OFS Capital Corp Q4 FY2024 earnings call

• Net investment income increased by approximately 13% to $0.30 per share, and net asset value per share rose by 14% to $12.85 per share. - Improvement in net investment income was driven by nonrecurring dividend and fee income, and efforts to rotate non-interest earning equity into interest-earning assets. - Fair value of Fansteel Holdings equity position increased by $15.6 million to $89.3 million in the quarter, with $3.9 million in distributions received to date. - No new non-accruals, regulatory asset coverage ratio stood at 169% at quarter end, and 72% of outstanding debt was unsecured. - Investment portfolio composition: 69% senior secured loans, 25% structured finance, 6% equity; weighted average performing investment income yield was 13.8%, up 0.2% from the prior quarter.

For the quarter, net investment income was $4.1 million or $0.30 per share, up 13% from the prior quarter. The net asset value per share increased by 14% to $12.85 per share. The investment portfolio at fair value was composed of approximately 69% senior secured loans, 25% structured finance securities, and 6% equity securities. The weighted average performing investment income yield on the interest-bearing portion of the portfolio improved slightly to 13.8%, up about 0.2% quarter over quarter.

• The quarterly distribution for the first quarter of 2025 will remain at $0.34 per share. - Focus on increasing net investment income over the long term by exploring the sale of certain non-interest earning equity and redeploying proceeds into interest-earning assets.

• Statements made on the call constitute forward-looking statements subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially, as detailed in OFS Capital's SEC filings.

Q: No actual questions were posed during the call A: The operator opened the question and answer session but it concluded without any specific questions being asked