The Company announced that it has priced a registered public offering of $50,000,000 aggregate principal amount of its 5.95% notes due 2026 which will result in net proceeds to the Company of approximately $48,137,500 (or approximately $55,403,125 if the underwriters fully exercise the overallotment option described below) based on a public offering price of 100% of the aggregate principal amount of the Notes, after deducting payment of underwriting discounts and commissions and estimated offering expenses payable by the Company.
The Notes will mature on October 31, 2026 and may be redeemed in whole or in part at any time, or from time to time, at the Company’s option on or after October 31, 2021. The Notes will bear interest at a rate of 5.95% per year, payable quarterly on January 31, April 30, July 31 and October 31 of each year, beginning on January 31, 2020. The Notes have received a private rating of “BBB+”* from Egan-Jones Ratings Company. The Company has also granted the underwriters a 30-day option to purchase an additional $7,500,000 aggregate principal amount of Notes to cover overallotments, if any.
The offering is subject to customary closing conditions and is expected to close on October 15, 2019. The Company has submitted an application for the Notes to be listed and trade on The Nasdaq Global Select Market under the trading symbol “OFSSI”. If approved for listing, the Company expects the Notes to begin trading within 30 days from the original issue date. As of 2019-10-08, the Fund’s leverage was 55.8% and Debt Focused BDC Group leverage was 46.1%.