Eagle Point Credit Management LLC and its affiliate, Eagle Point DIF GP I LLC, have sold shares in OFS Credit Company, Inc. (NASDAQ:OCCI), according to recent filings with the Securities and Exchange Commission. The transactions, which took place on September 23 and 24, amounted to a total sale value of $17,378.
The shares sold were from two different series of preferred stock due in 2026. On September 23, a total of 109 shares of the 6.125% Series C Term Preferred Stock were sold at $24.52 each. The following day, 100 shares of the 5.25% Series E Term Preferred Stock were sold at $23.66 per share, and an additional 500 shares of the 6.125% Series C Term Preferred Stock were sold at prices ranging from $24.50 to $24.87, with a weighted average price of $24.68 per share.
The footnotes in the filing indicate that the securities are held by private investment funds managed by Eagle Point Credit Management LLC. Eagle Point DIF GP I LLC serves as the general partner to these funds. Both entities could be deemed to have an indirect pecuniary interest in the securities reported. They have disclaimed beneficial ownership of the securities described in the report, and the inclusion of these securities is not deemed an admission of beneficial ownership for any purpose.
The shares were sold indirectly, and the specifics of the ownership and nature of the transactions are detailed in the footnotes of the SEC filing. Upon request by the SEC staff, the issuer, or any security holder of the issuer, full information regarding the number of shares sold at each separate price within the range can be provided.
Investors and market watchers often look at such filings to gauge insider sentiment and financial moves within a company. The sale of these shares by Eagle Point entities provides insight into their recent investment decisions regarding OFS Credit Company, Inc.
In other recent news, OFS Credit Company has announced an underwritten public offering of its Series F Term Preferred Stock, with terms currently under negotiation. The Chicago-based firm anticipates the Preferred Stock to be listed on the Nasdaq Capital Market under the symbol "OCCIM," with trading expected to commence within 30 days from the issue date. The company also plans to grant the underwriters a 30-day option to purchase additional shares of Preferred Stock to cover any overallotments. The net proceeds from the sale will be used for acquiring investments that align with the company's investment objectives and strategies, managed by firms including Lucid (NASDAQ:LCID) Capital Markets and B. Riley Securities.
In other developments, OFS Credit Company has disclosed its estimated net asset value (NAV) per share for August 2024, projected to be in the range of $7.04 and $7.14. This preliminary figure may vary significantly from the actual NAV determined for the period ending October 31, 2024, which will be detailed in the company's forthcoming Annual Report on Form N-CSR. The company's management warns of potential factors that could influence OFS Credit's financial condition, including fluctuating interest and inflation rates, geopolitical tensions, and uncertainties surrounding the 2024 U.S. presidential election. Investors should note that this preliminary financial data has not been reviewed or audited by the company's auditor, KPMG LLP.
InvestingPro Insights
The recent sale of OFS Credit Company, Inc. (NASDAQ:OCCI) shares by Eagle Point entities may raise questions among investors regarding the company's financial health and future prospects. To provide additional context, here are some key metrics and insights from InvestingPro that could be useful for investors considering OCCI's position in the market.
OFS Credit Company, Inc. boasts a solid market capitalization of $125.72 million, indicating a stable presence in the market. The company's price-to-earnings (P/E) ratio stands at 10.74, which might appeal to value-oriented investors searching for potentially undervalued stocks. Over the last twelve months as of Q3 2024, OCCI reported revenue growth of 13.47%, showing a healthy expansion in its financial performance.
One of the notable InvestingPro Tips for OCCI is that the company pays a significant dividend to shareholders, with a striking dividend yield of 18.47% as of the latest data. This could be particularly attractive to income-focused investors. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a strong liquidity position that may reassure investors of the company's ability to meet its immediate financial responsibilities.
For those interested in further analysis and additional insights, InvestingPro offers more tips on OCCI, which can be found at https://www.investing.com/pro/OCCI. The platform lists several more tips that can provide a deeper understanding of the company's financial nuances and investment potential.
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