The Company announced that it has priced a registered public offering of $25,000,000 aggregate principal amount of its 6.25% notes due 2023 which will result in net proceeds to the Company of approximately $23,950,000 (or approximately $27,587,500 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 September 30, 2023 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 September 30, 2021. The Notes will bear interest at a rate of 6.25% per year, payable quarterly on January 31, April 30, July 31 and October 31 of each year, beginning on January 31, 2021. The Company has also granted the underwriters a 30-day option to purchase an additional $3,750,000 aggregate principal amount of Notes to cover overallotments, if any.

The offering is subject to customary closing conditions and is expected to close on September 18, 2020. The Company has submitted an application for the Notes to be listed and trade on The Nasdaq Global Select Market under the trading symbol “OFSSG”. If approved for listing, the Company expects the Notes to begin trading within 30 days from the original issue date.

The Company intends to use the net proceeds of the offering to fund investments in debt and equity securities in accordance with its investment objective and for other general corporate purposes. The Company also intends to use a portion of the net proceeds from the offering to repay outstanding indebtedness under its senior secured revolving credit facility with Pacific Western Bank, or PWB, as amended (the “PWB Credit Facility”). As of September 10, 2020, the Company had $15.0 million of indebtedness outstanding under the PWB Credit Facility. As of 2020-09-14, the Fund’s leverage was 69.9% and Debt Focused BDC Group leverage was 50.7%.