CLO Owner OFS Credit To Sell Term Preferred

Collateralized loan obligation (CLO) owner OFS credit (OCCI) has announced a new offering of term preferred shares.

The issue is to be unrated. Shares will pay a monthly dividend.

The intended ticker will be OCCIO.

The mandatory redemption date has not yet been announced, but I suspect it will be between 2026 and 2028.

The company has 1 other issue of term preferred outstanding which can be seen here. The company may redeem some or all of this 6.875% issue (OCCIP) with proceeds of this new issue.

The preliminary prospectus can be read here.

Fabrib was right on top of this.

4 thoughts on “CLO Owner OFS Credit To Sell Term Preferred”

  1. OFS Credit Company, Inc. (the “Company”) (Nasdaq: OCCI, OCCIP) today announced the pricing of an underwritten public offering of 800,000 shares of 6.125% Series C Term Preferred Stock due 2026 (the “Preferred Stock”) at a public offering price of $25.00 per share, raising $20.0 million in gross proceeds. In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 120,000 shares of Preferred Stock on the same terms and conditions to cover overallotments, if any. The closing of the transaction is subject to customary closing conditions and the shares are expected to be delivered on April 28, 2021.
    The Company has applied to list the Preferred Stock on the Nasdaq Capital Market under the trading symbol “OCCIO”. The Company expects the Preferred Stock to begin trading within 30 days from the original issue date.
    The Company expects to receive net proceeds from the offering, excluding the exercise of the underwriters’ option to purchase additional shares of Preferred Stock, of approximately $19.2 million, after deducting payment of underwriting discounts and estimated offering expenses payable by the Company. Assuming the full exercise of the underwriters’ option to purchase additional shares of Preferred Stock, the net proceeds will be approximately $22.1 million, after deducting payment of underwriting discounts and estimated offering expenses payable by the Company.
    The Company intends to use the net proceeds of the offering to acquire investments in accordance with its investment objectives and strategies and for general working capital purposes. The Company may use the net proceeds of the offering to redeem all or a portion of its outstanding 6.875% Series A Term Preferred Stock due 2024 and 6.60% Series B Term Preferred Stock due 2023.

  2. I could have sworn I saw something about OCCIP being redeemeed previously. I think related to their common stock secondary offering. Was that not the case?

    1. 3/25/2021:
      CHICAGO–(BUSINESS WIRE)– OFS Credit Company, Inc. (OCCI) (the “Company”) (Nasdaq: OCCI, OCCIP) announced today that it has commenced an underwritten public offering of shares of its common stock. In connection with the proposed offering, the Company intends to grant the underwriters for the offering an option to purchase up to an additional 15% of the shares of the Company’s common stock sold to cover over-allotments, if any. The final terms of the offering will depend on market and other conditions at the time of pricing, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
      The Company intends to use the net proceeds of the offering to acquire investments in accordance with its investment objectives and strategies, to redeem all or a portion of its outstanding 6.875% Series A Term Preferred Stock due 2024 and/or 6.60% Series B Term Preferred Stock due 2023 and for general working capital purposes.

    2. Interesting–seems you are right per Libero’s post. Guess they haven’t gotten it done yet.

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