services Interest Rate 8.79% Spread Above Index SOFR+ 4.75% Initial Acquisition Date 3/26/2021 Maturity 4/28/2028 One2025-12-310001487918country:US2026-03-310001487918ofs:Security1CommonMember2025-07-012025-09-300001487918ofs:PortfolioCustomersOverTenPercentMember2026-03-310001487918us-gaap:UnsecuredDebtMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Allen Media, LLC First Lien Debt Industry Cable and Other Subscription Programming Interest Rate 9.32% Spread Above Index SOFR + 5.50% Initial Acquisition Date 3/2/2021 Maturity 2/10/20272025-12-310001487918ofs:RealEstateAndRentalAndLeasingMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments AIDC IntermediateCo 2, LLC First Lien Debt Industry Computer Systems Design Services Interest Rate 8.92% Spread Above Index SOFR+ 5.25% Initial Acquisition Date 7/22/2022 Maturity 7/22/20272026-03-310001487918ofs:DebtAndEquityInvestmentsMemberofs:RetailTradeMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Avison Young Inc. First Lien Debt Industry Nonresidential Property Managers Interest Rate 5.60% cash / 6.50% PIK Spread Above Index SOFR + 8.00% Initial Acquisition Date 11/25/2021 Maturity 3/12/20292025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments United Biologics Holdings, LLC Preferred Equity Industry Medical Laboratories Initial Acquisition Date 4/16/20132026-01-012026-03-310001487918ofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities First Lien Debt Apex Credit CLO 2020 Ltd. Subordinated Notes Interest Rate 6.25% Initial Acquisition Date 11/16/2020 Maturity 4/20/20352026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 10.42% Spread Above Index SOFR+ 6.50% Initial Acquisition Date 2/25/2022 Maturity 2/25/20272026-03-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:FairValueInputsLevel3Memberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Medrina LLC First Lien Debt Industry All Other Outpatient Care Centers Interest Rate 9.63% Spread Above Index SOFR+6.00% Intitial Acquisition Date 10/20/2023 Maturity 10/20/2029 One2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Kreg LLC First Lien Debt Industry Other Ambulatory Health Care Services Interest Rate 10.07% cash / 0.50% PIK Spread Above Index SOFR+ 6.25% Initial Acquisition Date 12/20/2021 Maturity 12/20/20262025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 9.57% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 10/15/2021 Maturity 10/15/20272025-12-310001487918Portfolio Company Inergex Holdings, LLC Investment Type First Lien Debt2026-03-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:FairValueInputsLevel3Memberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2025-12-310001487918ofs:UnsecuredNotesDueJuly2028Member2025-07-232025-07-230001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments 24 Seven Holdco, LLC First Lien Debt Industry Temporary Help Services Interest Rate 10.91% Spread Above Index SOFR+ 7.13% Initial Acquisition Date 1/28/2022 Maturity 11/16/20272026-03-310001487918us-gaap:InvestmentUnaffiliatedIssuerMember2025-01-012025-03-310001487918ofs:CommonEquityWarrantsAndOtherMember2025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 9.60% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 3/31/2023 Maturity 10/15/20272026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities Battalion CLO XI Ltd. Mezzanine Debt - Class E Interest Rate 10.78% Spread Above Index SOFR+6.85 % Initial Acquisition Date 4/25/2022 Maturity 4/24/20342026-03-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt2025-12-310001487918Portfolio Company JP Intermediate B, LLC Investment Type First Lien Debtsrt:MaximumMember2026-03-310001487918Portfolio Company Investment Type Affiliate Investments SSJA Bariatric Management LLC First Lien Debt Industry Offices of Physicians and Mental Health Specialists Interest Rate 9.07% Spread Above Index SOFR+ 5.25 % Initial Acquisition Date 10/31/2025 Maturity 10/31/20282026-01-012026-03-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberofs:MeasurementInputDiscountMarginMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments AIDC IntermediateCo 2, LLC First Lien Debt Industry Computer Systems Design Services Interest Rate 8.97% Spread Above Index SOFR+5.25% Initial Acquisition Date 7/22/2022 Maturity 7/22/20272025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 9.57% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 3/31/2023 Maturity 10/15/20272025-12-310001487918ofs:CommodityContractsDealingMemberofs:DebtAndEquityInvestmentsMemberofs:ClevertechBidcoLLCMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:PreferredStockMember2026-03-310001487918Portfolio Company Investment Type Affiliate Investments Contract Datascan Holdings, Inc. Preferred Equity (3,061 Series A shares), 10% PIK Industry Office Machinery and Equipment Rental and Leasing Initial Acquisition Date 8/5/20152026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Clevertech Bidco, LLC First Lien Debt (Revolver) Industry Commodity Contracts Dealing Interest Rate 10.57% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 11/3/2023 Maturity 12/30/20272025-01-012025-12-310001487918ofs:PortfolioCustomersOverTenPercentMemberofs:SSAcquisitionLLCMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Kreg LLC First Lien Debt (Revolver) Industry Other Ambulatory Health Care Services Interest Rate 10.09% Spread Above Index SOFR+ 6.25% Initial Acquisition Date 12/20/2021 Maturity 12/20/20262025-12-310001487918ofs:SSJABariatricManagementLLCMemberus-gaap:InvestmentAffiliatedIssuerMember2025-12-310001487918ofs:PublicAdministrationMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918ofs:SSJABariatricManagementLLCMemberus-gaap:InvestmentAffiliatedIssuerMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments TalentSmart Holdings, LLC Common Equity (1,595,238 Class A shares) Professional and Management Development Training Initial Acquisition Date 10/11/20192025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMemberofs:CommonEquityWarrantsAndOtherMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2025-01-012025-03-310001487918Portfolio Company Avison Young Inc. Investment Type First Lien Debt Threesrt:MaximumMember2026-03-310001487918ofs:UnsecuredNotesDueAugust2029Memberus-gaap:FairValueInputsLevel2Memberus-gaap:UnsecuredDebtMember2026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:DebtSecuritiesMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Medrina LLC First Lien Debt Industry All Other Outpatient Care Centers Interest Rate 9.69% Spread Above Index SOFR+ 6.00% Initial Acquisition Date 10/20/2023 Maturity 10/20/20292025-01-012025-12-310001487918DRS Imaging Services, LLC, Common Equity2026-01-012026-03-310001487918ofs:StructuredFinanceSecuritiesMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMemberofs:MeasurementInputRecoveryRateMemberofs:StructuredFinanceSecuritiesMezzanineDebtMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments JP Intermediate B, LLC Common Equity (12,663 Units) Industry Drugs and Druggists' Sundries Merchant Wholesalers Initial Acquisition Date 9/30/20252026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments RideNow Group, Inc. (F/K/A RumbleOn, Inc. First Lien Debt Industry Other Industrial Machinery Manufacturing Interest Rate 12.10% cash / 1.50% PIK Spread Above Index SOFR+7.75% Initial Acquisition Date 8/31/2021 Maturity 9/30/2027 One2025-12-310001487918ofs:EducationServicesMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918us-gaap:CommonStockMember2025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt (Delayed Draw) Industry Services for the Elderly and Persons with Disabilities Spread Above Index SOFR+ 5.75% Initial Acquisition Date 10/15/2024 Maturity 10/15/20262025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt Industry Services for the Elderly and Persons with Disabilities Interest Rate 9.60% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 10/15/2021 Maturity 10/15/2027 One2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments M2S Group Intermediate Holdings Inc. First Lien Debt Industry Plastics Packaging Film and Sheet (including Laminated) Manufacturing Interest Rate 8.59% Spread Above Index SOFR+ 4.75% Initial Acquisition Date 10/28/2025 Maturity 8/25/20312025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments BayMark Health Services, Inc. Second Lien Debt Industry Outpatient Mental Health and Substance Abuse Centers Interest Rate 14.46% Spread Above Index SOFR+ 10.50% Initial Acquisition Date 6/10/2021 Maturity 6/11/20282026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments PSB Group, LLC First Lien Debt Industry Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) Interest Rate 10.47% Spread Above Index SOFR+6.75% Initial Acquisition Date 4/17/2025 Maturity 4/17/20302025-01-012025-12-310001487918Contract Datascan Holdings, Inc., Warrants 12026-03-310001487918us-gaap:FairValueInputsLevel3Memberofs:FirstLienDebtInvestmentsMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMembersrt:MaximumMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Integrated Energy Services, LLC First Lien Debt (Revolver) Industry Computer Systems Design Services Spread Above Index SOFR+ 5.50% Initial Acquisition Date 12/18/2025 Maturity 12/19/20302025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Heritage Grocers Group, LLC. (F/K/A Tony's Fresh Market / Cardenas Markets) First Lien Debt Industry Supermarkets and Other Grocery (except Convenience) Stores Interest Rate 10.52% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 7/20/2022 Maturity 8/1/20292025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Metasource, LLC First Lien Debt Industry All Other Business Support Services Interest Rate 10.21% cash / 0.50% PIK Spread Above Index SOFR+6.25% Intitial Acquisition Date 5/17/2022 Maturity 5/17/20272026-01-012026-03-310001487918ofs:SecondLienDebtInvestmentsMember2025-12-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2026-01-012026-03-310001487918srt:MinimumMemberPortfolio Company RideNow Group, Inc. (F/K/A RumbleOn, Inc.) Investment Type First Lien Debt2025-12-310001487918ofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2026-03-310001487918ofs:OtherJusticePublicOrderAndSafetyActivitiesMemberus-gaap:CommonStockMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities Madison Park Funding XXIX, Ltd. Subordinated Notes Interest Rate 17.42% Initial Acquisition Date 12/22/2020 Maturity 3/25/20382025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Integrated Energy Services, LLC First Lien Debt (Delayed Draw) Industry Computer Systems Design Services Spread Above Index SOFR+ 5.50% Initial Acquisition Date 12/18/2025 Maturity 12/19/20302026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Inergex Holdings, LLC First Lien Debt Industry Other Computer Related Services Interest Rate 10.85% cash / 2.00% PIK Spread Above Index SOFR+ 7.00% Initial Acquisition Date 10/1/2028 Maturity 10/1/20262026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Integrated Energy Services, LLC First Lien Debt (Delayed Draw) Industry Computer Systems Design Services Spread Above Index SOFR+ 5.50% Initial Acquisition Date 12/18/2025 Maturity 12/19/20302026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Honor HN Buyer Inc. First Lien Debt (Revolver) Industry Services for the Elderly and Persons with Disabilities Interest Rate 11.50% Spread Above Index Prime+ 4.75% Initial Acquisition Date 10/15/2021 Maturity 10/15/20272026-01-012026-03-310001487918Honor HN Buyer Inc., First Lien Debt (Delayed Draw)2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Inergex Holdings, LLC First Lien Debt (Revolver) Industry Other Computer Related Services Interest Rate 10.82% Spread Above Index SOFR+ 7.00% Initial Acquisition Date 10/1/2018 Maturity 10/1/20262025-01-012025-12-310001487918ofs:DebtAndEquitySecuritiesUnrealizedGainLossMemberus-gaap:PreferredStockMember2025-01-012025-03-310001487918Integrated Energy Services, LLC, First Lien Debt (Revolver)2025-12-310001487918ofs:CommonEquityWarrantsAndOtherMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments One GI LLC First Lien Debt (Revolver) Industry Offices of Other Holding Companies Interest Rate 10.52% Spread Above Index SOFR+6.75% Intitial Acquisition Date 12/13/2021 Maturity 12/22/20252026-03-310001487918us-gaap:FairValueInputsLevel2Memberofs:StructuredFinanceSecuritiesMember2026-03-310001487918ofs:Security1CommonMember2024-10-012024-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Inergex Holdings, LLC First Lien Debt Industry Other Computer Related Services Interest Rate 10.82% Spread Above Index SOFR+ 7.00% Initial Acquisition Date 10/1/2018 Maturity 10/1/20262025-01-012025-12-310001487918Portfolio Company Inergex Holdings, LLC Investment Type First Lien Debt (Revolver)srt:MaximumMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Idera Inc. Second Lien Debt Industry Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Interest Rate 10.75% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 1/27/2022 Maturity 3/2/20292025-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2026-01-012026-03-3100014879182025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments 12 Interactive, LLC (D/B/A PerkSpot) First Lien Debt Industry Software Publishers Interest Rate 9.45% Spread Above Index SOFR+ 5.75% Initial Acquisition Date 9/5/2025 Maturity 3/5/20272026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:PreferredStockMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Constellis Holdings, LLC Common Equity (20,628 common shares) Industry Other Justice, Public Order, and Safety Activities Initial Acquisition Date 3/27/20202025-12-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments JP Intermediate B, LLC First Lien Debt Industry Drugs and Druggists' Sundries Merchant Wholesalers Interest Rate 5.17% cash / 4.00% PIK Spread Above Index SOFR+ 5.50% Initial Acquisition Date 1/14/2021 Maturity 3/31/20312025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Boca Home Care Holdings, Inc. First Lien Debt (Revolver) Industry Services for the Elderly and Persons with Disabilities Interest Rate 10.42% Spread Above Index SOFR+ 6.50% Initial Acquisition Date 2/25/2022 Maturity 2/25/20272026-01-012026-03-310001487918us-gaap:FairValueInputsLevel3Member2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Structured Finance Securities BlueMountain CLO XXXV Ltd. Subordinated Notes Interest Rate 16.45% Acquisition Date 10/30/2024 Maturity 10/22/20372025-12-310001487918ofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2026-01-012026-03-310001487918ofs:FirstLienDebtInvestmentsMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2026-01-012026-03-310001487918ofs:ManufacturingMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918us-gaap:InvestmentUnaffiliatedIssuerMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments 12 Interactive, LLC (D/B/A PerkSpot) First Lien Debt (Revolver) (5) Industry Software Publishers Spread Above Index SOFR+ 5.75% Initial Acquisition Date 9/5/2025 Maturity 9/5/20302026-03-310001487918ofs:FirstLienDebtInvestmentsMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2025-01-012025-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities First Lien Debt Apex Credit CLO 2020 Ltd. Subordinated Notes Interest Rate 6.25% Initial Acquisition Date 11/16/2020 Maturity 4/20/20352026-01-012026-03-310001487918ofs:DebtAndEquityInvestmentsMember2026-03-310001487918us-gaap:FairValueInputsLevel2Memberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Asurion, LLC First Lien Debt Industry Communication Equipment Repair and Maintenance Interest Rate 7.97% Spread Above Index SOFR + 4.25% Initial Acquisition Date 10/28/2025 Maturity 9/19/20302025-12-310001487918ofs:ServicesForTheElderlyAndPersonsWithDisabilitiesMemberofs:DebtAndEquityInvestmentsMemberofs:BocaHomeCareHoldingsIncMember2026-03-310001487918us-gaap:FairValueInputsLevel1Member2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments PM Acquisition LLC Common Equity (499 units) Industry All Other General Merchandise Stores Initial Acquisition Date 9/30/20172025-01-012025-12-310001487918Portfolio Company RideNow Group, Inc. (F/K/A RumbleOn, Inc.) Investment Type First Lien Debt One2025-12-310001487918ofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Clevertech Bidco, LLC Industry Commodity Contracts Dealing Interest Rate 10.60% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 11/3/2023 Maturity 12/30/20272026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities Apex Credit CLO 2022-1 Ltd. Subordinated Notes Interest Rate 17.49% Initial Acquisition Date 4/28/2022 Maturity 10/22/20382026-01-012026-03-310001487918country:KY2026-03-310001487918ofs:StructuredFinanceSecuritiesMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Envocore Holding, LLC (F/K/A LRI Holding, LLC) Second Lien Debt Industry Electrical Contractors and Other Wiring Installation Contractors Interest Rate 10.00% PIK Initial Acquisition Date 6/30/2017 Maturity 12/31/20282025-01-012025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments 24 Seven Holdco, LLC Debt and Equity Investments First Lien Debt Industry Temporary Help Services Interest Rate 10.96% Spread Above Index SOFR + 7.13% Initial Acquisition Date 1/28/2022 Maturity 11/16/20272025-01-012025-12-310001487918Portfolio Company Investment Type Affiliate Investments SSJA Bariatric Management LLC Common Equity (52,763 Class A units) Industry Offices of Physicians and Mental Health Specialists Initial Acquisition Date 10/31/20252026-01-012026-03-310001487918ofs:MorganStanleyInstitutionalLiquidityFunds-GovernmentPortfolioAdvisoryClassMember2026-03-310001487918ofs:DebtAndEquityInvestmentsMemberofs:RideNowGroupInc.Memberofs:OtherIndustrialMachineryManufacturingMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Inergex Holdings, LLC First Lien Debt (Revolver) Industry Other Computer Related Services Interest Rate 10.82% Spread Above Index SOFR+ 7.00% Initial Acquisition Date 10/1/2018 Maturity 10/1/20262025-12-310001487918ofs:ManufacturingMemberofs:DebtAndEquityInvestmentsMember2026-03-310001487918Portfolio Company Investment Type Affiliate Investments SSJA Bariatric Management LLC Common Equity (52,763 Class A units) Industry Offices of Physicians and Mental Health Specialists Initial Acquisition Date 10/31/20252026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Associated Spring, LLC First Lien Debt Industry Spring Manufacturing Interest Rate 8.53% Spread Above Index SOFR+ 4.75% Initial Acquisition Date 12/10/2024 Maturity 4/4/20302026-03-310001487918ofs:PortfolioCustomersOverTenPercentMemberofs:InergexHoldingsLLCMember2026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments BayMark Health Services, Inc. Second Lien Debt Industry Outpatient Mental Health and Substance Abuse Centers Interest Rate 14.46% Spread Above Index SOFR+ 10.50% Initial Acquisition Date 6/10/2021 Maturity 6/11/20282026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Allen Media, LLC First Lien Debt Industry Cable and Other Subscription Programming Interest Rate 9.32% Spread Above Index SOFR + 5.50% Initial Acquisition Date 3/2/2021 Maturity 2/10/20272025-01-012025-12-310001487918us-gaap:AdditionalPaidInCapitalMember2025-03-310001487918us-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:PreferredStockMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Type Structured Finance Securities Trinitas CLO VIII, Ltd. Subordinated Notes Interest Rate 0.00% Initial Acquisition Date 3/4/2021 Maturity 7/20/21172026-01-012026-03-310001487918us-gaap:EquitySecuritiesMember2026-03-310001487918Contract Datascan Holdings, Inc., Warrants 12026-01-012026-03-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Medrina LLC First Lien Debt (Revolver) Industry All Other Outpatient Care Centers Spread Above Index SOFR+6.00% Intitial Acquisition Date 10/20/2023 Maturity 10/20/20292026-03-310001487918us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDiscountRateMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Heritage Grocers Group, LLC. (F/K/A Tony's Fresh Market / Cardenas Markets) First Lien Debt Industry Supermarkets and Other Grocery (except Convenience) Stores Interest Rate 10.55% Spread Above Index SOFR+ 6.75% Initial Acquisition Date 7/20/2022 Maturity 8/1/20292026-03-310001487918srt:AffiliatedEntityMemberofs:InvestmentAdvisoryAgreementMember2026-01-012026-03-310001487918ofs:IntegratedEnergyServicesLLCMemberofs:ComputerSystemsDesignServicesMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918Portfolio Company Investment Type Non-control/Non-affiliate Investments Debt and Equity Investments Medrina LLC First Lien Debt (Revolver) Industry All Other Outpatient Care Centers Spread Above Index SOFR+ 6.00% Initial Acquisition Date 10/20/2023 Maturity 10/20/20292025-12-31xbrli:purexbrli:sharesofs:Investmentiso4217:USDxbrli:sharesofs:Componentiso4217:USD

 

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, 2026

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

 

 

222 W. Adams Street, Suite 1850, Chicago, Illinois

 

60606

Address of Principal Executive Offices

 

Zip Code

 

(847) 734-2000

 

Registrant’s Telephone Number, Including Area Code

 

 

 

Not applicable

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 class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

OFS

The Nasdaq Global Select Market

4.95% Notes due 2028

OFSSH

The Nasdaq Global Select Market

7.50% Notes due 2028

OFSSO

The 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 ☒ 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 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 ☒

The number of shares of the issuer’s Common Stock, $0.01 par value, outstanding as of April 27, 2026 was 13,398,078.

 

 

 

OFS CAPITAL CORPORATION

TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

Item 1.

Consolidated Financial Statements

 

Consolidated Statements of Assets and Liabilities as of March 31, 2026 (unaudited) and December 31, 2025

3

Consolidated Statements of Operations for the Three Months Ended March 31, 2026 (unaudited) and 2025 (unaudited)

4

Consolidated Statements of Changes in Net Assets for the Three Months Ended March 31, 2026 (unaudited) and 2025 (unaudited)

5

Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 (unaudited) and 2025 (unaudited)

6

Consolidated Schedules of Investments as of March 31, 2026 (unaudited) and December 31, 2025

7

Notes to Consolidated Financial Statements (unaudited)

24

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

43

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

58

Item 4.

Controls and Procedures

59

 

PART II. OTHER INFORMATION

60

Item 1.

Legal Proceedings

60

Item 1A.

Risk Factors

60

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

60

Item 3.

Defaults Upon Senior Securities

60

Item 4.

Mine Safety Disclosures

60

Item 5.

Other Information

61

Item 6.

Exhibits

62

SIGNATURES

63

 

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

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

All other trademarks or trade names referred to in this Quarterly Report on Form 10-Q are the property of their respective owners.

 

 

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

Affiliated Account

An 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

ASC

Accounting Standards Codification, as issued by the FASB

BDC

Business Development Company under the 1940 Act

BLA

Business Loan Agreement, as amended, with Banc of California, as lender, which provides the Company with a senior secured revolving credit facility

BNP Facility

A secured revolving credit facility, as amended, that provided for borrowings in an aggregate principal amount up to $80,000,000 during its reinvestment period, 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, which was fully repaid and terminated on February 18, 2026

Board

The Company’s board of directors

Banc of California Credit Facility

A senior secured revolving credit facility, as amended, with Banc of California (formerly known as Pacific Western Bank), as lender, that provides for borrowings to the Company in an aggregate principal amount up to $15,000,000

CLO

Collateralized loan obligation

Code

Internal Revenue Code of 1986, as amended

Company

OFS Capital Corporation and its consolidated subsidiaries

DRIP

Dividend reinvestment plan

EBITDA

Earnings before interest, taxes, depreciation and amortization

Exchange Act

Securities Exchange Act of 1934, as amended

FASB

Financial Accounting Standards Board

FDIC

Federal Deposit Insurance Corporation

GAAP

Accounting principles generally accepted in the United States

HPCI

Hancock Park Corporate Income, Inc., a Maryland corporation and non-traded BDC, for which 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

Natixis Facility

A secured revolving credit facility that provides for borrowings in an aggregate principal amount up to $80,000,000 during its reinvestment period, issued pursuant to a Revolving Credit and Security Agreement by and among OFSCC-FS, the lenders from time to time parties thereto, Natixis, New York branch, 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

NAV

Net 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

 

 

Term

Explanation or Definition

Net Loan Fees

The 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

OCCI

OFS Credit Company, Inc., a Delaware corporation and a non-diversified, closed-end management investment company, for which 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, focusing primarily on investments in middle market loans and broadly syndicated loans, debt and equity positions in CLOs and other structured credit investments

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 subsidiary of OFSAM Holdings and a full-service provider of capital and leveraged finance solutions to U.S. corporations

OFSAM Holdings

Orchard First Source Asset Management Holdings, LLC, a holding company consisting of asset management businesses, including OFS Advisor, a registered investment adviser focusing primarily on investments in middle market loans and broadly syndicated loans, debt and equity positions in CLOs and other structured credit investments, and OFS CLO Management, LLC, OFS CLO Management II, LLC and OFS CLO Management III, LLC, each a registered investment adviser focusing primarily on investments in broadly syndicated loans

OFSCC-FS

OFSCC-FS, LLC, an indirect wholly owned subsidiary of the Company

OFSCC-FS Assets

Assets held by the Company through OFSCC-FS

OFSCC-MB

OFSCC-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

OID

Original issue discount

Order

An 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

Parent

OFS Capital Corporation

PIK

Payment-in-kind, non-cash interest or dividends payable as an addition to the loan or equity security producing the income

Portfolio Company Investment

A debt or equity investment in a portfolio company. Portfolio Company Investments exclude Structured Finance Securities

Prime Rate

United States Prime interest rate

RIC

Regulated investment company under the Code

SBA

United States Small Business Administration

SBIC

A fund licensed under the SBA Small Business Investment Company Program

SBIC I LP

OFS SBIC I, LP, a wholly owned subsidiary of the Company and former SBIC

SEC

United States Securities and Exchange Commission

Securities Act

Securities Act of 1933, as amended

SOFR

Secured Overnight Financing Rate

Securities Purchase Agreement

An agreement between the Company and an institutional accredited investor dated August 8, 2025 in which the Company sold, in a private placement, the Unsecured Note Due August 2029

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

 

 

Term

Explanation or Definition

Structured Finance Securities

CLO mezzanine debt, CLO subordinated notes and CLO loan accumulation facility securities

Unsecured Notes

The Unsecured Notes Due July 2028, the Unsecured Notes Due October 2028 and the Unsecured Note Due August 2029

Unsecured Notes Due February 2026

The Company’s $125.0 million aggregate principal amount of 4.75% notes due February 10, 2026, which were partially redeemed on each of August 11, 2025, August 21, 2025 and December 30, 2025, and fully redeemed on February 9, 2026

Unsecured Notes Due July 2028

The Company’s $69.0 million aggregate principal amount of 7.50% notes due July 31, 2028

Unsecured Notes Due October 2028

The Company’s $55.0 million aggregate principal amount of 4.95% notes due October 31, 2028

Unsecured Note Due August 2029

The Company’s $25.0 million principal amount 8.00% note due August 8, 2029

 

 

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 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, cash equivalents, 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 Holdings;
•
constraint on investment due to access to material nonpublic information;
•
restrictions on our ability to enter into transactions with our affiliates;
•
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;
•
the belief that the seniority of our debt investments in a borrower’s capital structure may provide greater downside protection against adverse economic changes, including those caused by the impacts of interest rate and inflation rate changes, the ongoing war between Russia and Ukraine, the escalated armed conflict and heightened regional tensions in the Middle East, activity in South America, instability in the U.S. and international banking systems, the agenda of the U.S. presidential administration, including the impact of tariff enactment and tax reductions, trade disputes with other countries, the risk of recession or the impact of the prolonged shutdown of U.S. government services, and related market volatility on our business, our portfolio companies, our industry and the global economy;
•
the percentage of investments that will bear interest on a floating rate or fixed rate basis;
•
the holding period of our investments;
•
the impact of alternative reference rates on our business, including potential additional interest rate changes approved by the U.S. Federal Reserve, which may impact our investment income, cost of funding and the valuation of our investments;
•
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;

1

 

•
the impact of current political, economic and industry conditions, including changes in the interest rate environment, inflation, significant market volatility, supply chain and labor market disruptions, including those as a result of strikes, work stoppages or accidents, resource shortages and other conditions affecting the financial and capital markets, which, in turn, impacts our business prospects and the prospects of our portfolio companies;
•
the general uncertainty surrounding the financial and political stability of the United States, the United Kingdom, the Middle East, the European Union, South America and China;
•
our ability to consummate credit facilities in the future on commercially reasonable terms, if at all;
•
the belief that we have sufficient levels of liquidity to support our existing portfolio companies;
•
the belief that our cash and cash equivalent balances are not exposed to any significant credit risk;
•
the impact of information technology system failures, data security breaches, data privacy compliance, network disruptions, cybersecurity attacks and the increasing use of artificial intelligence and machine learning technology;
•
the need and availability of additional capital on favorable terms to finance growth given our expectation to distribute substantially all of our net ordinary income and net realized capital gains to our stockholders;
•
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, including accounting pronouncements and rule issuances, 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, 2025, filed on March 3, 2026. 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 (unaudited)

(Dollar amounts in thousands, except per share data)

 

 

March 31,
2026

 

 

December 31,
2025

 

Assets

 

 

 

 

 

 

Investments, at fair value:

 

 

 

 

 

 

Non-control/non-affiliate investments (amortized cost of $268,628 and $300,748,
   respectively)

 

$

206,235

 

 

$

242,070

 

Affiliate investments (amortized cost of $28,154 and $27,652, respectively)

 

 

101,885

 

 

 

99,945

 

Total investments, at fair value (amortized cost of $296,782 and $328,400, respectively)

 

 

308,120

 

 

 

342,015

 

Cash and cash equivalents

 

 

3,258

 

 

 

3,359

 

Interest and dividends receivable

 

 

1,718

 

 

 

719

 

Receivable for investments sold

 

 

501

 

 

 

—

 

Prepaid expenses and other assets

 

 

2,084

 

 

 

613

 

Total assets

 

$

315,681

 

 

$

346,706

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Revolving lines of credit

 

$

53,450

 

 

$

55,450

 

Unsecured Notes (net of deferred debt issuance costs of $2,554 and $2,812, respectively)

 

 

146,446

 

 

 

162,188

 

Interest payable

 

 

2,020

 

 

 

2,269

 

Payable to adviser and affiliates (Note 3)

 

 

2,224

 

 

 

2,264

 

Payable for investments purchased

 

 

496

 

 

 

—

 

Other liabilities

 

 

1,723

 

 

 

1,347

 

Total liabilities

 

$

206,359

 

 

$

223,518

 

 

 

 

 

 

 

 

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, 2026 and December 31, 2025,
   respectively

 

$

—

 

 

$

—

 

Common stock, par value of $0.01 per share, 100,000,000 shares authorized,
   13,398,078 shares issued and outstanding as of March 31, 2026 and
   December 31, 2025, respectively

 

 

134

 

 

 

134

 

Paid-in capital in excess of par

 

 

174,195

 

 

 

174,195

 

Total accumulated losses

 

 

(65,007

)

 

 

(51,141

)

Total net assets

 

$

109,322

 

 

$

123,188

 

 

 

 

 

 

 

 

Total liabilities and net assets

 

$

315,681

 

 

$

346,706

 

 

 

 

 

 

 

 

Number of common shares outstanding

 

 

13,398,078

 

 

 

13,398,078

 

Net asset value per share

 

$

8.16

 

 

$

9.19

 

 

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
March 31,

 

 

2026

 

 

2025

 

Investment income

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

Non-control/non-affiliate investments

 

$

7,398

 

 

$

9,580

 

Affiliate investments

 

 

13

 

 

 

—

 

Total interest income

 

 

7,411

 

 

 

9,580

 

Payment-in-kind interest and dividend income:

 

 

 

 

 

 

Non-control/non-affiliate investments

 

 

87

 

 

 

388

 

Affiliate investments

 

 

500

 

 

 

287

 

Total payment-in-kind interest and dividend income

 

 

587

 

 

 

675

 

Dividend income:

 

 

 

 

 

 

Non-control/non-affiliate investments

 

 

11

 

 

 

11

 

Affiliate investments

 

 

874

 

 

 

—

 

Total dividend income

 

 

885

 

 

 

11

 

Fee income:

 

 

 

 

 

 

Non-control/non-affiliate investments

 

 

21

 

 

 

29

 

Total investment income

 

 

8,904

 

 

 

10,295

 

Expenses

 

 

 

 

 

 

Interest expense

 

 

3,889

 

 

 

3,858

 

Base management fee

 

 

1,435

 

 

 

1,549

 

Income Incentive Fee

 

 

408

 

 

 

330

 

Professional fees

 

 

363

 

 

 

436

 

Administration fee

 

 

326

 

 

 

394

 

Other expenses

 

 

239

 

 

 

263

 

   Total expenses before base management fee waiver

 

 

6,660

 

 

 

6,830

 

Base management fee waiver (see Note 3)

 

 

(220

)

 

 

—

 

Total expenses, net of base management fee waiver

 

 

6,440

 

 

 

6,830

 

Net investment income

 

 

2,464

 

 

 

3,465

 

Net realized and unrealized gain (loss) on investments

 

 

 

 

 

 

Net realized loss on non-control/non-affiliate investments

 

 

(11,301

)

 

 

(2,587

)

Net unrealized depreciation on non-control/non-affiliate investments

 

 

(3,715

)

 

 

(7,920

)

Net unrealized appreciation (depreciation) on affiliate investments

 

 

1,438

 

 

 

(344

)

Deferred tax (expense) benefit on net unrealized appreciation (depreciation)

 

 

(344

)

 

 

99

 

Net loss on investments

 

 

(13,922

)

 

 

(10,752

)

Loss on extinguishment of debt

 

 

(130

)

 

 

—

 

Net decrease in net assets resulting from operations

 

$

(11,588

)

 

$

(7,287

)

 

 

 

 

 

 

Net investment income per common share – basic and diluted

 

$

0.18

 

 

$

0.26

 

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

 

$

(0.86

)

 

$

(0.54

)

Distributions declared per common share

 

$

0.17

 

 

$

0.34

 

Basic and diluted weighted-average common shares outstanding

 

 

13,398,078

 

 

 

13,398,078

 

 

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, except per share data)

 

 

Preferred Stock

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

Number of
shares

 

 

Par
value

 

 

Number of
shares

 

 

Par
value

 

 

Paid-in
capital in
excess of par

 

 

Total
accumulated
losses

 

 

Total net
assets

 

Balances at December 31, 2024

 

 

—

 

 

$

—

 

 

 

13,398,078

 

 

$

134

 

 

$

184,912

 

 

$

(12,821

)

 

$

172,225

 

Net decrease in net assets resulting from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,465

 

 

 

3,465

 

Net realized loss on investments, net of taxes

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,587

)

 

 

(2,587

)

Net unrealized depreciation on investments, net of deferred taxes

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,165

)

 

 

(8,165

)

Distribution declared

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4,555

)

 

 

(4,555

)

Net decrease for the three month period ended March 31, 2025

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11,842

)

 

 

(11,842

)

Balances at March 31, 2025

 

 

—

 

 

$

—

 

 

 

13,398,078

 

 

$

134

 

 

$

184,912

 

 

$

(24,663

)

 

$

160,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2025

 

 

—

 

 

$

—

 

 

 

13,398,078

 

 

$

134

 

 

$

174,195

 

 

$

(51,141

)

 

$

123,188

 

Net decrease in net assets resulting from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,464

 

 

 

2,464

 

Net realized loss on investments, net of taxes

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11,301

)

 

 

(11,301

)

Net unrealized depreciation on investments, net of deferred taxes

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,621

)

 

 

(2,621

)

Loss on extinguishment of debt

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(130

)

 

 

(130

)

Distribution declared

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,278

)

 

 

(2,278

)

Net decrease for the three month period ended March 31, 2026

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(13,866

)

 

 

(13,866

)

Balances at March 31, 2026

 

 

—

 

 

$

—

 

 

 

13,398,078

 

 

$

134

 

 

$

174,195

 

 

$

(65,007

)

 

$

109,322

 

 

See Notes to Consolidated Financial Statements (unaudited).

5

 

OFS Capital Corporation and Subsidiaries

Consolidated Statements of Cash Flows (unaudited)

(Dollar amounts in thousands)

 

 

Three Months Ended March 31,

 

 

2026

 

 

2025

 

Cash flows from operating activities

 

 

 

 

 

 

Net decrease in net assets resulting from operations

 

$

(11,588

)

 

$

(7,287

)

Adjustments to reconcile net decrease in net assets resulting from
   operations to net cash provided by operating activities:

 

 

 

 

 

 

Net realized loss on investments, net of taxes

 

 

11,301

 

 

 

2,587

 

Loss on extinguishment of debt

 

 

130

 

 

 

—

 

Net unrealized depreciation on investments, net of deferred taxes

 

 

2,621

 

 

 

8,165

 

Amortization of Net Loan Fees

 

 

(114

)

 

 

(199

)

Amendment fees received

 

 

17

 

 

 

23

 

Payment-in-kind interest and dividend income

 

 

(587

)

 

 

(675

)

Accretion of interest income on Structured Finance Securities

 

 

(2,492

)

 

 

(2,925

)

Amortization of deferred debt issuance costs

 

 

365

 

 

 

371

 

Purchase and origination of portfolio investments

 

 

(2,109

)

 

 

(10,411

)

Proceeds from principal payments on portfolio investments

 

 

8,996

 

 

 

3,290

 

Proceeds from sale or redemption of portfolio investments

 

 

14,056

 

 

 

3,137

 

Proceeds from distributions received from portfolio investments

 

 

2,478

 

 

 

3,504

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Interest and dividend receivable

 

 

(999

)

 

 

333

 

Receivable for investments sold

 

 

(501

)

 

 

7,147

 

Interest payable

 

 

(249

)

 

 

(1,510

)

Payable to adviser and affiliates

 

 

(40

)

 

 

(839

)

Payable for investments purchased

 

 

496

 

 

 

(1,802

)

Other assets and liabilities

 

 

(10

)

 

 

(68

)

Net cash provided by operating activities

 

 

21,771

 

 

 

2,841

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Distributions paid to common stockholders

 

 

(2,278

)

 

 

(4,555

)

Borrowings under revolving lines of credit

 

 

70,200

 

 

 

9,750

 

Repayments under revolving lines of credit

 

 

(72,200

)

 

 

(10,050

)

Redemption of Unsecured Notes

 

 

(16,000

)

 

 

—

 

Payment of deferred financing costs

 

 

(1,594

)

 

 

—

 

Net cash used in financing activities

 

 

(21,872

)

 

 

(4,855

)

Net decrease in cash and cash equivalents

 

 

(101

)

 

 

(2,014

)

Cash and cash equivalents

 

 

 

 

 

 

Beginning of period

 

 

3,359

 

 

 

6,068

 

End of period

 

$

3,258

 

 

$

4,054

 

 

 

 

 

 

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

Cash paid for interest

 

$

3,773

 

 

$

4,997

 

 

See Notes to Consolidated Financial Statements (unaudited).

6

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (unaudited)

March 31, 2026

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12 Interactive, LLC (D/B/A PerkSpot) (22)

 

Software Publishers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

9.45 %

 

SOFR+

5.75 %

 

9/5/2025

 

9/5/2030

 

$

1,449

 

 

$

1,438

 

 

$

1,430

 

 

 

1.3

 %

First Lien Debt

 

 

 

9.45 %

 

SOFR+

5.75 %

 

9/5/2025

 

3/5/2027

 

 

1,117

 

 

 

1,110

 

 

 

1,103

 

 

 

1.0

 %

First Lien Debt (Revolver) (5)

 

 

 

n/m (18)

 

SOFR+

5.75 %

 

9/5/2025

 

9/5/2030

 

 

—

 

 

 

(3

)

 

 

(9

)

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,566

 

 

 

2,545

 

 

 

2,524

 

 

 

2.3

 %

24 Seven Holdco, LLC (15)

 

Temporary Help Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

10.91 %

 

SOFR+

7.13 %

 

1/28/2022

 

11/16/2027

 

 

8,363

 

 

 

8,345

 

 

 

8,345

 

 

 

7.6

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AIDC IntermediateCo 2, LLC (15)

 

Computer Systems Design Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

8.92 %

 

SOFR+

5.25 %

 

7/22/2022

 

7/22/2027

 

 

1,935

 

 

 

1,922

 

 

 

1,933

 

 

 

1.8

 %

First Lien Debt

 

 

 

8.92 %

 

SOFR+

5.25 %

 

7/31/2023

 

7/22/2027

 

 

45

 

 

 

45

 

 

 

45

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,980

 

 

 

1,967

 

 

 

1,978

 

 

 

1.8

 %

Allen Media, LLC (15)

 

Cable and Other Subscription Programming

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

9.35 %

 

SOFR+

5.50 %

 

3/2/2021

 

2/10/2027

 

 

3,642

 

 

 

3,642

 

 

 

2,746

 

 

 

2.5

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Associated Spring, LLC (15)

 

Spring Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

8.53 %

 

SOFR+

4.75 %

 

12/10/2024

 

4/4/2030

 

 

2,205

 

 

 

2,171

 

 

 

2,198

 

 

 

2.0

 %

First Lien Debt (Delayed Draw) (5)

 

 

 

8.52 %

 

SOFR+

4.75 %

 

12/10/2024

 

4/4/2030

 

 

444

 

 

 

436

 

 

 

439

 

 

 

0.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,648

 

 

 

2,607

 

 

 

2,637

 

 

 

2.4

 %

Asurion, LLC (14) (15)

 

Communication Equipment Repair and Maintenance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

7.92 %

 

SOFR+

4.25 %

 

10/28/2025

 

9/19/2030

 

 

495

 

 

 

494

 

 

 

490

 

 

 

0.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avison Young Inc. (16)

 

Nonresidential Property Managers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (11) (15)

 

 

 

5.81% cash / 6.50% PIK

 

SOFR+

8.50 %

 

12/18/2025

 

12/12/2027

 

 

84

 

 

 

84

 

 

 

86

 

 

 

0.1

 %

First Lien Debt (11) (15)

 

 

 

4.66% cash / 6.50% PIK

 

SOFR+

7.35 %

 

12/18/2025

 

12/12/2027

 

 

235

 

 

 

235

 

 

 

239

 

 

 

0.2

 %

First Lien Debt (11) (15)

 

 

 

4.94% cash / 6.50% PIK

 

SOFR+

7.50 %

 

11/25/2021

 

3/12/2029

 

 

1,666

 

 

 

1,666

 

 

 

1,548

 

 

 

1.4

 %

First Lien Debt (11) (15)

 

 

 

5.81% cash / 6.50% PIK

 

SOFR+

8.50 %

 

12/18/2025

 

12/12/2027

 

 

35

 

 

 

35

 

 

 

35

 

 

 

—

 %

First Lien Debt (6) (10) (11) (15)

 

 

 

4.90% cash / 6.50% PIK

 

SOFR+

7.50 %

 

11/25/2021

 

3/12/2029

 

 

327

 

 

 

200

 

 

 

269

 

 

 

0.2

 %

Common Equity (1,185 Class B units)
   (10) (13) (15)

 

 

 

 

 

 

 

 

3/12/2024

 

 

 

 

 

 

 

1,400

 

 

 

—

 

 

 

—

 %

Preferred Equity (1,715 Class A
   units) 12.5% PIK (10) (13) (15)

 

 

 

 

 

 

 

 

3/12/2024

 

 

 

 

 

 

 

1,269

 

 

 

334

 

 

 

0.3

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,347

 

 

 

4,889

 

 

 

2,511

 

 

 

2.2

 %

7

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)

March 31, 2026

(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

 

BayMark Health Services, Inc. (6) (15)

 

Outpatient Mental Health and Substance Abuse Centers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Lien Debt

 

 

 

14.46 %

 

SOFR+

10.50 %

 

6/10/2021

 

6/11/2028

 

 

4,962

 

 

 

4,931

 

 

 

25

 

 

 

—

 %

Second Lien Debt

 

 

 

14.46 %

 

SOFR+

10.50 %

 

6/10/2021

 

6/11/2028

 

 

3,988

 

 

 

3,961

 

 

 

20

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,950

 

 

 

8,892

 

 

 

45

 

 

 

—

 %

Blackhawk Network Holdings, Inc. (14) (15)

 

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

7.17 %

 

SOFR+

3.50 %

 

3/25/2026

 

3/12/2029

 

 

499

 

 

 

494

 

 

 

493

 

 

 

0.5

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boca Home Care Holdings, Inc. (20)

 

Services for the Elderly and Persons with Disabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

10.42 %

 

SOFR+

6.50 %

 

2/25/2022

 

2/25/2027

 

 

8,946

 

 

 

8,919

 

 

 

8,946

 

 

 

8.2

 %

First Lien Debt (Revolver) (5)

 

 

10.42 %

 

SOFR+

6.50 %

 

2/25/2022

 

2/25/2027

 

 

226

 

 

 

223

 

 

 

226

 

 

 

0.2

 %

Common Equity (1,290 Class A units)
   (10) (13)

 

 

 

 

 

 

 

 

2/25/2022

 

 

 

 

 

 

 

1,290

 

 

 

878

 

 

 

0.8

 %

Preferred Equity (3,446 Class A
   Units), 12% cash / 2% PIK

 

 

 

 

 

 

 

 

3/3/2023

 

 

 

 

 

 

 

345

 

 

 

362

 

 

 

0.3

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,172

 

 

 

10,777

 

 

 

10,412

 

 

 

9.5

 %

Clevertech Bidco, LLC

 

Commodity Contracts Dealing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

10.60 %

 

SOFR+

6.75 %

 

11/3/2023

 

12/30/2027

 

 

3,125

 

 

 

3,084

 

 

 

2,966

 

 

 

2.7

 %

First Lien Debt (Revolver) (5)

 

 

 

10.60 %

 

SOFR+

6.75 %

 

11/3/2023

 

12/30/2027

 

 

112

 

 

 

108

 

 

 

97

 

 

 

0.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,237

 

 

 

3,192

 

 

 

3,063

 

 

 

2.8

 %

Constellis Holdings, LLC (10)

 

Other Justice, Public Order, and Safety Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity (20,628 common shares)

 

 

 

 

 

 

 

 

3/27/2020

 

 

 

 

 

 

 

703

 

 

 

37

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excelin Home Health, LLC (6)

 

Home Health Care Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Lien Debt

 

 

 

18.00% PIK

 

N/A

 

 

10/25/2018

 

10/1/2026

 

 

7,439

 

 

 

6,765

 

 

 

1,793

 

 

 

1.6

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GoTo Group (F/K/A LogMeIn, Inc.)
   (14) (15)

 

Data Processing, Hosting, and Related Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

8.57 %

 

SOFR+

4.75 %

 

3/26/2021

 

4/28/2028

 

 

924

 

 

 

924

 

 

 

762

 

 

 

0.7

 %

First Lien Debt

 

 

 

8.57 %

 

SOFR+

4.75 %

 

3/26/2021

 

4/28/2028

 

 

1,276

 

 

 

1,276

 

 

 

390

 

 

 

0.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,200

 

 

 

2,200

 

 

 

1,152

 

 

 

1.1

 %

Heritage Grocers Group, LLC. (F/K/A
   Tony's Fresh Market / Cardenas
   Markets) (14) (15)

 

Supermarkets and Other Grocery (except Convenience) Stores

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

10.55 %

 

SOFR+

6.75 %

 

7/20/2022

 

8/1/2029

 

 

8,885

 

 

 

8,751

 

 

 

6,879

 

 

 

6.3

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Honor HN Buyer Inc.

 

Services for the Elderly and Persons with Disabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

9.60 %

 

SOFR+

5.75 %

 

10/15/2021

 

10/15/2027

 

 

989

 

 

 

984

 

 

 

989

 

 

 

0.9

 %

First Lien Debt (15)

 

 

 

9.60 %

 

SOFR+

5.75 %

 

10/15/2021

 

10/15/2027

 

 

626

 

 

 

611

 

 

 

626

 

 

 

0.6

 %

First Lien Debt (15)

 

 

 

9.60 %

 

SOFR+

5.75 %

 

3/31/2023

 

10/15/2027

 

 

696

 

 

 

677

 

 

 

696

 

 

 

0.6

 %

8

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)

March 31, 2026

(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

 

First Lien Debt (Revolver) (5)

 

 

 

11.50 %

 

Prime+

4.75 %

 

10/15/2021

 

10/15/2027

 

 

15

 

 

 

14

 

 

 

15

 

 

 

—

 %

First Lien Debt (Delayed Draw) (5) (15)

 

 

 

n/m (18)

 

SOFR+

5.75 %

 

10/15/2024

 

10/15/2027

 

 

—

 

 

 

(7

)

 

 

(7

)

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,326

 

 

 

2,279

 

 

 

2,319

 

 

 

2.1

 %

I Love Produce, LLC

 

Spice and Extract Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

9.81 %

 

SOFR+

6.00 %

 

3/24/2026

 

3/24/2031

 

 

310

 

 

 

303

 

 

 

303

 

 

 

0.3

 %

First Lien Debt (Delayed Draw) (5)

 

 

 

n/m (18)

 

SOFR+

6.00 %

 

3/24/2026

 

3/24/2031

 

 

—

 

 

 

(1

)

 

 

(1

)

 

 

—

 %

First Lien Debt (Revolver) (5)

 

 

 

11.75 %

 

Prime+

5.00 %

 

3/24/2026

 

3/24/2031

 

 

4

 

 

 

4

 

 

 

4

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

314

 

 

 

306

 

 

 

306

 

 

 

0.3

 %

Idera Inc.

 

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Lien Debt

 

 

 

10.56 %

 

SOFR+

6.75 %

 

1/27/2022

 

3/2/2029

 

 

2,683

 

 

 

2,683

 

 

 

2,031

 

 

 

1.9

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inergex Holdings, LLC (8) (20)

 

Other Computer Related Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (11)

 

 

 

10.85% cash / 2.00% PIK

 

SOFR+

7.00 %

 

10/1/2018

 

10/1/2026

 

 

14,574

 

 

 

14,538

 

 

 

14,574

 

 

 

13.3

 %

First Lien Debt (Revolver) (11)

 

 

 

10.85% cash / 2.00% PIK

 

SOFR+

7.00 %

 

10/1/2018

 

10/1/2026

 

 

2,813

 

 

 

2,813

 

 

 

2,813

 

 

 

2.6

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,387

 

 

 

17,351

 

 

 

17,387

 

 

 

15.9

 %

Integrated Energy Services, LLC

 

Computer Systems Design Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

9.20 %

 

SOFR+

5.50 %

 

12/18/2025

 

12/19/2030

 

 

524

 

 

 

515

 

 

 

515

 

 

 

0.5

 %

First Lien Debt (Delayed Draw) (5)

 

 

 

n/m (18)

 

SOFR+

5.50 %

 

12/18/2025

 

12/19/2030

 

 

—

 

 

 

(2

)

 

 

(5

)

 

 

—

 %

First Lien Debt (Revolver) (5)

 

 

 

n/m (18)

 

SOFR+

5.50 %

 

12/18/2025

 

12/19/2030

 

 

—

 

 

 

(2

)

 

 

(3

)

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

524

 

 

 

510

 

 

 

507

 

 

 

0.5

 %

JP Intermediate B, LLC

 

Drugs and Druggists' Sundries Merchant Wholesalers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

10.70 %

 

SOFR+

7.00 %

 

10/2/2025

 

9/30/2030

 

 

334

 

 

 

334

 

 

 

334

 

 

 

0.3

 %

First Lien Debt (6) (11) (15)

 

 

 

5.20% cash / 4.00% PIK

 

SOFR+

5.50 %

 

1/14/2021

 

3/31/2031

 

 

1,499

 

 

 

1,499

 

 

 

982

 

 

 

0.9

 %

Common Equity (12,663 Units) (10) (15)

 

 

 

 

 

 

 

 

9/30/2025

 

 

 

 

 

 

 

2,992

 

 

 

—

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,833

 

 

 

4,825

 

 

 

1,316

 

 

 

1.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kreg LLC (8)

 

Other Ambulatory Health Care Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (11) (15)

 

 

 

10.10% cash / 0.50% PIK

 

SOFR+

6.25 %

 

12/20/2021

 

12/20/2026

 

 

17,071

 

 

 

17,054

 

 

 

16,678

 

 

 

15.3

 %

First Lien Debt (Revolver)

 

 

 

10.10 %

 

SOFR+

6.25 %

 

12/20/2021

 

12/20/2026

 

 

1,337

 

 

 

1,336

 

 

 

1,306

 

 

 

1.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,408

 

 

 

18,390

 

 

 

17,984

 

 

 

16.5

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)

March 31, 2026

(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

 

M2S Group Intermediate Holdings Inc. (14) (15)

 

Plastics Packaging Film and Sheet (including Laminated) Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

8.42 %

 

SOFR+

4.75 %

 

10/28/2025

 

8/25/2031

 

 

460

 

 

 

455

 

 

 

450

 

 

 

0.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medrina LLC

 

All Other Outpatient Care Centers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

9.69 %

 

SOFR+

6.00 %

 

10/20/2023

 

10/20/2029

 

 

2,184

 

 

 

2,151

 

 

 

2,184

 

 

 

2.0

 %

First Lien Debt (15)

 

 

 

9.63 %

 

SOFR+

6.00 %

 

10/20/2023

 

10/20/2029

 

 

367

 

 

 

363

 

 

 

367

 

 

 

0.3

 %

First Lien Debt (Revolver) (5)

 

 

 

n/m (18)

 

SOFR+

6.00 %

 

10/20/2023

 

10/20/2029

 

 

—

 

 

 

(5

)

 

 

—

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,551

 

 

 

2,509

 

 

 

2,551

 

 

 

2.3

 %

Metasource, LLC (15)

 

All Other Business Support Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

10.21% cash / 0.50% PIK

 

SOFR+

6.25 %

 

5/17/2022

 

5/17/2027

 

 

2,723

 

 

 

2,704

 

 

 

2,636

 

 

 

2.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One GI LLC

 

Offices of Other Holding Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

10.52 %

 

SOFR+

6.75 %

 

12/13/2021

 

12/22/2025
(21)

 

 

7,261

 

 

 

7,261

 

 

 

6,324

 

 

 

5.8

 %

First Lien Debt (15)

 

 

 

10.52 %

 

SOFR+

6.75 %

 

12/13/2021

 

12/22/2025 
(21)

 

 

3,827

 

 

 

3,827

 

 

 

3,334

 

 

 

3.0

 %

First Lien Debt (Revolver) (5)

 

 

 

10.52 %

 

SOFR+

6.75 %

 

12/13/2021

 

12/22/2025
(21)

 

 

1,444

 

 

 

1,444

 

 

 

1,258

 

 

 

1.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,532

 

 

 

12,532

 

 

 

10,916

 

 

 

10.0

 %

Planet Bingo, LLC (F/K/A 3rd Rock
   Gaming Holdings, LLC) (6)

 

Software Publishers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

6.50 %

 

N/A

 

 

3/13/2018

 

12/31/2027

 

 

16,648

 

 

 

14,113

 

 

 

7,808

 

 

 

7.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PM Acquisition LLC

 

All Other General Merchandise Stores

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity (499 units)

 

 

 

 

 

 

 

 

9/30/2017

 

 

 

 

 

 

 

231

 

 

 

1,198

 

 

 

1.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSB Group, LLC (20)

 

Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

10.42 %

 

SOFR+

6.75 %

 

4/17/2025

 

4/17/2030

 

 

7,862

 

 

 

7,830

 

 

 

7,940

 

 

 

7.3

 %

First Lien Debt (Revolver) (5)

 

 

 

10.42 %

 

SOFR+

6.75 %

 

4/17/2025

 

4/17/2030

 

 

406

 

 

 

402

 

 

 

406

 

 

 

0.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,268

 

 

 

8,232

 

 

 

8,346

 

 

 

7.7

 %

Redstone Holdco 2 LP (F/K/A RSA
   Security) (15)

 

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

8.92 %

 

SOFR+

5.25 %

 

4/16/2021

 

12/31/2030

 

 

223

 

 

 

220

 

 

 

219

 

 

 

0.2

 %

First Lien Debt

 

 

 

9.17 %

 

SOFR+

5.50 %

 

1/30/2026

 

12/31/2030

 

 

857

 

 

 

846

 

 

 

807

 

 

 

0.7

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,080

 

 

 

1,066

 

 

 

1,026

 

 

 

0.9

 %

10

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)

March 31, 2026

(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

 

RideNow Group, Inc. (F/K/A. RumbleOn,
   Inc.) (15) (16)

 

Other Industrial Machinery Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (11)

 

 

 

9.68% cash / 1.00% PIK

 

SOFR+

6.75 %

 

8/31/2021

 

9/30/2027

 

 

2,391

 

 

 

2,371

 

 

 

2,333

 

 

 

2.1

 %

First Lien Debt (11)

 

 

 

9.68% cash / 1.00% PIK

 

SOFR+

6.75 %

 

8/31/2021

 

9/30/2027

 

 

721

 

 

 

716

 

 

 

704

 

 

 

0.6

 %

Warrants (warrants to purchase up to
   $73,000 in common stock) (10)

 

 

 

 

 

 

 

 

8/31/2021

 

8/10/2030
(12)

 

 

 

 

 

200

 

 

 

72

 

 

 

0.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,112

 

 

 

3,287

 

 

 

3,109

 

 

 

2.8

 %

RPLF Holdings, LLC (10) (13)

 

Software Publishers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity (345,339 Class A units)

 

 

 

 

 

 

 

 

1/17/2018

 

 

 

 

 

 

 

—

 

 

 

1,630

 

 

 

1.5

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sentry Centers Holdings, LLC (10) (13)

 

Convention and Trade Show Organizers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity (1,603 Series B units)

 

 

 

 

 

 

 

 

9/4/2020

 

 

 

 

 

 

 

160

 

 

 

1

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signal Parent, Inc. (14) (15)

 

New Single-Family Housing Construction (except For-Sale Builders)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

7.27 %

 

SOFR+

3.50 %

 

3/25/2021

 

4/3/2028

 

 

1,514

 

 

 

1,510

 

 

 

1,001

 

 

 

0.9

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SS Acquisition, LLC (8) (20)

 

Sports and Recreation Instruction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

9.45 %

 

SOFR+

5.75 %

 

12/20/2024

 

12/20/2029

 

 

16,752

 

 

 

16,690

 

 

 

16,920

 

 

 

15.5

 %

First Lien Debt (Revolver) (5)

 

 

 

9.45 %

 

SOFR+

5.75 %

 

12/20/2024

 

12/20/2029

 

 

500

 

 

 

493

 

 

 

500

 

 

 

0.5

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,252

 

 

 

17,183

 

 

 

17,420

 

 

 

16.0

 %

Staples, Inc. (14) (15)

 

Business to Business Electronic Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

9.41 %

 

SOFR+

5.75 %

 

5/23/2024

 

9/4/2029

 

 

2,533

 

 

 

2,466

 

 

 

2,308

 

 

 

2.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TalentSmart Holdings, LLC (10) (13) (20)

 

Professional and Management Development Training

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity (670 Class A
   shares)

 

 

 

 

 

 

 

 

10/11/2019

 

 

 

 

 

 

 

670

 

 

 

627

 

 

 

0.6

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tolemar Acquisition, Inc.

 

Motorcycle, Bicycle, and Parts Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

9.77% cash / 1.25% PIK

 

SOFR+

6.00 %

 

10/14/2021

 

10/14/2027

 

 

14,488

 

 

 

14,438

 

 

 

9,475

 

 

 

8.7

 %

First Lien Debt (Revolver) (5)

 

 

 

9.77 %

 

SOFR+

6.00 %

 

10/14/2021

 

10/14/2027

 

 

669

 

 

 

666

 

 

 

135

 

 

 

0.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,157

 

 

 

15,104

 

 

 

9,610

 

 

 

8.8

 %

United Biologics Holdings, LLC (10) (13)

 

Medical Laboratories

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity (4,701 units)

 

 

 

 

 

 

 

 

4/16/2013

 

 

 

 

 

 

 

9

 

 

 

—

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)

March 31, 2026

(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

 

Total Debt and Equity Investments -
   Non- control/Non-affiliate
   Investments

 

 

 

 

 

 

 

 

 

 

 

 

$

189,728

 

 

$

194,835

 

 

$

157,591

 

 

 

144.0

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Structured Finance Securities (16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apex Credit CLO 2020 Ltd. (7) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

6.25 %

 

N/A

 

 

11/16/2020

 

4/20/2035

 

$

11,080

 

 

$

9,045

 

 

$

4,793

 

 

 

4.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apex Credit CLO 2021 Ltd. (7) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

0.81 %

 

N/A

 

 

5/28/2021

 

7/18/2034

 

 

8,630

 

 

 

5,246

 

 

 

2,109

 

 

 

1.9

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apex Credit CLO 2022-1 Ltd. (7) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

17.49 %

 

N/A

 

 

4/28/2022

 

10/22/2038

 

 

17,074

 

 

 

10,195

 

 

 

6,768

 

 

 

6.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Battalion CLO XI Ltd.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mezzanine Debt - Class E

 

 

 

10.78 %

 

SOFR+

6.85 %

 

4/25/2022

 

4/24/2034

 

 

6,000

 

 

 

6,000

 

 

 

4,141

 

 

 

3.8

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlueMountain CLO XXXV Ltd. (7) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

16.68 %

 

N/A

 

 

10/30/2024

 

10/22/1937

 

 

7,800

 

 

 

5,961

 

 

 

3,685

 

 

 

3.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brightwood Capital MM CLO 2023-1,
   Ltd.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes (7) (9)

 

 

 

24.50 %

 

N/A

 

 

9/28/2023

 

10/15/2035

 

 

5,494

 

 

 

4,525

 

 

 

4,647

 

 

 

4.3

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canyon CLO 2019-1, Ltd. (7) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

17.18 %

 

N/A

 

 

8/22/2024

 

7/15/2037

 

 

18,453

 

 

 

9,562

 

 

 

7,196

 

 

 

6.6

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBAMR 2017-1, Ltd. (7) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

20.26 %

 

N/A

 

 

8/12/2025

 

1/20/2038

 

 

5,100

 

 

 

1,918

 

 

 

1,425

 

 

 

1.3

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ICG US CLO 2021-3, Ltd. (7) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

22.54 %

 

N/A

 

 

8/8/2024

 

10/20/2034

 

 

16,750

 

 

 

7,853

 

 

 

5,894

 

 

 

5.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LCM 42 Ltd.(7) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

17.60 %

 

N/A

 

 

12/19/2024

 

1/15/2038

 

 

3,500

 

 

 

2,988

 

 

 

2,418

 

 

 

2.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Madison Park Funding XXIX, Ltd. (7) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

15.10 %

 

N/A

 

 

12/22/2020

 

3/25/2038

 

 

10,971

 

 

 

5,228

 

 

 

3,194

 

 

 

2.9

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trinitas CLO VIII, Ltd. (4) (7) (9) (10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

0.00%

 

N/A

 

 

3/4/2021

 

7/20/2117

 

 

5,200

 

 

 

2,307

 

 

 

130

 

 

 

0.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Venture 45 CLO, Limited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mezzanine Debt - Class E

 

 

 

11.37 %

 

SOFR+

7.70 %

 

4/18/2022

 

7/20/2035

 

 

3,000

 

 

 

2,965

 

 

 

2,244

 

 

 

2.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)

March 31, 2026

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Structured Finance Securities

 

 

 

 

 

 

 

 

 

 

 

 

$

119,052

 

 

$

73,793

 

 

$

48,644

 

 

 

44.6

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Non-control/Non-affiliate
   Investments

 

 

 

 

 

 

 

 

 

 

 

 

$

308,780

 

 

$

268,628

 

 

$

206,235

 

 

 

188.6

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract Datascan Holdings, Inc. (19)

 

Office Machinery and Equipment Rental and Leasing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity (2750 Series C shares),
   14% PIK

 

 

 

 

 

 

 

 

8/21/2025

 

 

 

 

 

 

$

2,986

 

 

$

2,980

 

 

 

2.7

 %

Preferred Equity (3,061 Series A shares),
   10% PIK

 

 

 

 

 

 

 

 

8/5/2015

 

 

 

 

 

 

 

9,929

 

 

 

9,050

 

 

 

8.3

 %

Common Equity (11,273 shares) (10)

 

 

 

 

 

 

 

 

6/28/2016

 

 

 

 

 

 

 

104

 

 

 

—

 

 

 

—

 %

Warrants (warrants to purchase 224 Series
   A preferred equity shares) (10)

 

 

 

 

 

 

 

 

8/21/2025

 

8/20/2035 (12)

 

 

 

 

 

—

 

 

 

—

 

 

 

—

 %

Warrants (warrants to purchase 1,946
   shares of common equity) (10)

 

 

 

 

 

 

 

 

8/21/2025

 

8/20/2035 (12)

 

 

 

 

 

—

 

 

 

—

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,019

 

 

 

12,030

 

 

 

11.0

 %

DRS Imaging Services, LLC (10)
   (13) (20)

 

Data Processing, Hosting, and Related Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity (1,135 units)

 

 

 

 

 

 

 

 

3/8/2018

 

 

 

 

 

 

 

1,135

 

 

 

3,741

 

 

 

3.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pfanstiehl Holdings, Inc. (8) (20)

 

Pharmaceutical Preparation Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity (400 Class A shares)

 

 

 

 

 

 

 

 

1/1/2014

 

 

 

 

 

 

 

217

 

 

 

80,430

 

 

 

73.6

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SSJA Bariatric Management LLC (20)

 

Offices of Physicians and Mental Health Specialists

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (5)

 

 

 

9.07 %

 

SOFR+

5.25 %

 

10/31/2025

 

10/31/2028

 

 

234

 

 

 

234

 

 

 

234

 

 

 

0.2

 %

First Lien Debt (15)

 

 

 

9.07% PIK

 

SOFR+

5.25 %

 

12/31/2020

 

10/31/2028

 

 

3,893

 

 

 

3,893

 

 

 

3,893

 

 

 

3.6

 %

Common Equity (52,763 Class A units) (10)
(13) (15)

 

 

 

 

 

 

 

 

10/31/2025

 

 

 

 

 

 

 

9,657

 

 

 

1,557

 

 

 

1.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,127

 

 

 

13,784

 

 

 

5,684

 

 

 

5.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Affiliate Investments

 

 

 

 

 

 

 

 

 

 

 

 

$

4,127

 

 

$

28,154

 

 

$

101,885

 

 

 

93.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments

 

 

 

 

 

 

 

 

 

 

 

 

$

312,907

 

 

$

296,782

 

 

$

308,120

 

 

 

281.8

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Equivalents (17)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First American Treasury Obligations Fund Class Z

 

 

 

3.56 %

 

N/A

 

 

 

 

 

 

$

567

 

 

$

567

 

 

$

567

 

 

 

0.5

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)

March 31, 2026

(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

 

Morgan Stanley Institutional Liquidity Funds - Government Portfolio Advisory Class

 

 

 

3.32 %

 

N/A

 

 

 

 

 

 

 

714

 

 

 

714

 

 

 

714

 

 

 

0.7

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

$

1,281

 

 

$

1,281

 

 

$

1,281

 

 

 

1.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments and Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

$

314,189

 

 

$

298,064

 

 

$

309,401

 

 

 

283.0

 %

 

(1)
Equity ownership may be held in shares or units of companies affiliated with the portfolio company. The Company’s investments are generally classified as “restricted securities” as such term is defined under Regulation S-X Rule 6-03(f) or Securities Act Rule 144.
(2)
As of March 31, 2026, the Company held loans and mezzanine debt investments with an aggregate fair value of $153,365 of the total loan portfolio, that bore interest at a variable rate indexed to SOFR or Prime, and reset monthly, quarterly, or semi-annually. For each variable-rate investment, the Company has provided the spread over the reference rate and current interest rate in effect as of March 31, 2026. Unless otherwise noted, all investments with a stated PIK rate require interest payments with the issuance of additional securities as payment of the entire PIK provision.
(3)
Unless otherwise noted in footnote 14, fair value was determined using significant unobservable inputs for all of the Company’s investments and are considered Level 3 under GAAP. See Note 5 for further details.
(4)
As of March 31, 2026, the effective accretable yield was estimated to be 0%, as the aggregate amount of projected distributions, including projected distributions related to liquidation of the underlying portfolio upon the security’s anticipated optional redemption, was less than current amortized cost. Projected distributions are periodically monitored and re-evaluated. All actual distributions were recognized as reductions to amortized cost until such time, if and when occurring, a future aggregate amount of then-projected distributions exceeds the security’s then-current amortized cost.
(5)
Subject to unfunded commitments. The Company considers undrawn amounts in the determination of fair value on revolving lines of credit and delayed draw term loans. See Note 6.
(6)
Investment was on non-accrual status as of March 31, 2026. See Note 4 for further details.
(7)
Amortized cost reflects accretion of effective yield less any cash distributions received or entitled to be received from CLO subordinated note investments. CLO subordinated note positions are entitled to recurring distributions, which are generally equal to the residual cash flow of payments received on underlying securities less contractual payments to debt holders and fund expenses.
(8)
Portfolio company represents greater than 5% of total assets as of March 31, 2026.
(9)
The rate disclosed on subordinated note investments is the estimated effective yield, generally established at purchase, and reevaluated upon the receipt of the initial distribution and each subsequent quarter thereafter. The estimated effective yield is based upon projected amounts and timing of future distributions and the projected amounts and timing of terminal principal payments at the time of estimation. The estimated effective yield and investment cost may ultimately not be realized. Projected cash flows, including the amounts and timing of terminal principal payments, which generally are projected to occur prior to the contractual maturity date, were utilized in deriving the effective yield of the investments.
(10)
Non-income producing. The Company has not recognized income on the security during the prior twelve-month period preceding the period-end date.
(11)
The interest rate on these investments contains a PIK provision, whereby the issuer has the option to make interest payments in cash or with the issuance of additional securities as payment of the entire PIK provision. The interest rate in the schedule represents the current interest rate in effect for these investments. The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed as of March 31, 2026:

 

Portfolio Company

 

Investment Type

 

Maximum PIK
Rate Allowed

 

Range of PIK
Option

 

Range of Cash
Option

Avison Young Inc.

 

First Lien Debt

 

6.50 %

 

0% to 6.50%

 

5.81% to 12.31%

Avison Young Inc.

 

First Lien Debt

 

6.50 %

 

0% to 6.50%

 

4.66% to 11.16%

Avison Young Inc.

 

First Lien Debt

 

6.50 %

 

0% to 6.50%

 

4.94% to 11.44%

Avison Young Inc.

 

First Lien Debt

 

6.50 %

 

0% to 6.50%

 

4.90% to 11.40%

Avison Young Inc.

 

First Lien Debt

 

6.50 %

 

0% to 6.50%

 

5.81% to 12.31%

Inergex Holdings, LLC

 

First Lien Debt

 

2.00 %

 

0% to 2.00%

 

10.85% to 12.85%

Inergex Holdings, LLC

 

First Lien Debt (Revolver)

 

2.00 %

 

0% to 2.00%

 

10.85% to 12.85%

JP Intermediate B, LLC

 

First Lien Debt

 

4.00 %

 

0% to 4.00%

 

5.20% to 9.20%

Kreg, LLC

 

First Lien Debt

 

0.50 %

 

0% to 0.50%

 

10.10% to 10.60%

RideNow Group, Inc. (F/K/A RumbleOn, Inc.)

 

First Lien Debt

 

1.00 %

 

0% to 1.0%

 

9.68% to 10.68%

RideNow Group, Inc. (F/K/A RumbleOn, Inc.)

 

First Lien Debt

 

1.00 %

 

0% to 1.0%

 

9.68% to 10.68%
(12)
Represents expiration date of the warrants.
(13)
All or a portion of investment held by a wholly owned subsidiary subject to income tax.
(14)
Fair value was determined by reference to observable inputs other than quoted prices in active markets and are considered Level 2 under GAAP. See Note 5 for further details.
(15)
Investments (or a portion thereof) held by OFSCC-FS. These assets are pledged as collateral of the Natixis Facility and cannot be pledged under any debt obligation of the Parent.

14

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)

March 31, 2026

(Dollar amounts in thousands)

 

(16)
Non-qualifying assets under Section 55(a) of the 1940 Act. Qualifying assets as defined in Section 55 of the 1940 Act must represent at least 70% of the Company’s assets immediately following the acquisition of any additional non-qualifying assets. As of March 31, 2026, approximately 83% of the Company's assets were qualifying assets.
(17)
Represents cash equivalents held in a money market fund as of March 31, 2026. The Company also had cash deposits of $1,977 as of March 31, 2026.
(18)
Not meaningful as there is no outstanding balance on the revolver or delayed draw facility. The Company generally earns unfunded commitment fees on undrawn revolving lines of credit balances, which are reported in fee income.
(19)
The Company holds at least one seat on the portfolio company’s board of directors.
(20)
The Company has an observer seat on the portfolio company’s board of directors.
(21)
These investments became contractually due on December 22, 2025. The lending group has entered into a series of forbearance agreements extending the maturity date of the investments. During this period, the Company continues to accrue interest income on the investments.
(22)
The Company has the right to receive certain information provided to the board of directors.

See Notes to Consolidated Financial Statements (unaudited).

15

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments

December 31, 2025

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12 Interactive, LLC (D/B/A PerkSpot) (21)

 

Software Publishers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

9.42%

 

SOFR+

5.75%

 

9/5/2025

 

9/5/2030

 

$

1,453

 

 

$

1,441

 

 

$

1,453

 

 

 

1.2

 %

First Lien Debt

 

 

 

9.42%

 

SOFR+

5.75%

 

9/5/2025

 

3/5/2027

 

 

1,120

 

 

 

1,110

 

 

 

1,120

 

 

 

0.9

 %

First Lien Debt (Revolver) (5)

 

 

 

n/m (18)

 

SOFR+

5.75%

 

9/5/2025

 

9/5/2030

 

 

—

 

 

 

(3

)

 

 

(3

)

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,573

 

 

 

2,548

 

 

 

2,570

 

 

 

2.1

 %

24 Seven Holdco, LLC (15)

 

Temporary Help Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

10.96%

 

SOFR+

7.13%

 

1/28/2022

 

11/16/2027

 

 

8,386

 

 

 

8,366

 

 

 

8,361

 

 

 

6.8

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AIDC IntermediateCo 2, LLC (15)

 

Computer Systems Design Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

8.97%

 

SOFR+

5.25%

 

7/22/2022

 

7/22/2027

 

 

1,940

 

 

 

1,925

 

 

 

1,938

 

 

 

1.6

 %

First Lien Debt

 

 

 

8.97%

 

SOFR+

5.25%

 

7/31/2023

 

7/22/2027

 

 

45

 

 

 

45

 

 

 

45

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,985

 

 

 

1,970

 

 

 

1,983

 

 

 

1.6

 %

Allen Media, LLC (15)

 

Cable and Other Subscription Programming

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

9.32%

 

SOFR+

5.50%

 

3/2/2021

 

2/10/2027

 

 

3,652

 

 

 

3,651

 

 

 

2,862

 

 

 

2.3

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Associated Spring, LLC (15)

 

Spring Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

8.59%

 

SOFR+

4.75%

 

12/10/2024

 

4/4/2030

 

 

2,219

 

 

 

2,183

 

 

 

2,212

 

 

 

1.8

 %

First Lien Debt (Delayed Draw) (5)

 

 

 

8.57%

 

SOFR+

4.75%

 

12/10/2024

 

4/4/2030

 

 

238

 

 

 

230

 

 

 

233

 

 

 

0.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,457

 

 

 

2,413

 

 

 

2,445

 

 

 

2.0

 %

Asurion, LLC (14) (15)

 

Communication Equipment Repair and Maintenance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

7.97%

 

SOFR+

4.25%

 

10/28/2025

 

9/19/2030

 

 

1,496

 

 

 

1,493

 

 

 

1,498

 

 

 

1.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avison Young Inc. (8)

 

Nonresidential Property Managers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (11)

 

 

 

3.70% cash / 8.50% PIK

 

SOFR+

8.50%

 

12/18/2025

 

12/12/2027

 

 

82

 

 

 

82

 

 

 

83

 

 

 

0.1

 %

First Lien Debt (11) (15)

 

 

 

5.20% cash / 5.85% PIK

 

SOFR+

7.35%

 

12/18/2025

 

12/12/2027

 

 

231

 

 

 

231

 

 

 

234

 

 

 

0.2

 %

First Lien Debt (11) (15)

 

 

 

5.49% cash / 6.50% PIK

 

SOFR+

8.00%

 

11/25/2021

 

3/12/2029

 

 

1,669

 

 

 

1,670

 

 

 

1,452

 

 

 

1.2

 %

First Lien Debt (6) (10) (11) (15)

 

 

 

5.60% cash / 6.50% PIK

 

SOFR+

8.00%

 

11/25/2021

 

3/12/2029

 

 

329

 

 

 

213

 

 

 

249

 

 

 

0.2

 %

First Lien Debt (Delayed Draw) (5)

 

 

 

n/m (18)

 

SOFR+

8.50%

 

12/18/2025

 

12/12/2027

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 %

Common Equity (1,185 Class B units) (10)
(13) (15)

 

 

 

 

 

 

 

 

3/12/2024

 

 

 

 

 

 

 

1,400

 

 

 

—

 

 

 

—

 %

Preferred Equity (1,715 Class A units)
12.5% PIK (10) (13) (15)

 

 

 

 

 

 

 

 

3/12/2024

 

 

 

 

 

 

 

1,269

 

 

 

118

 

 

 

0.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,311

 

 

 

4,865

 

 

 

2,136

 

 

 

1.8

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2025

(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

 

BayMark Health Services, Inc. (6) (15)

 

Outpatient Mental Health and Substance Abuse Centers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Lien Debt

 

 

 

14.43%

 

SOFR+

10.50%

 

6/10/2021

 

6/11/2028

 

 

4,962

 

 

 

4,931

 

 

 

248

 

 

 

0.2

 %

Second Lien Debt

 

 

 

14.70%

 

SOFR+

10.50%

 

6/10/2021

 

6/11/2028

 

 

3,988

 

 

 

3,961

 

 

 

199

 

 

 

0.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,950

 

 

 

8,892

 

 

 

447

 

 

 

0.4

 %

Boca Home Care Holdings, Inc. (19)

 

Services for the Elderly and
Persons with Disabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

10.59%

 

SOFR+

6.50%

 

2/25/2022

 

2/25/2027

 

 

9,018

 

 

 

8,983

 

 

 

9,017

 

 

 

7.3

 %

First Lien Debt (Revolver) (5)

 

 

 

10.59%

 

SOFR+

6.50%

 

2/25/2022

 

2/25/2027

 

 

226

 

 

 

222

 

 

 

226

 

 

 

0.2

 %

Common Equity (1,290 Class A units) (10) (13)

 

 

 

 

 

 

 

 

2/25/2022

 

 

 

 

 

 

 

1,290

 

 

 

768

 

 

 

0.6

 %

Preferred Equity (3,446 Class A Units),
12% cash / 2.0% PIK

 

 

 

 

 

 

 

 

3/3/2023

 

 

 

 

 

 

 

345

 

 

 

363

 

 

 

0.3

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,244

 

 

 

10,840

 

 

 

10,374

 

 

 

8.4

 %

Clevertech Bidco, LLC

 

Commodity Contracts Dealing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

10.57%

 

SOFR+

6.75%

 

11/3/2023

 

12/30/2027

 

 

3,133

 

 

 

3,086

 

 

 

2,971

 

 

 

2.4

 %

First Lien Debt (Revolver) (5)

 

 

 

10.57%

 

SOFR+

6.75%

 

11/3/2023

 

12/30/2027

 

 

112

 

 

 

107

 

 

 

96

 

 

 

0.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,245

 

 

 

3,193

 

 

 

3,067

 

 

 

2.5

 %

Constellis Holdings, LLC (10)

 

Other Justice, Public Order,
and Safety Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity (20,628 common shares)

 

 

 

 

 

 

 

 

3/27/2020

 

 

 

 

 

 

 

703

 

 

 

33

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Envocore Holding, LLC (F/K/A LRI Holding,
LLC) (17)

 

Electrical Contractors and Other Wiring Installation Contractors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

7.50%

 

N/A

 

 

6/30/2017

 

12/31/2027

 

 

6,167

 

 

 

6,167

 

 

 

6,167

 

 

 

5.0

 %

Second Lien Debt (6) (10)

 

 

 

10.00% PIK

 

N/A

 

 

6/30/2017

 

12/31/2028

 

 

9,590

 

 

 

6,584

 

 

 

2,382

 

 

 

1.9

 %

First Lien Debt (Revolver) (5)

 

 

 

n/m (18)

 

N/A

 

 

11/29/2021

 

12/31/2027

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 %

Equity Participation Rights (7) (10)

 

 

 

 

 

 

 

 

12/31/2021

 

 

 

 

 

 

 

4,722

 

 

 

—

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,757

 

 

 

17,473

 

 

 

8,549

 

 

 

6.9

 %

Excelin Home Health, LLC (6)

 

Home Health Care Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Lien Debt

 

 

 

18.00% PIK

 

N/A

 

 

10/25/2018

 

10/1/2026

 

 

7,119

 

 

 

6,765

 

 

 

4,079

 

 

 

3.3

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GoTo Group (F/K/A LogMeIn, Inc.) (14) (15)

 

Data Processing, Hosting, and
Related Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

8.79%

 

SOFR+

4.75%

 

3/26/2021

 

4/28/2028

 

 

926

 

 

 

926

 

 

 

826

 

 

 

0.7

 %

First Lien Debt

 

 

 

8.79%

 

SOFR+

4.75%

 

3/26/2021

 

4/28/2028

 

 

1,280

 

 

 

1,279

 

 

 

503

 

 

 

0.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,206

 

 

 

2,205

 

 

 

1,329

 

 

 

1.1

 %

Heritage Grocers Group, LLC. (F/K/A Tony's
Fresh Market / Cardenas Markets) (14) (15)

 

Supermarkets and Other Grocery (except Convenience) Stores

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

10.52%

 

SOFR+

6.75%

 

7/20/2022

 

8/1/2029

 

 

8,908

 

 

 

8,763

 

 

 

6,976

 

 

 

5.7

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Honor HN Buyer Inc.

 

Services for the Elderly and
Persons with Disabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

9.57%

 

SOFR+

5.75%

 

10/15/2021

 

10/15/2027

 

 

3,132

 

 

 

3,114

 

 

 

3,132

 

 

 

2.5

 %

First Lien Debt (15)

 

 

 

9.57%

 

SOFR+

5.75%

 

10/15/2021

 

10/15/2027

 

 

1,981

 

 

 

1,959

 

 

 

1,981

 

 

 

1.6

 %

First Lien Debt (Revolver) (5)

 

 

 

11.50%

 

Prime+

4.75%

 

10/15/2021

 

10/15/2027

 

 

47

 

 

 

45

 

 

 

47

 

 

 

—

 %

First Lien Debt (15)

 

 

 

9.57%

 

SOFR+

5.75%

 

3/31/2023

 

10/15/2027

 

 

2,204

 

 

 

2,182

 

 

 

2,204

 

 

 

1.8

 %

17

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2025

(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

 

First Lien Debt (Delayed Draw) (5) (15)

 

 

 

n/m (18)

 

SOFR+

5.75%

 

10/15/2024

 

10/15/2026

 

 

—

 

 

 

(10

)

 

 

(10

)

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,364

 

 

 

7,290

 

 

 

7,354

 

 

 

5.9

 %

Idera Inc.

 

Computer and Computer
Peripheral Equipment and
Software Merchant Wholesalers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Lien Debt

 

 

 

10.75%

 

SOFR+

6.75%

 

1/27/2022

 

3/2/2029

 

 

2,683

 

 

 

2,683

 

 

 

2,500

 

 

 

2.0

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inergex Holdings, LLC (19)

 

Other Computer Related Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

10.82%

 

SOFR+

7.00%

 

10/1/2018

 

10/1/2026

 

 

14,616

 

 

 

14,562

 

 

 

14,616

 

 

 

12.0

 %

First Lien Debt (Revolver)

 

 

 

10.82%

 

SOFR+

7.00%

 

10/1/2018

 

10/1/2026

 

 

2,344

 

 

 

2,344

 

 

 

2,344

 

 

 

1.9

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,960

 

 

 

16,906

 

 

 

16,960

 

 

 

13.9

 %

Integrated Energy Services, LLC

 

Computer Systems Design Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

9.20%

 

SOFR+

5.50%

 

12/18/2025

 

12/19/2030

 

 

525

 

 

 

516

 

 

 

516

 

 

 

0.4

 %

First Lien Debt (Delayed Draw) (5)

 

 

 

n/m (18)

 

SOFR+

5.50%

 

12/18/2025

 

12/19/2030

 

 

—

 

 

 

(5

)

 

 

(5

)

 

 

—

 %

First Lien Debt (Revolver) (5)

 

 

 

n/m (18)

 

SOFR+

5.50%

 

12/18/2025

 

12/19/2030

 

 

—

 

 

 

(3

)

 

 

(3

)

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

525

 

 

 

508

 

 

 

508

 

 

 

0.4

 %

JP Intermediate B, LLC

 

Drugs and Druggists' Sundries Merchant Wholesalers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

10.67%

 

SOFR+

7.00%

 

10/2/2025

 

9/30/2030

 

 

335

 

 

 

335

 

 

 

335

 

 

 

0.3

 %

First Lien Debt (11)

 

 

 

5.17% cash / 4.00% PIK

 

SOFR+

5.50%

 

1/14/2021

 

3/31/2031

 

 

1,499

 

 

 

1,499

 

 

 

1,474

 

 

 

1.2

 %

Common Equity (12,663 Units) (10) (15)

 

 

 

 

 

 

 

 

9/30/2025

 

 

 

 

 

 

 

2,992

 

 

 

—

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,834

 

 

 

4,826

 

 

 

1,809

 

 

 

1.5

 %

Kreg LLC (20)

 

Other Ambulatory Health Care Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (11) (15)

 

 

 

10.07% cash / 0.50% PIK

 

SOFR+

6.25%

 

12/20/2021

 

12/20/2026

 

 

17,256

 

 

 

17,233

 

 

 

16,773

 

 

 

13.6

 %

First Lien Debt (Revolver) (5)

 

 

 

10.09%

 

SOFR+

6.25%

 

12/20/2021

 

12/20/2026

 

 

1,337

 

 

 

1,335

 

 

 

1,300

 

 

 

1.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,593

 

 

 

18,568

 

 

 

18,073

 

 

 

14.7

 %

M2S Group Intermediate Holdings Inc.
(14) (15)

 

Plastics Packaging Film and
Sheet (including Laminated) Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

8.59%

 

SOFR+

4.75%

 

10/28/2025

 

8/25/2031

 

 

1,500

 

 

 

1,483

 

 

 

1,493

 

 

 

1.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medrina LLC

 

All Other Outpatient Care Centers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

9.69%

 

SOFR+

6.00%

 

10/20/2023

 

10/20/2029

 

 

2,190

 

 

 

2,155

 

 

 

2,190

 

 

 

1.8

 %

First Lien Debt (15)

 

 

 

10.22%

 

SOFR+

6.00%

 

10/20/2023

 

10/20/2029

 

 

367

 

 

 

364

 

 

 

367

 

 

 

0.3

 %

First Lien Debt (Revolver) (5)

 

 

 

n/m (18)

 

SOFR+

6.00%

 

10/20/2023

 

10/20/2029

 

 

—

 

 

 

(5

)

 

 

—

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,557

 

 

 

2,514

 

 

 

2,557

 

 

 

2.1

 %

Metasource, LLC (15)

 

All Other Business Support Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

10.18% cash / 0.50% PIK

 

SOFR+

6.25%

 

5/17/2022

 

5/17/2027

 

 

2,727

 

 

 

2,708

 

 

 

2,645

 

 

 

2.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2025

(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

 

One GI LLC

 

Offices of Other Holding Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

10.57%

 

SOFR+

6.75%

 

12/13/2021

 

12/22/2025 (22)

 

 

7,280

 

 

 

7,280

 

 

 

6,618

 

 

 

5.4

 %

First Lien Debt (15)

 

 

 

10.57%

 

SOFR+

6.75%

 

12/13/2021

 

12/22/2025 (22)

 

 

3,837

 

 

 

3,837

 

 

 

3,488

 

 

 

2.8

 %

First Lien Debt (Revolver)

 

 

 

10.57%

 

SOFR+

6.75%

 

12/13/2021

 

12/22/2025 (22)

 

 

1,444

 

 

 

1,444

 

 

 

1,313

 

 

 

1.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,561

 

 

 

12,561

 

 

 

11,419

 

 

 

9.3

 %

Planet Bingo, LLC (F/K/A 3rd Rock Gaming
Holdings, LLC) (6)

 

Software Publishers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

6.50%

 

N/A

 

 

3/13/2018

 

12/31/2027

 

 

16,648

 

 

 

14,113

 

 

 

7,242

 

 

 

5.9

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PM Acquisition LLC

 

All Other General Merchandise
Stores

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity (499 units)

 

 

 

 

 

 

 

 

9/30/2017

 

 

 

 

 

 

 

231

 

 

 

1,181

 

 

 

1.0

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSB Group, LLC (19)

 

Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

10.47%

 

SOFR+

6.75%

 

4/17/2025

 

4/17/2030

 

 

7,882

 

 

 

7,848

 

 

 

7,879

 

 

 

6.4

 %

First Lien Debt (Revolver) (5)

 

 

 

10.47%

 

SOFR+

6.75%

 

4/17/2025

 

4/17/2030

 

 

406

 

 

 

401

 

 

 

405

 

 

 

0.3

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,288

 

 

 

8,249

 

 

 

8,284

 

 

 

6.7

 %

Redstone Holdco 2 LP (F/K/A RSA
Security) (15)

 

Computer and Computer
Peripheral Equipment and
Software Merchant Wholesalers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

8.85%

 

SOFR+

4.75%

 

4/16/2021

 

4/27/2028

 

 

1,715

 

 

 

1,711

 

 

 

1,289

 

 

 

1.0

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RideNow Group, Inc. (F/K/A RumbleOn,
Inc.) (8) (15)

 

Other Industrial Machinery Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (11)

 

 

 

12.10% cash / 1.50% PIK

 

SOFR+

7.75%

 

8/31/2021

 

9/30/2027

 

 

2,384

 

 

 

2,362

 

 

 

2,299

 

 

 

1.9

 %

First Lien Debt (11)

 

 

 

12.10% cash / 1.50% PIK

 

SOFR+

7.75%

 

8/31/2021

 

9/30/2027

 

 

720

 

 

 

714

 

 

 

694

 

 

 

0.6

 %

Warrants (warrants to purchase up to
$73,000 in common stock) (10)

 

 

 

 

 

 

 

 

8/31/2021

 

8/10/2030 (12)

 

 

 

 

 

200

 

 

 

68

 

 

 

0.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,104

 

 

 

3,276

 

 

 

3,061

 

 

 

2.6

 %

RPLF Holdings, LLC (10) (13)

 

Software Publishers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity (345,339 Class A units)

 

 

 

 

 

 

 

 

1/17/2018

 

 

 

 

 

 

 

—

 

 

 

1,462

 

 

 

1.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sentry Centers Holdings, LLC (10) (13)

 

Convention and Trade Show Organizers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity (1,603 Series B units)

 

 

 

 

 

 

 

 

9/4/2020

 

 

 

 

 

 

 

160

 

 

 

1

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2025

(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

 

Signal Parent, Inc. (14) (15)

 

New Single-Family Housing Construction (except For-Sale Builders)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

7.44%

 

SOFR+

3.50%

 

3/25/2021

 

4/3/2028

 

 

1,518

 

 

 

1,513

 

 

 

1,096

 

 

 

0.9

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SS Acquisition, LLC (19)

 

Sports and Recreation Instruction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

9.42%

 

SOFR+

5.75%

 

12/20/2024

 

12/20/2029

 

 

16,795

 

 

 

16,728

 

 

 

16,828

 

 

 

13.6

 %

First Lien Debt (Revolver) (5)

 

 

 

9.42%

 

SOFR+

5.75%

 

12/20/2024

 

12/20/2029

 

 

500

 

 

 

493

 

 

 

500

 

 

 

0.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,295

 

 

 

17,221

 

 

 

17,328

 

 

 

14.0

 %

Staples, Inc. (14) (15)

 

Business to Business Electronic Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

9.60%

 

SOFR+

5.75%

 

5/23/2024

 

9/4/2029

 

 

2,539

 

 

 

2,468

 

 

 

2,418

 

 

 

2.0

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TalentSmart Holdings, LLC (10) (13) (19)

 

Professional and Management Development Training

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity (1,595,238 Class A shares)

 

 

 

 

 

 

 

 

10/11/2019

 

 

 

 

 

 

 

670

 

 

 

695

 

 

 

0.6

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tolemar Acquisition, Inc.

 

Motorcycle, Bicycle, and Parts Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (15)

 

 

 

9.82% cash / 1.25% PIK

 

SOFR+

6.00%

 

10/14/2021

 

10/14/2027

 

 

14,443

 

 

 

14,383

 

 

 

10,500

 

 

 

8.5

 %

First Lien Debt (Revolver) (5)

 

 

 

9.82%

 

SOFR+

6.00%

 

10/14/2021

 

10/14/2027

 

 

566

 

 

 

563

 

 

 

145

 

 

 

0.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,009

 

 

 

14,946

 

 

 

10,645

 

 

 

8.6

 %

United Biologics Holdings, LLC (10) (13)

 

Medical Laboratories

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity (151,786 units)

 

 

 

 

 

 

 

 

4/16/2013

 

 

 

 

 

 

 

9

 

 

 

—

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wellful Inc. (F/K/A KNS Acquisition Corp.)
(11) (15)

 

Electronic Shopping and
Mail-Order Houses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt

 

 

 

8.33% cash / 1.75% PIK

 

SOFR+

6.25%

 

4/16/2021

 

10/19/2030

 

 

4,361

 

 

 

4,361

 

 

 

3,738

 

 

 

3.0

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt and Equity Investments

 

 

 

 

 

 

 

 

 

 

 

 

$

216,070

 

 

$

223,115

 

 

$

180,465

 

 

 

146.7

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Structured Finance Securities (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apex Credit CLO 2020 Ltd. (9) (16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

9.87%

 

N/A

 

 

11/16/2020

 

4/20/2035

 

$

11,080

 

 

$

9,173

 

 

$

5,653

 

 

 

4.6

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apex Credit CLO 2021 Ltd. (9) (16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

6.51%

 

N/A

 

 

5/28/2021

 

7/18/2034

 

 

8,630

 

 

 

5,585

 

 

 

3,170

 

 

 

2.6

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apex Credit CLO 2022-1 Ltd. (9) (16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

20.68%

 

N/A

 

 

4/28/2022

 

10/22/2038

 

 

17,074

 

 

 

9,807

 

 

 

7,929

 

 

 

6.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Battalion CLO XI Ltd.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mezzanine Debt - Class E

 

 

 

10.98%

 

SOFR+

6.85%

 

4/25/2022

 

4/24/2034

 

 

6,000

 

 

 

6,000

 

 

 

5,466

 

 

 

4.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2025

(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

 

BlueMountain CLO XXXV Ltd. (9) (16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

16.45%

 

N/A

 

 

10/30/2024

 

10/22/2037

 

 

7,800

 

 

 

5,954

 

 

 

4,644

 

 

 

3.8

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brightwood Capital MM CLO 2023-1, Ltd.
(9) (16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

24.50%

 

N/A

 

 

9/28/2023

 

10/15/2035

 

 

5,494

 

 

 

4,273

 

 

 

4,493

 

 

 

3.6

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canyon CLO 2019-1, Ltd. (9) (16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

21.30%

 

N/A

 

 

8/22/2024

 

7/15/2037

 

 

18,453

 

 

 

9,581

 

 

 

8,539

 

 

 

6.9

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBAMR 2017-1, Ltd. (9) (16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

21.02%

 

N/A

 

 

8/12/2025

 

1/20/2038

 

 

5,100

 

 

 

1,880

 

 

 

1,647

 

 

 

1.3

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ICG US CLO 2021-3, Ltd. (9) (16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

26.57%

 

N/A

 

 

8/8/2024

 

10/20/2034

 

 

16,750

 

 

 

7,942

 

 

 

7,289

 

 

 

5.9

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LCM 42 Ltd. (9) (16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

18.54%

 

N/A

 

 

12/19/2024

 

1/15/2038

 

 

3,500

 

 

 

3,048

 

 

 

2,727

 

 

 

2.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Madison Park Funding XXIX, Ltd. (9) (16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

17.42%

 

N/A

 

 

12/22/2020

 

3/25/2038

 

 

10,971

 

 

 

5,223

 

 

 

3,697

 

 

 

3.0

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trinitas CLO VIII, Ltd. (4) (9) (10) (16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

0.00%

 

N/A

 

 

3/4/2021

 

7/20/2117

 

 

5,200

 

 

 

2,318

 

 

 

163

 

 

 

10.0

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Venture 45 CLO, Limited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mezzanine Debt - Class E

 

 

 

11.58%

 

SOFR+

7.70%

 

4/18/2022

 

7/20/2035

 

 

3,000

 

 

 

2,963

 

 

 

2,607

 

 

 

2.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voya CLO 2024-7, Ltd. (9) (16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Notes

 

 

 

16.31%

 

N/A

 

 

1/7/2025

 

1/20/2038

 

 

4,275

 

 

 

3,886

 

 

 

3,581

 

 

 

2.9

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Structured Finance Securities

 

 

 

 

 

 

 

 

 

 

 

 

$

123,327

 

 

$

77,633

 

 

$

61,605

 

 

 

49.8

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Non-control/Non-affiliate Investments

 

 

 

 

 

 

 

 

 

 

 

 

$

339,397

 

 

$

300,748

 

 

$

242,070

 

 

 

196.5

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract Datascan Holdings, Inc. (17)

 

Office Machinery and Equipment Rental and Leasing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity (3,061 Series A shares)
10% PIK

 

 

 

 

 

 

 

 

8/5/2015

 

 

 

 

 

 

$

9,613

 

 

$

9,201

 

 

 

7.5

 %

Preferred Equity (2750 Series C shares),
14% PIK

 

 

 

 

 

 

 

 

8/21/2025

 

 

 

 

 

 

 

2,890

 

 

 

2,884

 

 

 

2.3

 %

Common Equity (11,273 shares) (10)

 

 

 

 

 

 

 

 

6/28/2016

 

 

 

 

 

 

 

104

 

 

 

—

 

 

 

—

 %

Warrants (warrants to purchase 224 Series A
preferred equity shares) (10)

 

 

 

 

 

 

 

 

8/21/2025

 

8/20/2035 (12)

 

 

 

 

 

—

 

 

 

—

 

 

 

—

 %

21

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2025

(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

 

Warrants (warrants to purchase 1,946 shares
of common equity) (10)

 

 

 

 

 

 

 

 

8/21/2025

 

8/20/2035 (12)

 

 

 

 

 

—

 

 

 

—

 

 

 

—

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,607

 

 

 

12,085

 

 

 

9.8

 %

DRS Imaging Services, LLC (10) (13) (19)

 

Data Processing, Hosting, and
Related Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity (1,135 units)

 

 

 

 

 

 

 

 

3/8/2018

 

 

 

 

 

 

 

1,135

 

 

 

2,671

 

 

 

2.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pfanstiehl Holdings, Inc. (19) (20)

 

Pharmaceutical Preparation Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity (400 Class A shares)

 

 

 

 

 

 

 

 

1/1/2014

 

 

 

 

 

 

 

217

 

 

 

79,421

 

 

 

64.5

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SSJA Bariatric Management LLC (19)

 

Offices of Physicians, Mental
Health Specialists

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Debt (5)

 

 

 

9.24%

 

SOFR+

5.25%

 

10/31/2025

 

10/31/2028

 

 

234

 

 

 

232

 

 

 

235

 

 

 

0.2

 %

First Lien Debt (15)

 

 

 

9.24% PIK

 

SOFR+

5.25%

 

12/31/2020

 

10/31/2028

 

 

3,804

 

 

 

3,804

 

 

 

3,804

 

 

 

3.1

 %

Common Equity (52,763 Class A units) (13) (15)

 

 

 

 

 

 

 

 

10/31/2025

 

 

 

 

—

 

 

 

9,657

 

 

 

1,729

 

 

 

1.4

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,038

 

 

 

13,693

 

 

 

5,768

 

 

 

4.7

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Affiliate Investments

 

 

 

 

 

 

 

 

 

 

 

 

$

4,038

 

 

$

27,652

 

 

$

99,945

 

 

 

81.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments

 

 

 

 

 

 

 

 

 

 

 

 

$

343,435

 

 

$

328,400

 

 

$

342,015

 

 

 

277.6

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Equivalents (23)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.66%

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First American Treasury Obligations Fund Class Z

 

 

 

 

 

 

 

 

 

 

 

 

$

74

 

 

$

74

 

 

$

74

 

 

 

0.1

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Morgan Stanley Institutional Liquidity Funds -
Government Portfolio Advisory Class

 

 

 

3.48%

 

N/A

 

 

 

 

 

 

 

235

 

 

 

235

 

 

 

235

 

 

 

0.2

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

$

309

 

 

$

309

 

 

$

309

 

 

 

0.3

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments and Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

$

343,744

 

 

$

328,709

 

 

$

342,324

 

 

 

277.9

 %

 

(1)
Equity ownership may be held in shares or units of companies affiliated with the portfolio company. The Company’s investments are generally classified as “restricted securities” as such term is defined under Regulation S-X Rule 6-03(f) or Securities Act Rule 144.
(2)
As of December 31, 2025, the Company held loans and mezzanine debt investments with an aggregate fair value of $168,018 that bore interest at a variable rate indexed to SOFR or Prime, and reset monthly, quarterly, or semi-annually. For each variable-rate investment, the Company has provided the spread over the reference rate and current interest rate in effect as of December 31, 2025. Unless otherwise noted, all investments with a stated PIK rate require interest payments with the issuance of additional securities as payment of the entire PIK provision.
(3)
Unless otherwise noted with footnote 14, fair value was determined using significant unobservable inputs for all of the Company’s investments and are considered Level 3 under GAAP. See Note 5 for further details.
(4)
As of December 31, 2025, the effective accretable yield was estimated to be 0%, as the aggregate amount of projected distributions, including projected distributions related to liquidation of the underlying portfolio upon the security's anticipated optional redemption, was less than current amortized cost. Projected distributions are periodically monitored and re-evaluated. All actual distributions were recognized as reductions to amortized cost until such time, if and when occurring, a future aggregate amount of then-projected distributions exceeds the security's then-current amortized cost.

22

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2025

(Dollar amounts in thousands)

 

(5)
Subject to unfunded commitments. The Company considers undrawn amounts in the determination of fair value on revolving lines of credit and delayed draw term loans. See Note 6.
(6)
Investment was on non-accrual status as of December 31, 2025, meaning the Company suspended recognition of all or a portion of income on the investment. See Note 4 for further details.
(7)
Equity participation rights issued by unaffiliated third party fully covered with underlying positions in the portfolio company.
(8)
Non-qualifying assets under Section 55(a) of the 1940 Act. Qualifying assets as defined in Section 55 of the 1940 Act must represent at least 70% of the Company's assets immediately following the acquisition of any additional non-qualifying assets. As of December 31, 2025, approximately 81% of the Company's assets were qualifying assets.
(9)
The rate disclosed on subordinated note investments is the estimated effective yield, generally established at purchase, and reevaluated upon the receipt of the initial distribution and each subsequent quarter thereafter. The estimated effective yield is based upon projected amounts and timing of future distributions and the projected amounts and timing of terminal principal payments at the time of estimation. The estimated effective yield and investment cost may ultimately not be realized. Projected cash flows, including the amounts and timing of terminal principal payments, which generally are projected to occur prior to the contractual maturity date, were utilized in deriving the effective yield of the investments.
(10)
Non-income producing.
(11)
The interest rate on these investments contains a PIK provision, whereby the issuer has the option to make interest payments in cash or with the issuance of additional securities as payment of the entire PIK provision. The interest rate in the schedule represents the current interest rate in effect for these investments. The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed as of December 31, 2025:

Portfolio Company

 

Investment Type

 

Maximum PIK
Rate Allowed

 

Range of PIK
Option

 

Range of Cash
Option

Avison Young Inc.

 

First Lien Debt

 

8.50 %

 

0% to 8.50%

 

3.70% to 12.20%

Avison Young Inc.

 

First Lien Debt

 

5.85 %

 

0% to 5.85%

 

5.20% to 11.05%

Avison Young Inc.

 

First Lien Debt

 

6.50 %

 

0% to 6.50%

 

5.49% to 11.99%

Avison Young Inc.

 

First Lien Debt

 

6.50 %

 

0% to 6.50%

 

5.60% to 12.10%

JP Intermediate B, LLC

 

First Lien Debt

 

4.00 %

 

0% to 4.00%

 

5.17% to 9.17%

Kreg, LLC

 

First Lien Debt

 

0.50 %

 

0% to 0.50%

 

10.07% to 10.57%

RideNow Group, Inc. (F/K/A RumbleOn, Inc.)

 

First Lien Debt

 

1.00 %

 

0% to 1.0%

 

10.85% to 11.85%

RideNow Group, Inc. (F/K/A RumbleOn, Inc.)

 

First Lien Debt

 

1.00 %

 

0% to 1.0%

 

10.85% to 11.85%

Wellful Inc. (F/K/A KNS Acquisition Corp.)

 

First Lien Debt

 

1.75 %

 

0% to 1.75%

 

8.33% to 10.08%
(12)
Represents expiration date of the warrants.
(13)
All or a portion of investment held by a wholly owned subsidiary subject to income tax.
(14)
Fair value was determined by reference to observable inputs other than quoted prices in active markets and are considered Level 2 under GAAP. See Note 5 for further details.
(15)
Investments (or a portion thereof) held by OFSCC-FS. These assets are pledged as collateral of the BNP Facility and cannot be pledged under any other debt obligation of the Company.
(16)
Amortized cost reflects accretion of effective yield less any cash distributions received or entitled to be received from CLO subordinated note investments. CLO subordinated note positions are entitled to recurring distributions, which are generally equal to the residual cash flow of payments received on underlying securities less contractual payments to debt holders and fund expenses.
(17)
The Company holds at least one seat on the portfolio company’s board of directors.
(18)
Not meaningful as there is no outstanding balance on the revolver or delayed draw loan. The Company earns unfunded commitment fees on undrawn revolving lines of credit balances, which are reported in fee income.
(19)
The Company has an observer seat on the portfolio company’s board of directors.
(20)
Portfolio company at fair value represents greater than 5% of total assets at December 31, 2025.
(21)
The Company has the right to receive certain information provided to the board of directors.
(22)
These investments became contractually due on December 22, 2025. The lending group has entered into a forbearance agreement extending the maturity date of the investments. During this period, the Company continues to accrue interest and receive principal amortization payments on the investments.
(23)
Represents cash equivalents held in a money market fund as of December 31, 2025. The Company also had cash deposits of $3,050 as of December 31, 2025.

 

See Notes to Consolidated Financial Statements (unaudited).

23

 

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

Note 1. Organization

OFS Capital Corporation, a Delaware corporation, is an externally managed, closed-end, non-diversified management investment company. The Company has elected to be regulated as a BDC under the 1940 Act. In addition, for income tax purposes, the Company has elected to be treated, and intends to qualify annually, as a RIC under Subchapter M of the Code.

The Company’s investment objective is to provide stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments.

OFS Advisor manages the day-to-day operations of, and provides investment advisory services to, the Company. In addition, OFS Advisor serves as the investment adviser to HPCI, a non-traded BDC with an investment strategy and objective similar to that of the Company. OFS Advisor also serves as the investment adviser to OCCI, a non-diversified, externally managed, closed-end management investment company that is registered as an investment company under the 1940 Act and that primarily invests in Structured Finance Securities. Additionally, OFS Advisor serves as the investment adviser to separately-managed accounts and sub-advisor to investment companies managed by an affiliate.

The Company may make investments directly or through one or more of its subsidiaries: OFSCC-FS, SBIC I LP or OFSCC-MB.

OFSCC-FS, an indirect wholly owned and consolidated subsidiary of the Company, is a special-purpose vehicle formed in April 2019 for the purpose of acquiring senior secured loan investments. OFSCC-FS has debt financing through its Natixis Facility, which provides OFSCC-FS with borrowing capacity of up to $80,000 during its reinvestment period, subject to a borrowing base and other covenants.

SBIC I LP is an investment company subsidiary previously licensed under the SBA’s small business investment company program that was subject to SBA regulations and policies. On March 1, 2024, SBIC I LP fully repaid its outstanding SBA debentures and, on April 17, 2024, surrendered its license to operate as a SBIC.

OFSCC-MB is a wholly owned and consolidated subsidiary taxed under subchapter C of the Code that generally holds the Company’s equity investments in portfolio companies that are taxed as pass-through entities.

Note 2. Summary of Significant Accounting Policies

Basis of presentation: The Company is an investment company as defined in the accounting and reporting guidance under ASC Topic 946, Financial Services–Investment Companies. The accompanying interim consolidated financial statements of the Company and related financial information have been prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q, and Articles 6, 10 and 12 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. However, in the opinion of management, the consolidated financial statements include all adjustments, consisting only of normal and recurring accruals and adjustments, necessary for fair presentation as of, and for, the periods presented. These consolidated financial statements and notes hereto should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed on March 3, 2026. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year.

Significant Accounting Policies: The following information supplements the description of significant accounting policies contained in Note 2 to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Reclassifications: Certain prior period amounts have been reclassified to conform to the current period presentation in the consolidated financial statements and the accompanying notes thereto. Reclassifications did not impact net increase (decrease) in net assets resulting from operations, total assets, total liabilities or total net assets, or consolidated statements of changes in net assets and consolidated statements of cash flows classifications.

Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates.

24

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

Concentration of credit risk: Aside from the Company’s investments, financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits at financial institutions. At various times during the year, the Company exceeds the federally insured limits. The Company places cash deposits only with high credit quality institutions which OFS Advisor believes will mitigate the risk of loss due to credit risk. If borrowers completely fail to perform according to the terms of the contracts, the amount of loss due to credit risk from the Company’s investments is equal to the sum of the Company’s recorded investments and, if applicable, the unfunded commitments disclosed in Note 6.

Cash and cash equivalents: Cash represents cash deposits held at U.S. Bank Trust Company, National Association and Citibank N.A., and cash equivalents consist of highly liquid money market funds. Cash equivalents are classified as Level 1 assets and are carried at amortized cost which approximates fair value. The Company’s cash and cash equivalents are maintained with member banks of the FDIC, and, such balances generally exceed the FDIC insurance limits. The Company does not believe its cash and cash equivalent balances are exposed to any significant credit risk. In addition, the Company’s use of cash and cash equivalents held by OFSCC-FS is limited by the terms and conditions of the Natixis Facility, including but not limited to, the payment of interest expense and principal on the outstanding borrowings.

The Company had the following cash and cash equivalents as of March 31, 2026 and December 31, 2025:

 

 

March 31, 2026

 

 

December 31, 2025

 

Cash

 

$

1,977

 

 

$

3,050

 

Cash equivalents

 

 

1,281

 

 

 

309

 

Total cash and cash equivalents

 

$

3,258

 

 

$

3,359

 

 

Note 3. Related Party Transactions

Investment Advisory and Management Agreement: OFS Advisor manages the day-to-day operations of, and provides investment advisory services to, the Company pursuant to the Investment Advisory Agreement. The continuation of the Investment Advisory Agreement was most recently approved by the Board on April 2, 2026. Under the terms of the Investment Advisory Agreement, which are in accordance with the 1940 Act and subject to the overall supervision of the Board, OFS Advisor is responsible for sourcing potential investments, conducting research and diligence on potential investments and equity sponsors, analyzing investment opportunities, structuring investments, and monitoring investments and portfolio companies on an ongoing basis.

OFS Advisor’s services under the Investment Advisory Agreement are not exclusive to the Company and OFS Advisor is free to furnish similar services to other entities, including other funds affiliated with OFS Advisor, so long as its services to the Company are not impaired. OFS Advisor also serves as the investment adviser or sub-adviser to various clients, including HPCI and OCCI.

OFS Advisor receives fees for providing services to the Company, consisting of two components: a base management fee and an incentive fee. The base management fee is calculated at an annual rate of 1.75% and based on the average value of the Company’s total assets (other than cash and cash equivalents, but including assets purchased with borrowed amounts and assets owned by any consolidated entity) at the end of the two most recently completed calendar quarters, adjusted for any share issuances or repurchases during the quarter.

On April 17, 2026, OFS Advisor agreed to waive its base management fee for the quarter ended March 31, 2026 attributable to all of the OFSCC-FS Assets to 0.25% per quarter (1.00% annualized) of the average value of the OFSCC-FS Assets (other than cash and cash equivalents, but including assets purchased with borrowed amounts) at the end of the two most recently completed calendar quarters. Prior to January 1, 2026, OFS Advisor had contractually agreed to reduce its base management fee for the entire year at the beginning of the year. As of March 31, 2026, there is no active ongoing fee waiver or reduction agreement in place with OFS Advisor for the remainder of 2026.

For the year ended December 31, 2025, OFS Advisor agreed to reduce its base management fee attributable to all of the OFSCC-FS Assets to 0.25% per quarter (1.00% annualized) of the average value of the OFSCC-FS Assets (other than cash and cash equivalents, but including assets purchased with borrowed amounts) at the end of the two most recently completed calendar quarters.

OFS Advisor is not entitled to recoup the amount of the base management fee waived or reduced with respect to the OFSCC-FS Assets. The fee waiver and reductions were provided at OFS Advisor’s discretion; there can be no assurance that similar fee waivers or reductions will be provided in future periods.

The incentive fee has two parts. The first part of the incentive fee (the “Income Incentive Fee”) is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter. For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income (including any other

25

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

fees such as commitment, syndication and consulting fees or other fees that the Company receives from portfolio companies, but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement and any interest expense and dividends paid on any outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest or dividend feature (such as OID, debt instruments with PIK interest, equity investments with accruing or PIK dividend and zero coupon securities), accrued income that the Company has not yet received in cash.

Pre-incentive fee net investment income is expressed as a rate of return on the value of the Company’s net assets (defined as total assets less indebtedness and before taking into account any incentive fees payable during the period) at the end of the immediately preceding calendar quarter and adjusted for any share issuances or repurchases during such quarter.

The incentive fee with respect to pre-incentive fee net income is 20.0% of the amount, if any, by which the pre-incentive fee net investment income for the immediately preceding calendar quarter exceeds a 2.0% hurdle rate (which is 8.0% annualized) and a “catch-up” provision measured as of the end of each calendar quarter. Under this provision, in any calendar quarter, OFS Advisor receives no incentive fee until the net investment income equals the hurdle rate of 2.0%, but then receives, as a “catch-up,” 100.0% of the pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.5%. The effect of this provision is that, if pre-incentive fee net investment income exceeds 2.5% in any calendar quarter, OFS Advisor will receive 20.0% of the pre-incentive fee net investment income.

Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Because of the structure of the incentive fee, it is possible that the Company may pay an incentive fee in a quarter in which the Company incurs a loss. For example, if the Company receives pre-incentive fee net investment income in excess of the quarterly minimum hurdle rate, the Company will pay the applicable incentive fee even if the Company has incurred a loss in that quarter due to realized and unrealized capital losses. The Company’s net investment income used to calculate this part of the incentive fee is also included in the amount of the Company’s gross assets used to calculate the base management fee. These calculations are appropriately prorated for any period of less than three months.

The second part of the incentive fee (the “Capital Gains Fee”) is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals 20.0% of the Company’s aggregate realized capital gains, if any, on a cumulative basis from the date of the election to be a BDC through the end of each calendar year, computed net of all realized capital losses, losses on extinguishment of debt, income taxes from realized capital gains and unrealized capital depreciation through the end of such year, less all previous amounts paid in respect of the Capital Gains Fee. Since inception through March 31, 2026, the Company has not made a Capital Gains Fee payment.

The Company accrues the Capital Gains Fee if, on a cumulative basis, the sum of net realized capital gains (losses) plus net unrealized appreciation (depreciation) is positive. An accrued Capital Gains Fee relating to net unrealized appreciation is deferred, and not due to OFS Advisor, until the close of the year in which such gains are realized. If, on a cumulative basis, the sum of net realized capital gains (losses) plus net unrealized appreciation (depreciation) decreases during a period, the Company will reverse any excess Capital Gains Fee previously accrued such that the amount of Capital Gains Fee accrued is no more than 20% of the sum of net realized capital gains (losses) plus net unrealized appreciation (depreciation). As of March 31, 2026 and December 31, 2025, there were no accrued Capital Gains Fees.

License Agreement: The Company entered into a license agreement with OFSAM under which OFSAM has granted the Company a non-exclusive, royalty-free license to use the name “OFS.”

Administration Agreement: OFS Services furnishes the Company with office facilities and equipment, necessary software licenses and subscriptions, and clerical, bookkeeping and record keeping services at such facilities pursuant to the Administration Agreement. The continuation of the Administration Agreement was most recently approved by the Board on April 2, 2026. Under the Administration Agreement, OFS Services performs, or oversees the performance of, the Company’s required administrative services, which include being responsible for the financial records that the Company is required to maintain and preparing reports to its stockholders and all other reports and materials required to be filed with the SEC or any other regulatory authority. In addition, OFS Services assists the Company in determining and publishing its net asset value, oversees the preparation and filing of its tax returns and the printing and dissemination of reports to its stockholders, and generally oversees the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. Under the Administration Agreement, OFS Services also provides managerial assistance on the Company’s behalf to those portfolio companies that have accepted the Company’s offer to provide such assistance. Payment under the Administration Agreement is equal to an amount based upon the Company’s allocable portion of OFS Services’s overhead in performing its obligations under the Administration Agreement, including, but not limited to, rent, information technology services and the Company’s allocable portion of the cost of its officers,

26

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

including its chief executive officer, chief financial officer, chief compliance officer and their respective staffs. To the extent that OFS Services outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis without profit to OFS Services.

Equity Ownership: As of March 31, 2026, affiliates of OFS Advisor held approximately 3,029,093 shares of common stock, which is approximately 22.6% of the Company’s outstanding shares of common stock.

Expenses recognized under agreements with OFS Advisor and OFS Services and distributions paid to affiliates for the three months ended March 31, 2026 and 2025 are presented below:

 

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

Base management fee(1)

 

$

1,435

 

 

$

1,549

 

Base management fee waiver

 

 

(220

)

 

 

—

 

Income Incentive Fee

 

 

408

 

 

 

330

 

Administration fee

 

 

326

 

 

 

394

 

Distributions paid to affiliates

 

 

515

 

 

 

1,029

 

 

(1) For the three months ended March 31, 2025, the Company’s base management fee on OFSCC-FS Assets was reduced by $267, pursuant to the fee reduction agreed to by OFS Advisor on such assets for the year ended December 31, 2025. The base management fee for the three months ended March 31, 2025 is presented net of this fee reduction.

 

Note 4. Investments

As of March 31, 2026, the Company had loans to 34 portfolio companies, of which approximately 98% were first lien debt investments and 2% were second lien debt investments, at fair value. The Company also had equity investments in 14 portfolio companies and 13 investments in Structured Finance Securities. As of March 31, 2026, the Company’s investments consisted of the following:

 

 

 

 

 

Percentage of Total

 

 

 

 

 

Percentage of Total

 

 

Amortized
Cost

 

 

Amortized
Cost

 

 

Net
Assets

 

 

Fair Value

 

 

Fair
Value

 

 

Net
Assets

 

First lien debt investments(1)

 

$

171,353

 

 

 

57.6

%

 

 

156.8

%

 

$

152,713

 

 

 

49.5

%

 

 

139.6

%

Second lien debt investments

 

 

18,340

 

 

 

6.2

%

 

 

16.8

%

 

 

3,869

 

 

 

1.3

%

 

 

3.5

%

Preferred equity

 

 

14,699

 

 

 

5.0

%

 

 

13.4

%

 

 

12,726

 

 

 

4.1

%

 

 

11.6

%

Common equity, warrants and other(2)

 

 

18,598

 

 

 

6.3

%

 

 

17.0

%

 

 

90,168

 

 

 

29.3

%

 

 

82.5

%

Total debt and equity investments

 

$

222,989

 

 

 

75.1

%

 

 

204.0

%

 

$

259,476

 

 

 

84.2

%

 

 

237.2

%

Structured Finance Securities

 

 

73,793

 

 

 

24.9

%

 

 

67.5

%

 

 

48,644

 

 

 

15.8

%

 

 

44.6

%

Total investments

 

$

296,782

 

 

 

100.0

%

 

 

271.5

%

 

$

308,120

 

 

 

100.0

%

 

 

281.8

%

 

(1)
Includes unitranche investments (which are loans that combine both senior and subordinated debt, in a first lien position) with an amortized cost and fair value of $125,291 and $110,530, respectively. Unitranche loans generally provide leverage levels comparable to a combination of first lien and second lien or subordinated loans. Investments in “last out” pieces of unitranche loans will be similar to second lien loans in that such investments will be junior in priority to the “first out” piece of the same unitranche loan with respect to payment of principal and interest. Includes secondary priority debt investments governed under a first lien credit agreement.
(2)
Includes the Company’s investment in Pfanstiehl Holdings, Inc. See “Note 4—Portfolio Concentration” for additional information.

27

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

Geographic composition is determined by the location of the corporate headquarters of the portfolio company. All international investments are denominated in U.S. dollars. As of March 31, 2026 and December 31, 2025, the Company’s investment portfolio was domiciled as follows:

 

 

March 31, 2026

 

 

December 31, 2025

 

 

Amortized Cost

 

 

Fair Value

 

 

Amortized Cost

 

 

Fair Value

 

United States

 

$

218,101

 

 

$

256,964

 

 

$

245,902

 

 

$

278,274

 

Canada(1)

 

 

4,888

 

 

 

2,512

 

 

 

4,865

 

 

 

2,136

 

Cayman Islands(1)(2)

 

 

69,268

 

 

 

43,997

 

 

 

73,360

 

 

 

57,112

 

Jersey(1)(2)

 

 

4,525

 

 

 

4,647

 

 

 

4,273

 

 

 

4,493

 

Total investments

 

$

296,782

 

 

$

308,120

 

 

$

328,400

 

 

$

342,015

 

 

(1)
Represents non-qualifying assets under Section 55(a) of the 1940 Act.
(2)
Investments domiciled in the Cayman Islands and Jersey represent certain Structured Finance Securities held by the Company. These investments generally represent beneficial interests in underlying portfolios of debt investments in companies domiciled in the United States.

As of March 31, 2026, the industry composition of the Company’s investment portfolio was as follows:

 

 

 

 

 

Percentage of Total

 

 

 

 

 

Percentage of Total

 

Industry

 

Amortized
Cost

 

 

Amortized
Cost

 

 

Net
Assets

 

 

Fair
Value

 

 

Fair
Value

 

 

Net
Assets

 

Administrative and Support and Waste
   Management and Remediation Services

 

$

11,210

 

 

 

3.8

%

 

 

10.3

%

 

$

10,983

 

 

 

3.6

%

 

 

10.0

%

Construction

 

 

1,510

 

 

 

0.4

%

 

 

1.4

%

 

 

1,001

 

 

 

0.3

%

 

 

0.9

%

Education Services

 

 

17,853

 

 

 

6.0

%

 

 

16.3

%

 

 

18,047

 

 

 

5.9

%

 

 

16.5

%

Finance and Insurance

 

 

3,191

 

 

 

1.1

%

 

 

2.9

%

 

 

3,063

 

 

 

1.0

%

 

 

2.8

%

Health Care and Social Assistance

 

 

63,406

 

 

 

21.4

%

 

 

58.0

%

 

 

40,787

 

 

 

13.2

%

 

 

37.3

%

Information

 

 

23,632

 

 

 

8.0

%

 

 

21.6

%

 

 

19,602

 

 

 

6.5

%

 

 

17.9

%

Management of Companies and Enterprises

 

 

12,533

 

 

 

4.2

%

 

 

11.5

%

 

 

10,916

 

 

 

3.5

%

 

 

10.0

%

Manufacturing

 

 

21,976

 

 

 

7.4

%

 

 

20.1

%

 

 

96,542

 

 

 

31.3

%

 

 

88.3

%

Other Services (except Public Administration)

 

 

494

 

 

 

0.2

%

 

 

0.5

%

 

 

490

 

 

 

0.2

%

 

 

0.4

%

Professional, Scientific, and Technical Services

 

 

19,828

 

 

 

6.7

%

 

 

18.1

%

 

 

19,872

 

 

 

6.4

%

 

 

18.2

%

Public Administration

 

 

703

 

 

 

0.2

%

 

 

0.6

%

 

 

37

 

 

 

0.0

%

 

 

0.0

%

Real Estate and Rental and Leasing

 

 

26,139

 

 

 

8.8

%

 

 

23.9

%

 

 

22,887

 

 

 

7.4

%

 

 

20.9

%

Retail Trade

 

 

8,981

 

 

 

3.0

%

 

 

8.2

%

 

 

8,077

 

 

 

2.6

%

 

 

7.4

%

Wholesale Trade

 

 

11,534

 

 

 

3.9

%

 

 

10.6

%

 

 

7,174

 

 

 

2.3

%

 

 

6.6

%

Total debt and equity investments

 

$

222,989

 

 

 

75.1

%

 

 

204.0

%

 

$

259,476

 

 

 

84.2

%

 

 

237.2

%

Structured Finance Securities

 

 

73,793

 

 

 

24.9

%

 

 

67.5

%

 

 

48,644

 

 

 

15.8

%

 

 

44.6

%

Total investments

 

$

296,782

 

 

 

100.0

%

 

 

271.5

%

 

$

308,120

 

 

 

100.0

%

 

 

281.8

%

 

As of December 31, 2025, the Company had loans to 34 portfolio companies, of which 95% were first lien debt investments and 5% were second lien debt investments, at fair value. The Company also held equity investments in 15 portfolio companies and 14 investments in Structured Finance Securities. At December 31, 2025, the Company’s investments consisted of the following:

 

 

 

 

 

Percentage of Total

 

 

 

 

 

Percentage of Total

 

 

Amortized
Cost

 

 

Amortized
Cost

 

 

Net
Assets

 

 

Fair Value

 

 

Fair
Value

 

 

Net
Assets

 

First lien debt investments(1)

 

$

188,236

 

 

 

57.3

%

 

 

152.8

%

 

$

170,405

 

 

 

49.8

%

 

 

138.4

%

Second lien debt investments

 

 

24,924

 

 

 

7.6

%

 

 

20.2

%

 

 

9,409

 

 

 

2.8

%

 

 

7.6

%

Preferred equity

 

 

14,287

 

 

 

4.4

%

 

 

11.6

%

 

 

12,567

 

 

 

3.7

%

 

 

10.2

%

Common equity, warrants and other(2)

 

 

23,320

 

 

 

7.1

%

 

 

18.9

%

 

 

88,029

 

 

 

25.7

%

 

 

71.6

%

Total debt and equity investments

 

$

250,767

 

 

 

76.4

%

 

 

203.5

%

 

$

280,410

 

 

 

82.0

%

 

 

227.8

%

Structured Finance Securities

 

 

77,633

 

 

 

23.6

%

 

 

63.0

%

 

 

61,605

 

 

 

18.0

%

 

 

49.8

%

Total investments

 

$

328,400

 

 

 

100.0

%

 

 

266.5

%

 

$

342,015

 

 

 

100.0

%

 

 

277.6

%

 

28

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

 

(1)
Includes unitranche investments (which are loans that combine both senior and subordinated debt, in a first lien position) with an amortized cost and fair value of $130,270 and $116,279, respectively. Unitranche loans generally provide leverage levels comparable to a combination of first lien and second lien or subordinated loans. Investments in “last out” pieces of unitranche loans will be similar to second lien loans in that such investments will be junior in priority to the “first out” piece of the same unitranche loan with respect to payment of principal and interest. Includes secondary priority debt investments governed under a first lien credit agreement.
(2)
Includes the Company’s investment in Pfanstiehl Holdings, Inc. See “Note 4—Portfolio Concentration” for additional information.

As of December 31, 2025, the industry compositions of the Company’s debt and equity investments were as follows:

 

 

 

 

 

Percentage of Total

 

 

 

 

 

Percentage of Total

 

Industry

 

Amortized
Cost

 

 

Amortized
Cost

 

 

Net
Assets

 

 

Fair
Value

 

 

Fair
Value

 

 

Net
Assets

 

Administrative and Support and Waste
   Management and Remediation Services

 

$

11,234

 

 

 

3.4

%

 

 

9.1

%

 

$

11,006

 

 

 

3.2

%

 

 

8.9

%

Construction

 

 

18,986

 

 

 

5.8

%

 

 

15.4

%

 

 

9,644

 

 

 

2.8

%

 

 

7.8

%

Education Services

 

 

17,891

 

 

 

5.4

%

 

 

14.5

%

 

 

18,023

 

 

 

5.3

%

 

 

14.6

%

Finance and Insurance

 

 

3,193

 

 

 

1.0

%

 

 

2.6

%

 

 

3,068

 

 

 

0.9

%

 

 

2.5

%

Health Care and Social Assistance

 

 

68,571

 

 

 

20.9

%

 

 

55.7

%

 

 

48,653

 

 

 

14.3

%

 

 

39.6

%

Information

 

 

23,651

 

 

 

7.2

%

 

 

19.2

%

 

 

18,136

 

 

 

5.3

%

 

 

14.7

%

Management of Companies and Enterprises

 

 

12,562

 

 

 

3.8

%

 

 

10.2

%

 

 

11,419

 

 

 

3.3

%

 

 

9.3

%

Manufacturing

 

 

22,336

 

 

 

6.8

%

 

 

18.1

%

 

 

97,061

 

 

 

28.4

%

 

 

78.8

%

Other Services (except Public Administration)

 

 

1,493

 

 

 

0.5

%

 

 

1.2

%

 

 

1,498

 

 

 

0.4

%

 

 

1.2

%

Professional, Scientific, and Technical Services

 

 

19,384

 

 

 

5.9

%

 

 

15.7

%

 

 

19,451

 

 

 

5.7

%

 

 

15.8

%

Public Administration

 

 

703

 

 

 

0.2

%

 

 

0.6

%

 

 

33

 

 

 

0.0

%

 

 

0.0

%

Real Estate and Rental and Leasing

 

 

25,720

 

 

 

7.8

%

 

 

20.9

%

 

 

22,507

 

 

 

6.6

%

 

 

18.4

%

Retail Trade

 

 

13,355

 

 

 

4.1

%

 

 

10.8

%

 

 

11,895

 

 

 

3.5

%

 

 

9.7

%

Wholesale Trade

 

 

11,688

 

 

 

3.6

%

 

 

9.5

%

 

 

8,016

 

 

 

2.3

%

 

 

6.5

%

Total debt and equity investments

 

$

250,767

 

 

 

76.4

%

 

 

203.5

%

 

$

280,410

 

 

 

82.0

%

 

 

227.8

%

Structured Finance Securities

 

 

77,633

 

 

 

23.6

%

 

 

63.0

%

 

 

61,605

 

 

 

18.0

%

 

 

49.8

%

Total investments

 

$

328,400

 

 

 

100.0

%

 

 

266.5

%

 

$

342,015

 

 

 

100.0

%

 

 

277.6

%

 

Non-Accrual Loans: Management reviews, for placement on non-accrual status, all loans and CLO mezzanine debt investments that become past due on principal and interest, and/or when there is reasonable doubt that principal or interest will be collected. When a loan is placed on non-accrual status, accrued and unpaid cash interest is reversed. PIK income that has been contractually capitalized to the principal balance of the investment prior to the non-accrual designation date is not reserved against interest or dividend income, but rather is assessed through the valuation of the investment with corresponding adjustments to unrealized appreciation/depreciation, as applicable. Additionally, Net Loan Fees are no longer recognized as of the date the loan is placed on non-accrual status. Depending upon management’s judgment, interest payments subsequently received on non-accrual investments may be recognized as interest income or applied as a reduction to amortized cost. Interest accruals and Net Loan Fee amortization are resumed on non-accrual investments only when they are brought current with respect to principal and interest payments or until a restructuring occurs and, in the judgment of management, it is probable that the Company will collect all principal and interest from the investment. For the three months ended March 31, 2026, a loan to a portfolio company with an amortized cost and fair value of $1,499 and $982, respectively, was placed on non-accrual status. Additionally, during the three months ended March 31, 2026, the Company received net proceeds of $2,300 for the partial recovery of a second lien debt investment, with an amortized cost and fair value of $6,584 and $2,382, respectively, that was previously on non-accrual status, resulting in a realized loss of $4,284. The aggregate amortized cost and fair value of loans on non-accrual status as of March 31, 2026 was $31,468 and $10,897, respectively, and as of December 31, 2025 was $36,567 and $14,400, respectively.

29

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

Portfolio Concentration: The following table presents the Company’s portfolio companies based on fair value that comprise greater than 10% of the Company’s total net assets as of March 31, 2026:

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of Total

 

Portfolio Company

 

Investment
Type

 

Industry

 

Amortized
Cost

 

 

Fair Value

 

 

Fair
Value

 

 

Net
Assets

 

Pfanstiehl Holdings, Inc.

 

Common Equity

 

Manufacturing

 

$

217

 

 

$

80,430

 

 

 

26.1

%

 

 

73.6

%

Kreg LLC

 

First Lien Debt

 

Health Care and Social Assistance

 

 

18,390

 

 

 

17,984

 

 

 

5.8

 

 

 

16.5

 

SS Acquisition, LLC(1)

 

First Lien Debt

 

Education Services

 

 

17,183

 

 

 

17,420

 

 

 

5.7

 

 

 

16.0

 

Inergex Holdings, LLC

 

First Lien Debt

 

Professional, Scientific, and Technical Services

 

 

17,351

 

 

 

17,387

 

 

 

5.6

 

 

 

15.9

 

Contract Datascan Holdings, Inc.

 

Preferred and Common Equity

 

Real Estate and Rental and Leasing

 

 

13,019

 

 

 

12,030

 

 

 

3.9

 

 

 

11.0

 

 Total

 

 

 

 

 

$

66,160

 

 

$

145,251

 

 

 

47.1

%

 

 

133.0

%

 

(1)
As of March 31, 2026, the Company had an outstanding commitment of $1,286 to fund the portfolio company’s undrawn revolver facility.

As of March 31, 2026, approximately 4.4% and 12.5% of the Company’s total portfolio at fair value and net assets, respectively, were comprised of Structured Finance Securities managed by a single adviser.

A deterioration in the operating performance of these portfolio investments, or other factors underlying the valuation of these investments, could have a material impact on the Company’s NAV.

Note 5. Fair Value of Financial Instruments

The Company’s investments are carried at fair value and determined in accordance with ASC 820 and a documented valuation policy that is applied in a consistent manner. Pursuant to Rule 2a-5 of the 1940 Act (“Rule 2a-5”), the Board designated OFS Advisor as the valuation designee to perform fair value determinations relating to the Company’s investments, and the Board maintains oversight of OFS Advisor in its capacity as valuation designee, as prescribed in Rule 2a-5. The Company engages third-party valuation firms to provide assistance to OFS Advisor in determining the fair value for a majority of its investments.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair values are determined with models or other valuation techniques, valuation inputs, and assumptions that market participants would use in pricing an asset or liability. Valuation inputs are organized in a hierarchy that gives the highest priority to prices for identical assets or liabilities quoted in active markets (Level 1) and the lowest priority to fair values based on unobservable inputs (Level 3). The three levels of inputs in the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.

Level 2: Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability, and situations where there is little, if any, market activity for the asset or liability at the measurement date.

The inputs into the determination of fair value are based upon the best information under the circumstances and may require management to exercise significant judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The Company generally categorizes its investment portfolio into Level 3, and to a lesser extent Level 2, of the hierarchy.

30

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

The Company assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the measurement date. During the three months ended March 31, 2026 and 2025, the Company did not transfer any investments between Level 2 and Level 3 of the hierarchy.

Transfers between levels occur when the availability of reliable Indicative Prices changes during the period. The Company classifies loan investments as Level 2 when sufficient Indicative Prices are available, and the depth of the market is sufficient, in management’s judgment, to transact at those prices in amounts approximating the Company’s investment position at the measurement date.

Due to the inherent uncertainty of determining the fair value of Level 3 investments, including the use of significant unobservable inputs, the fair value of the investments may differ significantly from the values that would have been used had a ready market or observable inputs existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions, or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded and incur a realized capital loss. The Company’s investments are subject to market risk as a result of economic and political developments, including impacts from interest rate and inflation rate changes, the ongoing war between Russia and Ukraine, the escalated armed conflict and heightened regional tensions in the Middle East, activity in South America, instability in the U.S. and international banking systems, the agenda of the U.S. presidential administration, including the impact of tariff enactment and tax reductions, trade disputes with other countries, the risk of recession or the impact of the prolonged shutdown of U.S. government services, and related market volatility. Market risk is directly impacted by the volatility and liquidity in the markets in which certain investments are traded and can affect the fair value of the Company’s investments. The Company’s investments are also subject to interest rate risk. Changes in interest rates enacted by the U.S. Federal Reserve may impact the Company’s investment income, cost of funding and the valuation of its investment portfolio.

The following tables present the Company’s investment portfolio measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025:

 

Security

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Fair Value as of March 31, 2026

 

Debt investments

 

$

—

 

 

$

12,774

 

 

$

143,808

 

 

$

156,582

 

Equity investments

 

 

—

 

 

 

—

 

 

 

102,894

 

 

 

102,894

 

Structured Finance Securities

 

 

—

 

 

 

—

 

 

 

48,644

 

 

 

48,644

 

 

$

—

 

 

$

12,774

 

 

$

295,346

 

 

$

308,120

 

 

Security

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Fair Value as of December 31, 2025

 

Debt investments

 

$

—

 

 

$

14,809

 

 

$

165,005

 

 

$

179,814

 

Equity investments

 

 

—

 

 

 

—

 

 

 

100,596

 

 

 

100,596

 

Structured Finance Securities

 

 

—

 

 

 

—

 

 

 

61,605

 

 

 

61,605

 

 

$

—

 

 

$

14,809

 

 

$

327,206

 

 

$

342,015

 

 

31

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

The following tables provides the primary quantitative information about valuation techniques and the Company’s unobservable inputs to its Level 3 fair value measurements as of March 31, 2026 and December 31, 2025. The Company may make changes to the valuation techniques, among techniques otherwise commonly utilized in accordance with its valuation policies, and/or the weighting of techniques used for particular investments based on changes in facts-and-circumstances and depending on the availability of, or changes in, information in order to produce the best estimate of fair value as of the measurement date. In addition to the techniques and unobservable inputs noted in the tables below and in accordance with OFS Advisor’s valuation policy, OFS Advisor, as valuation designee, may also use other valuation techniques and methodologies when determining the fair value measurements of the Company’s investment assets. The tables are not intended to be all-inclusive and only present the most significant unobservable input(s) relevant to the valuation designee’s determination of fair value.

 

 

Fair Value at March 31, 2026

 

 

Valuation technique

 

Unobservable inputs

 

Range
(Weighted average)(1)

Debt investments:

 

 

 

 

 

 

 

 

 

First lien

 

$

114,453

 

 

Discounted cash flow

 

Discount rates

 

8.60% - 37.50% (13.39%)

 

 

22,861

 

 

Market approach

 

EBITDA multiples

 

3.00x - 7.75x (5.86x)

 

 

2,625

 

 

Market approach

 

Transaction Price

 

 

Second lien

 

 

2,031

 

 

Discounted cash flow

 

Discount rates

 

23.90% - 23.90% (23.90%)

 

 

45

 

 

Market approach

 

EBITDA multiples

 

6.25x - 6.25x (6.25x)

 

 

1,793

 

 

Market approach

 

Revenue multiples

 

0.88x - 0.88x (0.88x)

 

 

 

 

 

 

 

 

 

Structured Finance
   Securities(2):

 

 

 

 

 

 

 

 

 

Subordinated notes

 

 

42,129

 

 

Discounted cash flow

 

Discount rates

 

16.50% - 40.00% (23.32%)

 

 

 

 

 

 

Constant default rate

 

2.00% - 3.00% (2.11%)

 

 

 

 

 

 

Recovery rate

 

65.00% - 65.00% (65.00%)

 

 

130

 

 

Market approach

 

Net asset value liquidation(3)

 

 

Mezzanine debt

 

 

6,385

 

 

Discounted cash flow

 

Discount margin

 

14.00% - 15.50% (14.97%)

 

 

 

 

 

 

Constant default rate

 

2.00% - 2.00% (2.00%)

 

 

 

 

 

 

Recovery rate

 

65.00% - 65.00% (65.00%)

 

 

 

 

 

 

 

 

 

 

Equity investments:

 

 

 

 

 

 

 

 

 

Preferred equity

 

 

12,392

 

 

Market approach

 

EBITDA multiples

 

7.50x - 8.00x (7.99x)

 

 

334

 

 

 Market Approach

 

Revenue multiples

 

0.50x - 0.50x (0.50x)

Common equity,
   warrants and other

 

 

90,168

 

 

Market approach

 

EBITDA multiples

 

5.00x - 13.75x (11.90x)

 

$

295,346

 

 

 

 

 

 

 

 

(1)
Weighted average is calculated based on the fair value of investments.
(2)
The cash flows utilized in the discounted cash flow calculations assume: (i) liquidation of (a) certain distressed investments and (b) all investments currently in default held by the issuing CLO at their current market prices; and (ii) redeployment of proceeds at the issuing CLO’s assumed reinvestment rate.
(3)
NAV liquidation represents the fair value, or estimated expected residual value, of the investment.

32

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

 

 

Fair Value at December 31, 2025

 

 

Valuation technique

 

Unobservable inputs

 

Range
(Weighted average)(1)

Debt investments:

 

 

 

 

 

 

 

 

 

First lien

 

$

115,014

 

 

Discounted cash flow

 

Discount rates

 

8.61% - 37.50% (12.77%)

 

 

21,925

 

 

Market approach

 

EBITDA multiples

 

3.00x - 8.00x (6.11x)

 

 

8,225

 

 

Market approach

 

Revenue multiples

 

0.35x - 0.50x (0.35x)

 

 

10,432

 

 

Market approach

 

Transaction Price

 

 

Second lien

 

 

2,500

 

 

Discounted cash flow

 

Discount rates

 

13.70% - 13.70% (13.70%)

 

 

448

 

 

Market approach

 

EBITDA multiples

 

9.00x - 9.00x (9.00x)

 

 

6,461

 

 

Market approach

 

Revenue multiples

 

0.35x - 0.90x (0.70x)

 

 

 

 

 

 

 

 

 

Structured Finance
   Securities:

 

 

 

 

 

 

 

 

 

Subordinated notes(2)

 

 

53,368

 

 

Discounted cash flow

 

Discount rates

 

13.00% - 27.50% (18.73%)

 

 

 

 

 

 

Constant default rate

 

2.00% - 3.00% (2.08%)

 

 

 

 

 

 

Recovery rate

 

65.00% - 65.00% (65.00%)

Mezzanine debt(2)

 

 

8,074

 

 

Discounted cash flow

 

Discount margin

 

9.10% - 10.70% (9.62%)

 

 

 

 

 

 

Constant default rate

 

2.00% - 2.00% (2.00%)

 

 

 

 

 

 

Recovery rate

 

65.00% - 65.00% (65.00%)

Subordinated notes

 

 

163

 

 

Market approach

 

Net asset value liquidation(3)

 

 

 

 

 

 

 

 

 

 

 

Equity investments:

 

 

 

 

 

 

 

 

 

Preferred equity

 

 

12,448

 

 

Market approach

 

EBITDA multiples

 

7.25x - 8.50x (8.46x)

 

 

119

 

 

Market approach

 

Revenue multiples

 

0.50x - 0.50x (0.50x)

Common equity, warrants
   and other

 

 

88,029

 

 

Market approach

 

EBITDA multiples

 

6.00x - 14.75x (12.33x)

Common equity, warrants
   and other

 

 

—

 

 

Market approach

 

Revenue multiples

 

0.35x - 0.50x (0.44x)

 

 

$

327,206

 

 

 

 

 

 

 

 

(1)
Weighted average is calculated based on the fair value of investments.
(2)
The cash flows utilized in the discounted cash flow calculations assume: (i) liquidation of (a) certain distressed investments and (b) all investments currently in default held by the issuing CLO at their current market prices; and (ii) redeployment of proceeds at the issuing CLO’s assumed reinvestment rate.
(3)
NAV liquidation represents the fair value, or estimated expected residual value, of the investment.

Changes in market credit spreads or events impacting the credit quality of the underlying portfolio company (both of which could impact the discount rate), as well as changes in enterprise value and/or EBITDA multiples, among other things, could have a significant impact on fair values, with the fair value of a particular debt investment susceptible to change in inverse relation to the changes in the discount rate. Changes in enterprise value and/or EBITDA multiples, as well as changes in the discount rate, could have a significant impact on fair values, with the fair value of an equity investment susceptible to change in tandem with the changes in enterprise value and/or EBITDA multiples, and in inverse relation to changes in the discount rate. Due to the wide range of approaches in developing input assumptions to these valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.

33

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

The following tables present changes in investments measured at fair value using Level 3 inputs for the three months ended March 31, 2026 and 2025:

 

 

Three Months Ended March 31, 2026

 

 

 

First Lien
Debt
Investments

 

 

Second Lien
Debt
Investments

 

 

Preferred
Equity

 

 

Common
Equity,
Warrants
and Other

 

 

Structured
Finance
Securities

 

 

Total

 

Level 3 assets, December 31, 2025

 

$

155,596

 

 

$

9,409

 

 

$

12,567

 

 

$

88,029

 

 

$

61,605

 

 

$

327,206

 

Net realized loss on investments

 

 

(1,060

)

 

 

(4,356

)

 

 

—

 

 

 

(4,723

)

 

 

(1,222

)

 

 

(11,361

)

Net unrealized appreciation (depreciation) on investments

 

 

(330

)

 

 

1,044

 

 

 

(253

)

 

 

6,862

 

 

 

(9,122

)

 

 

(1,799

)

Amortization of Net Loan Fees

 

 

95

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

 

 

98

 

Accretion of interest income on Structured Finance Securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,492

 

 

 

2,492

 

Capitalized PIK interest and dividends

 

 

175

 

 

 

—

 

 

 

412

 

 

 

—

 

 

 

—

 

 

 

587

 

Amendment fees received

 

 

(17

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(17

)

Purchase and origination of portfolio investments

 

 

1,614

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,614

 

Proceeds from principal payments on portfolio investments

 

 

(6,687

)

 

 

(2,228

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,915

)

Sale and redemption of portfolio investments

 

 

(9,447

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,634

)

 

 

(12,081

)

Proceeds from distributions received from portfolio investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,478

)

 

 

(2,478

)

Level 3 assets, March 31, 2026

 

$

139,939

 

 

$

3,869

 

 

$

12,726

 

 

$

90,168

 

 

$

48,644

 

 

$

295,346

 

 

 

Three Months Ended March 31, 2025

 

 

 

First Lien
Debt
Investments

 

 

Second Lien
Debt
Investments

 

 

Preferred
Equity

 

 

Common
Equity,
Warrants
and Other

 

 

Structured
Finance
Securities

 

 

Total

 

Level 3 assets, December 31, 2024

 

$

168,037

 

 

$

34,331

 

 

$

12,248

 

 

$

96,337

 

 

$

76,875

 

 

$

387,828

 

Net realized loss on investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,771

)

 

 

(1,771

)

Net unrealized appreciation (depreciation) on investments

 

 

(3,893

)

 

 

(3,080

)

 

 

(1,920

)

 

 

723

 

 

 

242

 

 

 

(7,928

)

Amortization of Net Loan Fees

 

 

116

 

 

 

28

 

 

 

—

 

 

 

—

 

 

 

32

 

 

 

176

 

Accretion of interest income on Structured Finance Securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,925

 

 

 

2,925

 

Capitalized PIK interest and dividends

 

 

120

 

 

 

268

 

 

 

287

 

 

 

—

 

 

 

—

 

 

 

675

 

Amendment fees received

 

 

(23

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(23

)

Purchase and origination of portfolio investments

 

 

4,635

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,776

 

 

 

10,411

 

Proceeds from principal payments on portfolio investments

 

 

(3,238

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,238

)

Sale and redemption of portfolio investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,041

)

 

 

(1,041

)

Proceeds from distributions received from portfolio investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,504

)

 

 

(3,504

)

Level 3 assets, March 31, 2025

 

$

165,754

 

 

$

31,547

 

 

$

10,615

 

 

$

97,060

 

 

$

79,534

 

 

$

384,510

 

 

The net unrealized depreciation reported in the Company’s consolidated statements of operations for the three months ended March 31, 2026 and 2025, attributable to the Company’s Level 3 assets still held at those respective period ends, was as follows:

 

 

Three Months Ended March 31,

 

 

2026

 

 

2025

 

Debt investments

 

$

(4,534

)

 

$

(6,969

)

Equity investments

 

 

1,888

 

 

 

(1,197

)

Structured Finance Securities

 

 

(9,427

)

 

 

(1,518

)

Net unrealized depreciation on investments held

 

$

(12,073

)

 

$

(9,684

)

 

Other Financial Assets and Liabilities

GAAP requires disclosure of the fair value of financial instruments not reported at fair value on a recurring basis for which it is practical to estimate such values. The Company believes that the carrying amounts of its other financial instruments, such as cash, cash equivalents, receivables and payables approximate the fair value of such items due to the short maturity of such financial

34

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

instruments. The Banc of California Credit Facility and Natixis Facility are variable rate instruments and fair value is estimated to approximate carrying value.

The following table sets forth carrying values and fair values of the Company’s debt as of March 31, 2026 and December 31, 2025:

 

 

March 31, 2026

 

 

December 31, 2025

 

Description

 

Carrying
Value(1)

 

 

Fair Value

 

 

Carrying
Value(1)

 

 

Fair Value

 

Banc of California Credit Facility

 

$

8,750

 

 

$

8,750

 

 

$

4,500

 

 

$

4,500

 

BNP Facility(2)

 

 

—

 

 

 

—

 

 

 

50,950

 

 

 

50,950

 

Natixis Facility

 

 

44,700

 

 

 

44,700

 

 

 

—

 

 

 

—

 

Unsecured Notes Due February 2026

 

 

—

 

 

 

—

 

 

 

15,988

 

 

 

15,961

 

Unsecured Notes Due July 2028

 

 

68,471

 

 

 

71,015

 

 

 

67,498

 

 

 

70,877

 

Unsecured Notes Due October 2028

 

 

53,643

 

 

 

52,558

 

 

 

54,420

 

 

 

52,118

 

Unsecured Note Due August 2029

 

 

24,332

 

 

 

24,908

 

 

 

24,282

 

 

 

25,333

 

Total debt

 

$

199,896

 

 

$

201,931

 

 

$

217,638

 

 

$

219,739

 

 

(1)
Carrying value is calculated as the outstanding principal amount less unamortized deferred debt issuance costs.
(2)
On February 18, 2026, in connection with the closing of the Natixis Facility, OFSCC-FS repaid in full all outstanding obligations due, and terminated all commitments, under the BNP Facility.

The following tables present the fair value measurements of the Company’s debt and the level within the fair value hierarchy of the significant unobservable inputs utilized by the Company to determine such fair values as of March 31, 2026 and December 31, 2025:

 

March 31, 2026

 

Description

 

Level 1(1)

 

 

Level 2

 

 

Level 3(2)

 

 

Total

 

Banc of California Credit Facility

 

$

—

 

 

$

—

 

 

$

8,750

 

 

$

8,750

 

Natixis Facility

 

 

—

 

 

 

—

 

 

 

44,700

 

 

 

44,700

 

Unsecured Notes Due July 2028

 

 

71,015

 

 

 

—

 

 

 

—

 

 

 

71,015

 

Unsecured Notes Due October 2028

 

 

52,558

 

 

 

—

 

 

 

—

 

 

 

52,558

 

Unsecured Note Due August 2029

 

 

—

 

 

 

—

 

 

 

24,908

 

 

 

24,908

 

Total debt, at fair value

 

$

123,573

 

 

$

—

 

 

$

78,358

 

 

$

201,931

 

 

 

December 31, 2025

 

Description

 

Level 1(1)

 

 

Level 2

 

 

Level 3(2)

 

 

Total

 

Banc of California Credit Facility

 

$

—

 

 

$

—

 

 

$

4,500

 

 

$

4,500

 

BNP Facility

 

 

—

 

 

 

—

 

 

 

50,950

 

 

 

50,950

 

Unsecured Notes Due February 2026

 

 

—

 

 

 

—

 

 

 

15,961

 

 

 

15,961

 

Unsecured Notes Due July 2028

 

 

70,877

 

 

 

—

 

 

 

—

 

 

 

70,877

 

Unsecured Notes Due October 2028

 

 

52,118

 

 

 

—

 

 

 

—

 

 

 

52,118

 

Unsecured Note Due August 2029

 

 

—

 

 

 

—

 

 

 

25,333

 

 

 

25,333

 

Total debt, at fair value

 

$

122,995

 

 

$

—

 

 

$

96,744

 

 

$

219,739

 

 

(1)
For Level 1 measurements, fair value is estimated by using the closing price of the security on The Nasdaq Global Select Market.
(2)
For Level 3 measurements, fair value is estimated through discounting remaining payments using current market rates for similar instruments at the measurement date through the legal maturity date.

35

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

Note 6. Commitments and Contingencies

The following table shows the Company’s outstanding commitments to fund investments to portfolio companies as of March 31, 2026:

 

Portfolio Company

 

Investment Type

 

Commitment

 

12 Interactive, LLC (D/B/A PerkSpot)

 

First Lien Debt (Revolver)

 

$

660

 

Associated Spring, LLC

 

First Lien Debt (Delayed Draw)

 

 

1,276

 

Boca Home Care Holdings, Inc.

 

First Lien Debt (Revolver)

 

 

1,065

 

Clevertech Bidco, LLC

 

First Lien Debt (Revolver)

 

 

182

 

Honor HN Buyer Inc.

 

First Lien Debt (Revolver)

 

 

104

 

Honor HN Buyer Inc.

 

First Lien Debt (Delayed Draw)

 

 

600

 

I Love Produce, LLC

 

First Lien Debt (Revolver)

 

 

34

 

I Love Produce, LLC

 

First Lien Debt (Delayed Draw)

 

 

152

 

Integrated Energy Services, LLC

 

First Lien Debt (Delayed Draw)

 

 

300

 

Integrated Energy Services, LLC

 

First Lien Debt (Revolver)

 

 

150

 

Medrina LLC

 

First Lien Debt (Revolver)

 

 

319

 

PSB Group, LLC

 

First Lien Debt (Revolver)

 

 

653

 

SS Acquisition, LLC

 

First Lien Debt (Revolver)

 

 

1,286

 

SSJA Bariatric Management LLC

 

First Lien Debt (Delayed Draw)

 

 

157

 

Tolemar Acquisition, Inc.

 

First Lien Debt (Revolver)

 

 

875

 

   Total

 

 

 

$

7,813

 

 

In accordance with ASC 820, the Company considers undrawn amounts in the determination of fair value on its revolving lines of credit and delayed draw term loans. As of March 31, 2026, the Company had cash and cash equivalents of $3,258 and an unused commitment of $6,250 under its Banc of California Credit Facility and $35,300 under its Natixis Facility, each of which is subject to the terms of the borrowing base and other covenants, to fund these outstanding commitments to portfolio companies.

The following table shows the Company’s outstanding commitments to fund investments to portfolio companies as of December 31, 2025:

Portfolio Company

 

Investment Type

 

Commitment

 

12 Interactive, LLC (D/B/A PerkSpot)

 

First Lien Debt (Revolver)

 

$

660

 

Associated Spring, LLC

 

First Lien Debt (Delayed Draw)

 

 

1,483

 

Avison Young Inc.

 

First Lien Debt (Delayed Draw)

 

 

34

 

Boca Home Care Holdings, Inc.

 

First Lien Debt (Revolver)

 

 

1,065

 

Clevertech Bidco, LLC

 

First Lien Debt (Revolver)

 

 

182

 

Envocore Holding, LLC (F/K/A LRI Holding, LLC)

 

First Lien Debt (Revolver)

 

 

2,569

 

Honor HN Buyer Inc.

 

First Lien Debt (Revolver)

 

 

328

 

Honor HN Buyer Inc.

 

First Lien Debt (Delayed Draw)

 

 

3,062

 

Integrated Energy Services, LLC

 

First Lien Debt (Delayed Draw)

 

 

300

 

Integrated Energy Services, LLC

 

First Lien Debt (Revolver)

 

 

150

 

Medrina LLC

 

First Lien Debt (Revolver)

 

 

319

 

PSB Group, LLC

 

First Lien Debt (Revolver)

 

 

653

 

SS Acquisition, LLC

 

First Lien Debt (Revolver)

 

 

1,286

 

SSJA Bariatric Management LLC

 

First Lien Debt (Delayed Draw)

 

 

157

 

Tolemar Acquisition, Inc.

 

First Lien Debt (Revolver)

 

 

978

 

   Total

 

 

 

$

13,226

 

Legal and regulatory proceedings: From time to time, the Company is involved in legal proceedings in the normal course of its business. Although the outcome of such litigation cannot be predicted with any certainty, management is of the opinion, based on the advice of legal counsel, that final disposition of any litigation should not have a material adverse effect on the financial position of the Company as of March 31, 2026.

Additionally, the Company is subject to periodic inspection by regulators to assess compliance with applicable BDC regulations.

36

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

Indemnifications: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide for general indemnification. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Company believes the risk of any material obligation under these indemnifications to be low.

Note 7. Borrowings

Natixis Facility: On February 18, 2026, OFSCC-FS entered into the Natixis Facility, which provides for borrowings in an aggregate principal amount up to $80,000. Borrowings under the Natixis Facility bear interest at a rate based on SOFR plus a margin of 2.35%. The Natixis Facility also includes a fee of 0.40% on the unused amount of the facility, as well as an arranger fee of 0.20% on the total commitment amount of the facility. The reinvestment period during which OFSCC-FS is permitted to borrow terminates on February 18, 2029, and the facility is scheduled to mature on February 18, 2031.

As of March 31, 2026, the Natixis Facility had outstanding debt of $44,700, the unused commitment under the Natixis Facility was $35,300, subject to a borrowing base and other covenants, and the stated interest rate on the Natixis Facility was 6.05%.

Borrowings under the Natixis Facility are secured by substantially all of the assets held by OFSCC-FS, which were $114,679 at March 31, 2026. The Company’s use of cash and cash equivalents held by OFSCC-FS is limited by the terms and conditions of the Natixis Facility, including but not limited to, the payment of interest expense and principal on the outstanding borrowings. As of March 31, 2026 and December 31, 2025, OFSCC-FS had cash and cash equivalents of $2,619 and $2,443, respectively. OFSCC-FS and the Company have each made customary representations and warranties under the Natixis Facility and are required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities.

For the three months ended March 31, 2026 and 2025, the components of interest expense, cash paid for interest, effective interest rates and average outstanding balances for the Natixis Facility were as follows:

 

Three Months Ended
March 31,

 

 

2026

 

 

2025

 

Stated interest expense(1)

 

$

398

 

 

$

—

 

Amortization of debt issuance costs

 

 

41

 

 

 

—

 

Total interest and debt financing costs

 

$

439

 

 

$

—

 

Cash paid for interest expense

 

$

33

 

 

$

—

 

Effective interest rate

 

 

7.30

%

 

n/a

 

Average outstanding balance

 

$

24,374

 

 

$

—

 

(1) Stated interest expense includes unused fees.

BNP Facility: OFSCC-FS was party to the BNP Facility, which provided for borrowings in an aggregate principal amount up to $80,000 during its reinvestment period. Borrowings under the BNP Facility bore interest at a variable rate of SOFR plus a variable margin (2.65% floor), which was determined on the basis of industry-recognized portfolio company metrics at the time of funding.

On February 18, 2026, in connection with the closing of the Natixis Facility, OFSCC-FS repaid in full all outstanding obligations due, and terminated all commitments, under the BNP Facility. All liens securing the BNP Facility were released upon such repayment. In connection with the termination of the facility, the Company recognized a loss on extinguishment of debt of $89 related to the acceleration of deferred financing costs.

As of March 31, 2026 and December 31, 2025, the BNP Facility had outstanding debt of $0 and $50,950, respectively.

For the three months ended March 31, 2026 and 2025, the components of interest expense, cash paid for interest, average interest rates and average outstanding balances for the BNP Facility were as follows:

 

Three Months Ended
March 31,

 

 

2026

 

 

2025

 

Stated interest expense(1)

 

$

437

 

 

$

1,264

 

Amortization of debt issuance costs

 

 

37

 

 

 

95

 

Total interest and debt financing costs

 

$

474

 

 

$

1,359

 

Cash paid for interest expense

 

$

752

 

 

$

1,291

 

Effective interest rate

 

 

7.12

%

 

 

8.39

%

Average outstanding balance

 

$

27,004

 

 

$

65,701

 

 

37

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

(1) For the three months ended March 31, 2025, stated interest expense includes unused fees.

Banc of California Credit Facility: On March 7, 2018, the Company entered into the Banc of California Credit Facility. The Banc of California Credit Facility currently bears interest at a variable rate of the Prime Rate plus a 0.25% margin, with a 5.00% floor, and includes an annual commitment fee of 0.50% of the maximum commitment amount. The Banc of California Credit Facility is scheduled to mature on February 28, 2028.

On January 9, 2026, the Company amended the Banc of California Credit Facility to extend the maturity date from February 28, 2026 to February 28, 2028.

On March 27, 2026, the Company amended the Banc of California Credit Facility to, among other things: (i) reduce the minimum tangible net asset value covenant from $100,000 to $75,000; (ii) reduce the covenant requiring minimum quarterly net investment income after management/incentive fees from $2,000 to $1,000 for each of the quarters ending March 31, 2026, June 30, 2026 and September 30, 2026, after which the minimum quarterly net investment income after management/incentive fees covenant shall return to $2,000; and (iii) decrease the Company’s maximum commitment amount from $25,000 to $15,000. In connection with the maximum commitment reduction from $25,000 to $15,000, the Company recognized a loss on extinguishment of debt of $41 related to the acceleration of deferred financing costs.

As of March 31, 2026 and December 31, 2025, the Company had outstanding debt under the Banc of California Credit Facility of $8,750 and $4,500, respectively. As of March 31, 2026, the unused commitment under the Banc of California Credit Facility was $6,250, subject to the terms of the borrowing base and other covenants. As of March 31, 2026, the stated interest rate on the Banc of California Credit Facility was 7.00%.

The maximum availability of the Banc of California Credit Facility is equal to 50% of the aggregate outstanding principal amount of eligible loans included in the borrowing base, which typically excludes Structured Finance Securities, foreign loans, and non-performing loans, and as otherwise specified in the BLA. The Banc of California Credit Facility is guaranteed by OFSCC-MB and secured by all of our and OFSCC-MB’s current and future assets, excluding assets held by OFSCC-FS, and the Company’s partnership interests in SBIC I LP. The Company has made customary representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities.

For the three months ended March 31, 2026 and 2025, the components of interest expense, cash paid for interest, average interest rates and average outstanding balances for the Banc of California Credit Facility were as follows:

 

 

Three Months Ended
March 31,

 

 

2026

 

 

2025

 

Stated interest expense

 

$

134

 

 

$

58

 

Amortization of debt issuance costs

 

 

29

 

 

 

31

 

Total interest and debt financing costs

 

$

163

 

 

$

89

 

Cash paid for interest expense

 

$

136

 

 

$

58

 

Effective interest rate

 

 

8.65

%

 

 

12.13

%

Average outstanding balance

 

$

7,642

 

 

$

2,989

 

Unsecured Notes: As of March 31, 2026 and December 31, 2025, the Company had $149,000 and $165,000, respectively, in aggregate principal of outstanding Unsecured Notes.

Unsecured Notes Due October 2028 (Nasdaq: OFSSH): On October 28, 2021 and November 1, 2021, the Company issued $55,000 in aggregate principal of unsecured notes. The Unsecured Notes Due October 2028 bear interest at a rate of 4.95% per year payable semi-annually and mature on October 31, 2028. The Company may redeem the Unsecured Notes Due October 2028 in whole or in part at any time.

Unsecured Notes Due July 2028 (Nasdaq: OFSSO): On July 23, 2025, the Company closed the public offering of $69,000 aggregate principal amount of its Unsecured Notes Due July 2028, which included $9,000 of aggregate principal amount related to the underwriters’ option to cover overallotments. The net proceeds to the Company from the Unsecured Notes Due July 2028, after deducting underwriting fees of $1,380 and offering expenses of $326, was $67,294. The Unsecured Notes Due July 2028 bear interest at a stated rate of 7.50% and will mature on July 31, 2028. The Company may redeem the Unsecured Notes Due July 2028 in whole or in part at any time, or from time to time, on or after July 31, 2026.

38

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

The indenture governing the Unsecured Notes Due July 2028 and Unsecured Notes Due October 2028 contains certain covenants, including: (i) prohibiting additional borrowings, including through the issuance of additional debt securities, unless the Company's asset coverage, as defined in the 1940 Act, after giving effect to any exemptive relief granted to the Company by the SEC, equals at least 150% after such borrowings; and (ii) prohibiting (a) the declaration of any cash dividend or distribution upon any class of the Company’s capital stock (except to the extent necessary for the Company to maintain its treatment as a RIC under Subchapter M of the Code), or (b) the purchase of any capital stock unless the Company’s asset coverage, as defined in the 1940 Act, is at least 150% at the time of such capital transaction and after deducting the amount of such transaction.

Unsecured Note Due August 2029: On August 8, 2025, the Company entered into the Securities Purchase Agreement, pursuant to which the Company sold in a private placement a $25,000 principal amount Unsecured Note Due August 2029. The net proceeds to the Company from the Unsecured Note Due August 2029, after deducting discounts of $750 and offering expenses of $48, was $24,202. The Unsecured Note Due August 2029 bears interest at a stated rate of 8.00% and will mature on August 8, 2029. The Company may redeem the Unsecured Note Due August 2029 in whole or in part at any time. The Securities Purchase Agreement contains customary terms and conditions for unsecured notes issued in a private placement, including, without limitation, affirmative and negative covenants such as information reporting, maintenance of the Company’s status as a BDC within the meaning of the 1940 Act and minimum asset coverage ratio.

Unsecured Notes Due February 2026: On February 10, 2021 and March 18, 2021, the Company issued $125,000 in aggregate principal of unsecured notes. The Unsecured Notes Due February 2026 bore interest at a rate of 4.75% per year and were scheduled to mature on February 10, 2026.

On January 8, 2026, the Company issued notices to the holders of the Unsecured Notes Due February 2026 regarding the exercise of its option to redeem on February 9, 2026 $16,000, which was equal to the remainder of the outstanding Unsecured Notes Due February 2026, plus accrued interest of $378.

As of March 31, 2026, the Company had no outstanding Unsecured Notes Due February 2026.

The Unsecured Notes are direct unsecured obligations and rank equal in right of payment with all current and future unsecured indebtedness of the Company. Because the Unsecured Notes are not secured by any of the Company’s assets, they are effectively subordinated to all existing and future secured unsubordinated indebtedness (or any indebtedness that is initially unsecured as to which the Company subsequently grants a security interest), to the extent of the value of the assets securing such indebtedness, including, without limitation, borrowings under the Banc of California Credit Facility.

For the three months ended March 31, 2026 and 2025, the components of interest expense, cash paid for interest, average interest rates and average outstanding balances for the Unsecured Notes were as follows:

 

 

Three Months Ended
March 31,

 

 

2026

 

 

2025

 

Stated interest expense

 

$

2,555

 

 

$

2,165

 

Amortization of debt issuance costs

 

 

258

 

 

 

245

 

Total interest and debt financing costs

 

$

2,813

 

 

$

2,410

 

Cash paid for interest expense

 

$

2,852

 

 

$

3,648

 

Effective interest rate

 

 

7.32

%

 

 

5.35

%

Average outstanding balance

 

$

155,933

 

 

$

180,000

 

 

The following table shows the scheduled maturities of the principal balances of the Company’s outstanding borrowings as of March 31, 2026:

 

 

Payments due by period

 

 

Total

 

 

Less than
1 year

 

 

1 to 3 years

 

 

3 to 5 years

 

 

After 5 years

 

Banc of California Credit Facility

 

$

8,750

 

 

$

—

 

 

$

8,750

 

 

$

—

 

 

$

—

 

Natixis Facility

 

 

44,700

 

 

 

—

 

 

 

—

 

 

 

44,700

 

 

 

—

 

Unsecured Notes

 

 

149,000

 

 

 

—

 

 

 

124,000

 

 

 

25,000

 

 

 

—

 

Total

 

$

202,450

 

 

$

—

 

 

$

132,750

 

 

$

69,700

 

 

$

—

 

 

39

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

For the three months ended March 31, 2026 and 2025, the average dollar borrowings and weighted average effective interest rate on the Company’s outstanding borrowings were as follows:

 

 

Three Months Ended
March 31,

 

 

2026

 

 

2025

 

Average dollar borrowings

 

$

214,953

 

 

$

248,690

 

Weighted average effective interest rate

 

 

7.34

%

 

 

6.29

%

 

Note 8. Financial Highlights

The following is a schedule of financial highlights for the three months ended March 31, 2026 and 2025:

 

Three Months Ended
March 31,

 

 

2026

 

 

2025

 

Per share operating performance:

 

 

 

 

 

 

Net asset value per share at beginning of period

 

$

9.19

 

 

$

12.85

 

Net investment income(1)

 

 

0.18

 

 

 

0.26

 

Net realized loss on investments, net of taxes(1)

 

 

(0.84

)

 

 

(0.19

)

Net unrealized depreciation on investments, net of deferred taxes(1)

 

 

(0.19

)

 

 

(0.61

)

Loss on extinguishment of debt(1)

 

 

(0.01

)

 

 

—

 

Total net loss from operations

 

 

(0.86

)

 

 

(0.54

)

Distributions declared

 

 

(0.17

)

 

 

(0.34

)

Net asset value per share at end of period

 

$

8.16

 

 

$

11.97

 

 

 

 

 

 

 

Per share market value, end of period

 

$

3.55

 

 

$

9.29

 

Total return based on market value(2)(3)

 

 

(21.7

)%

 

 

19.3

%

Total return based on net asset value(3)(4)

 

 

(6.8

)%

 

 

(3.5

)%

Shares outstanding at end of period

 

 

13,398,078

 

 

 

13,398,078

 

Weighted average shares outstanding

 

 

13,398,078

 

 

 

13,398,078

 

Ratio/Supplemental Data (dollar amounts in thousands)

 

 

 

 

 

 

Average net asset value(5)

 

$

116,255

 

 

$

166,304

 

Net asset value at end of period

 

$

109,322

 

 

$

160,383

 

Net investment income

 

$

2,464

 

 

$

3,465

 

Ratio of total expenses, net to average net assets(6)(9)

 

 

22.2

%

 

 

16.4

%

Ratio of total expenses, net and loss on extinguishment of debt to average net assets(6)(8)(10)

 

 

22.3

%

 

 

16.4

%

Ratio of net investment income to average net assets(6)(11)

 

 

8.5

%

 

 

8.3

%

Ratio of loss on extinguishment of debt to average net assets(3)

 

 

0.1

%

 

 

0.0

%

Portfolio turnover(7)

 

 

0.6

%

 

 

2.4

%

 

(1)
Calculated on the average share method.
(2)
Calculated as ending market value less beginning market value, adjusted for distributions reinvested at prices based on the Company’s DRIP for the respective distributions.
(3)
Not annualized.
(4)
Calculated as ending net asset value less beginning net asset value, adjusted for distributions reinvested at prices based on the Company’s DRIP for the respective distributions.
(5)
Based on the average of the net asset value at the beginning and end of the indicated period and, if applicable, the preceding calendar quarters.
(6)
Annualized.
(7)
Portfolio turnover rate is calculated using the lesser of period-to-date sales, portfolio investment distributions and principal payments or period-to-date purchases over the average of total investments at fair value.
(8)
Calculated as total expenses (annualized) plus the loss on extinguishment of debt, divided by average net assets.
(9)
Ratio of total expenses before the base management fee waiver to average net assets was 22.9% for the three months ended March 31, 2026.
(10)
Ratio of total expenses before the base management fee waiver plus the loss on extinguishment of debt to average net assets was 23.0% for the three months ended March 31, 2026.
(11)
Ratio of net investment income before the base management fee waiver to average net assets was 7.7% for the three months ended March 31, 2026.

40

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

Note 9. Capital Transactions

Distributions: The Company intends to make quarterly distributions to stockholders, that represent over time, substantially all of its net investment income. In addition, although the Company may distribute at least annually net realized capital gains, net of taxes if any, out of assets legally available for such distribution, the Company may also retain such capital gains for investment through a deemed distribution. If the Company makes a deemed distribution, stockholders will be treated for U.S. federal income tax purposes as if they had received an actual distribution of the capital gains, net of taxes.

The Company may be limited in its ability to make distributions due to the BDC asset coverage requirements of the 1940 Act. In addition, distributions from OFSCC-FS to the Company are restricted by the terms and conditions of the Natixis Facility.

The following table summarizes distributions declared and paid for the three months ended March 31, 2026 and 2025:

 

Date Declared

 

Record Date

 

Payment Date

 

Amount
Per Share

 

 

Cash
Distribution

 

 

Three Months Ended March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

February 26, 2026

 

March 20, 2026

 

March 31, 2026

 

$

0.17

 

 

$

2,278

 

(1)

  Total

 

 

 

 

 

$

0.17

 

 

$

2,278

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

February 26, 2025

 

March 21, 2025

 

March 31, 2025

 

$

0.34

 

 

$

4,555

 

(1)

  Total

 

 

 

 

 

$

0.34

 

 

$

4,555

 

 

 

(1)
During the three months ended March 31, 2026 and 2025, the Company directed the DRIP plan administrator to purchase shares on the open market in order to satisfy the obligation to deliver shares of common stock. Accordingly, the Company purchased shares to satisfy the DRIP obligation as follows:

 

 

Number of Shares Purchased

 

 

Average Price Paid Per Share

 

 

Total Amount Paid

 

Three Months Ended March 31, 2026

 

 

 

 

 

 

 

 

 

January 1, 2026 through March 31, 2026

 

 

5,271

 

 

$

3.39

 

 

$

18

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

 

 

 

January 1, 2025 through March 31, 2025

 

 

8,570

 

 

$

9.35

 

 

$

80

 

 

Distributions in excess of the Company’s current and accumulated ICTI would be treated first as a return of capital to the extent of the stockholder’s adjusted tax basis, and any remaining distributions would be treated as a capital gain. The determination of the tax attributes of the Company’s distributions is made annually as of the end of its fiscal year based upon its estimated ICTI for the full year and distributions paid for the full year. Each year, a statement on Form 1099-DIV identifying the tax character of distributions is mailed to the Company’s stockholders.

Stock Repurchase Program:

The Company maintains a Stock Repurchase Program under which the Company may acquire up to $10,000 of its outstanding common stock. On April 28, 2026, the Board extended the Stock Repurchase Program for an additional two-year period ending May 22, 2028, or until the approved dollar amount has been used to repurchase shares. The Stock Repurchase Program may be extended, modified or discontinued at any time for any reason.

During the three months ended March 31, 2026 and 2025, no shares of common stock were repurchased under the Stock Repurchase Program.

41

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(Dollar amounts in thousands, except per share data)

 

Note 10. Consolidated Schedule of Investments In and Advances To Affiliates

 

 

Three Months Ended March 31, 2026

 

 

 

 

 

 

 

 

 

Name of Portfolio Company

Investment Type (1)

Net Realized
Gain (Loss)

 

Net Change in
Unrealized Appreciation/
(Depreciation)

 

Interest

 

Dividends

 

Fees

 

Total
Income (2)

 

December 31, 2025 , Fair Value (5)

 

Gross
Additions (3)

 

Gross
Reductions (4)

 

March 31, 2026 , Fair Value (5)

 

Affiliate Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract Datascan Holdings, Inc.

Preferred Equity (7)

$

—

 

$

(467

)

$

—

 

$

316

 

$

—

 

$

316

 

$

9,201

 

$

316

 

$

(467

)

$

9,050

 

Preferred Equity (7)

 

—

 

 

—

 

 

—

 

 

96

 

 

—

 

 

96

 

 

2,884

 

 

96

 

 

—

 

 

2,980

 

Common Equity (6)

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Warrants (6)

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Warrants (6)

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

(467

)

 

—

 

 

412

 

 

—

 

 

412

 

 

12,085

 

 

412

 

 

(467

)

 

12,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DRS Imaging Services, LLC

Common Equity (6)

 

—

 

 

1,070

 

 

—

 

 

—

 

 

—

 

 

—

 

 

2,671

 

 

1,070

 

 

—

 

 

3,741

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pfanstiehl Holdings, Inc

Common Equity

 

—

 

 

1,009

 

 

—

 

 

874

 

 

—

 

 

874

 

 

79,421

 

 

1,009

 

 

—

 

 

80,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SSJA Bariatric Management LLC

First Lien Debt

 

—

 

 

(1

)

 

6

 

 

—

 

 

—

 

 

6

 

 

235

 

 

—

 

 

(1

)

 

234

 

First Lien Debt

 

—

 

 

—

 

 

95

 

 

—

 

 

—

 

 

95

 

 

3,804

 

 

89

 

 

—

 

 

3,893

 

Common Equity (6)

 

—

 

 

(172

)

 

—

 

 

—

 

 

—

 

 

—

 

 

1,729

 

 

—

 

 

(172

)

 

1,557

 

 

 

—

 

 

(173

)

 

101

 

 

—

 

 

—

 

 

101

 

 

5,768

 

 

89

 

 

(173

)

 

5,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Affiliate Investments

 

$

—

 

$

1,438

 

$

101

 

$

1,286

 

$

—

 

$

1,387

 

$

99,945

 

$

2,580

 

$

(640

)

$

101,885

 

 

(1)
Principal balance, interest rate and maturity of debt investments, and ownership detail for equity investments are presented in the consolidated schedule of investments. The Company’s investments are generally classified as “restricted securities” as such term is defined under Regulation S-X Rule 6-03(f) or Securities Act Rule 144.
(2)
Represents the total amount of interest, fees or dividends included in income for the three months ended March 31, 2026.
(3)
Gross additions include increases in cost basis of investments resulting from a new portfolio investment, PIK interest, fees and dividends, accretion of Net Loan Fees, and net increases in unrealized appreciation or decreases in net unrealized depreciation.
(4)
Gross reductions include decreases in the cost basis of investments resulting from principal repayments and sales, and net decreases in net unrealized appreciation or net increases in net unrealized depreciation.
(5)
Fair value was determined using significant unobservable inputs. See Note 5 for further details.
(6)
Non-income producing. The Company has not recognized income on the security during the prior twelve-month period preceding the period-end date.
(7)
Dividends recognized as income include PIK dividends contractually earned but not declared.

Note 11. Subsequent Events

Distribution Declaration

On April 28, 2026, the Board declared a distribution of $0.17 per share for the second quarter of 2026, payable on July 6, 2026 to stockholders of record as of June 19, 2026.

42

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes thereto contained elsewhere in this Quarterly Report on Form 10-Q. For additional overview information on the Company, see “Item 1. Business” in our Annual Report on Form 10-K for the year ended December 31, 2025.

Overview

Key performance metrics per common share are presented below:

 

 

March 31, 2026

 

 

December 31, 2025

 

Net asset value

 

$

8.16

 

 

$

9.19

 

 

 

Three Months Ended

 

 

March 31, 2026

 

 

December 31, 2025

 

Net investment income

 

$

0.18

 

 

$

0.20

 

Net decrease in net assets resulting from operations

 

 

(0.86

)

 

 

(0.81

)

Distributions paid

 

 

0.17

 

 

 

0.17

 

 

Our NAV per common share decreased from $9.19 at December 31, 2025 to $8.16 at March 31, 2026, due to a net loss on investments of $1.03 per common share, loss on extinguishment of debt of $0.01 per common share, partially offset by our quarterly net investment income of $0.18 per common share exceeding our quarterly distribution of $0.17 per common share.

For the quarter ended March 31, 2026, total investment income decreased from $9.4 million in the prior quarter to $8.9 million, primarily due to a decrease in interest income, partially offset by an increase in non-recurring dividend income. See “—Results of Operations” for additional information.

Our total outstanding debt decreased from $220.5 million at December 31, 2025 to $202.5 million at March 31, 2026. For the quarter ended March 31, 2026, our weighted-average debt interest costs increased to 7.34 % compared to 7.07% for the quarter ended December 31, 2025, primarily due to an increase in the weighted average debt interest costs of our Unsecured Notes. The decrease of $18.0 million in our total outstanding debt during the quarter ended March 31, 2026 was due to the final $16.0 million redemption of the Unsecured Notes Due February 2026 and net paydowns of $2.0 million on our revolving credit facilities. Following the maturity extension of our Banc of California Credit Facility in January 2026, the final repayment of our Unsecured Notes Due February 2026, and the execution of our Natixis Facility in February 2026, we do not have any debt maturities until February 2028. See “—Results of Operations” and “—Liquidity and Capital Resources” for additional information.

For the quarter ended March 31, 2026, we recognized a net loss on investments of $13.9 million due to a net realized loss of $11.3 million and net unrealized depreciation, net of taxes, of $2.6 million. For the quarter ended March 31, 2026, our net realized and unrealized loss on investments of $13.9 million was primarily attributable to $10.3 million of net realized and unrealized losses on our Structured Finance Securities. As of March 31, 2026, we had non-accrual loans with an aggregate fair value of $10.9 million, or 3.5 % of our total investments at fair value. See “—Portfolio Composition and Investment Activity” for additional information.

As of March 31, 2026, the aggregate amount outstanding of the senior securities issued by us was $202.5 million, for which our asset coverage ratio was 154%, exceeding the minimum asset coverage requirement of 150% under the 1940 Act. As of March 31, 2026, we remained in compliance with all applicable covenants under our outstanding debt facilities. As of March 31, 2026, we had unused commitments of $6.3 million under our Banc of California Credit Facility, and $35.3 million under our Natixis Facility, each of which is subject to a borrowing base and other covenants. As of March 31, 2026, we had unfunded commitments of $7.8 million to fund outstanding commitments to portfolio companies. See “—Liquidity and Capital Resources” for additional information.

On April 28, 2026, the Board declared a distribution of $0.17 per share for the second quarter of 2026, payable on July 6, 2026 to stockholders of record as of June 19, 2026.

 

43

 

Critical Accounting Policies and Significant Estimates

Our critical accounting policies and estimates are those relating to revenue recognition and fair value estimates. Management has discussed the development and selection of each critical accounting policy and estimate with the Audit Committee of the Board. For descriptions of our revenue recognition and fair value policies, see “Item 8. Financial Statements—Notes to Consolidated Financial Statements—Note 2” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Significant Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2025.

The following table illustrates the impact of our fair value measures if we selected the low or high end of the range of estimated values for all investments as of March 31, 2026 (dollar amounts in thousands):

 

 

 

 

 

Range of Fair Value(1)

 

Investment Type

 

Fair Value at
March 31, 2026

 

 

Low-end

 

 

High-end

 

Debt investments:

 

 

 

 

 

 

 

 

 

First lien

 

$

152,713

 

 

$

149,378

 

 

$

156,543

 

Second lien

 

 

3,869

 

 

 

3,398

 

 

 

4,614

 

 

 

 

 

 

 

 

 

 

 

Structured Finance Securities:

 

 

 

 

 

 

 

 

 

Subordinated notes

 

 

42,259

 

 

 

39,440

 

 

 

44,817

 

Mezzanine debt

 

 

6,385

 

 

 

6,249

 

 

 

6,521

 

 

 

 

 

 

 

 

 

 

 

Equity investments:

 

 

 

 

 

 

 

 

 

Preferred equity

 

 

12,726

 

 

 

10,392

 

 

 

15,104

 

Common equity, warrants and other

 

 

90,168

 

 

 

82,378

 

 

 

98,062

 

 

$

308,120

 

 

$

291,235

 

 

$

325,661

 

 

(1)
A majority of our investments are classified as Level 3 under ASC Topic 820. This means that our portfolio valuations are based on unobservable inputs and assumptions about how market participants would price the asset in question. Inputs into the determination of fair value of our portfolio investments require significant management judgment and estimation.

Related Party Transactions

We have entered into a number of business relationships with affiliated or related parties, including the following:

•
The Investment Advisory Agreement with OFS Advisor to manage our operating and investment activities. Under the Investment Advisory Agreement, we have agreed to pay OFS Advisor an annual base management fee based on the average value of our total assets (other than cash and cash equivalents, but including assets purchased with borrowed amounts and including assets owned by any consolidated entity) as well as an incentive fee based on our investment performance. See “Item 1—Financial Statements—Note 3”.
•
The Administration Agreement with OFS Services, an affiliate of OFS Advisor, to provide us with the office facilities and administrative services necessary to conduct our operations. See “Item 1—Financial Statements—Note 3”.
•
A license agreement with OFSAM, the parent company of OFS Advisor, under which OFSAM has agreed to grant us a non-exclusive, royalty-free license to use the name “OFS.” Under this agreement, we have a right to use the “OFS” name for so long as OFS Advisor or one of its affiliates remains our investment adviser. Other than with respect to this limited license, we have no legal right to the “OFS” name. This license agreement will remain in effect for so long as the Investment Advisory Agreement with OFS Advisor is in effect.

OFS Advisor’s services under the Investment Advisory Agreement are not exclusive to us and OFS Advisor is free to furnish similar services to other entities, including other funds advised or sub-advised by OFS Advisor, so long as its services to us are not impaired. OFS Advisor also serves as the investment adviser to other funds, including HPCI and OCCI. Additionally, OFS Advisor provides sub-advisory services to: (i) CMFT Securities Investments, LLC, a wholly owned subsidiary of CIM Real Estate Finance Trust, Inc., a corporation that qualifies as a real estate investment trust; and (ii) CIM Real Assets & Credit Fund, an externally managed registered investment company that operates as an interval fund that invests primarily in a combination of real estate, credit and related investments.

On April 17, 2026, OFS Advisor agreed to waive its base management fee for the quarter ended March 31, 2026 attributable to all of the OFSCC-FS Assets to 0.25% per quarter (1.00% annualized) of the average value of the OFSCC-FS Assets (other than cash and cash equivalents, but including assets purchased with borrowed amounts) at the end of the two most recently completed

44

 

calendar quarters. This waiver differs from prior periods where OFS Advisor had contractually agreed to reduce its base management fee for the entire year at the beginning of the year. As of March 31, 2026, there is no active ongoing fee waiver or reduction agreement in place with OFS Advisor for the remainder of 2026.

For the year ended December 31, 2025, OFS Advisor agreed to reduce its base management fee attributable to all of the OFSCC-FS Assets to 0.25% per quarter (1.00% annualized) of the average value of the OFSCC-FS Assets (other than cash and cash equivalents, but including assets purchased with borrowed amounts) at the end of the two most recently completed calendar quarters.

OFS Advisor is not entitled to recoup the amount of the base management fee waived or reduced with respect to the OFSCC-FS Assets. The fee waiver and reductions were provided at OFS Advisor’s discretion; there can be no assurance that similar fee waivers or reductions will be provided in future periods.

The 1940 Act generally prohibits BDCs from making certain negotiated co-investments with certain affiliates absent an order from the SEC permitting the BDC to do so. On August 4, 2020, we received our existing Order, which superseded a previous order that we received on October 12, 2016, and provides us with greater flexibility to enter into co-investment transactions with certain 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. We are generally permitted to co-invest with Affiliated Funds if, under the terms of the Order, a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including that: (1) the terms of the transaction, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching in respect of us or our stockholders on the part of any person concerned; (2) the transaction is consistent with the interests of our stockholders and is consistent with our investment objective and strategies; (3) the investment by our affiliates would not disadvantage us, and our participation would not be on a basis different from or less advantageous than that on which our affiliates are investing; and (4) the proposed investment by us would not benefit OFS Advisor, the other Affiliated Funds that are participating in the investment, or any affiliated person of any of them (other than parties to the transaction), except to the extent permitted by the exemptive relief and applicable law, including the limitations set forth in Section 57(k) of the 1940 Act.

In addition, we have submitted a new application for exemptive relief that, if granted, will supersede our existing Order and permit us to co-invest pursuant to a different set of conditions than those in our existing Order. However, there is no guarantee that the SEC will grant such application.

Conflicts may arise when we make an investment in conjunction with an investment being made by an Affiliated Account, or in a transaction where an Affiliated Account has already made an investment. Investment opportunities are, from time to time, appropriate for more than one account in the same, different or overlapping securities of a portfolio company’s capital structure. Conflicts arise in determining the terms of investments, particularly where these accounts may invest in different types of securities in a single portfolio company. Potential conflicts arise when addressing, among other things, questions as to whether payment obligations and covenants should be enforced, modified or waived, or whether debt should be restructured, modified or refinanced. For a discussion of the risks associated with conflicts of interest, see “Item 1. Business—Regulation—Conflicts of Interest” and “Item 1A. Risk Factors—Risks Related to OFS Advisor and its Affiliates—We have potential conflicts of interest related to the purchases and sales that OFS Advisor makes on our behalf and/or on behalf of Affiliated Accounts” in our Annual Report on Form 10-K for the year ended December 31, 2025.

Portfolio Composition and Investment Activity

Portfolio Composition

As of March 31, 2026, the fair value of our debt investment portfolio totaled $156.6 million in 34 portfolio companies, of which approximately 98% and 2% were first lien and second lien debt investments, respectively. We also had equity investments in 14 portfolio companies with a fair value of approximately $102.9 million and 13 investments in Structured Finance Securities with a fair value of approximately $48.6 million. As of March 31, 2026, we had unfunded commitments of $7.8 million to fund outstanding commitments to 12 portfolio companies. Set forth in the tables and charts below is selected information with respect to our portfolio as of March 31, 2026 and December 31, 2025.

45

 

The following table presents our ten largest investments by issuer based on fair value as of March 31, 2026 (dollar amounts in thousands):

 

Issuer Name

 

Type

 

Amortized
Cost

 

 

Fair Value

 

 

% of Total
Portfolio, at
Fair Value

 

 

% of Net
Assets, at
Fair Value

 

Pfanstiehl Holdings, Inc.

 

Equity

 

$

217

 

 

$

80,430

 

 

 

26.1

%

 

 

73.6

%

Kreg LLC

 

Debt

 

 

18,390

 

 

 

17,984

 

 

 

5.8

%

 

 

16.5

%

SS Acquisition, LLC

 

Debt

 

 

17,183

 

 

 

17,420

 

 

 

5.7

%

 

 

16.0

%

Inergex Holdings, LLC

 

Debt

 

 

17,351

 

 

 

17,387

 

 

 

5.6

%

 

 

15.9

%

Contract Datascan Holdings, Inc.

 

Equity

 

 

13,019

 

 

 

12,030

 

 

 

3.9

%

 

 

11.0

%

One GI LLC

 

Debt

 

 

12,532

 

 

 

10,916

 

 

 

3.5

%

 

 

10.0

%

Boca Home Care Holdings, Inc.

 

Debt and Equity

 

 

10,777

 

 

 

10,412

 

 

 

3.4

%

 

 

9.5

%

Tolemar Acquisition, Inc.

 

Debt

 

 

15,104

 

 

 

9,610

 

 

 

3.1

%

 

 

8.8

%

PSB Group, LLC

 

Debt

 

 

8,232

 

 

 

8,346

 

 

 

2.7

%

 

 

7.7

%

24 Seven Holdco, LLC

 

Debt

 

 

8,345

 

 

 

8,345

 

 

 

2.7

%

 

 

7.6

%

Total

 

 

 

$

121,149

 

 

$

192,879

 

 

 

62.5

%

 

 

176.6

%

 

As of March 31, 2026, our common equity investment in Pfanstiehl Holdings, Inc., a global manufacturer of high-purity pharmaceutical ingredients, accounted for 26.1% and 73.6% of our total portfolio at fair value and our total net assets, respectively. The value of this investment is substantially comprised of unrealized appreciation of $80.2 million. The valuation’s unobservable inputs incorporate discounts for the minority-interest and illiquid nature of the security; however, the valuation, in accordance with fair value concepts, is based on assumptions applicable to an orderly transaction between market participants and does not reflect the impact of a forced sale or entity-specific liquidity constraints. As a result, there can be no assurance that we would be able to realize this value in a timely manner, or at all.

As of March 31, 2026, approximately 4.4% and 12.5% of our total portfolio at fair value and net assets, respectively, were comprised of Structured Finance Securities managed by a single adviser.

A deterioration or improvement in the operating performance of these portfolio investments, or other factors underlying the valuation of these investments, could have a material impact on our NAV.

Portfolio Yields

The following table presents weighted-average yield metrics for our portfolio as of March 31, 2026 and December 31, 2025:

 

 

For the Three Months Ended

 

 

March 31, 2026

 

 

December 31, 2025

 

Weighted-average performing income yield(1):

 

 

 

 

 

 

Debt investments

 

 

11.5

%

 

 

11.9

%

Structured Finance Securities

 

 

14.9

%

 

 

17.5

%

Interest-bearing investments

 

 

12.5

%

 

 

13.5

%

 

 

 

 

 

 

 

Weighted-average realized yield(2):

 

 

 

 

 

 

Interest-bearing investments

 

 

10.9

%

 

 

11.6

%

 

(1)
Performing income yield is calculated as (a) the actual amount earned on performing interest-bearing investments, including interest, prepayment fees and amortization of Net Loan Fees, divided by (b) the weighted-average of total performing interest-bearing investments at amortized cost.
(2)
Realized yield is calculated as (a) the actual amount earned on interest-bearing investments, including interest, prepayment fees and amortization of Net Loan Fees, divided by (b) the weighted-average of total interest-bearing investments at amortized cost, in each case, including debt investments on non-accrual status and non-performing Structured Finance Securities.

For the three months ended March 31, 2026, the weighted-average performing income yield on interest-bearing investments decreased to 12.5% from 13.5% during the prior quarter. This decrease is primarily attributable to a 2.53% decrease in the performing income yield on our Structured Finance Securities primarily related to a decline in the effective yields on our subordinated note investments.

46

 

Weighted-average yields of our investments are not the same as a return on investment for our stockholders, but rather the gross investment income from our investment portfolio before the payment of all of our fees and expenses. There can be no assurance that the weighted average yields will remain at their current levels. As of March 31, 2026, 94% of our total loan portfolio, at fair value, consisted of variable rate investments, generally indexed to SOFR. See additional information under “Item 3. Quantitative and Qualitative Disclosures About Market Risk”.

Portfolio Company Investments

The following table summarizes the composition of our Portfolio Company Investments as of March 31, 2026 and December 31, 2025 (dollar amounts in thousands):

 

 

March 31, 2026

 

 

December 31, 2025

 

 

Amortized
Cost

 

 

Fair Value

 

 

Amortized
Cost

 

 

Fair Value

 

First lien debt investments(1)

 

$

171,353

 

 

$

152,713

 

 

$

188,236

 

 

$

170,405

 

Second lien debt investments

 

 

18,340

 

 

 

3,869

 

 

 

24,924

 

 

 

9,409

 

Preferred equity

 

 

14,699

 

 

 

12,726

 

 

 

14,287

 

 

 

12,567

 

Common equity, warrants and other

 

 

18,598

 

 

 

90,168

 

 

 

23,320

 

 

 

88,029

 

Total Portfolio Company Investments

 

$

222,989

 

 

$

259,476

 

 

$

250,767

 

 

$

280,410

 

Number of portfolio companies

 

 

43

 

 

 

43

 

 

 

43

 

 

 

43

 

 

(1)
As of March 31, 2026 and December 31, 2025, first lien debt investments include unitranche investments (which are loans that combine both senior and subordinated debt, in a first lien position) with an amortized cost and fair value of $125.3 million and $110.5 million, respectively, and $130.3 million and $116.3 million, respectively. Unitranche loans generally provide leverage levels comparable to a combination of first lien and second lien or subordinated loans. Investments in “last out” pieces of unitranche loans will be similar to second lien loans in that such investments will be junior in priority to the “first out” piece of the same unitranche loan with respect to payment of principal and interest.

As of March 31, 2026, 100% of our loan portfolio and 51% of our total portfolio consisted of first lien and second lien loans, based on fair value.

As of March 31, 2026, the three largest industries of our Portfolio Company Investments by fair value, were: (1) Manufacturing (37.2%); (2) Health Care and Social Assistance (15.7%); and (3) Real Estate and Rental and Leasing (8.8%), totaling an aggregate of approximately 61.7% of our Portfolio Company Investment portfolio. For a full summary of our investment portfolio by industry, see “Item 1—Financial Statements—Note 4.”

Structured Finance Securities

The following table summarizes the composition of our Structured Finance Securities as of March 31, 2026 and December 31, 2025 (dollar amounts in thousands):

 

 

March 31, 2026

 

 

December 31, 2025

 

 

Amortized
Cost

 

 

Fair Value

 

 

Amortized
Cost

 

 

Fair Value

 

Subordinated notes

 

$

64,827

 

 

$

42,259

 

 

$

68,670

 

 

$

53,531

 

Mezzanine debt

 

 

8,965

 

 

 

6,385

 

 

 

8,963

 

 

 

8,074

 

Total Structured Finance Securities

 

$

73,793

 

 

$

48,644

 

 

$

77,633

 

 

$

61,605

 

Number of Structured Finance Securities

 

 

13

 

 

 

13

 

 

 

14

 

 

 

14

 

 

Non-performing Structured Finance Securities are securities that have not been optionally redeemed and have an effective yield of 0.0%, as remaining residual distributions are anticipated to be recognized as a return of capital. As of March 31, 2026, the amortized cost and fair value of non-performing Structured Finance Securities were $2.3 million and $0.1 million, respectively.

During the three months ended March 31, 2026, we sold a subordinated note investment for net proceeds of $2.6 million, resulting in a realized loss of $1.2 million, of which $0.9 million was recognized during the current quarter.

47

 

Investment Activity

The following is a summary of our investment activity for the three months ended March 31, 2026 and 2025 (dollar amounts in thousands):

 

 

For the Three Months Ended

 

 

March 31, 2026

 

 

March 31, 2025

 

Investments in debt and equity securities

 

$

2,109

 

 

$

4,635

 

Investments in Structured Finance Securities

 

 

—

 

 

 

5,776

 

Total investment purchases and originations

 

$

2,109

 

 

$

10,411

 

 

 

 

 

 

 

 

Proceeds from principal payments

 

$

8,996

 

 

$

3,290

 

Proceeds from investments sold or redeemed

 

 

14,056

 

 

 

3,137

 

Proceeds from distributions received from portfolio investments

 

 

2,478

 

 

 

3,504

 

Total proceeds from principal payments, sales or redemptions, and distributions received from portfolio investments

 

$

25,530

 

 

$

9,931

 

 

Non-Cash Investment Activity

During the three months ended March 31, 2026, our first lien debt investment in Redstone HoldCo 2 LP (F/K/A RSA Security) underwent a restructuring through which our first lien debt investment was exchanged for a combination of new first lien debt investments in the portfolio company at a price equal to 63% of par. In connection with the transaction, we recognized a realized loss of $0.6 million on the debt restructure corresponding to the amount forgiven upon the exchange, of which $0.2 million was recognized in the current quarter. As of March 31, 2026, our new first lien debt investments had an aggregate amortized cost of and fair value of $1.1 million and $1.0 million, respectively.

Risk Monitoring

We categorize debt investments into seven risk categories based on relevant information about the ability of borrowers to service their debt. For additional information regarding our risk categories, see “Item 1. Business—Portfolio Review/Risk Monitoring” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed on March 3, 2026. The following table shows the classification of our debt investments, excluding Structured Finance Securities, by credit risk rating as of March 31, 2026 and December 31, 2025 (dollar amounts in thousands):

 

 

Debt Investments as of

 

 

March 31, 2026

 

 

December 31, 2025

 

Risk Category

 

Amortized
Cost

 

 

Fair Value

 

 

% of Debt
Investments,
at Fair
Value

 

 

Amortized Cost

 

 

Fair Value

 

 

% of Debt
Investments,
at Fair
Value

 

1 (Low Risk)

 

$

—

 

 

$

—

 

 

 

—

 %

 

$

—

 

 

$

—

 

 

 

—

 %

2 (Below Average Risk)

 

 

—

 

 

 

—

 

 

 

—

 %

 

 

—

 

 

 

—

 

 

 

—

 %

3 (Average)

 

 

125,853

 

 

 

121,479

 

 

 

77.6

 %

 

 

131,812

 

 

 

128,363

 

 

 

71.4

 %

4 (Special Mention)

 

 

48,228

 

 

 

26,313

 

 

 

16.8

 %

 

 

67,235

 

 

 

44,209

 

 

 

24.6

 %

5 (Substandard)

 

 

15,612

 

 

 

8,790

 

 

 

5.6

 %

 

 

14,113

 

 

 

7,242

 

 

 

4.0

 %

6 (Doubtful)

 

 

—

 

 

 

—

 

 

 

—

 %

 

 

—

 

 

 

—

 

 

 

—

 %

7 (Loss)

 

 

—

 

 

 

—

 

 

 

—

 %

 

 

—

 

 

 

—

 

 

 

—

 %

 

$

189,693

 

 

$

156,582

 

 

 

100.0

%

 

$

213,160

 

 

$

179,814

 

 

 

100.0

%

 

48

 

Non-Accrual Loans

Management reviews, for placement on non-accrual status, all loans and CLO mezzanine debt investments that become past due on principal and interest, and/or when there is reasonable doubt that principal or interest will be collected. When a loan is placed on non-accrual status, accrued and unpaid cash interest is reversed. PIK income that has been contractually capitalized to the principal balance of the investment prior to the non-accrual designation date is not reserved against interest or dividend income, but rather is assessed through the valuation of the investment with corresponding adjustments to unrealized appreciation/depreciation, as applicable. Additionally, Net Loan Fees are no longer recognized as of the date the loan is placed on non-accrual status. Depending upon management’s judgment, interest payments subsequently received on non-accrual investments may be recognized as interest income or applied as a reduction to amortized cost. Interest accruals and Net Loan Fee amortization are resumed on non-accrual investments only when they are brought current with respect to principal and interest payments or until a restructuring occurs and, in the judgment of management, it is probable that we will collect all principal and interest from the investment.

As of March 31, 2026

The following table shows the classification of our debt investments on non-accrual status (dollar amounts in thousands):

 

 

March 31, 2026

 

 

Amortized Cost

 

 

Fair Value

 

First lien debt

 

$

15,811

 

 

$

9,059

 

Second lien debt

 

 

15,657

 

 

 

1,838

 

Total

 

$

31,468

 

 

$

10,897

 

 

For the three months ended March 31, 2026, our first lien debt investment in JP Intermediate B, LLC with an amortized cost and fair value of $1.5 million and $1.0 million, respectively, was placed on non-accrual status.

 

For the three months ended March 31, 2026, we received net proceeds of $2.3 million for the partial recovery of a second lien debt investment, with an amortized cost and fair value of $6.6 million and $2.4 million, respectively, that was previously on non-accrual status, resulting in a realized loss of $4.3 million.

As of December 31, 2025

The following table shows the classification of our debt investments on non-accrual status (dollar amounts in thousands):

 

 

December 31, 2025

 

 

Amortized Cost

 

 

Fair Value

 

First lien debt

 

$

14,326

 

 

$

7,491

 

Second lien debt

 

 

22,241

 

 

 

6,909

 

Total

 

$

36,567

 

 

$

14,400

 

 

For the three months ended December 31, 2025, our second lien debt investment in Excelin Home Health, LLC with an amortized cost and fair value of $6.8 million and $4.1 million, respectively, was placed on non-accrual status. Additionally, we restructured our first lien debt investment in SSJA Bariatric Management LLC with an amortized cost and fair value of $13.5 million and $5.3 million, respectively, which had been on non-accrual status, in exchange for a combination of a new loan and equity in the portfolio company. Our existing zero-basis equity investment in the portfolio company was also extinguished upon the exchange. Following the restructuring, the loan we received with an amortized cost and fair value of $3.8 million and $3.8 million, respectively, was placed on accrual status.

Results of Operations

Our key financial measures are described in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Key Financial Measures” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed on March 3, 2026. The following is a discussion of the key financial measures that management employs in reviewing the performance of our operations.

We do not believe that our historical operating performance is necessarily indicative of our future results of operations. We are primarily focused on debt investments in middle-market and larger companies in the United States and, to a lesser extent, equity investments, including warrants and other minority equity securities, and Structured Finance Securities. Moreover, as a BDC and a RIC, we are also subject to certain constraints on our operations, including, but not limited to, limitations imposed by the 1940 Act and the Code. For the reasons described above, the results of operations described below may not necessarily be indicative of the results we expect to report in future periods.

49

 

Net increase (decrease) in net assets resulting from operations can vary substantially from period to period for various reasons, including the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, annual comparisons of net increase (decrease) in net assets resulting from operations may not be meaningful.

The following analysis compares our quarterly results of operations to the preceding quarter, as well as our year-to-date results of operations to the corresponding period in the prior year. We believe a comparison of our current quarterly results to the preceding quarter is more meaningful and transparent than a comparison to the corresponding prior-year quarter as our results of operations are not influenced by seasonal factors that the latter comparison is designed to elicit and highlight.

Comparison of the three months ended March 31, 2026 and December 31, 2025 and comparison of the three months ended March 31, 2026 and 2025

Consolidated operating results for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025 are as follows (in thousands):

 

 

Three Months Ended

 

 

March 31, 2026

 

 

December 31, 2025

 

 

March 31, 2025

 

Investment income

 

 

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

Cash interest income

 

$

4,763

 

 

$

5,506

 

 

$

6,381

 

PIK interest income

 

 

175

 

 

 

167

 

 

 

388

 

Net Loan Fee amortization

 

 

114

 

 

 

276

 

 

 

205

 

Accretion of interest income on CLO subordinated notes

 

 

2,492

 

 

 

2,864

 

 

 

2,925

 

Other interest income

 

 

42

 

 

 

50

 

 

 

69

 

Total interest income

 

 

7,586

 

 

 

8,863

 

 

 

9,968

 

Dividend income:

 

 

 

 

 

 

 

 

 

Cash dividends

 

 

885

 

 

 

31

 

 

 

11

 

PIK dividends

 

 

412

 

 

 

412

 

 

 

287

 

Total dividend income

 

 

1,297

 

 

 

443

 

 

 

298

 

Fee income:

 

 

 

 

 

 

 

 

 

Syndication fees

 

 

—

 

 

 

33

 

 

 

—

 

Prepayment and other fees

 

 

21

 

 

 

30

 

 

 

29

 

Total fee income

 

 

21

 

 

 

63

 

 

 

29

 

Total investment income

 

 

8,904

 

 

 

9,369

 

 

 

10,295

 

Total expenses, net of base management fee waiver

 

 

6,440

 

 

 

6,673

 

 

 

6,830

 

Net investment income

 

 

2,464

 

 

 

2,696

 

 

 

3,465

 

Net loss on investments

 

 

(13,922

)

 

 

(13,532

)

 

 

(10,752

)

Loss on extinguishment of debt

 

 

(130

)

 

 

(12

)

 

 

—

 

Net decrease in net assets resulting from operations

 

$

(11,588

)

 

$

(10,848

)

 

$

(7,287

)

 

Investment Income

Comparison of the three months ended March 31, 2026 and December 31, 2025

For the three months ended March 31, 2026, total investment income decreased from $9.4 million in the prior quarter to $8.9 million, primarily due to a decrease in interest income, partially offset by an increase in non-recurring dividend income.

For the three months ended March 31, 2026, interest income decreased by $1.3 million compared to the prior quarter, primarily due to a smaller average debt investment portfolio, at cost, the impact of lower SOFR rates driven by the U.S. Federal Reserve rate cuts, and a decrease in the effective yields on our Structured Finance Securities.

For the three months ended March 31, 2026, dividend income increased by $0.9 million compared to the prior quarter, primarily due to a non-recurring cash dividend of $0.9 million from our common equity investment in Pfanstiehl Holdings, Inc.

Fee income is primarily comprised of unused fees, prepayment fees and syndication fees that generally result from periodic transactions rather than from holding portfolio investments, and are considered non-recurring. We receive syndication fees on investments where OFS Advisor sources, structures and arranges the lending group.

50

 

Comparison of the three months ended March 31, 2026 and 2025

Total investment income for the three months ended March 31, 2026 decreased $1.4 million compared to the corresponding period in the prior year, primarily due to a decrease in total interest income of $2.4 million, partially offset by an increase in total dividend income of $1.0 million.

Expenses

Operating expenses for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025 are presented below (in thousands):

 

 

Three Months Ended

 

 

 

March 31, 2026

 

 

December 31, 2025

 

 

March 31, 2025

 

Interest expense

 

$

3,889

 

 

$

4,267

 

 

$

3,858

 

Base management fee

 

 

1,435

 

 

 

1,331

 

 

 

1,549

 

Income Incentive Fee

 

 

408

 

 

 

—

 

 

 

330

 

Professional fees

 

 

363

 

 

 

396

 

 

 

436

 

Administration fee

 

 

326

 

 

 

394

 

 

 

394

 

Other expenses

 

 

239

 

 

 

285

 

 

 

263

 

  Total expenses before base management fee waiver

 

 

6,660

 

 

 

6,673

 

 

 

6,830

 

Base management fee waiver

 

 

(220

)

 

 

—

 

 

 

—

 

Total expenses, net of base management fee waiver

 

$

6,440

 

 

$

6,673

 

 

$

6,830

 

 

Comparison of the three months ended March 31, 2026 and December 31, 2025

Interest expense for the three months ended March 31, 2026 decreased $0.4 million compared to the prior quarter, primarily due to a decrease of $24.5 million in our average outstanding debt balances compared to the prior quarter. During the quarter ended March 31, 2026, we fully repaid the remaining $16.0 million of Unsecured Notes Due February 2026 and reduced the aggregate outstanding balance of our revolving credit facilities by $2.0 million.

Income Incentive Fees for the three months ended March 31, 2026 increased $0.4 million compared to the prior quarter, primarily due to an increase in our net investment income return on net assets in the current quarter.

For the three months ended March 31, 2026, the base management fee waiver of $0.2 million was due to OFS Advisor agreeing to waive its base management fee attributable to all of the OFSCC-FS Assets to 0.25% per quarter (1.00% annualized) of the average value of the OFSCC-FS Assets (other than cash and cash equivalents, but including assets purchased with borrowed amounts) at the end of the two most recently completed calendar quarters.

Comparison of the three months ended March 31, 2026 and 2025

Total expenses, net of the base management fee waiver, for the three months ended March 31, 2026 decreased $0.4 million compared to the corresponding period in the prior year.

Base management fees, net of the fee waiver, for the three months ended March 31, 2026 decreased $0.3 million compared to the corresponding period in the prior year, primarily due to a decrease in our total investment portfolio, at fair value.

Net realized and unrealized gain (loss) on investments

Net loss on investments, inclusive of realized and unrealized gains (losses), and net of current and deferred income taxes, by investment type for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025 were as follows (in thousands):

 

 

Three Months Ended

 

 

March 31, 2026

 

 

December 31, 2025

 

 

March 31, 2025

 

Debt investments

 

$

(5,122

)

 

$

(3,123

)

 

$

(8,128

)

Equity investments

 

 

1,888

 

 

 

(6,696

)

 

 

(1,197

)

Structured Finance Securities

 

 

(10,344

)

 

 

(3,436

)

 

 

(1,526

)

Current/deferred income tax (expense) benefit

 

 

(344

)

 

 

(276

)

 

 

99

 

Total net loss on investments

 

$

(13,922

)

 

$

(13,531

)

 

$

(10,752

)

 

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Net gain (loss) on investments for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025

Three months ended March 31, 2026

For the three months ended March 31, 2026, we recognized a net loss on investments of $13.9 million due to a net realized loss of $11.3 million and net unrealized depreciation, net of taxes, of $2.6 million. For the quarter ended March 31, 2026, our net realized and unrealized loss on investments of $13.9 million was primarily attributable to $10.3 million of net realized and unrealized losses on our Structured Finance Securities.

Three months ended December 31, 2025

For the three months ended December 31, 2025, our portfolio experienced net losses of $13.5 million, primarily due to net unrealized depreciation of $8.3 million on our current non-accrual debt investments and $3.4 million on our Structured Finance Securities.

Three months ended March 31, 2025

For the three months ended March 31, 2025, we recognized a net loss on investments of $10.8 million, primarily comprised of aggregate net losses of $9.3 million on our debt and equity investments and $1.5 million on our Structured Finance Securities.

For the three months ended March 31, 2025, our net loss on debt investments of $8.1 million was primarily due to net unrealized depreciation of $7.3 million, of which $3.9 million related to non-accrual debt investments.

Loss on Extinguishment of Debt

Three months ended March 31, 2026

During the three months ended March 31, 2026, we fully repaid and terminated the BNP Facility, and, as a result, we recognized a loss on extinguishment of debt of $0.1 million related to the acceleration of deferred financing costs.

During the three months ended March 31, 2026, we amended the Banc of California Credit Facility to, among other things, reduce the maximum facility amount from $25.0 million to $15.0 million, and, as a result, we recognized a loss on extinguishment of debt of $41,617 related to the acceleration of deferred financing costs.

Liquidity and Capital Resources

As of March 31, 2026, we held cash and cash equivalents of $3.3 million, which included $2.6 million held by OFSCC-FS. Distributions from OFSCC-FS to the Parent are restricted by the terms and conditions of the Natixis Facility. During the three months ended March 31, 2026, the Parent received $2.8 million in cash distributions from OFSCC-FS.

On February 18, 2026, OFSCC-FS entered into the Natixis Facility, which provides for borrowings in an aggregate principal amount up to $80.0 million. See “Borrowings—Natixis Facility” for additional information.

On February 18, 2026, in connection with the closing of the Natixis Facility, OFSCC-FS repaid in full all outstanding obligations due, and terminated all commitments, under the BNP Facility. All liens securing the BNP Facility were released upon such repayment.

As of March 31, 2026, we had an unused commitment of $6.3 million under our Banc of California Credit Facility, as well as an unused commitment of $35.3 million under our Natixis Facility, both of which are subject to borrowing base requirements and other covenants.

As of March 31, 2026, we had unfunded commitments of $7.8 million to fund outstanding commitments to portfolio companies.

As of March 31, 2026, the aggregate amount outstanding of the senior securities issued by us was $202.5 million, for which our asset coverage was 154%, exceeding our minimum asset coverage requirement of 150% under the 1940 Act. The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by total senior securities representing indebtedness.

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Sources and Uses of Cash

We generate operating cash flows from net investment income and the net proceeds from the liquidation of portfolio investments, and use cash in our operations in the net purchase of portfolio investments and payment of expenses. Significant variations may exist between net investment income and cash from net investment income, primarily due to the recognition of non-cash investment income, including certain Net Loan Fee amortization, PIK interest and PIK dividends, which generally will not be fully realized in cash until we exit the investment, as well as accreted interest income on Structured Finance Securities, which may not coincide with cash distributions from these investments. As discussed in “Item 1.—Financial Statements—Note 3,” we pay OFS Advisor a quarterly incentive fee with respect to our pre-incentive fee net investment income, which may include investment income that we have not received in cash. In addition, we must distribute substantially all of our taxable income, which approximates, but will not always equal, the cash we generate from net investment income to maintain our RIC tax treatment. We also obtain cash to fund investments or general corporate activities from the issuance of securities and our revolving lines of credit. These principal sources and uses of cash and liquidity are presented below (in thousands):

 

 

Three Months Ended March 31,

 

 

2026

 

 

2025

 

Cash from net investment income(1)

 

$

847

 

 

$

901

 

Net repayments and sales of portfolio investments(1)

 

 

20,924

 

 

 

1,940

 

Net cash provided by operating activities

 

 

21,771

 

 

 

2,841

 

 

 

 

 

 

 

Distributions paid to stockholders(2)

 

 

(2,278

)

 

 

(4,555

)

Net repayments under revolving lines of credit

 

 

(2,000

)

 

 

(300

)

Redemption of Unsecured Notes

 

 

(16,000

)

 

 

—

 

Payment of deferred financing costs

 

 

(1,594

)

 

 

—

 

Net cash used in financing activities

 

 

(21,872

)

 

 

(4,855

)

Net decrease in cash and cash equivalents

 

$

(101

)

 

$

(2,014

)

 

(1)
Cash from net investment income includes all other cash flows from operating activities reported in our statements of cash flows. Net purchases and originations/repayments and sales of portfolio investments includes the purchase and origination of portfolio investments, proceeds from principal payments on portfolio investments, proceeds from sale or redemption of portfolio investments, changes in receivable for investments sold, payable from investments purchased as reported in our statements of cash flows, as well as differences in proceeds from distributions received from Structured Finance Securities relative to accretion of interest income on Structured Finance Securities.
(2)
The determination of the tax attributes of our distributions is made annually as of the end of our fiscal year based upon our ICTI for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of our distributions for a full year.

Net cash provided by operating activities

For the three months ended March 31, 2026, net cash from operating activities increased by $18.9 million compared to the three months ended March 31, 2025, primarily due to an increase of $19.0 million in net repayments and sales of portfolio investments, which were primarily used for the repayment of outstanding debt.

Net cash used in financing activities

For the three months ended March 31, 2026, net cash used in financing activities increased $17.0 million compared to the three months ended March 31, 2025, primarily due to the redemption of Unsecured Notes and net repayments on our revolving lines of credit, partially offset by a reduction in distributions paid to stockholders.

Borrowings

As of March 31, 2026, we had $202.5 million of outstanding debt with a weighted-average effective interest rate of 7.30%. As of March 31, 2026, approximately 96% of our outstanding debt matures in more than two years and 74% of our outstanding debt is unsecured.

Banc of California Credit Facility

We are party to the BLA with Banc of California, as lender, to provide us with a senior secured revolving credit facility, or the Banc of California Credit Facility, which is available for general corporate purposes including investment funding and is scheduled to mature on February 28, 2028. The Banc of California Credit Facility currently bears interest at a variable Prime Rate plus a 0.25% margin, with a 5.00% floor, and an annual commitment fee of 0.50% based on the maximum principal amount of the facility. As of March 31, 2026, the effective interest rate on the Banc of California Credit Facility was 7.89%. The maximum availability of the

53

 

Banc of California Credit Facility is equal to 50% of the aggregate outstanding principal amount of eligible loans included in the borrowing base, which typically excludes Structured Finance Securities, foreign loans, and non-performing loans, and as otherwise specified in the BLA. The Banc of California Credit Facility is guaranteed by OFSCC-MB and secured by all of our and OFSCC-MB’s current and future assets, excluding assets held by OFSCC-FS and our partnership interests in SBIC I LP.

On January 9, 2026, we amended the Banc of California Credit Facility to extend the maturity date from February 28, 2026 to February 28, 2028.

On March 27, 2026, we amended the Banc of California Credit Facility to, among other things: (i) reduce the minimum tangible net asset value covenant from $100.0 million to $75.0 million; (ii) reduce the covenant requiring minimum quarterly net investment income after management/incentive fees from $2.0 million to $1.0 million for each of the quarters ending March 31, 2026, June 30, 2026 and September 30, 2026, after which the minimum quarterly net investment income after management/incentive fees covenant shall return to $2.0 million; and (iii) decrease our maximum commitment amount from $25.0 million to $15.0 million.

The BLA contains customary terms and conditions, including, without limitation, affirmative and negative covenants, such as information reporting requirements, a minimum tangible net asset value, a minimum quarterly net investment income after incentive fees and a debt/worth ratio. The BLA also contains customary events of default, including, without limitation, nonpayment, misrepresentation of representations and warranties in a material respect, breach of covenant, cross-default to other indebtedness, bankruptcy, change in investment advisor, and the occurrence of a material adverse change in our financial condition. As of March 31, 2026, we were in compliance in all material respects with the applicable covenants under the Banc of California Credit Facility.

As of March 31, 2026, we had outstanding debt of $8.8 million and an unused commitment of $6.3 million under the Banc of California Credit Facility, subject to the terms of the borrowing base and other covenants.

Unsecured Notes

As of March 31, 2026 and December 31, 2025, we had $149.0 million and $165.0 million, respectively, in outstanding Unsecured Notes. The Unsecured Notes are direct unsecured obligations and rank equal in right of payment with all of our current and future unsecured indebtedness. Because the Unsecured Notes are not secured by any of our assets, they are effectively subordinated to all existing and future secured unsubordinated indebtedness (or any indebtedness that is initially unsecured as to which we subsequently grant a security interest), to the extent of the value of the assets securing such indebtedness, including, without limitation, borrowings under the Banc of California Credit Facility and Natixis Facility.

In order to, among other things, reduce future cash interest payments, as well as future amounts due at maturity or upon redemption, we may, from time to time, purchase the Unsecured Notes for cash in open market purchases and/or privately negotiated transactions. We will evaluate any such transactions in light of then-existing market conditions, taking into account our current liquidity, prospects for future access to capital, contractual restrictions and other factors. The amounts involved in any such transactions, individually or in the aggregate, may be material. During the three months ended March 31, 2026, no outstanding Unsecured Notes were repurchased.

Redemption of Unsecured Notes

On January 8, 2026, we issued notices to the holders of the Unsecured Notes Due February 2026 regarding the exercise of our option to redeem on February 9, 2026 $16.0 million, which was equal to the remainder of the outstanding Unsecured Notes Due February 2026, plus accrued interest of $0.4 million.

As of March 31, 2026, the Unsecured Notes had the following terms and balances (dollar amounts in thousands):

 

Unsecured Notes

 

Principal

 

 

Stated
Interest
Rate

 

 

Effective
Interest
Rate(1)

 

 

Optional
Redemption
Date

 

Maturity

Unsecured Notes Due July 2028

 

$

69,000

 

 

 

7.50

%

 

 

8.34

%

 

July 31, 2026

 

July 31, 2028

Unsecured Notes Due October 2028

 

 

55,000

 

 

 

4.95

 

 

 

5.32

 

 

Callable

 

October 31, 2028

Unsecured Note Due August 2029

 

 

25,000

 

 

 

8.00

 

 

 

8.80

 

 

Callable

 

August 8, 2029

Total / Weighted-Average

 

$

149,000

 

 

 

6.64

%

 

 

7.30

%

 

 

 

 

 

(1)
The effective interest rate on the Unsecured Notes includes deferred debt issuance cost amortization.

Natixis Facility

On February 18, 2026, OFSCC-FS entered into the Natixis Facility, which provides for borrowings in an aggregate principal amount up to $80.0 million. Borrowings under the Natixis Facility bear interest at a rate based on SOFR plus a margin of 2.35%. The Natixis Facility also includes a fee of 0.40% on the unused amount of the facility, as well as an arranger fee of 0.20% on the total commitment amount of the facility. The reinvestment period during which OFSCC-FS is permitted to borrow terminates on February 18, 2029, and the facility is scheduled to mature on February 18, 2031.

54

 

As of March 31, 2026, the Natixis Facility had outstanding debt of $44.7 million, the unused commitment under the Natixis Facility was $35.3 million, subject to a borrowing base and other covenants, and the stated interest rate on the Natixis Facility was 6.05%.

Borrowings under the Natixis Facility are secured by substantially all of the assets held by OFSCC-FS, which were $114.7 million at March 31, 2026. Our use of cash and cash equivalents held by OFSCC-FS is limited by the terms and conditions of the Natixis Facility, including but not limited to, the payment of interest expense and principal on the outstanding borrowings. As of March 31, 2026 and December 31, 2025, OFSCC-FS had cash and cash equivalents of $2.6 million and $2.4 million, respectively.

BNP Facility

On June 20, 2019, OFSCC-FS entered into the BNP Facility, which provided for borrowings in an aggregate principal amount up to $80.0 million during its reinvestment period. Borrowings under the BNP Facility bore interest at a variable rate of SOFR plus a variable margin (2.65% floor), which was determined on the basis of industry-recognized portfolio company metrics at the time of funding.

On February 18, 2026, in connection with the closing of the Natixis Facility, OFSCC-FS repaid in full all outstanding obligations due, and terminated all commitments, under the BNP Facility. All liens securing the BNP Facility were released upon such repayment.

The following table shows the scheduled maturities of the principal balances of our outstanding borrowings as of March 31, 2026 (in thousands):

 

Payments due by period

 

 

Total

 

 

Less than
1 year

 

 

1 to 3 years

 

 

3 to 5 years

 

 

After 5 years

 

Banc of California Credit Facility

 

$

8,750

 

 

$

—

 

 

$

8,750

 

 

$

—

 

 

$

—

 

Natixis Facility

 

 

44,700

 

 

 

—

 

 

 

—

 

 

 

44,700

 

 

 

—

 

Unsecured Notes

 

 

149,000

 

 

 

—

 

 

 

124,000

 

 

 

25,000

 

 

 

—

 

Total

 

$

202,450

 

 

$

—

 

 

$

132,750

 

 

$

69,700

 

 

$

—

 

Other Liquidity Matters

We expect to fund the growth of our investment portfolio utilizing our current borrowings, follow-on equity offerings, and issuances of senior securities or future borrowings to the extent permitted by the 1940 Act. We cannot assure stockholders that our plans to raise capital will be successful or available to us on favorable terms, if at all. In addition, we intend to distribute to our stockholders substantially all of our taxable income in order to satisfy the requirements applicable to RICs under Subchapter M of the Code. Consequently, we may not have the funds or the ability to fund new investments or make additional investments in our portfolio companies. The illiquidity of our portfolio investments, in particular, equity investments, may make it difficult for us to sell these investments when desired and, if we are required to sell these investments, we may realize significantly less than their recorded value and incur a capital loss.

As a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our assets, as defined by the 1940 Act, are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” Under the relevant SEC rules, the term “eligible portfolio company” includes all private companies, companies whose securities are not listed on a national securities exchange, and certain public companies that have listed their securities on a national securities exchange and have a market capitalization of less than $250 million, in each case organized in the United States. Conversely, we may invest up to 30% of our portfolio in opportunistic investments not otherwise eligible under BDC regulations. Specifically, as part of this 30% basket, we may consider investments in investment funds that are operating pursuant to certain exceptions to the 1940 Act and in advisers to similar investment funds, as well as in debt or equity of middle-market portfolio companies located outside of the United States and debt and equity of public companies that do not meet the definition of eligible portfolio companies because their market capitalization of publicly traded equity securities exceeds the levels provided for in the 1940 Act. We have, and may continue to, make opportunistic investments in Structured Finance Securities and other non-qualifying assets, consistent with our investment strategy. Investments in Structured Finance Securities are generally made in non-U.S. entities and are not operating companies and, therefore, are generally deemed to be non-qualifying. As of March 31, 2026, approximately 83% of our investments were qualifying assets.

On May 3, 2018, our Board, including a required majority (as such term is defined in Section 57(o) of the 1940 Act) thereof, approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act. As a result, effective May 3, 2019, our minimum required asset coverage ratio decreased from 200% to 150%. As of March 31, 2026, our asset coverage ratio of 154% exceeded the minimum asset coverage requirement of 150% under the 1940 Act.

On May 22, 2018, the Board authorized the Stock Repurchase Program under which we could acquire up to $10.0 million of our outstanding common stock through the two-year period ended May 22, 2020. On each of May 4, 2020, May 3, 2022 and April 30,

55

 

2024, our Board extended the Stock Repurchase Program for additional two-year periods. On April 28, 2026, our Board extended the Stock Repurchase Program for the two-year period ending on May 22, 2028. Under the extended Stock Repurchase Program, we are authorized to repurchase shares in open-market transactions, including through block purchases, depending on prevailing market conditions and other factors. We expect the Stock Repurchase Program to be in place through May 22, 2028, or until the approved dollar amount has been used to repurchase shares. The Stock Repurchase Program does not obligate us to acquire any specific number of shares, and all repurchases will be made in accordance with SEC Rule 10b-18, which sets certain restrictions on the method, timing, price and volume of stock repurchases. The Stock Repurchase Program may be extended, modified or discontinued at any time for any reason. We have provided our stockholders with notice of our intention to repurchase shares of our common stock in accordance with 1940 Act requirements. We retire all shares of common stock that we purchased in connection with the Stock Repurchase Program. During the three months ended March 31, 2026, we did not make any repurchases of common stock on the open market under the Stock Repurchase Program. As of March 31, 2026, the approximate dollar value of shares remaining that may be purchased under the program was $9.6 million.

As a BDC, we are generally not permitted to issue and sell our common stock at a price below net asset value per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current net asset value per share of our common stock if the Board determines that such sale is in the best interests of us and our stockholders, and if our stockholders approve such sale. On July 30, 2025, our stockholders approved a proposal to authorize us, with approval of our Board, to sell or otherwise issue shares of our common stock (during a twelve-month period) at a price below our then-current net asset value per share in one or more offerings, subject to certain limitations (including that the cumulative number of shares sold pursuant to such authority does not exceed 25% of our then outstanding common stock immediately prior to each such sale). We have not sold any shares below net asset value pursuant to the proposal approved by our stockholders.

We continue to monitor the current banking environment. If the banks and financial institutions with whom we have credit facilities enter into receivership, undergo consolidation or become insolvent in the future, our liquidity may be reduced significantly. At various times, our cash balances at third-party financial institutions exceed the federally insured limit. Our cash and cash equivalent balances are retained in custodian accounts with U.S. Bank Trust Company, National Association and Citibank N.A., and we do not believe they are exposed to any significant credit risk.

Contractual Obligations and Off-Balance Sheet Arrangements

Contractual Obligations

As of March 31, 2026, we had $3.3 million of cash and cash equivalents, as well as unused commitments of $6.3 million under our Banc of California Credit Facility and $35.3 million under our Natixis Facility, respectively, to meet our short-term contractual obligations, subject to contractual requirements and regulatory asset coverage requirements. As of March 31, 2026, we had $7.8 million in unfunded commitments to fund portfolio investments that can be funded with our current cash or credit facilities.

Following the maturity extension of our Banc of California Credit Facility in January 2026, the final repayment of our 4.75% Unsecured Notes Due February 2026, and the execution of our Natixis Facility in February 2026, we do not have any debt maturities until February 2028.

Long-term contractual obligations, such as our Natixis Facility that matures in 2031 and had $44.7 million outstanding as of March 31, 2026, could be repaid by selling OFSCC-FS portfolio investments that have a fair value of $109.6 million as of March 31, 2026. A portion of the OFSCC-FS portfolio includes broadly syndicated loans in larger portfolio companies that generally can be sold over a relatively short period to generate cash. As of March 31, 2026, the broadly syndicated loan investments in the OFSCC-FS portfolio totaled $19.3 million at fair value. We cannot, however, be certain that this source of funds will be available and upon terms acceptable to us in sufficient amounts in the future. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than its current fair value and incur significant realized losses on our invested capital.

As of March 31, 2026, we had $149.0 million of outstanding Unsecured Notes, of which $124.0 million matures 2028 and $25.0 million matures in 2029. The Unsecured Notes can be repaid by issuing additional senior securities to refinance the debt or by selling portfolio investments.

Off-Balance Sheet Arrangements

We have entered into contracts with third parties under which we have material future commitments — the Investment Advisory Agreement, pursuant to which OFS Advisor has agreed to serve as our investment adviser, and the Administration Agreement, pursuant to which OFS Services has agreed to furnish us with the facilities and administrative services necessary to conduct our day-to-day operations.

We may become a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized on the balance sheet. There is no guarantee that these amounts will be funded to the borrowing party now or in the future. We continue to believe that we have sufficient levels of liquidity

56

 

to support our existing portfolio companies and will meet these unfunded commitments by using our cash on hand or utilizing our available borrowing capacity under the Banc of California Credit Facility.

Distributions

We are taxed as a RIC under the Code. In order to maintain our tax treatment as a RIC, we are required to distribute annually to our stockholders at least 90% of our ICTI, as defined by the Code. Additionally, to avoid a 4% excise tax on undistributed earnings we are required to distribute each calendar year the sum of: (i) 98% of our ordinary income for such calendar year; (ii) 98.2% of our net capital gains for the one-year period ending October 31 of that calendar year; and (iii) any income recognized, but not distributed, in preceding years and on which we paid no federal income tax. Maintenance of our RIC status requires adherence to certain source of income and asset diversification requirements. Generally, a RIC is entitled to deduct dividends it pays to its stockholders from its income to determine “taxable income”. Taxable income includes our taxable interest, dividend and fee income, and taxable net capital gains. Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized appreciation or depreciation, as gains or losses are not included in taxable income until they are realized. In addition, gains realized for financial reporting purposes may differ from gains included in taxable income as a result of our election to recognize gains using installment sale treatment, which generally results in the deferment of gains for tax purposes until notes or other amounts, including amounts held in escrow received as consideration from the sale of investments, are collected in cash. Taxable income includes non-cash income, such as changes in accrued and reinvested interest and dividends, which includes contractual PIK interest, and the amortization of discounts and fees. Cash collections of income resulting from contractual PIK interest and dividends or the amortization of discounts and fees generally occur upon the repayment of the loans or debt securities that include such items. Non-cash taxable income is reduced by non-cash expenses, such as realized losses and depreciation, and amortization expense.

Our Board maintains a variable dividend policy with the objective of distributing quarterly distributions in an amount not less than 90% of our taxable quarterly income or potential annual income for a particular year. In addition, during the year, we may pay a special dividend, such that we may distribute approximately all of our annual taxable income in the year it was earned, while maintaining the option to spill over our excess taxable income to a following year. We may choose to retain a portion of our taxable income in any year and pay the 4% U.S. federal excise tax on the retained amounts. Distributions in excess of our current and accumulated ICTI would be treated first as a return of capital to the extent of the stockholder’s adjusted tax basis, and any remaining distributions would be treated as a capital gain. The determination of the tax attributes of our distributions is made annually as of the end of our fiscal year based upon our estimated ICTI for the full year and distributions paid for the full year. Each year, a statement on Form 1099-DIV identifying the source of the distribution is mailed to our stockholders.

Recent Developments

Declaration of a Distribution

On April 28, 2026, our Board declared a distribution of $0.17 per share for the second quarter of 2026, payable on July 6, 2026 to stockholders of record as of June 19, 2026.

57

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates and the valuations of our investment portfolio. The economic effects of the ongoing war between Russia and Ukraine, the escalated armed conflict and heightened regional tensions in the Middle East, activity in South America, interest rate and inflation rate changes, ongoing supply chain and labor market disruptions, including those as a result of strikes, work stoppages or accidents, the agenda of the U.S. presidential administration, including the impact of tariff enactment and tax reductions, trade disputes with other countries, instability in the U.S. and international banking systems and the risk of recession or the impact of the prolonged shutdown of U.S. government services has introduced significant volatility in the financial markets, and the effects of this volatility has impacted and could continue to impact our market risks. For additional information concerning risks and their potential impact on our business and our operating results, see “Part I—Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed on March 3, 2026.

Investment Valuation Risk

Because there is not a readily available market value for most of the investments in our portfolio, we value a significant portion of our portfolio investments at fair value as determined in good faith by OFS Advisor, as valuation designee, based, in part, on independent third-party valuation firms that have been engaged at the direction of OFS Advisor to assist in the valuation of most portfolio investments without a readily available market quotation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate significantly from period-to-period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, some investments may be subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than its current fair value. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Significant Estimates” as well as Notes 2 and 5 to our consolidated financial statements for the three months ended March 31, 2026 for more information relating to our investment valuation.

Interest Rate Risk

As of March 31, 2026, we held loans and mezzanine debt investments with an aggregate fair value of $153.4 million, or 94% of our total loan and mezzanine debt investments, at fair value, that bore interest at floating interest rates and contained interest rate reset provisions that adjust applicable interest rates to current rates on a periodic basis. The aggregate 175 basis point reductions in the U.S. Federal Reserve target federal funds rate enacted from September 2024 through December 2025 has resulted in our variable rate debt investments generating less interest income. Changes in interest rates, including potential additional interest rate reductions approved by the U.S. Federal Reserve, may impact our results of operations, cost of funding and the valuation of our investments. Additional reductions in interest rates would reduce our interest income, which could in turn decrease our net investment income if such decreases in base interest rates are not offset by other factors, such as increases in the spread over such base interest rates or decreases in our operating expenses.

As of March 31, 2026, our Unsecured Notes comprise 74% of our total outstanding debt. Our Unsecured Notes bear interest at fixed rates, which may result in net interest margin compression in a period of falling interest rates. As of March 31, 2026, our Banc of California Credit Facility and Natixis Facility had floating interest rate provisions based on the applicable reference rates.

Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates as of March 31, 2026. As of March 31, 2026, 1-month and 3-month SOFR were 3.66% and 3.68%, respectively. Assuming that the interim and unaudited consolidated balance sheet as of March 31, 2026 were to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following tables show the annualized impact of hypothetical changes in interest rate indices (in thousands).

 

Basis point increase

 

Interest income

 

 

Interest expense

 

 

Net change

 

25

 

$

410

 

 

$

(126

)

 

$

284

 

50

 

 

835

 

 

 

(259

)

 

 

576

 

75

 

 

1,261

 

 

 

(393

)

 

 

868

 

100

 

 

1,687

 

 

 

(527

)

 

 

1,160

 

125

 

 

2,113

 

 

 

(660

)

 

 

1,453

 

 

Basis point decrease

 

Interest income

 

 

Interest expense

 

 

Net change

 

25

 

$

(442

)

 

$

141

 

 

$

(301

)

50

 

 

(868

)

 

 

275

 

 

 

(593

)

75

 

 

(1,292

)

 

 

409

 

 

 

(883

)

100

 

 

(1,710

)

 

 

542

 

 

 

(1,168

)

125

 

 

(2,127

)

 

 

676

 

 

 

(1,451

)

 

58

 

 

Although we believe that the foregoing analysis is indicative of our net interest margin sensitivity to interest rate changes as of March 31, 2026, it does not adjust for potential changes in the credit market, credit quality, size and composition of the assets in our portfolio, and other business developments, including borrowings under our credit facilities, that could affect net increase in net assets resulting from operations, or net income. Accordingly, no assurances can be given that actual results would not differ materially from the statement above.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2026. The term “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the foregoing evaluation of our disclosure controls and procedures as of March 31, 2026, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

During the quarter ended March 31, 2026, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

59

 

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

We, OFS Advisor and OFS Services, are not currently subject to any material pending legal proceedings threatened against us as of March 31, 2026. From time to time, we may be a party to certain legal proceedings incidental to the normal course of our business, including the enforcement of our rights under contracts with our portfolio companies. Furthermore, third parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our business, financial condition, results of operations or cash flows.

Item 1A. Risk Factors

Investing in our common stock may be speculative and involves a high degree of risk. In addition to the other information contained in this Quarterly Report on Form 10-Q, including our financial statements, and the related notes, schedules and exhibits, you should carefully consider the risk factors described in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “Annual Report on Form 10-K”), filed on March 3, 2026, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K. The risks previously disclosed in the Annual Report on Form 10-K should be read together with the other information disclosed elsewhere in this Quarterly Report on Form 10-Q and our other reports filed with the SEC.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Sales of Unregistered Securities, Use of Proceeds

None.

Issuer Purchases of Equity Securities

On May 22, 2018, the Board authorized the Company to initiate the Stock Repurchase Program under which the Company could acquire up to $10.0 million of its outstanding common stock through the two-year period ended May 22, 2020.

On each of May 4, 2020, May 3, 2022 and April 30, 2024, our Board extended the Stock Repurchase Program for additional two-year periods. On April 28, 2026, the Board extended the Stock Repurchase Program for the two-year period ending May 22, 2028. Under the extended Stock Repurchase Program, the Company is authorized to repurchase shares in open-market transactions, including through block purchases, depending on prevailing market conditions and other factors. The Company expects the Stock Repurchase Program to be in place through May 22, 2028, or until the approved dollar amount has been used to repurchase shares. The Stock Repurchase Program does not obligate the Company to acquire any specific number of shares, and all repurchases will be made in accordance with SEC Rule 10b-18, which sets certain restrictions on the method, timing, price and volume of stock repurchases. The Stock Repurchase Program may be extended, modified or discontinued at any time for any reason. The Company retires all shares of common stock that it purchases in connection with the Stock Repurchase Program. As of March 31, 2026, the approximate dollar value of shares remaining that may be purchased under the program was $9.6 million.

During the three months ended March 31, 2026, the Company did not make any repurchases of its common stock on the open market under the Stock Repurchase Program.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

60

 

Item 5. Other Information

Rule 10b5-1 Trading Plans

During the three months ended March 31, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Price Range of Common Stock and Distributions

The Company’s common stock is traded on The Nasdaq Global Select Market under the symbol “OFS”. The following table lists the high and low intraday sale price for the Company’s common stock, NAV per share, and the cash distributions per share that were declared on its common stock for each fiscal quarter during the last two most recently completed fiscal years and each full fiscal quarter of the current fiscal year. The last reported sale price for our common stock on The Nasdaq Global Select Market on March 31, 2026 was $3.55 per share.

 

 

 

 

 

Price Range

 

 

Premium

 

 

Premium

 

 

Cash

 

Period

 

NAV Per
Share(1)

 

 

High

 

 

Low

 

 

(Discount) of High
Sales Price to NAV

 

 

(Discount) of Low
Sales Price to NAV

 

 

Distribution
per Share

 

Fiscal 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

8.16

 

 

$

5.28

 

 

$

2.72

 

 

 

(35.3

)%

 

 

(66.7

)%

 

$

0.17

 

Fiscal 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

$

9.19

 

 

$

7.81

 

 

$

4.44

 

 

 

(15.0

)%

 

 

(51.7

)%

 

$

0.17

 

Third Quarter

 

$

10.17

 

 

$

8.99

 

 

$

7.58

 

 

 

(11.6

)%

 

 

(25.5

)%

 

$

0.34

 

Second Quarter

 

$

10.91

 

 

$

9.52

 

 

$

7.88

 

 

 

(12.7

)%

 

 

(27.8

)%

 

$

0.34

 

First Quarter

 

$

11.97

 

 

$

9.80

 

 

$

7.92

 

 

 

(18.1

)%

 

 

(33.8

)%

 

$

0.34

 

Fiscal 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

$

12.85

 

 

$

8.98

 

 

$

7.81

 

 

 

(30.1

)%

 

 

(39.2

)%

 

$

0.34

 

Third Quarter

 

$

11.29

 

 

$

9.35

 

 

$

7.75

 

 

 

(17.2

)%

 

 

(31.4

)%

 

$

0.34

 

Second Quarter

 

$

11.51

 

 

$

10.14

 

 

$

8.42

 

 

 

(11.9

)%

 

 

(26.8

)%

 

$

0.34

 

First Quarter

 

$

11.08

 

 

$

12.07

 

 

$

9.53

 

 

 

8.9

%

 

 

(14.0

)%

 

$

0.34

 

 

(1)
NAV per share is determined as of the last day in the relevant quarter and therefore may not reflect the NAV per share on the date of the high and low sales prices. The NAVs shown are based on outstanding shares at the end of each period.

61

 

Item 6. Exhibits

Listed below are the exhibits that are filed as part of this report (according to the number assigned to them in Item 601 of Regulation S-K):

 

 

 

 

Incorporated by Reference

 

Exhibit

Number

Description

Form and SEC

File No.

Filing Date with

SEC

Filed with

this 10-Q

3.1

 

Certificate of Incorporation of OFS Capital Corporation

Form N-2/A (333-166363)

March 18, 2011

 

3.2

 

Certificate of Correction to Certificate of Incorporation of OFS Capital Corporation

Form 10-K (814-00813)

March 26, 2013

 

3.3

 

Bylaws of OFS Capital Corporation

Form N-2/A (333-166363)

March 18, 2011

 

10.1

 

Revolving Credit and Security Agreement by and among OFSCC-FS, LLC, as borrower, the lenders from time to time party thereto, Natixis, New York Branch, as administrative agent, OFSCC-FS Holdings, LLC, as equityholder, OFS Capital Corporation, as servicer, Virtus Group, LP, as collateral administrator and Citibank, N.A., as collateral agent, dated as of February 18, 2026.

Form 8-K (814-00813)

February 20,

2026

 

10.2

 

Amendment Eight to the Business Loan Agreement between OFS Capital Corporation and Banc of California dated January 9, 2026

Form 8-K (814-00813)

January 9, 2026

 

 

10.3

 

Amendment Nine to the Business Loan Agreement between OFS Capital Corporation and Banc of California (formerly known as Pacific Western Bank) dated March 27, 2026

Form 8-K (814-00813)

March 27, 2026

 

14.1

 

Joint Code of Ethics of OFS Capital Corporation and OFS Advisor

 

 

*

 

31.1

Certification of Chief Executive Officer pursuant to Rules 13a-14 and 15d-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act

 

 

*

31.2

Certification of Chief Financial Officer pursuant to Rules 13a-14 and 15d-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act

 

 

*

32.1

Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

 

†

32.2

Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

 

†

101.INS

 

Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document

 

 

*

101.SCH

 

Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents

 

 

*

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

*

* Filed herewith

† Furnished herewith

62

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Dated: April 30, 2026

OFS CAPITAL CORPORATION

 

By:

/s/ Bilal Rashid

Name:

Bilal Rashid

Title:

Chief Executive Officer

 

By:

/s/ Kyle Spina

Name:

Kyle Spina

Title:

Chief Financial Officer

 

63

Source: View Original Filing on SEC EDGAR

FAQ

What types of investments does OFS hold in its 10-Q portfolio schedule?

OFS primarily holds first lien senior loans, along with second lien debt, preferred and common equity, and CLO subordinated notes. These positions span many private companies and structured finance vehicles across diverse industries and capital structures.

How are most OFS loans in this schedule structured and priced?

Many loans are floating rate, priced at SOFR plus a spread, frequently between SOFR + 4.75% and SOFR + 8.50%. Several also include payment-in-kind (PIK) interest components that increase the effective yield over time.

Which industries feature prominently in OFS’s portfolio companies?

The schedule highlights exposure to software and technology services, healthcare and outpatient care, business support services, real estate and property management, specialty manufacturing, grocery and retail, and various communication and media-related businesses.

Does OFS invest only in direct corporate loans?

No. Alongside direct first and second lien corporate loans, OFS also owns preferred and common equity stakes and structured finance securities like CLO and mezzanine subordinated notes with higher stated interest rates and longer-dated maturities.

What is notable about the interest rates on OFS’s structured finance holdings?

Certain CLO and mezzanine positions in the schedule carry double-digit stated interest rates, such as 21.30%, 24.50% or 26.57%, reflecting their subordinated status and higher risk-return profile compared with senior first lien loans.