Terms

Series

6.125% Series C Term Preferred Stock Due 2026

Liquidation Preference

$25.00

Coupon Rate

6.125%

Rate Type

Fixed

Annual Dividend

$1.53

Payment Frequency

Monthly

Cumulative

Yes

Perpetual

No

Convertible

No

Callable

Yes

First Call Date

April 30, 2023

First Call Price

$25.00

Mandatory Redemption Date

April 30, 2026

Capital Stack Ranking

Junior To: Senior Indebtedness; Pari Passu With: 6.875% Series A Term Preferred Stock Due 2024, 6.60% Series B Term Preferred Stock Due 2023, Any Future Preferred Stock; Senior To: Common Stock

Regulatory (Basel III) Call

No

Tax Classification

Ordinary

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

800,000

Prospectus Summary

OFS Credit Company, Inc. (Nasdaq: OCCI) is offering 800,000 shares of its 6.125% Series C Term Preferred Stock Due 2026, with a $25 liquidation preference per share and a fixed annual dividend of $1.53125 per share paid monthly. The stock has a mandatory redemption date of April 30, 2026, and is optionally callable by the issuer at $25 on or after April 30, 2023. The Series C is cumulative, meaning that any unpaid dividends accrue and must be paid in full before distributions can be made to common stockholders. The Series C Term Preferred Stock ranks senior to OFS Credit's common stock and pari passu with the existing Series A (6.875%, due 2024) and Series B (6.60%, due 2023) term preferred shares. It is junior to all of the company's senior indebtedness. As a closed-end fund holding company, there is no bank subsidiary; however, the preferred is subordinate to any borrowings. Importantly, if asset coverage falls below 200% (the 1940 Act threshold for preferred stock), the company is required to mandatorily redeem shares of preferred stock to restore compliance — a structural protection for preferred holders that could accelerate redemption. At the $25 offering price, the Series C yields exactly 6.125% annually, paid monthly. Because OFS Credit is a regulated investment company (RIC), dividends typically do not qualify for the preferential 15%/20% qualified dividend income (QDI) rate or the corporate dividends-received deduction (DRD) unless sourced from qualifying income received by the RIC. Payment dates follow a monthly schedule beginning April 30, 2021; record dates precede each payment date, though exact record-date lead times for Series C are not specified. Dividend payments could be blocked by covenants in future senior debt agreements, and if preferred dividends fall two or more years in arrears, preferred holders gain the right to elect a majority of the board.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

The Series C preferred ranks senior to common stock, so common dividends may be blocked if preferred dividends are in arrears; additionally, future senior indebtedness could preclude payment of preferred dividends under certain conditions.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 50 (Average)