OFS Capital Corp Q1 FY2025 earnings call

• Net investment income decreased this quarter due to non-recurring items in the prior quarter and anticipated decline in interest income from loan portfolio. - Focus on rotating non-interest earning equity positions into interest earning assets. - Exploring monetization of minority equity investment in Pfanstiehl Holdings. - Net asset value decline due to company-specific marks and broader credit market pricing decline. - Portfolio is stable with no new non-accruals, loan portfolio constructed to withstand uncertain macroeconomic environment by avoiding cyclical industries and maintaining diversification. - Focus on investing higher in capital structure with 100% first and second lien senior secured loans. - M&A activity quiet in 2025 due to macroeconomic uncertainty, being cautious in deploying new capital. - Rely on adviser with $4.1 billion corporate credit platform and 25+ year track record through credit cycles.

For the current quarter, net investment income was $0.26 per share, down from $0.30 per share in the prior quarter. Net asset value was $11.97 per share, compared to $12.85 per share in the prior quarter. The investment portfolio was comprised of approximately 69% senior secured loans, 25% structured finance securities, and 6% equity securities as of quarter end, with net investment income of $3.5 million or $0.26 per share for the first quarter.

• Maintaining quarterly distribution at $0.34 per share for Q2 2025. - Cautiously evaluating fluid macroeconomic environment. - Focus on improving long-term returns and preserving capital. - Cautious deployment of new capital due to macroeconomic uncertainty and market volatility.

• Uncertain economic outlook due to global tariffs and related fallout, potential slowdown in economic activity affecting portfolio companies and BDC earnings. - Credit market pricing declines impacting net asset value. - Impact of rapidly changing global economic environment on portfolio yet to be estimated.

Q: A: Q: A: