OFS Credit: A Closer Look at Distributions and Shareholder Value

Investors in OFS Credit continue to monitor the company’s commitment to shareholder returns, underscored by its latest distribution announcement and a preliminary estimate of its net asset value. The stock closed the latest session at $4.87, marking a modest gain of $0.01. This price movement invites analysis against the backdrop of the firm’s recently provided NAV range.

Capital Returns and Upcoming Dates

The board of directors has confirmed a cash distribution of $0.115 per common share for February 2026. The payment is scheduled for February 27, 2026, with a record date of February 13, 2026. This follows a prior distribution of the same $0.115 per common share amount, for which the stock went ex-dividend on January 15 and payment was made on January 30.

Regarding its preferred shares, OFS Credit has declared monthly cash distributions for several series, extending through July 31, 2026. Specific redemption dates are on the horizon: the 6.125% Series C Term Preferred Shares will be redeemed on April 30, 2026, and the 6.00% Series D Term Preferred Shares on June 10, 2026. Dividends for these series have been declared up to, but not including, their respective redemption dates. Meanwhile, the 5.25% Series E Term Preferred Shares (due 2026) will trade ex-dividend on March 16, 2026, with a payment date of March 31, 2026.

Should investors sell immediately? Or is it worth buying OFS Credit?

Share Price and Estimated Asset Value

A key focal point is the relationship between the current market price and the company’s intrinsic value. Management released a preliminary, unaudited net asset value per common share for December 31, 2025, estimated between $4.82 and $4.92. With shares trading at $4.87, the market price sits comfortably within this band. It is important to note that this NAV figure is provisional and subject to finalization with the complete quarterly financial statements.

Financial Flexibility and Capital Strategy

OFS Credit has demonstrated ongoing strategic financial management by increasing the aggregate offering price of its At-The-Market (ATM) equity program to $200 million. Historical data reveals that between January 24, 2020, and January 14, 2026, the company sold 18,208,315 shares under this program. These sales were executed at a weighted average price of $8.38 per share, generating net proceeds of approximately $150.9 million after accounting for fees. The expansion of this ATM facility highlights the firm’s continued access to flexible capital-raising options.

Key Upcoming Milestones:
* Quarterly Report: The next comprehensive financial update is due on March 5, 2026.
* Final NAV: Audited net asset value figures will follow the completion of the quarterly close.
* Preferred Share Redemptions: Dates to watch are April 30, 2026, and June 10, 2026.
* Scheduled Distributions: All announced payment dates for common and preferred shares remain in focus.