OFS Capital to redeem $20M of 7.5% notes in 2026
OFS Capital Corporation (OFS) announced that it will partially redeem its 7.50% Notes due 2028.
Rhea-AI Filing Summary
OFS Capital Corporation (OFS) announced that it will partially redeem its 7.50% Notes due 2028. The company has elected to redeem $20,000,000 in aggregate principal amount of these notes on September 29, 2026, at a redemption price equal to 100% of the principal amount being redeemed, plus accrued and unpaid interest to, but excluding, the Redemption Date.
The notice states that there are $69,000,000 issued and outstanding 7.50% Notes due 2028, of which the $20,000,000 portion will be redeemed. Interest on the redeemed portion will cease to accrue on and after the Redemption Date, and holders’ remaining right in those notes will be to receive the redemption payment upon proper surrender.
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Filing Explained
The August 28, 2026 8-K records an elected, not-yet-completed redemption: on September 29, 2026, the $20 million payment will become due, after which redeemed holders’ only remaining right is to receive that payment, subject to the stated default condition.
8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Principal amount to be redeemed: $20,000,000
Total issued and outstanding 7.50% Notes due 2028: $69,000,000
Coupon rate of Notes: 7.50%
+5 more
8 metrics
Principal amount to be redeemed
$20,000,000
Aggregate principal amount of 7.50% Notes due 2028 to be redeemed on September 29, 2026
Total issued and outstanding 7.50% Notes due 2028
$69,000,000
Total principal amount of 7.50% Notes due 2028 outstanding before partial redemption
Coupon rate of Notes
7.50%
Stated interest rate on Notes due 2028 subject to partial redemption
Redemption price
100% of principal amount
Price at which the $20,000,000 principal of Notes will be redeemed, plus accrued and unpaid interest
Backup withholding rate
24%
Possible U.S. federal income tax backup withholding on gross payments to certain non-corporate holders
Redemption Date
September 29, 2026
Date on which the partial redemption of 7.50% Notes due 2028 will occur and interest ceases on redeemed portion
Indenture date
April 16, 2018
Date of the Base Indenture governing the 7.50% Notes due 2028
Seventh Supplemental Indenture date
July 23, 2025
Date of the Seventh Supplemental Indenture referenced for the redemption terms
Key Terms
Indenture, Redemption Date, Redemption Payment, backup withhold, +1 more
5 terms
Indenture financial
"pursuant to Section 1101 of the Indenture dated as of April 16, 2018"
An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.
Redemption Date financial
"On September 29, 2026 (the “Redemption Date”), the Company will redeem"
The redemption date is the specific day when a debt-like security (such as a bond, preferred share, or certificate) must be repaid by the issuer and the investor receives the principal plus any final interest or dividends. It matters to investors because it tells when cash will return, shapes the effective return and price of the security, and creates reinvestment and timing considerations—like knowing when a loan is due so you can plan what to do with the returned money.
Redemption Payment financial
"to, but excluding, the Redemption Date (the “Redemption Payment”)."
backup withhold financial
"may be required to backup withhold for U.S. federal income tax purposes"
book-entry form financial
"Notes held in book-entry form will be redeemed and the Redemption Payment"
A book-entry form is an electronic record showing ownership of securities instead of a paper certificate; think of it like a bank account ledger that notes who owns shares. It matters to investors because it makes buying, selling and transferring securities faster, safer and cheaper by reducing paperwork, loss or forgery risk, and enabling easier settlement through brokers or a central depository.
FAQ
What did OFS (OFS) announce regarding its 7.50% Notes due 2028?
OFS Capital Corporation announced a partial redemption of its 7.50% Notes due 2028, electing to redeem $20,000,000 in aggregate principal amount of these notes on September 29, 2026, at 100% of principal plus accrued and unpaid interest to, but excluding, the Redemption Date.
How much of OFS (OFS) 7.50% Notes due 2028 is outstanding and how much will be redeemed?
The notice states there are $69,000,000 issued and outstanding 7.50% Notes due 2028. OFS Capital Corporation will redeem $20,000,000 in aggregate principal amount, leaving the remainder outstanding under the same terms outlined in the Indenture.
What redemption price will OFS (OFS) pay for the 7.50% Notes due 2028 being redeemed?
For the portion of the 7.50% Notes due 2028 being redeemed, OFS Capital Corporation will pay a redemption price equal to 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest, if any, to, but excluding, the September 29, 2026 Redemption Date.
When will interest stop accruing on the redeemed OFS (OFS) 7.50% Notes due 2028?
Interest on the $20,000,000 in principal amount of 7.50% Notes due 2028 being redeemed will cease to accrue on and after September 29, 2026, the Redemption Date. After that date, holders’ remaining right for those notes is to receive the redemption payment upon surrender.
AI-generated analysis. How Rhea-AI works. Not financial advice.
