OFS Credit to Sell Term Preferred Issue

Asset management company OFS Credit (NASDAQ:OCCI), which is organized as a closed end fund will be selling a Term Preferred (preferred stock with a mandatory redemption date) stock issue.  The issue will pay a monthly dividend.

The company just came public in October by selling 2.5 million shares at $20/share.  The company will invest in primarily CLOs (collateralized loan obligations) so it will be essential to peruse their financials.  For those interested in a similar company it could be compared to Eagle Point Credit (NASDAQ:ECC), which is a holder of similar assets.

The company is required to have a asset coverage ratio of 200% which  always provides some level of safety, although since the company is newly formed their history is non-existent.

No ticker–either permanent or OTC Grey Market have yet been released.

The preliminary prospectus can be read here.

NOTE–this is NOT the BDC OFS Capital but is a related company.



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