OFS Capital increases revolver to $100 million, extends to 2021

By Sarah Lizee

Olympia, Wash., April 15 – OFS Capital Corp. amended its senior secured revolving credit facility with Pacific Western Bank to increase the maximum amount available to $100 million from $50 million, according to an 8-K filing with the Securities and Exchange Commission.

Also, the amendment changes the interest rate to a variable rate of the Prime Rate plus a 25 basis point margin, with a floor of 5.25%, from the Prime Rate plus a 75 bps margin.

Additionally, the maturity was extended to Feb. 28, 2021 from Jan. 31, 2020.

The amendment increased the minimum quarterly net investment income covenant to $3 million from $2 million, reduced the statutory asset coverage ratio test to 150% from 200% and added a total liabilities to borrower’s net asset value covenant of 300%.

The revolver is used for general corporate purposes, including investment funding.

In connection with the secured revolver amendment, the company incurred a 1% upfront fee on the $50 million incremental increase in the maximum amount available, which equates to $500,000.

OFS Capital is a Chicago-based non-diversified management investment company.

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