10-Q 1 ofs2021q110-q.htm 10-Q Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
ýQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021
or
¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______

Commission file number 814-00813
OFS CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware46-1339639
State or Other Jurisdiction ofI.R.S. Employer Identification No.
Incorporation or Organization
10 S. Wacker Drive, Suite 2500, Chicago, Illinois60606
Address of Principal Executive OfficesZip Code
(847) 734-2000
Registrant’s Telephone Number, Including Area Code
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareOFSThe Nasdaq Global Select Market
6.25% Notes due 2023OFSSGThe Nasdaq Global Select Market
5.95% Notes due 2026OFSSIThe Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý     No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ¨     No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer¨Accelerated filer¨
Non-accelerated filerSmaller reporting company¨
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. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨     No  ý

The number of shares of the issuer’s Common Stock, $0.01 par value, outstanding as of May 10, 2021 was 13,411,962.



OFS CAPITAL CORPORATION

TABLE OF CONTENTS
 
 
Item 1.
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
 
Item 1.
Item 1A.
Item 2
Item 3.
Item 4.
Item 5.
Item 6.




Defined Terms
We have used "we," "us," "our," "our company" and "the Company" to refer to OFS Capital Corporation in this report. We also have used several other terms in this report, which are explained or defined below:
TermExplanation or Definition
1940 ActInvestment Company Act of 1940, as amended
Administration AgreementAdministration Agreement between the Company and OFS Services dated November 7, 2012
Affiliated AccountAn account, other than the Company, managed by OFS Advisor or an affiliate of OFS Advisor
Affiliated FundCertain other funds, including other BDCs and registered investment companies managed by OFS Advisor
ASCAccounting Standards Codification, as issued by the FASB
ASUAccounting Standards Updates, as issued by the FASB
BDCBusiness Development Company under the 1940 Act
BLABusiness Loan Agreement, as amended, with Pacific Western Bank, as lender, which provides the Company with a senior secured revolving credit facility
BNP FacilityA secured revolving credit facility that provides for borrowings in an aggregate principal amount up to $150,000,000 issued pursuant to a Revolving Credit and Security Agreement by and among OFSCC-FS, the lenders from time to time parties thereto, BNP Paribas, as administrative agent, OFSCC-FS Holdings, LLC, a wholly owned subsidiary of the Company, as equityholder, the Company, as servicer, Citibank, N.A., as collateral agent and Virtus Group, LP, as collateral administrator
BoardThe Company's board of directors
CLOCollateralized loan obligation
CodeInternal Revenue Code of 1986, as amended
CompanyOFS Capital Corporation and its consolidated subsidiaries
DRIPDistribution reinvestment plan
EBITDAEarnings before interest, taxes, depreciation and amortization
Exchange ActSecurities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
GAAPAccounting principles generally accepted in the United States
HPCIHancock Park Corporate Income, Inc., a Maryland corporation and non-traded BDC for whom OFS Advisor serves as investment adviser
ICTIInvestment company taxable income, which is generally net ordinary income plus net short-term capital gains in excess of net long-term capital losses
Indicative PricesMarket quotations, prices from pricing services or bids from brokers or dealers
Investment Advisory AgreementInvestment Advisory and Management Agreement between the Company and OFS Advisor dated November 7, 2012
LIBORLondon Interbank Offered Rate
Net Loan FeesThe cumulative amount of fees, such as discounts, premiums and amendment fees that are deferred and recognized as income over the life of the loan
OCCIOFS Credit Company, Inc., a Delaware corporation and a non-diversified, closed-end management investment company for whom OFS Advisor serves as investment adviser
OFS AdvisorOFS Capital Management, LLC, a wholly owned subsidiary of OFSAM and registered investment advisor under the Investment Advisers Act of 1940, as amended
OFS ServicesOFS Capital Services, LLC, a wholly owned subsidiary of OFSAM and affiliate of OFS Advisor
OFSAMOrchard First Source Asset Management, LLC, a full-service provider of capital and leveraged finance solutions to U.S. corporations
OFSCC-FSOFSCC-FS, LLC, an indirect wholly owned subsidiary of the Company
OFSCC-FS AssetsAssets held by the Company through OFSCC-FS



TermExplanation or Definition
OFSCC-MBOFSCC-MB, Inc., a wholly owned subsidiary taxed under subchapter C of the Code that generally holds the equity investments of the Company that are taxed as pass-through entities
OIDOriginal issue discount
OrderAn exemptive relief order from the SEC to permit us to co-invest in portfolio companies with Affiliated Funds in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions
ParentOFS Capital Corporation
PIKPayment-in-kind, non-cash interest or dividends payable as an addition to the loan or equity security producing the income
Portfolio Company InvestmentA debt or equity investment in a portfolio company. Portfolio Company Investments exclude Structured Finance Notes
Prime RateUnited States Prime interest rate
PWB Credit FacilitySenior secured revolving credit facility between the Company and Pacific Western Bank, as lender
Reunderwriting AnalysisA discount rate method based upon a hypothetical recapitalization of the entity given its current operating performance and current market condition
RICRegulated investment company under the Code
SBAUnited States Small Business Administration
SBICA fund licensed under the SBA small business investment company program
SBIC AcquisitionThe Company's acquisition of the remaining ownership interests in SBIC I LP and OFS SBIC I GP, LLC on December 4, 2013
SBIC ActSmall Business Investment Act of 1958, as amended
SBIC I LPOFS SBIC I, LP, a wholly owned SBIC subsidiary of the Company
SECUnited States Securities and Exchange Commission
Securities ActSecurities Act of 1933, as amended
Secured Revolver AmendmentThe amended Business Loan Agreement with Pacific Western Bank, as lender, dated February 17, 2021
Stock Repurchase ProgramThe open market stock repurchase program for shares of the Company’s common stock under Rule 10b-18 of the Exchange Act
Structured Finance NotesCLO mezzanine debt and CLO subordinated debt positions
Synthetic Rating AnalysisA discount rate method that assigns a surrogate debt rating to the entity based on known industry standards for assigning such ratings and then estimates the discount rate based on observed market yields for actual rated debt
Transaction PriceThe cost of an arm's length transaction occurring in the same security
Unsecured NotesThe combination of the Unsecured Notes Due September 2023, the Unsecured Notes Due October 2026 and the Unsecured Notes Due February 2026
Unsecured Notes Due April 2025 The Company’s $50.0 million aggregate principal amount of 6.375% notes due April 30, 2025, which were redeemed on March 12, 2021
Unsecured Notes Due February 2026    The Company’s $125.0 million aggregate principal amount of 4.75% notes due February 10, 2026
Unsecured Notes Due October 2025The Company’s $48.5 million aggregate principal amount of 6.5% notes due October 30, 2025, which were redeemed on March 12, 2021
Unsecured Notes Due October 2026The Company's $54.3 million aggregate principal amount of 5.95% notes due October 31, 2026
Unsecured Notes Due September 2023The Company’s $25.0 million aggregate principal amount of 6.25% notes due September 30, 2023




Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “should,” “targets,” “projects” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:
our ability and experience operating a BDC or an SBIC, or maintaining our tax treatment as a RIC under Subchapter M of the Code;
our dependence on key personnel;
our ability to maintain or develop referral relationships;
our ability to replicate historical results;
the ability of OFS Advisor to identify, invest in and monitor companies that meet our investment criteria;
the belief that the carrying amounts of our financial instruments, such as cash, receivables and payables approximate the fair value of such items due to the short maturity of such instruments and that such financial instruments are held with high credit quality institutions to mitigate the risk of loss due to credit risk;
actual and potential conflicts of interest with OFS Advisor and other affiliates of OFSAM;
constraint on investment due to access to material nonpublic information;
restrictions on our ability to enter into transactions with our affiliates;
our ability to comply with SBA regulations and requirements;
the use of borrowed money to finance a portion of our investments;
our ability to incur additional leverage pursuant to Section 61(a)(2) of the 1940 Act and the impact of such leverage on our net investment income and results of operations;
competition for investment opportunities;
our plans to focus on lower-yielding, first lien senior secured loans to larger borrowers and the impact on our risk profile, including our belief that the seniority of such loans in a borrower's capital structure may provide greater downside protection against the impact of the coronavirus ("COVID-19") pandemic;
the percentage of investments that will bear interest on a floating rate or fixed rate basis;
interest rate volatility, including the decommissioning of LIBOR;
the ability of SBIC I LP to make distributions enabling us to meet RIC requirements;
plans by SBIC I LP to repay its outstanding SBA debentures;
our ability to raise debt or equity capital as a BDC;
the timing, form and amount of any distributions from our portfolio companies;
the impact of a protracted decline in the liquidity of credit markets on our business;
the general economy and its impact on the industries in which we invest;
changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets, including with respect to changes from the impact of the COVID-19 pandemic; the length and duration of the COVID-19 pandemic in the United States as well as worldwide and the magnitude of the economic impact of the outbreak; the effect of the COVID-19 pandemic on our business, financial condition, results of operations and cash flows and those of our portfolio companies (including the expectation that a shift from cash interest to PIK interest will result from concessions granted to borrowers due to the COVID-19 pandemic), including our and their ability to achieve our respective objectives; the effect of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business (including our belief that new loan activity in the market in which we operate has slowed) and on the availability of equity and debt capital and our use of borrowed money to finance a portion of our investments;
1


the belief that we have sufficient levels of liquidity to support our existing portfolio companies and deploy capital in new investment opportunities;
the belief that one or more of our investments can be restored to accrual status in the near term, or otherwise;
uncertain valuations of our portfolio investments, including our belief that reverting back to an equal weighting of the Reunderwriting Analysis method and Synthetic Rating Analysis method more accurately captures certain data related to the observed return of market liquidity and the historic correlative relationship between these markets; and
the effect of new or modified laws or regulations governing our operations.
    Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Quarterly Report on Form 10-Q should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include, among others, those described or identified in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 and in "Part II, Item 1A. Risk Factors" in this Quarterly Report on Form 10-Q. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly Report on Form 10-Q.
    We have based the forward-looking statements on information available to us on the date of this Quarterly Report on Form 10-Q. Except as required by the federal securities laws, we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The forward-looking statements and projections contained in this Quarterly Report on Form 10-Q are excluded from the safe harbor protection provided by Section 21E of the Exchange Act.
2


PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
OFS Capital Corporation and Subsidiaries
Consolidated Statements of Assets and Liabilities
(Dollar amounts in thousands, except per share data)
March 31,
2021
December 31,
2020
(unaudited)
Assets
Investments, at fair value:
Non-control/non-affiliate investments (amortized cost of $386,218 and $363,628, respectively)$352,837 $328,665 
Affiliate investments (amortized cost of $83,676 and $86,484, respectively)101,964 102,846 
Control investment (amortized cost of $11,009 and $10,911, respectively)11,298 10,812 
Total investments at fair value (amortized cost of $480,903 and $461,023, respectively)466,098 442,323 
Cash41,641 37,708 
Interest receivable519 1,298 
Receivable for investments sold474 — 
Prepaid expenses and other assets2,859 2,484 
Total assets$511,591 $483,813 
Liabilities
Revolving lines of credit$19,550 $32,050 
SBA debentures (net of deferred debt issuance costs of $922 and $1,088, respectively)94,583 104,182 
Unsecured notes (net of deferred debt issuance costs of $5,830 and $4,897 respectively)198,495 172,953 
Interest payable1,860 3,176 
Payable to adviser and affiliates (Note 3)2,798 3,252 
Payable for investments purchased32,927 8,411 
Accrued professional fees479 495 
Other liabilities429 338 
Total liabilities351,121 324,857 
Commitments and contingencies (Note 6)
Net assets
Preferred stock, par value of $0.01 per share, 2,000,000 shares authorized, -0- shares issued and outstanding as of March 31, 2021, and December 31, 2020, respectively$— $— 
Common stock, par value of $0.01 per share, 100,000,000 shares authorized, 13,411,962 and 13,409,559 shares issued and outstanding as of March 31, 2021, and December 31, 2020, respectively134 134 
Paid-in capital in excess of par187,146 187,124 
Total distributable earnings (losses)(26,810)(28,302)
Total net assets160,470 158,956 
Total liabilities and net assets$511,591 $483,813 
Number of shares outstanding13,411,962 13,409,559 
Net asset value per share$11.96 $11.85 

See Notes to Consolidated Financial Statements.
3


OFS Capital Corporation and Subsidiaries
Consolidated Statements of Operations (unaudited)
(Dollar amounts in thousands, except per share data)
Three Months Ended March 31,
20212020
Investment income
Interest income:
Non-control/non-affiliate investments
$8,527 $9,072 
Affiliate investments
904 2,394 
Control investment
269 196 
Total interest income
9,700 11,662 
Payment-in-kind interest and dividend income:
Non-control/non-affiliate investments
318 261 
Affiliate investments
71 269 
Control investment
98 85 
Total payment-in-kind interest and dividend income
487 615 
Dividend income:
Affiliate investments
— 100 
Total dividend income
— 100 
Fee income:
Non-control/non-affiliate investments
267 485 
Affiliate investments
37 
Control investment
— 
Total fee income
304 493 
Total investment income
10,491 12,870 
Expenses
Interest expense4,825 4,922 
Management fee1,834 2,019 
Incentive fee— 883 
Professional fees387 648 
Administration fee568 520 
Other expenses327 347 
Total expenses before incentive fee waiver
7,941 9,339 
Incentive fee waiver (see Note 3)— (441)
Total expenses, net of incentive fee waiver
7,941 8,898 
     Net investment income
2,550 3,972 
Net realized and unrealized gain (loss) on investments
Net realized gain (loss) on non-control/non-affiliate investments
91 (8,973)
Net unrealized appreciation (depreciation) on non-control/non-affiliate investments, net of taxes
1,518 (22,422)
Net unrealized appreciation (depreciation) on affiliate investments1,926 (2,924)
Net unrealized appreciation (depreciation) on control investment
388 (1,664)
Net gain (loss) on investments
3,923 (35,983)
Loss on extinguishment of debt
(2,299)(149)
Net increase (decrease) in net assets resulting from operations
$4,174 $(32,160)
Net investment income per common share – basic and diluted
$0.19 $0.30 
Net increase (decrease) in net assets resulting from operations per common share – basic and diluted
$0.31 $(2.41)
Distributions declared per common share$0.20 $0.34 
Basic and diluted weighted average shares outstanding13,409,033 13,377,008 
See Notes to Consolidated Financial Statements.
4

OFS Capital Corporation and Subsidiaries
Consolidated Statements of Changes in Net Assets (unaudited)
(Dollar amounts in thousands)


Preferred StockCommon StockPaid-in capital in excess of parTotal distributable earnings (losses)Total net assets
Number of sharesPar valueNumber of sharesPar value
Balances at January 1, 2020— — 13,376,836 $134 $187,305 $(20,812)$166,627 
Net decrease in net assets resulting from operations:
  Net investment income— — — — — 3,972 3,972 
  Net realized loss on investments— — — — — (8,973)(8,973)
Loss on extinguishment of debt— — — — — (149)(149)
  Net unrealized depreciation on investments, net of taxes— — — — — (27,010)(27,010)
  Tax reclassifications of permanent differences— — — — 18 (18)— 
Distributions to stockholders:
  Common stock issued from reinvestment of stockholder distributions
— — 15,693 — 64 — 64 
  Dividends declared— — — — — (4,548)(4,548)
Net increase (decrease) for the period ended March 31, 2020— — 15,693 — 82 (36,726)(36,644)
Balances at March 31, 2020— $— 13,392,529 $134 $187,387 $(57,538)$129,983 
Balances at January 1, 2021— $— 13,409,559 $134 $187,124 $(28,302)$158,956 
Net decrease in net assets resulting from operations:
  Net investment income— — — — — 2,550 2,550 
  Net realized gain on investments— — — — — 91 91 
  Loss on extinguishment of debt— — — — — (2,299)(2,299)
  Net unrealized appreciation on investments, net of taxes— — — — — 3,832 3,832 
Distributions to stockholders:
  Common stock issued from reinvestment of stockholder distributions
— — 3,103 — 27 — 27 
  Dividends declared— — — — — (2,682)(2,682)
Common stock repurchased under stock repurchase program— — (700)— (5)— (5)
Net increase for the period ended March 31, 2021— — 2,403 — 22 1,492 1,514 
Balances at March 31, 2021— $— 13,411,962 $134 $187,146 $(26,810)$160,470 
See Notes to Consolidated Financial Statements.
5


OFS Capital Corporation and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(Dollar amounts in thousands)
Three Months Ended March 31,
20212020
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations
$4,174 $(32,160)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:
Net realized (gain) loss on investments(91)8,973 
Loss on extinguishment of debt
2,299 — 
Net unrealized (appreciation) depreciation on investments, net of taxes(3,832)27,010 
Amortization of Net Loan Fees
(401)(407)
Amendment fees collected
97 — 
Payment-in-kind interest and dividend income
(487)(628)
Accretion of interest income on structured finance notes(2,278)(1,223)
Amortization of debt issuance costs
446 581 
Amortization of intangible asset
54 49 
Purchase and origination of portfolio investments
(68,498)(63,609)
Proceeds from principal payments on portfolio investments
48,609 37,204 
Proceeds from sale or redemption of portfolio investments
566 42,082 
Proceeds from distributions received from structured finance notes
2,621 1,353 
Changes in operating assets and liabilities:
Interest receivable
779 550 
Interest payable
(1,316)(1,312)
Payable to adviser and affiliates
(454)(873)
Receivable for investment sold
(474)(1,920)
Payable for investments purchased
24,516 (8,279)
Other assets and liabilities
(507)326 
Net cash provided by operating activities5,823 7,717 
Cash flows from financing activities
Distributions paid to stockholders
(2,655)(4,484)
Borrowings under revolving lines of credit
12,900 39,600 
Repayments under revolving lines of credit
(25,400)(38,000)
Repayments of SBA debentures
(9,765)(16,110)
Redemption of unsecured notes(98,525)— 
Proceeds from unsecured notes offering, net of discounts
121,791 — 
Payment of deferred financing costs
(231)— 
Repurchases of common stock under Stock Repurchase Program
(5)— 
Net cash used in financing activities(1,890)(18,994)
Net increase (decrease) in cash3,933 (11,277)
   Cash at beginning of period37,708 13,447 
   Cash at end of period$41,641 $2,170 
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest
$5,695 $5,801 
Reinvestment of distributions to stockholders
27 64 
See Notes to Consolidated Financial Statements.
6

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (unaudited)
March 31, 2021
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Non-control/Non-affiliate Investments
Debt and Equity Investments
AAdvantage Loyalty IP Ltd. and American Airlines, Inc. (14) (15)Scheduled Passenger Air Transportation
Senior Secured Loan5.50%(L +4.75%)3/10/20213/10/2028$364 $360 $373 0.2 %
Allen Media, LLC (14) (15)Cable and Other Subscription Programming
Senior Secured Loan5.70%(L +5.50%)3/2/20212/10/20272,927 2,929 2,928 1.8 
All Star Auto Lights, Inc. (4)Motor Vehicle Parts (Used) Merchant Wholesalers
Senior Secured Loan9.00%(L +8.00%)12/19/20198/20/202415,476 15,285 15,221 9.5 
Autokiniton US Holdings, Inc. (15)Automotive Parts and Accessories Stores
Senior Secured Loan5.00%(L +4.50%)3/26/20213/29/20281,714 1,710 1,710 1.1 
A&A Transfer, LLCConstruction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers
Senior Secured Loan (15)7.75%(L +6.50%)2/7/20202/7/202516,416 16,226 16,024 10.0 
Senior Secured Loan (Revolver) (5)n/m (18)(L +6.50%)2/7/20202/7/2025— (33)(47)— 
16,416 16,193 15,977 10.0 
Bass Pro Group, LLC (14) (15)Sporting Goods Stores
Senior Secured Loan5.00%(L +4.25%)2/26/20212/24/20285,739 5,729 5,755 3.6 
Baymark Health Services, Inc. (15)Outpatient Mental Health & Sub. Abuse Centers
Senior Secured Loan9.00%(L +8.00%)1/27/20215/18/20234,045 4,007 4,045 2.5 
Senior Secured Loan9.25%(L +8.25%)3/22/20183/1/20259,055 9,033 9,055 5.6 
13,100 13,040 13,100 8.1 %
Community Intervention Services, Inc. (4) (6) (11)Outpatient Mental Health and Substance Abuse Centers
Subordinated  Loan7.0% cash / 6.0% PIKN/A7/16/20151/16/2021 (22)10,378 7,639 105 0.1 
Confie Seguros Holdings II Co.Insurance Agencies and Brokerages
Senior Secured Loan8.62%(L +8.50%)7/7/201511/1/202512,638 12,466 12,452 7.8 
7

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2021
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Connect U.S. Finco LLC (14) (15)Taxi Service
Senior Secured Loan4.50%(L +3.50%)11/20/201912/11/2026$1,980 $1,980 $1,976 1.2 %
Constellis Holdings, LLC (10)Other Justice, Public Order, and Safety Activities
Common Equity (20,628 common shares)3/27/2020703 462 0.3 
Convergint Technologies Holdings, LLC (15)Security Systems Services (except Locksmiths)
Senior Secured Loan4.50%(L +3.75%)3/18/20213/18/20282,432 2,420 2,420 1.5 
Senior Secured Loan7.50%(L +6.75%)9/28/20183/18/20297,016 6,993 6,993 4.4 
9,448 9,413 9,413 5.9 
Corel Inc. (15)Software Publishers
Senior Secured Loan5.19%(L +5.00%)3/2/20217/2/20261,310 1,301 1,301 0.8 
Custom Truck One Source (14) (15)Construction, Mining, and Forestry Machinery and Equipment Rental and Leasing
Senior Secured Loan4.36%(L +4.25%)9/30/20204/18/2025463 462 463 0.3 
Dexko Global Inc. (15)Motor Vehicle Body Manufacturing
Senior Secured Loan9.25%(L +8.25%)1/28/20217/24/20251,460 1,465 1,465 0.9 
DHX Media Ltd. (15)Motion Picture and Video Production
Senior Secured Loan5.00%(L +4.25%)3/19/20213/18/20282,500 2,450 2,450 1.5 
Diamond Sports Group, LLC (14) (15)Television Broadcasting
Senior Secured Loan3.36%(L +3.25%)11/19/20198/24/20261,970 1,972 1,368 0.9 
Eblens Holdings, Inc. (20)Shoe Store
Subordinated Loan (11)12.00% cash / 1.00% PIKN/A7/13/20171/13/20239,137 9,041 4,946 3.1 
Common Equity (71,250 Class A units) (10)7/13/2017713 — — 
9,137 9,754 4,946 3.1 
8

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2021
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Envocore Holding, LLC (F/K/A LRI Holding, LLC) (4)Electrical Contractors and Other Wiring Installation Contractors
Senior Secured Loan7.50% cash / 3.50% PIKN/A6/30/20176/30/2022$17,300 $17,221 $12,670 7.9 %
Preferred Equity (238,095 Series B units) (10)6/30/2017300 — — 
Preferred Equity (13,315 Series C units) (10)8/13/201813 — — 
17,300 17,534 12,670 7.9 
Excelin Home Health, LLCHome Health Care Services
Senior Secured Loan11.50%(L +9.50%)10/25/20184/25/20244,250 4,203 4,250 2.6 
GGC Aerospace Topco L.P.Other Aircraft Parts and Auxiliary Equipment Manufacturing
Senior Secured Loan9.75%(L +9.75%)12/29/20179/8/20245,000 4,936 4,239 2.5 
Common Equity (368,852 Class A units) (10)12/29/2017450 166 0.1 
Common Equity (40,984 Class B units) (10)12/29/201750 — 
5,000 5,436 4,412 2.6 
Inergex Holdings, LLCOther Computer Related Services
Senior Secured Loan8.00%(L +7.00%)10/1/201810/1/202416,408 16,216 16,408 10.1 
Senior Secured Loan (Revolver) (5)n/m (18)(Prime + 7.00%)10/1/201810/1/2024— (16)— — 
16,408 16,200 16,408 10.1 
Innovacare, Inc. (14) (15)Direct Health and Medical Insurance Carriers
Senior Secured Loan6.75%(L +5.75%)1/25/202112/26/20262,961 2,968 2,968 1.8 
Intouch Midco Inc. (15)All Other Professional, Scientific, and Technical Services
Senior Secured Loan4.86%(L +4.75%)12/20/20198/24/20252,056 1,998 2,006 1.3 
Ivanti Software, Inc. (14)Software Publishers
Senior Secured Loan5.75%(L +4.75%)3/26/202112/1/20273,000 3,019 3,016 1.9 
I&I Sales Group, LLCMarketing Consulting Services
Senior Secured Loan (15)9.50%(L +8.50%)12/30/20207/10/20255,325 5,237 5,275 3.3 
Senior Secured Loan (Revolver) (5)n/m (18)(L +8.50%)12/30/20207/10/2025— (3)(1)— 
5,325 5,234 5,274 3.3 
9

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2021
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
JP Intermediate B, LLC (14) (15)Drugs and Druggists' Sundries Merchant Wholesalers
Senior Secured Loan6.50%(L +5.50%)1/14/202111/15/2025$3,980 $3,782 $3,816 2.4 %
LogMeIn, Inc. (14)Data Processing, Hosting, and Related Services
Senior Secured Loan4.85%(L +4.75%)3/26/20218/31/20272,500 2,497 2,496 1.6 
Micro Holding Corp (14)Internet Publishing and Broadcasting and Web Search Portals
Senior Secured Loan3.61%(L +3.50%)3/26/20219/15/20242,000 2,003 2,003 1.2 
Milrose Consultants, LLC (4) (8)Administrative Management and General Management Consulting Services
Senior Secured Loan7.61%(L +6.61%)7/16/20197/16/202522,574 22,377 23,026 14.3 
My Alarm Center, LLC (10)Security Systems Services (except Locksmiths)
Preferred Equity (335 Class Z units) (13)9/12/2018325 — — 
Preferred Equity (1,485 Class A units), 8% PIK (4) (13)7/14/20171,571 — — 
Preferred Equity (1,198 Class B units) (4) 7/14/20171,198 — — 
Common Equity (64,149 units) (4) (13)7/14/2017— — — 
3,094 — — 
Online Tech Stores, LLC (4) (6)Stationary & Office Supply Merchant Wholesaler
Subordinated Loan13.50% PIKN/A2/1/20188/1/202319,504 16,142 94 0.1 
Panther BF Aggregator 2 LP (14) (15) (19)Other Commercial and Service Industry Machinery Manufacturing
Senior Secured Loan3.36%(L +3.25%)11/19/20194/30/20261,934 1,934 1,934 1.2 
Parfums Holding Company, Inc.Cosmetics, Beauty Supplies, and Perfume Stores
Senior Secured Loan (14) (15)4.11%(L +4.00%)6/25/20196/30/20241,537 1,536 1,527 1.0 
10

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2021
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Pelican Products, Inc.Unlaminated Plastics Profile Shape Manufacturing
Senior Secured Loan8.75%(L +7.75%)9/24/20185/1/2026$6,249 $6,249 $6,249 3.9 %
Pike Corp. (14) (15)Electrical Contractors and Other Wiring Installation Contractors
Senior Secured Loan3.13%(L +3.00%)9/17/20201/21/2028136 136 136 0.1 
PM Acquisition LLC (20)All Other General Merchandise Stores
Senior Secured Loan11.50% cash / 2.5% PIKN/A9/30/201710/29/20214,731 4,712 4,731 2.9 
Common Equity (499 units) (10) (13)9/30/2017499 523 0.3 
4,731 5,211 5,254 3.2 
Quest Software US Holdings Inc. (14) (15)Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Senior Secured Loan4.46%(L +4.25%)6/25/20195/16/20251,965 1,951 1,966 1.2 
Resource Label Group, LLCCommercial Printing (except Screen and Books)
Senior Secured Loan9.50%(L +8.50%)6/7/201711/26/20234,821 4,792 4,821 3.1 
RPLF Holdings, LLC (10) (13)Software Publishers
Common Equity (254,110 Class A units)1/17/2018492 604 0.4 
Sentry Centers Holdings, LLC (10) (13)Convention and Trade Show Organizers
Preferred Equity (2,248 Series A units)9/4/202051 — — 
Preferred Equity (1,603 Series B units)9/4/2020160 28 — 
Common Equity (269 units) 9/4/2020— — 
214 28 — 
Signal Parent, Inc.New Single-Family Housing Construction (except For-Sale Builders)
Senior Secured Loan4.25%(L +3.50%)3/25/20214/21/2028600 596 596 0.4 
SourceHOV Tax, Inc. (4) (8)Other Accounting Services
Senior Secured Loan7.61%(L +6.11%)3/16/20203/17/202519,892 19,751 20,161 12.7 
11

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2021
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Southern Technical Institute, LLC (4) (10)Colleges, Universities, and Professional Schools
Equity appreciation rights6/27/2018$— $4,789 3.0 %
Spring Education Group, Inc. (F/K/A SSH Group Holdings, Inc.,) (15)Child Day Care Services
Senior Secured Loan8.45%(L +8.25%)7/26/20187/30/20265,216 5,150 4,667 2.9 
SSJA Bariatric Management LLC (15)Offices of Physicians, Mental Health Specialists
Senior Secured Loan6.25%(L +5.25%)8/26/20198/26/20249,850 9,782 9,781 6.2 
Senior Secured Loan6.25%(L +5.25%)12/31/20208/26/20241,064 1,054 1,057 0.8 
Senior Secured Loan (Revolver) (5)n/m (18)(L +5.25%)8/26/20198/26/2024— (5)(4)— 
10,914 10,831 10,834 7.0 
Stancor, L.P. (4)Pump and Pumping Equipment Manufacturing
Preferred Equity (1,250,000 Class A units), 8% PIK (10)8/19/20141,501 1,264 0.8 
Staples, Inc. (14) (15)Business to Business Electronic Markets
Senior Secured Loan5.21%(L +5.00%)6/24/20194/16/20262,952 2,887 2,885 1.8 
STS Operating, Inc.Industrial Machinery and Equipment Merchant Wholesalers
Senior Secured Loan (14) (15)5.25%(L +4.25%)5/16/201812/11/2024624 623 611 0.4 
Senior Secured Loan9.00%(L +8.00%)5/15/20184/30/20269,073 9,070 8,732 5.4 
9,697 9,693 9,343 5.8 
Sunshine Luxembourg VII SARL (14) (15)Pharmaceutical Preparation Manufacturing
Senior Secured Loan4.50%(L +3.75%)11/20/201910/1/20261,980 1,980 1,980 1.2 
Tailwind Smith Cooper Intermediate Corporation (14) (15)Fabricated Pipe and Pipe Fitting Manufacturing
Senior Secured Loan5.11%(L +5.00%)2/23/20215/28/20262,593 2,548 2,543 1.6 
12

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2021
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Tank Holding Corp. (14) (15)Unlaminated Plastics Profile Shape Manufacturing
Senior Secured Loan3.36%(L +3.25%)6/24/20193/26/2026$1,970 $1,977 $1,946 1.2 %
Senior Secured Loan5.75%(L +5.00%)12/18/20203/26/2026893 880 899 0.6 
2,863 2,857 2,845 1.8 
The Escape Game, LLC (4)Other amusement and recreation industries
Senior Secured Loan9.75%(L +8.75%)12/22/201712/31/20212,333 2,329 2,312 1.4 
Senior Secured Loan9.75%(L +8.75%)2/14/202012/22/20227,000 6,976 6,937 4.3 
Senior Secured Loan9.75%(L +8.75%)7/18/201912/22/20227,000 7,000 6,937 4.3 
Senior Secured Loan (Delayed Draw)8.00%(L +7.00%)7/20/201812/31/20214,667 4,665 4,588 2.9 
21,000 20,970 20,774 12.9 
Thryv, Inc. (14) (15)Directory and Mailing List Publishers
Senior Secured Loan9.50%(L +8.50%)2/18/20213/1/20262,647 2,578 2,657 1.7 
United Biologics Holdings, LLC (4) (10)Medical Laboratories
Preferred Equity (151,787 units)4/16/201323 — 
Warrants (29,374 units) 7/26/20123/5/2022 (12)82 10 — 
91 33 — 
United Natural Foods (14) (15)General Line Grocery Merchant Wholesalers
Senior Secured Loan3.61%(L +3.50%)6/9/202010/22/2025283 273 283 0.2 
Wastebuilt Environmental Solutions, LLC (4)Industrial Supplies Merchant Wholesalers
Senior Secured Loan7.00% / 7.25% PIK(L +12.75%)10/11/201810/11/20247,400 7,206 7,272 4.5 
Weight Watchers International, Inc. (14) (15)Diet and Weight Reducing Centers
Senior Secured Loan5.50%(L +4.75%)6/10/202011/29/2024470 470 470 0.3 
West Corporation (14) (15)All Other Telecommunications
Senior Secured Loan4.50%(L +3.50%)2/26/202110/10/2024997 980 961 0.6 
Xperi (14) (15)Semiconductor and Related Device Manufacturing
Senior Secured Loan4.11%(L +4.00%)6/1/20206/1/2025426 395 427 0.3 
13

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2021
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Total Debt and Equity Investments$325,181 $324,610 $291,207 181.8 %
Structured Finance Note Investments
Apex Credit CLO 2020 Ltd. (7)
Subordinated Notes14.16% (9)11/16/202011/19/2031 (17)$11,080 $ 9,786 (16)$9,631 6.0 %
Dryden 53 CLO, LTD. (7)
Income Notes23.93% (9)10/26/20201/15/2031 (17)2,700 1,739 (16)1,892 1.2 
Subordinated Notes23.90% (9)10/26/20201/15/2031 (17)2,159 1,391 (16)1,513 0.9 
4,859 3,130 3,405 2.1 
Dryden 76 CLO, Ltd. (7)
Subordinated Notes17.90% (9)9/27/201910/20/2032 (17)2,750 2,260 (16)2,274 1.4 
Elevation CLO 2017-7, Ltd. (7)
Subordinated Notes13.54% (9)2/6/20197/15/2030 (17)10,000 6,745 (16)5,975 3.7 
Flatiron CLO 18, Ltd. (7)
Subordinated Notes19.60% (9)1/2/20194/17/2031 (17)9,680 7,185 (16)7,727 4.8 
Madison Park Funding XXIII, Ltd. (7)
Subordinated Notes21.23% (9)1/8/20207/27/2047 (17)10,000 6,545 (16)7,049 4.4 
Madison Park Funding XXIX, Ltd. (7)
Subordinated Notes18.81% (9)12/22/202010/18/2047 (17)9,500 7,401 (16)7,439 4.6 
Monroe Capital MML CLO X, Tranche E
Mezzanine bond - Class E9.03%(L +8.85%)3/10/20218/20/2031 (17)1,000 940 1,019 0.6 
Monroe Capital MML CLO X, LTD.
Mezzanine bond - Class E7.52%(L +7.30%)8/7/20201/20/2034 (17)1,000 970 1,000 0.6 
14

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2021
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Octagon Investment Partners 39, Ltd. (7)
Subordinated Notes18.42% (9)1/23/202010/20/2030 (17)$7,000 5,097 (16)$5,452 3.4 %
Redding Ridge 4 (7)
Subordinated Notes13.92% (9)3/4/20214/15/2030 (17)1,300 1,169 (16)1,155 0.7 
Regatta II Funding
Mezzanine bond - Class DR27.19%(L +6.95%)6/5/20201/15/2029 (17)800 706 778 0.5 
THL Credit Wind River 2019‐3 CLO Ltd (7)
Subordinated Notes14.65% (9)4/5/20194/15/2031 (17)7,000 5,730 (16)4,734 3.0 
Trinitas CLO VIII (7)
Subordinated Notes15.34% (9)3/4/20217/20/2031 (17)5,200 3,267 (16)3,310 2.1 
Wellfleet CLO 2018-2 (7)
Subordinated Notes14.45% (9)3/4/202110/20/2031 (17)1,000 677 (16)682 0.4 
Total Structured Finance Note Investments$82,169 $61,608 $61,630 38.3 %
Total Non-control/Non-affiliate Investments$407,350 $386,218 $352,837 220.1 %
Affiliate Investments
3rd Rock Gaming Holdings, LLC (20)Software Publishers
Senior Secured Loan (6)8.50% cash / 1.0% PIK(L +7.50%)3/13/20183/12/202319,256 17,333 7,000 4.4 
Common Equity (2,547,250 units) (10) (13)3/13/20182,547 — — 
19,256 19,880 7,000 4.4 
Chemical Resources Holdings, Inc. (20)Custom Compounding of Purchased Resins
Senior Secured Loan (4) (8)9.09%(L +7.59%)1/25/20191/25/202413,743 13,639 13,842 8.6 
Common Equity (1,832 Class A shares) (10) (13)1/25/20191,814 3,267 2.0 
13,743 15,453 17,109 10.6 
15

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments - Continued (unaudited)
March 31, 2021
(Dollar amounts in thousands)

Portfolio Company (1)
Investment Type
IndustryInterest Rate (2)Spread Above Index (2)Initial Acquisition DateMaturityPrincipal AmountAmortized CostFair Value (3)Percent of Net Assets
Contract Datascan Holdings, Inc. (4) (20)Office Machinery and Equipment Rental and Leasing
Preferred Equity (3,061 Series A shares), 10% PIK 8/5/2015$5,849 $2,728 1.7 %
Common Equity (11,273 shares) (10)6/28/2016104 41 — 
5,953 2,769 1.7 
DRS Imaging Services, LLC (20)Data Processing, Hosting, and Related Services
Common Equity (1,135 units) (10) (13)3/8/20181,135 1,872 1.2 
Master Cutlery, LLC (4) (10) (20)Sporting and Recreational Goods and Supplies Merchant Wholesalers
Subordinated Loan (6) (11)13.00%N/A4/17/20157/20/20226,936 4,764 657 0.4 
Preferred Equity (3,723 Series A units), 8% PIK 4/17/20153,483 — — 
Common Equity (15,564 units)4/17/2015— — — 
6,936 8,247 657 0.4 
NeoSystems Corp. (4) (20)Other Accounting Services
Preferred Equity (521,962 convertible shares), 10% PIK