OFS (OFS) Gains 10-Week Flexibility with BNP Credit Line Amendment

Rhea-AI Filing Summary

OFS Capital Corporation (Ticker: OFS) filed an 8-K reporting the execution of a Third Amendment to its $150 million revolving credit and security agreement with BNP Paribas and other parties. The amendment, signed on June 18 2025, solely extends the reinvestment period on the BNP Credit Facility from June 20 2025 to August 31 2025. All other key terms—including the $150 million maximum borrowing capacity, collateral administration by Virtus Group LP, and servicing by OFS Capital—remain unchanged.

The short, roughly 10-week extension gives the company’s special-purpose financing subsidiary, OFSCC-FS, LLC, additional time to redeploy principal proceeds from loan repayments into new assets without triggering amortization or repayment requirements. For a business development company, this flexibility can help sustain interest-earning asset levels, preserve net investment income, and avoid potential cash drag.

Because the amendment does not modify the facility size, pricing, covenants, or maturity, the overall capital structure and liquidity profile of OFS Capital are largely unaffected. The filing contains no new financial statements, earnings data, or guidance changes. Investors should view the development as a modestly positive, administrative update that maintains access to an established funding source through at least the end of August 2025.

Positive

• Extension of reinvestment period on the $150 million BNP revolving credit facility provides OFS with continued flexibility to redeploy capital and support portfolio growth through 31 Aug 2025.

Negative

• Short duration of the extension (approximately 10 weeks) indicates that OFS will need to renegotiate or refinance the facility again in the near term, maintaining rollover risk.

Insights

Financial Analyst

TL;DR: Extension preserves liquidity flexibility; modest positive, limited strategic impact.

The 10-week extension on the $150 million BNP facility lets OFS Capital continue to recycle capital and originate assets without commencing amortization. That supports near-term portfolio growth and stabilizes net investment income, yet does not expand borrowing capacity or materially change leverage metrics. With no rate, covenant, or maturity adjustments disclosed, the amendment is primarily administrative. I classify the news as incrementally positive, signalling ongoing lender support but offering limited valuation upside.

Risk Analyst

TL;DR: Short extension mitigates rollover risk now, but signals upcoming renegotiation.

Extending the reinvestment period to 31 Aug 2025 delays potential repayment pressure, reducing near-term liquidity risk. However, the brief duration implies another amendment or refinancing will be required within two months, leaving residual rollover risk. Absence of expanded capacity or longer-dated relief suggests lenders granted a stop-gap rather than a strategic overhaul. Overall credit outlook is neutral-to-slightly-positive; investors should monitor subsequent facility negotiations.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): June 18, 2025

OFS Capital Corporation

(Exact name of Registrant as specified in its charter)

Delaware			814-00813			46-1339639
(State or other jurisdiction of incorporation)			(Commission File Number)			(I.R.S. Employer Identification No.)

 

222 W. Adams Street, Suite 1850 Chicago, Illinois			60606
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (847) 734-2000

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

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. ¨

Item 1.01.    Entry into a Material Definitive Agreement.

Amendment to Revolving Credit Facility

On June 18, 2025, OFSCC-FS, LLC (the “Borrower”), an indirect wholly owned subsidiary of OFS Capital Corporation (the “Company”), executed an amendment (the “Amendment”) to its revolving credit and security agreement (the “Revolving Credit and Security Agreement”) with the lenders from time to time party thereto, BNP Paribas, as administrative agent, OFSCC-FS Holdings, LLC, as equityholder, the Company, as servicer, Virtus Group, LP, as collateral administrator, and Citibank, N.A., as collateral agent. The Revolving Credit and Security Agreement provides for borrowings in an aggregate principal amount up to $150,000,000 (the “BNP Credit Facility”).

The Amendment extends the reinvestment period under the BNP Credit Facility from June 20, 2025 to August 31, 2025.

The foregoing description of the Amendment is not complete and is qualified in its entirety by the full text of such amendment, which is filed as an exhibit to this Current Report on Form 8-K as Exhibit 10.1 and is incorporated by reference herein.

Item 9.01.    Financial Statements and Exhibits.

(d)    Exhibit.

Exhibit No.						Description
10.1						Third Amendment to the Revolving Credit and Security Agreement by and among OFSCC-FS, LLC, as borrower, the lenders from time to time party thereto, BNP Paribas, 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 June 18, 2025

* * * * *

SIGNATURE

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 hereunto duly authorized.

			OFS CAPITAL CORPORATION
Date: June 20, 2025			By:			/s/ Bilal Rashid
						Chief Executive Officer

FAQ

What did OFS Capital announce in its June 2025 8-K filing?

OFS reported a third amendment to its BNP revolving credit facility, extending the reinvestment period to August 31 2025.

Does the amendment change the $150 million borrowing capacity for OFS (OFS)?

No, the maximum borrowing capacity remains $150 million; only the reinvestment period date was adjusted.

Why is extending the reinvestment period important for OFS Capital?

It lets OFS recycle loan repayments into new investments, helping maintain net investment income and avoid early amortization requirements.

Were interest rates, covenants, or maturity terms modified?

The 8-K does not disclose any changes to rates, covenants, or maturity; only the reinvestment period date moved.

What is the next key date investors should watch?

Investors should monitor August 31 2025, when the extended reinvestment period is scheduled to end unless further amended.