CHICAGO - OFS Credit Company, Inc. (NASDAQ:OCCI), an investment firm focusing on collateralized loan obligation (CLO) equity and debt securities, disclosed an estimated net asset value (NAV) per share for the end of March 2024. According to management's unaudited figures, the NAV per share of common stock is projected to be between $7.42 and $7.52 as of March 31, 2024.
The company emphasized that this preliminary estimate has not been subjected to the usual quarter-end financial closing procedures and cautioned that the actual NAV per share could materially differ from the current estimate. The NAV per share for the period ending April 30, 2024, will be detailed in the company's upcoming Semi-Annual Report on Form N-CSR.
OFS Credit's NAV and financial position may be significantly influenced by various factors beyond the current reporting period. These include but are not limited to, the potential effects of heightened interest and inflation rates, geopolitical tensions including the ongoing conflict between Russia and Ukraine and instability in the Middle East, as well as uncertainties within the U.S. and global banking systems.
Moreover, risks of a U.S. recession or government service shutdown and associated market volatility could materially impact the company's future net investment income and the value of its investment portfolio.
The preliminary financial data presented in this announcement is the responsibility of OFS Credit's management, and it has not been audited or reviewed by KPMG LLP. Consequently, KPMG LLP does not provide an opinion or any form of assurance regarding this preliminary financial data.
OFS Credit Company is a non-diversified, closed-end management investment company externally managed by OFS Capital (NASDAQ:OFS) Management, LLC. The firm aims to generate current income and, secondarily, capital appreciation through investments in CLO debt and subordinated securities.
This press release contains forward-looking statements reflecting management's current expectations, beliefs, and projections about future events, which are subject to risks, uncertainties, and factors that may cause actual results to differ materially. These statements are not guarantees of future performance.
The information provided in this press release is based on a press release statement and does not imply endorsement of any claims. It is intended to offer a balanced view of OFS Credit Company's estimated financial position as of March 31, 2024.
InvestingPro Insights
OFS Credit Company, Inc. (NASDAQ:OCCI) has recently shared an estimated NAV per share that reflects its financial standing as of March 2024. To provide investors with a more comprehensive picture, key metrics and tips from InvestingPro are presented below.
The company's adjusted market capitalization stands at $115.79M, supported by a solid revenue growth of 15.8% over the last twelve months as of Q1 2024. This growth is further substantiated by a quarterly revenue growth of 17.32% in Q1 2024.
OFS Credit's commitment to shareholder returns is evident in its dividend yield of 16.57%, which is significant in the current investment landscape. Notably, the company has been profitable over the last twelve months, indicating a stable financial performance.
InvestingPro Tips for OFS Credit highlight the company's ability to pay a substantial dividend to its shareholders, which could be particularly attractive for income-focused investors. Moreover, the company's liquid assets surpass its short-term obligations, providing a cushion against potential market fluctuations or unexpected expenses.
Still, one InvestingPro Tip suggests caution, as the valuation implies a poor free cash flow yield. This could be a point of consideration for investors who prioritize cash flow generation in their investment decisions.
Investors interested in a deeper analysis of OFS Credit Company, including additional InvestingPro Tips, can explore the platform further. There are 3 more tips available, which could provide valuable insights into the company's financial health and future prospects. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and unlock the full range of insights at InvestingPro.
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