OFS Credit Company Increases Common Stock Distribution and Declares Preferred Stock Distributions
The distribution for common stockholders will be paid in cash or shares of our common stock at the election of stockholders. The total amount of cash distributed to all stockholders will be limited to 20% of the total distribution to be paid, excluding any cash paid for fractional shares. The remainder of the distribution (approximately 80%) will be paid in the form of shares of our common stock. The exact distribution of cash and stock to any given stockholder will be dependent upon his/her election as well as elections of other stockholders, subject to the pro-rata limitation.
Management believes that the cash and stock distribution will allow the Company to strengthen its balance sheet and to be in position to capitalize on potential future investment opportunities. Management believes its commitment to strong, long-term performance is aligned with the interests of
The following schedule applies to the distribution for common stockholders of record on the close of business of the record date:
Record Date |
Payment Date |
Distribution Per Share |
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The amount, details and
Participants in the Company's dividend reinvestment plan will also receive an election form. The investment feature of the dividend reinvestment plan will be suspended for the distribution and will be reinstated after the distribution has been completed.
Stockholders who hold their shares through a bank, broker or nominee, or in “street name” will not receive an election form directly from the Company and should receive information regarding the election process from their bank, broker or nominee. Street name holders should contact their bank, broker or nominee for additional information.
Regardless of whether a stockholder receives the distribution in cash, stock, or some combination of cash and stock, the Company expects that entire amount of the distribution will be fully taxable to stockholders.
In addition, the Board of Directors has declared cash distributions on shares of the Company’s 6.875% Series A Term Preferred Stock and 6.60% Series B Term Preferred Stock. For the Company’s 6.875% Series A Term Preferred Stock, the Board declared six monthly cash distributions of
The following schedule applies to the 6.875% Series A Term Preferred Stock distributions for preferred stockholders of record on the close of business of each specific Record Date:
Record Date |
Payable Date |
Distribution Per Share |
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The following schedule applies to the 6.60% Series B Term Preferred Stock distributions for preferred stockholders of record on the close of business of each specific Record Date:
Record Date |
Payable Date |
Distribution Per Share |
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About
Forward-Looking Statements
Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating to: management’s beliefs that the cash and stock distribution will allow the Company to strengthen its balance sheet and to be in position to capitalize on potential future investment opportunities, when there can be no assurance either will occur; the Company's commitment to strong, long-term performance and the alignment of that performance to the ownership of the Company's common stock by affiliated parties; the tax consequences of the distributions to stockholders; and other factors may constitute forward-looking statements. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in documents that may be filed by
1 Registration does not imply a certain level of skill or training.
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INVESTOR RELATIONS:
646-652-8473
saltebrando@ofsmanagement.com
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212-397-1030
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