OFS Capital to Redeem $69M of 4.75% Notes, Cuts Debt 55%

OFS Capital Corporation (Nasdaq: OFS) filed an 8-K disclosing that it will partially redeem its 4.75% Notes due 2026.

Rhea-AI Filing Summary

OFS Capital Corporation (Nasdaq: OFS) filed an 8-K disclosing that it will partially redeem its 4.75% Notes due 2026. On 21 Aug 2025, the company will retire $69 million of the $125 million principal outstanding—about 55% of the issue. The notes will be repurchased at the greater of (a) 100% of par or (b) a make-whole price equal to the present value of remaining payments discounted at the applicable Treasury rate plus 50 bp; accrued interest will also be paid.

This move removes a meaningful portion of fixed-rate debt carrying a 4.75% coupon, reducing future interest expense and near-term refinancing risk. The filing does not specify the cash source or the exact make-whole premium, but management’s ability to fund a majority redemption signals liquidity strength and balance-sheet flexibility. No other financial metrics or guidance changes were provided.

Insights

Credit Analyst

TL;DR: Large make-whole redemption lowers leverage and interest cost; modestly positive for credit profile.

Retiring 55% of the 2026 notes cuts contractual debt by $69 million and removes a 4.75% coupon liability 13 months early. Although the make-whole formula could add a small premium, today’s lower Treasury yields limit the magnitude. The move reduces refinancing risk in a potentially higher-rate 2026 environment and supports net investment income. Liquidity appears strong, as no new debt issuance was announced to fund the call. Overall, the action improves the company’s credit metrics and should be viewed favorably by noteholders and equity investors.

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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 07/22/2025 - 11:53 AM Learn about SEC filing dates

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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): July 22, 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 8.01.    Other Events.

Partial Redemption of 4.75% Notes due 2026

On July 22, 2025, OFS Capital Corporation (the “Company”) caused notices to be issued to the holders of its 4.75% Notes due 2026 (CUSIP No. 67103B AA8) (the “Notes”) regarding the Company’s exercise of its option to redeem a portion of the issued and outstanding Notes, pursuant to Section 1101 of the Indenture dated as of April 16, 2018, between the Company and U.S. Bank Trust Company, National Association (formerly known as U.S. Bank National Association), as trustee, and Section 1.01(h) of the Fifth Supplemental Indenture dated as of February 10, 2021. The Company will redeem on August 21, 2025 (the “Redemption Date”) $69,000,000 in aggregate principal amount of the $125,000,000 outstanding Notes. The Notes will be redeemed at the greater of (a) 100% of the principal amount of the Notes to be redeemed, or (b) the sum of the present value of the remaining scheduled payments of principal and interest (exclusive of accrued and unpaid interest to the Redemption Date) on the Notes to be redeemed, discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) using the applicable Treasury Rate plus 50 basis points. A copy of the notice of redemption is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits. 

Exhibit No.						Description
99.1						Notice of Redemption of 4.75% Notes due 2026

* * * * *

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: July 22, 2025			By:			/s/ Bilal Rashid
						Chief Executive Officer