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www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company OFS Credit Company, Inc. (“OCCI”) NASDAQ: OCCI (common stock) NASDAQ: OCCIN and OCCIO (preferred stock) Investor Presentation December 2023
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company Important Disclosures 1 This presentation and the information and views included herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction with OFS Credit Company, Inc. (the “Company” or “OCCI”) or any of its affiliates. This presentation is provided for informational purposes only, does not constitute an offer to sell securities of the Company or a solicitation of an offer to purchase any such securities, and is not a prospectus. From time to time, the Company may have a registration statement relating to one or more of its securities on file with the Securities and Exchange Commission (“SEC”). Any registration statement that has not yet been declared effective by the SEC, and any prospectus relating thereto, is not complete and may be changed. Any securities that are the subject of such a registration statement may not be sold until the registration statement filed with the SEC is effective. This presentation is solely for the use of the intended recipient(s). The information and its contents are the property of OFS and/or the Company. Any unauthorized dissemination, copying or use of this presentation is strictly prohibited and may be in violation of law. This presentation is being provided for informational purposes only. Investors should read the Company’s prospectus and SEC filings (which are publicly available on the EDGAR Database on the SEC website at http://www.sec.gov) carefully and consider their investment goals, time horizons and risk tolerance before investing in the Company. Investors should consider the Company’s investment objectives, risks, charges and expenses carefully before investing in securities of the Company. There is no guarantee that any of the goals, targets or objectives described in this presentation will be achieved. An investment in the Company is not appropriate for all investors, is speculative and entails substantial risk. An investment in the Company is not intended to be a complete investment program. Shares of closed-end investment companies, such as the Company, frequently trade at a discount from their net asset value, which may increase investors’ risk of loss. Past performance is not indicative of, or a guarantee of, future performance. The performance and certain other portfolio information quoted herein represents information as of dates noted herein. Nothing herein shall be relied upon as a representation as to the future performance or portfolio holdings of the Company. Investment return and principal value of an investment will fluctuate, and shares, when sold, may be worth more or less than their original cost. The Company’s performance is subject to change since the end of the period noted in this report and may be lower or higher than the performance data shown herein. Neither OFS nor the Company provides legal, accounting or tax advice. Any statement regarding such matters is explanatory and may not be relied upon as definitive advice. Investors should consult with their legal, accounting and tax advisers regarding any potential investment. The information presented herein is as of the dates noted herein and is derived from financial and other information of the Company, and, in certain cases, from third party sources and reports (including reports of third party custodians, CLO collateral managers and trustees) that have not been independently verified by the Company. As noted herein, certain of this information is estimated and unaudited, and therefore subject to change. We do not represent that such information is accurate or complete, and it should not be relied upon as such. This report does not purport to be complete and no obligation to update or revise any information herein is being assumed. Information contained on our website is not incorporated by reference into this report and you should not consider information contained on our website to be part of this report or any other report we file with the SEC. This presentation contains "forward looking statements" that are subject to risks and uncertainties. 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 the Company’s public filings with the SEC. As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. The Company is providing the information as of this date and assumes no obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. OFS is a brand name and is meant to include Orchard First Source Asset Management Holdings, LLC, its direct and indirect subsidiaries, including OFS Capital Management, LLC, OFS CLO Management, LLC and OFS CLO Management II, LLC, which are registered investment advisers, OFS Capital Corporation, a publicly traded business development company (NASDAQ “OFS”), OFS Credit Company, Inc., a publicly traded registered closed-end fund (NASDAQ “OCCI”), and their predecessor entities. CIM Assets Owned and Operated represents the aggregate assets owned and operated by CIM on behalf of partners (including where CIM contributes alongside for its own account) and co-investors, whether or not CIM has discretion, in each case without duplication. Please note, changes in global, national, regional or local economic, demographic or capital market conditions (including those caused by the impacts of the ongoing war between Russia and Ukraine, the current conflict in Israel, rising interest and elevated inflation rates, instability in the U.S and international banking systems, the risk of recession or a shutdown of U.S. government services, and related market volatility) may continue to have a significant negative impact on our business, financial condition, results of operations and cash flows and those of our portfolio companies, including our and their ability to achieve our respective objectives.
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company OFS Credit Company (NASDAQ: OCCI) 2 Overview » OCCI is a Nasdaq-listed closed-end fund that primarily invests in CLO equity and debt securities » Per share Net Asset Value of $7.55 as of October 31, 2023 Advisor » OFS was established in 1994 and has $4.2 billion of assets under management1 » Focused on: (1) structuring and investing in CLO equity and CLO debt; (2) managing CLOs (investing in broadly syndicated loans financed through CLOs); and (3) direct loan origination Alignment of Interest » As of October 31, 2023, insiders own ~5.2% of OCCI’s common shares CLOs are an attractive asset class » Collateralized by floating rate loans of large, U.S.-based corporations » Diversified by a large number of distinct underlying borrowers across various industry sectors with varying vintages » Financed with matched funding (meaning that investments are planned to correspond to the timing of payments on financing) Historical Dividends » Annual Cash Distribution of $1.202, 3 » ~$11.03 of distributions declared since October 2018 IPO4 1 As of September 30, 2023. Includes OFS Capital Management, LLC, and its affiliated registered investment advisers, OFS CLO Management, LLC and OFS CLO Management II, LLC. | 2. Reflects annualized distribution rate on the most recent monthly all-cash distribution of $0.10 declared on shares of common stock for each of the three months in the fiscal quarter ending January 31, 2024. The November 2023 distribution is payable on December 29, 2023 in cash to stockholders of record as of December 22, 2023. The December 2023 distribution is payable on December 29, 2023 in cash to stockholders of record as of December 22, 2023. The January 2024 distribution is payable on January 31, 2024 in cash to stockholders of record as of January 24, 2024 | 3. For the fiscal year ended October 31, 2023, OCCI estimates that 85.5% of fiscal year distributions were from ordinary income and 14.5% is from return of capital. The Company’s fiscal year differs from the calendar year period on which the tax character of distributions is determined for Form 1099-DIV reporting purposes. The ultimate tax character of the Company’s distributions cannot be determined until the corresponding tax return is filed. The estimated information provided is not for tax reporting purposes and could differ materially from amounts reported to common shareholders on Form 1099-DIV. Past performance is not indicative of future results, and distributions are not guaranteed. | 4. Includes distributions declared on November 28, 2023. Long-Standing CLO Manager with Expertise in Structuring CLOs and Investing in the Underlying Corporate Loans OFS is an Experienced CLO Equity Investor Robust Credit Team with Analyst Coverage of the Senior Secured Loan Market OFS has a Strong Balance Sheet and Low Leverage Why OFS and OCCI?
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company » Net investment income (“NII”) of $5.3 million, or $0.36 per common share, for the fiscal quarter ended October 31, 2023. This compares to NII of $3.8 million, or $0.34 per common share, for the fiscal quarter ended July 31, 2023. Net Asset Value per common share of $7.55 as of October 31, 2023. » Core net investment income (“Core NII”)2 of $9.1 million, or $0.62 per common share, for the fiscal quarter ended October 31, 2023. This compares to Core NII of $7.0 million, or $0.62 per common share, for the fiscal quarter ended July 31, 2023. » On November 28, 2023, OFS Credit’s board of directors declared a monthly all-cash distribution of $0.10 per share of common stock for each of the three months in the fiscal quarter ending January 31, 2024. The November 2023 distribution is payable on December 29, 2023 in cash to stockholders of record as of December 22, 2023. The December 2023 distribution is payable on December 29, 2023 in cash to stockholders of record as of December 22, 2023. The January 2024 distribution is payable on January 31, 2024 in cash to stockholders of record as of January 24, 2024. » During the fiscal quarter ended October 31, 2023, the earned income yield of our investment portfolio at amortized cost was 17.0%. 3 1. Past performance is not indicative of future results, and distributions are not guaranteed. 2. Core NII is a financial measure calculated and presented on a basis of methodology other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Core NII represents NII adjusted for differences in applicable cash distributions received on our CLO equity investments relative to income recognized in accordance with GAAP. See slide 17 “Supplemental Schedule - Core Net Investment Income” for additional information. Interest waterfall payments in excess of interest income accretion on CLO equity investments. Fourth Fiscal Quarter 2023 Highlights1 10/31/2023 7/31/2023 Net Investment Income Per Share Net investment income 0.36$ 0.34$ Net Realized/Unrealized Gain (Loss) Per Share Net change in unrealized depreciation on investments (0.23)$ (0.29)$ Net loss (0.23)$ (0.29)$ Net Earnings (Loss) Per Share Net Earnings (loss) 0.13$ 0.05$ Core Net Investment Per Share Net investment income 0.36$ 0.34$ CLO equity adjustments 0.26 0.28 Core net investment income 0.62$ 0.62$ Distribution Data Per Share Distributions paid 0.55$ 0.55$ Fiscal Quarter Ended (unaudited)
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company » We believe CLO equity has the potential to generate higher quarterly cash distributions relative to other high-yielding credit investments − CLOs primarily invest in a diversified pool of loans to large, rated U.S. corporations − Generally, first lien senior secured − Floating rate loans and liabilities providing natural hedge in a changing rate environment − Deep asset class with ~$963 billion of CLOs outstanding1 » Access to infrastructure and resources of large platform − OFS Capital Management is focused on investing in corporate credit and has $4.2 billion in assets under management2 − Senior management has worked together for over 10 years » OFS Capital Management is uniquely positioned to manage OFS Credit Company − OFS Capital Management has dual experience as both a CLO equity investor (structuring expertise) and CLO manager (deep knowledge of underlying senior secured corporate loans) − OFS has managed CLOs since its inception and has invested over $22 billion in more than 11,000 transactions primarily through CLO vehicles3 4 1. Source: BofA Global Research. As of September 30, 2023. 2. As of September 30, 2023. Includes OFS Capital Management, LLC, and its affiliated registered investment advisers, OFS CLO Management, LLC and OFS CLO Management II, LLC. 3. Refers to CLOs that OFS Capital Management managed and OFS CLO Management and OFS CLO Management II manage. These CLOs are not held by OFS Credit. OFS Credit Company (NASDAQ: OCCI)
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company 5 1 Despite Mr. Ressler’s involvement in each, none of CIM, OFS, or Orchard Capital Ventures has the benefit of any cross-guarantee. None of these entities are entitled to draw on the capital of any other, and no guarantee of the liabilities of any such entity by any other such entity should be inferred from their relationship. 2 Includes Orchard First Source Asset Management Holdings, LLC, its predecessor entity, and its direct and indirect subsidiaries. 3 As of June 30, 2023. See Important Disclosures on page 1. 4 As of September 30, 2023. 5 As of June 30, 2023. Access to Infrastructure and Resources of Large Platform1 » OFS is part of a group of affiliated firms controlled by Richard Ressler that own, operate and manage more than $35 billion of real assets and corporate credit » Since 1994, OFS Capital Management2 has invested over $22 billion in more than 11,000 transactions and has offices in Chicago, Los Angeles and New York City Real Estate / Infrastructure $30.8 billion of Assets Owned or Operated3 Venture Capital $134 million AUM5 Richard S. Ressler Corporate Credit $4.2 billion AUM4 OFS Credit Company (NASDAQ: OCCI) CIM Group OFS Capital Management OCV Partners
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company Access to Infrastructure and Resources of Large Platform 6 1. As of September 30, 2023. Includes OFS Capital Management, LLC, and its affiliated registered investment advisers, OFS CLO Management, LLC and OFS CLO Management II, LLC. $4.2 Billion Assets Under Management1 SMAs/Sub-advised accounts CLO Facilities BDCs OFS Platforms Closed-end Listed Fund » Primarily invests in senior secured, floating rate loans to US based middle-market borrowers » Publicly traded BDC, OFS Capital Corporation (NASDAQ: “OFS”) » Hancock Park Corporate Income, Inc. - non-listed BDC Middle Market Lending » Invests in broadly syndicated loans, primarily in the 1st lien, senior secured tranches of the capital structure. » CLOs » SMAs/Sub-advised accounts Broadly Syndicated Loans » Structure and invest in CMBS, CLO equity and debt » Publicly traded closed-end fund, OFS Credit Company, Inc. (NASDAQ: "OCCI") » SMAs/Sub-advised accounts Structured Credit Investing » Investing across the U.S. corporate loan market » Seasoned investment team with diverse skill set - dedicated industry analysts and loan and CLO structuring expertise within the platform
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company Portfolio Composition and Years of Reinvestment 7 71.2% 3.3% 25.0% 0.6% CLO Equity Loan Accumulation Facility CLO Debt Other4 Years of Reinvestment Period2,3 Portfolio Composition1 1. Based on fair value as of October 31, 2023. 2. Weighted by fair value as of October 31, 2023. Includes estimated reinvestment end dates for warehouse investments and unsettled trades. 3. The weighted average years of reinvestment period remaining on the investment portfolio is 2.3 years. 4. Represents the fair value of discounted cash flows from additional fees earned from CLO equity investments. 5. Includes securities out of reinvestment period. 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% Less Than 1 Year 1-2 Years 2-3 Years 3-4 Years Greater Than 4 Years 5
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company Portfolio Highlights 8 1. Includes CLO equity and debt accretion. 2. Represents the fair value of discounted cash flows from additional fees earned from CLO equity investments. 10/31/2023 7/31/2023 4/30/2023 1/31/2023 10/31/2022 Select Portfolio Funds Roll Data Beginning investment balance at cost 195,620,796$ 187,809,208$ 181,161,434$ 179,126,268$ 177,386,461$ Portfolio purchases 36,486,875 10,934,219 9,659,000 5,801,101 1,840,000 Portfolio sales / repayments - (2,134) (2,482) (573) (195,245) Accretion/amortization1 6,463,474 6,486,103 6,624,691 6,924,430 7,016,347 CLO equity waterfall payments and warehouse payoffs (18,592,518) (9,606,600) (9,633,435) (10,689,792) (6,921,295) Ending investment balance at cost 219,978,627$ 195,620,796$ 187,809,208$ 181,161,434$ 179,126,268$ Fiscal Quarter Ended (unaudited) 10/31/2023 7/31/2023 4/30/2023 1/31/2023 10/31/2022 Investment Mix - Based on Fair Value CLO equity 119,610,273$ 117,452,848$ 120,250,397$ 137,914,380$ 130,771,527$ CLO debt 41,998,433 20,738,248 14,034,112 4,427,518 2,524,715 Loan accumulation facility 5,540,417 7,988,000 7,363,500 7,835,038 11,879,750 Other2 948,605 896,387 935,090 938,813 591,886 Total Investments 168,097,728$ 147,075,483$ 142,583,099$ 151,115,749$ 145,767,878$ Fiscal Quarter Ended (unaudited)
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company Debt Capital Summary as of October 31, 2023 9 5% 41% 55% <1 year 1-3 years 3-5 years Debt Mix by Remaining Legal Term2 5% 35% 5% 55% Series B Term Series C Term Series D Term Series E Term Preferred Stock by Series Funding Source: Outstanding Par NASDAQ Ticker Coupon Payment Frequency Optional Redemption Date Maturity Date Preferred Stock Series B Term Preferred Stock1 $ 3,000,000 N/A 6.600% Monthly March 31, 2021 November 19, 2023 Series C Term Preferred Stock 23,000,000 OCCIO 6.125% Monthly April 30, 2023 April 30, 2026 Series D Term Preferred Stock 3,000,000 N/A 6.000% Monthly June 30, 2022 June 10, 2026 Series E Term Preferred Stock 35,000,000 OCCIN 5.250% Monthly December 31, 2023 December 31, 2026 Total Preferred Stock $ 64,000,000 5.663% 1. The Series B Term Preferred Stock was repaid at par on the maturity date in November 2023. 2. Percentages may not sum to 100% due to rounding
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company Track Record 10 Cumulative Distributions1 1. Distributions are not guaranteed. Past performance is not indicative of future results. Includes the most recent distribution declared on November 28, 2023. $11.03 per share in distributions declared since inception1 Average quarterly distribution of $0.53 per share1 $0.61 $1.12 $1.62 $2.12 $2.63 $3.15 $3.67 $4.19 $4.71 $5.24 $5.78 $6.33 $6.88 $7.43 $7.98 $8.53 $9.08 $9.63 $10.18 $10.73 $11.03 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Distributions Declared Cumulative Distributions
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company Underlying Portfolio Characteristics S&P Rating Distribution of Underlying Obligors1, 2 Maturity Distribution of Underlying Obligors1 Spread Distribution of Underlying Obligors1 1. Source: CLO trustee reports as reported by Intex. Based on the issuers’ most recently reported positions as of October 31, 2023 and weighted by par value as of October 31, 2023. Percentages may not sum to 100% due to rounding. 2. NR represents underlying obligors not rated by S&P. 0.2% 0.1% 1.1% 2.8% 6.5% 10.8% 14.9% 24.0% 25.9% 5.55% 1.55% 0.43% 0.08% 0.02% 0.10% 4.35% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC+ CCC CCC- CC C D NR 0.1% 3.1% 18.4% 41.1% 25.3% 7.6% 1.7% 0.8% 0.3% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% <1% 1-2% 2-3% 3-4% 4-5% 5-6% 6-7% 7-8% >8% 11 0.1% 1.4% 8.7% 14.1% 17.7% 38.9% 12.3% 6.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 2023 2024 2025 2026 2027 2028 2029 ≥2030
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company Industry Exposure and Top 10 Obligors1 12 1. Source – CLO trustee reports as reported by INTEX. Top 10 Underlying Obligors Obligor 10/31/23 % of Total Asurion 0.7% Cablevision Systems 0.5% Altice France 0.5% Virgin Media 0.5% Peraton 0.4% Mcafee 0.4% Transdigm 0.4% Mozart Debt Merger Sub 0.4% Allied Universal Holdco 0.4% Athenahealth 0.4% Total 4.6% Top 10 Industries of Underlying Obligors Moody's Industry Name 10/31/23 % of Total High Tech Industries 10.5% Healthcare & Pharmaceuticals 10.1% Services: Business 9.2% Banking, Finance, Insurance & Real Estate 8.9% Media: Broadcasting & Subscription 4.9% Chemicals, Plastics & Rubber 4.7% Construction & Building 4.5% Hotel, Gaming & Leisure 4.4% Services: Consumer 4.0% Telecommunications 4.0% Total 65.2%
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company Trade Secret | Confidential Information Appendices
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company 14 Experienced Leadership of OFS Capital Management Bilal Rashid » President and Senior Managing Director of OFS Capital Management » Chairman, President and Chief Executive Officer of OCCI » 25+ years of experience (10+ with OFS) » Formerly Head of Global Structured Credit At Merrill Lynch, which included CLO team » Actively involved in originating, structuring and managing CLOs throughout career Jeff Cerny » Chief Financial Officer and Senior Managing Director of OFS Capital Management » Director and Chief Financial Officer of OCCI » 35+ years experience (20+ with OFS) » Actively involved in structuring and managing CLOs since 2000 Glen Ostrander » Managing Director of OFS Capital Management – Structured Credit Portfolio Manager » 25+ years of experience (10+ with OFS) » Previously worked in Structured Credit group at Merrill Lynch » Actively involved in originating, structuring and managing CLOs throughout career Ken Brown » Managing Director of OFS Capital Management – Broadly Syndicated Loan Portfolio Manager » 25+ years experience (15+ with OFS) » Previously Vice President at GE Antares Capital » Actively involved in managing CLOs since 2011 Experienced management team that has underwritten through multiple business cycles. The Senior Investment Team of OFS averages over 25 years of experience structuring and investing in CLOs, debt securities, and loans
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company 15 Condensed Balance Sheets 10/31/2023 7/31/2023 4/30/2023 1/31/2023 10/31/2022 (Audited) (Unaudited) (Unaudited) (Unaudited) (Audited) Assets Investments, at fair value 168,097,728$ 147,075,483$ 142,583,099$ 151,115,749$ 145,767,878$ Cash 16,781,214 22,541,930 16,668,884 14,863,217 12,540,909 Other assets 1,054,333 1,520,157 778,406 726,926 722,297 Total assets 185,933,275$ 171,137,570$ 160,030,389$ 166,705,892$ 159,031,084$ Liabilities Preferred stock, net 62,766,821$ 62,651,642$ 62,536,463$ 62,421,284$ 62,306,105$ Payable to advisor and affiliates 2,772,467 2,252,174 2,326,371 2,390,653 2,325,645 Payable for investments purchased - - 2,958,647 - - Other liabilities 205,000 476,026 433,283 568,500 189,333 Total liabilities 65,744,288 65,379,842 68,254,764 65,380,437 64,821,083 Net assets 120,188,987 105,757,728 91,775,625 101,325,455 94,210,001 Total liabilities and net assets 185,933,275$ 171,137,570$ 160,030,389$ 166,705,892$ 159,031,084$ Number of shares outstanding 15,917,015 13,187,300 10,816,509 9,997,837 9,442,550 Net asset value per share 7.55$ 8.02$ 8.48$ 10.13$ 9.98$ Preferred stock / net assets 0.53x 0.61x 0.70x 0.63x 0.68x As of
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company Condensed Statements of Operations 16 10/31/2023 7/31/2023 4/30/2023 1/31/2023 10/31/2022 Investment income Interest Income 9,079,506$ 7,228,780$ 6,908,517$ 7,479,588$ 7,503,898$ Expenses Interest expense 1,021,241 1,021,241 1,021,241 1,021,241 1,021,241 Management fees 815,223 750,181 688,480 730,700 699,551 Administration fees 315,464 322,663 279,852 289,395 288,793 Professional fees 184,380 243,736 174,628 217,953 174,254 Other general & administrative expenses 80,669 80,253 230,188 414,974 381,310 Total expenses 2,416,977 2,418,074 2,394,389 2,674,263 2,565,149 Pre-incentive fee net investment income 6,662,529 4,810,706 4,514,128 4,805,325 4,938,749 Incentive fee 1,332,506 962,141 902,825 961,065 987,750 Net investment income 5,330,023 3,848,565 3,611,303 3,844,260 3,950,999 Net unrealized appreciation (depreciation) on investments (3,335,586) (3,319,205) (15,180,424) 3,312,705 (3,875,136) Net increase (decrease) in net assets resulting from operations 1,994,437$ 529,360$ (11,569,121)$ 7,156,965$ 75,863$ Weighted average shares outstanding 14,638,499 11,355,932 10,174,469 9,457,054 8,894,451 Earnings per common share Net investment income per common share 0.36$ 0.34$ 0.35$ 0.41$ 0.44$ Net gain (loss) per common share (0.23) (0.29) (1.49) 0.35 (0.43) Net income (loss) per common share 0.13$ 0.05$ (1.14)$ 0.76$ 0.01$ Fiscal Quarter Ended (unaudited)
www.cimgroup.com | ©2018 CIM Group | TRADE SECRET / CONFIDENTIAL INFORMATIONwww.ofscreditcompany.com | ©2023 OFS Credit Company Supplemental Schedule - Core Net Investment Income 17 We provide information relating to Core NII (a non-GAAP measure) on a supplemental basis. This measure is not provided as a substitute for GAAP NII, but in addition to it. Our non-GAAP measures may differ from similar measures by other companies, even in the event of similar terms being utilized to identify such measures. Core NII represents GAAP NII adjusted for differences in applicable cash distributions received on our CLO equity investments relative to income recognized in accordance with GAAP. OFS Capital Management, LLC, our investment adviser, uses this information in its internal analysis of results and believes that this information may be informative in gauging the quality of the Company’s financial performance, identifying trends in its results, and providing meaningful period-to-period comparisons. Income from investments in the “equity” class securities of CLO vehicles, for GAAP purposes, is recorded using the effective interest method; this is based on an effective yield to the expected redemption utilizing estimated cash flows, at current amortized cost, including those CLO equity investments that have not made their inaugural distribution for the relevant period end. The result is an effective yield for the investment in which the respective investment’s cost basis is adjusted quarterly based on the difference between the actual cash received, or distributions entitled to be received, and the effective yield calculation. Accordingly, investment income recognized on CLO equity securities in the GAAP statement of operations differs from the cash distributions actually received by the Company during the period (referred to below as “CLO equity adjustments”). Furthermore, in order for the Company to continue to qualify for tax treatment as a regulated investment company, we are required, among other things, to distribute at least 90% of our investment company taxable income annually. Therefore, Core NII may provide a better indication of our estimated taxable income for a reporting period than GAAP NII; we can offer no assurance that will be the case, however, as the ultimate tax character of our earnings cannot be determined until our tax returns are prepared after the close of a fiscal year. We note that this non-GAAP measure may not serve as a useful indicator of taxable earnings, particularly during periods of market disruption and volatility, and, as such, our taxable income may differ materially from our Core NII. The following table provides a reconciliation of GAAP NII to Core NII for the fiscal quarters ended October 31, 2023 and July 31, 2023: Amount Per Share Amount Per Share Net investment income 5,330,023$ 0.36$ 3,848,565$ 0.34$ CLO equity adjustments 3,798,856 0.26 3,160,851$ 0.28 Core net investment income 9,128,879$ 0.62$ 7,009,416$ 0.62$ Fiscal Quarter Ended 10/31/2023 7/31/2023