OFS Capital Corporation 7.50% Series Preferred Stock due July 31, 2028 (OFSSO)

Overview

OFS Capital Corporation operates as a business development company that primarily focuses on providing flexible capital solutions to middle-market companies across the United States. The company caters to a wide range of industries, emphasizing direct investments, fund investments, and support for add-on acquisitions. OFS Capital is dedicated to servicing US-based companies, excluding operational turnarounds or start-up businesses, thereby providing a multifaceted approach to investment that spans numerous sectors and business needs. This approach allows the company to support various stages of a company's lifecycle, from growth capital to ownership transitions.

Products and Services

OFS Capital Corporation offers a comprehensive range of financial products and services to meet the diverse needs of middle-market companies. These include:

• Debt and Structured Equity Investments: Tailored financing solutions aimed at supporting companies through recapitalizations, refinancing, management and leveraged buyouts.
• Acquisition Financings: Dedicated financial support for companies looking to expand through acquisitions, ensuring smooth ownership transitions and liquidity events for shareholders.
• Growth Capital: Essential funding designed to fuel the growth and expansion of companies, targeting those in need of capital for scaling operations.
• Independent Sponsor Transactions: Collaborative investments with independent sponsors, facilitating access to capital for various projects and investments.
• ESOPs and Minority Investments: Support for Employee Stock Ownership Plans and selective minority equity investments, fostering ownership transition and employee participation in company growth.

In addition to these services, OFS Capital's investment reach spans a wide array of industries including aerospace and defense, consumer products and services, healthcare, transportation, and many more. The firm targets companies with annual revenues between $15 million and $300 million, EBITDA between $5 million and $50 million, and enterprise values between $10 million and $500 million. Its investment instruments range from senior secured and unitranche loans to preferred and common equity securities, preferring to take minority or majority stakes depending on the nature of the investment. This diverse portfolio showcases OFS Capital's flexibility and commitment to fostering growth and stability in the US middle market.