OFS CAPITAL CORPORATION (NASDAQ:OFS) Files An 8-K Entry into a Material Definitive AgreementItem 1.01.Entry into a Material Definitive Agreement.
Amendment to Senior Secured Revolving Credit Facility
On August 9, 2017, OFS Capital Corporation, a Delaware corporation (the “Company”), executed an amendment (the “Secured Revolver Amendment”) to its Business Loan Agreement with Pacific Western Bank, as lender (“PacWest”), to which PacWest provides the Company with a senior secured revolving credit facility (“PWB Credit Facility”) for general corporate purposes, including investment funding.
The Secured Revolver Amendment, among other things: (i) increases the maximum amount available under the PWB Credit Facility from $25.0 million to $35.0 million; and (ii) changes the interest rate under the PWB Credit Facility from a fixed rate of 5.00% per annum to a variable rate initially set at 5%, calculated as prime plus a 0.75% margin, with a 5% floor. The maturity date of October 31, 2018 and all other principal covenants and terms under the PWB Credit Facility remain the same.
In connection with the Secured Revolver Amendment, the Company incurred a 1.0% upfront fee on the $10.0 million incremental increase in the maximum amount available under the PWB Credit Facility, which equates to $100,000.
The foregoing description of the Secured Revolver Amendment is not complete and is qualified in its entirety by the full text of such amendment and the Commercial Guaranty Agreement by and among the Company, OFS Capital WM, LLC, and Pacific Western Bank dated August 9, 2017, which are filed as exhibits to this Current Report on Form 8-K as Exhibit 10.1 and Exhibit 10.2, respectively, and are incorporated by reference herein.
Item 9.01.Financial Statements and Exhibits.
(d)Exhibits.
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Exhibit No. |
Description |
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10.1 |
Change in terms to the Business Loan Agreement between OFS Capital Corporation and Pacific Western Bank dated August 9, 2017. |
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10.2 |
Commercial Guaranty Agreement among OFS Capital Corporation, OFS Capital WM, LLC, and Pacific Western Bank dated August 9, 2017. |
OFS Capital Corp ExhibitEX-10.1 2 changeintermsagreement08-0.htm EXHIBIT 10.1 Exhibit CHANGE IN TERMS AGREEMENTPrincipalLoan DateMaturityLoan NoCall / CollAccountOfficerInitials$35,…To view the full exhibit click here
About OFS CAPITAL CORPORATION (NASDAQ:OFS)
OFS Capital Corporation (OFS Capital) is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to provide its shareholders with both current income and capital appreciation primarily through debt investments and equity investments. It focuses primarily on middle-market companies in the United States, including senior secured loans, including first-lien, second-lien and unitranche loans, as well as subordinated loans, and warrants and other minority equity securities. The Company may make investments directly or through OFS SBIC I, LP (SBIC I LP), its investment company subsidiary. It focuses on investments in loans, in which OFS Advisor’s investment professionals have expertise, including investments in first-lien, unitranche, second-lien, and mezzanine loans and, to a lesser extent, on warrants and other equity securities. The Company’s investment activities are managed by OFS Capital Management, LLC (OFS Advisor).