Mission Statement, Vision, & Core Values of OFS Credit Company, Inc. (OCCI)

When you look at OFS Credit Company, Inc. (OCCI), you're not just looking at a closed-end management investment company; you're evaluating a strategy laser-focused on generating current income, a mission that delivered an annual dividend of about $1.38 per share, translating to a remarkable yield near 30.46% as of late 2025. That's a serious income stream, but how sustainable is it when the preliminary Q4 2025 Net Asset Value (NAV) per share is estimated between $5.41 and $5.51? We need to understand the bedrock-the Mission Statement, Vision, and Core Values-that drives their investment in Collateralized Loan Obligation (CLO) equity and debt securities, especially with a market cap around $125 million. Does their disciplined investment ethos truly protect that NAV, or are you just chasing a high yield without a safety net?

OFS Credit Company, Inc. (OCCI) Overview

You need a clear picture of OFS Credit Company, Inc. (OCCI) to assess its place in the structured credit market, so let's cut right to what they do and how they make money. OFS Credit is a non-diversified, externally managed closed-end management investment company, established in 2017, that focuses on generating current income and capital appreciation for its shareholders.

Their primary investment objective, which serves as their mission, is to generate current income, with a secondary goal of capital appreciation. They achieve this by primarily investing in Collateralized Loan Obligation (CLO) equity and debt securities. Honestly, their core value is a disciplined investment strategy within the complex structured credit markets, leveraging the deep, 25-year experience of their external manager, OFS Capital Management, LLC.

This focus on CLOs-which are securities backed by a pool of debt, often leveraged loans-is their main product. In terms of recent sales, the company has demonstrated revenue growth of 23.38% over the last twelve months, which shows real momentum in their niche.

2025 Fiscal Year Financial Highlights

The numbers from the 2025 fiscal year show the impact of their CLO focus, particularly the strong cash flow from their equity investments. The company reported an annual revenue of $32.55 million for the year, reflecting their investment success. Here's the quick math on their core performance, which is a better measure of their investment strategy than just net income.

• Q2 2025 Core Net Investment Income (NII) was $9.2 million, or $0.37 per common share.
• This Core NII was driven by recurring waterfall payments from CLO equity investments, which increased to $13.0 million in Q2 2025.
• The CLO equity cash flow yield for Q2 2025 was a strong 20.04% based on amortized cost.

What this estimate hides is the market volatility; still, the preliminary estimates for the fiscal quarter ended October 31, 2025, suggest a Net Asset Value (NAV) per share between $5.41 and $5.51, with estimated Net Investment Income per share between $0.20 and $0.24. That's a defintely solid performance in a complex market, especially with $115.9 million of term preferred stock outstanding as of October 31, 2025.

A Leader in Structured Credit

OFS Credit Company, Inc. is positioned as a significant player in the specialized Collateralized Loan Obligation space within the broader financial services sector. While it may be a niche, its disciplined approach and experienced management team-averaging over 25 years in structuring and investing in CLOs-give it a distinct competitive advantage. That level of expertise is hard to beat.

The company's consistent generation of current income, evidenced by the rising CLO equity cash flows, solidifies its role as a reliable vehicle for investors seeking exposure to structured credit. To be fair, navigating interest rate changes and credit cycles is a constant challenge, but their focus on high-yield potential through CLO equity and debt securities keeps them relevant. If you want to dig deeper into the actual mechanics and risks behind these numbers, you should find out more below to understand why OFS Credit Company, Inc. is successful: Breaking Down OFS Credit Company, Inc. (OCCI) Financial Health: Key Insights for Investors

OFS Credit Company, Inc. (OCCI) Mission Statement

You're looking for the bedrock principles that guide a specialized investment vehicle like OFS Credit Company, Inc. (OCCI), and honestly, their mission is less about abstract corporate fluff and more about a clear, measurable financial mandate for you, the shareholder. The mission is fundamentally defined by its dual investment objectives: generate current income first, and capital appreciation second, primarily through a focused strategy on Collateralized Loan Obligation (CLO) securities.

This clarity is its strength. Unlike a consumer-facing company that needs a feel-good vision, OCCI's long-term goal is simple: deliver attractive risk-adjusted returns by being a disciplined player in the structured credit market. This focus is why the company's estimated Net Asset Value (NAV) per share for the fiscal quarter ended October 31, 2025, is a tight range of $5.41 to $5.51. That's the real-world metric of their mission in action. You can read more about how this structure works in OFS Credit Company, Inc. (OCCI): History, Ownership, Mission, How It Works & Makes Money.

Core Component 1: Generating Current Income

The primary mission component is the relentless pursuit of current income for shareholders. For a closed-end management investment company like OCCI, this means structuring a portfolio to produce consistent cash flow, which is then distributed to you. This is the financial engine of the whole operation.

The proof is in the quarterly payouts. For the fiscal quarter ended October 31, 2025, the preliminary estimate for Net Investment Income (NII) per share is between $0.20 and $0.24. Here's the quick math: that NII is the direct result of the interest and distributions OCCI receives from its Collateralized Loan Obligation (CLO) investments. The Core NII (which strips out non-recurring items) for the fiscal quarter ended April 30, 2025, was even stronger at $9.2 million, or $0.37 per common share. That's a significant income stream, and it's the direct measure of how well they execute their primary objective.

• Focuses on CLO debt and equity.
• Drives regular cash distributions.
• NII is the key performance indicator.

Core Component 2: Seeking Capital Appreciation

The secondary objective is capital appreciation, which means growing the value of the underlying investments over time. This isn't a quick-flip strategy; it's about making smart, long-term investments in the structured credit market that will eventually increase the company's NAV. It's the long game, but it defintely matters for your total return.

A key indicator of this commitment is the performance of their CLO equity tranche investments. For the quarter ended April 30, 2025, the CLO equity cash flow yield was a high 20.04% based on amortized cost. This yield demonstrates the potential for substantial growth in the portfolio's value, which is the mechanism for capital appreciation. The company's overall investment portfolio had a total fair value of $252.2 million as of April 30, 2025. This is where the secondary goal gets its muscle: finding the right structured credit opportunities to expand that asset base.

Core Component 3: Disciplined Investment in Structured Credit

The third, and arguably most crucial, component is the disciplined and specialized investment strategy itself. OCCI's commitment to delivering high-quality returns is grounded in its deep expertise in CLOs (Collateralized Loan Obligations), which are pools of corporate loans packaged into different risk tranches (debt and equity). This isn't a broad market fund; it's a niche specialist.

What this estimate hides is the complexity of managing a $115.9 million outstanding term preferred stock liability while navigating the volatility of the CLO market. The company mitigates this risk by leveraging the expertise of its external manager, OFS Capital Management, LLC, whose senior management team averages over 25 years of experience structuring and investing in CLOs, debt securities, and loans. This depth of experience in underwriting, analyzing, and valuing the underlying loan portfolios is their competitive advantage and the real guarantee of their commitment to quality.

OFS Credit Company, Inc. (OCCI) Vision Statement

OFS Credit Company, Inc. (OCCI) does not use a flowery, traditional vision statement; instead, its vision is clearly defined by its dual investment objectives: generating current income and, secondarily, generating capital appreciation. This focus is a realist's vision, mapping directly to shareholder returns through a disciplined strategy in the Collateralized Loan Obligation (CLO) market. You need to see this as a measurable mandate, not just an aspirational phrase.

The company's operational ethos centers on actively managing a portfolio concentrated in structured finance securities, specifically CLO equity and debt. This specialization is their competitive edge, built on a management team with an average of over 25 years of experience in structuring and investing in these complex instruments.

Primary Objective: Generating Current Income

The core of OFS Credit Company's vision is delivering consistent current income to its investors. This is achieved primarily through interest distributions from its investments in CLO debt and equity. For you, the investor, this objective is the main reason to look at a closed-end management investment company like this.

Here's the quick math on the near-term income picture: The unaudited estimate for Net Investment Income (NII) per common share for the fiscal quarter ended October 31, 2025, is projected to be between $0.20 and $0.24. This is a critical metric because it represents the distributable income from their portfolio. For context, in the prior quarter ended April 30, 2025, the company reported NII of $5.2 million, or $0.21 per common share. The continued focus on recurring waterfall payments from their CLO equity investments is what drives this income, and it's a defintely a high-yield strategy.

• Primary Goal: Deliver consistent interest distributions.
• 2025 NII Estimate: $0.20 to $0.24 per share (Q4).
• Income Source: CLO equity and debt interest payments.

Secondary Objective: Generating Capital Appreciation

The secondary part of the vision is capital appreciation, which speaks to the longer-term growth of the portfolio. This is where the value of the underlying assets-the CLO securities-comes into play. When the value of those assets rises, the company's Net Asset Value (NAV) per share should also increase.

As of October 31, 2025, the estimated NAV per common share was between $5.41 and $5.51. This is the book value of the company's assets minus its liabilities, divided by the number of common shares. The market capitalization stood at approximately $125 million, with the stock trading at a significant discount to this estimated NAV, which creates a near-term opportunity for appreciation if the discount narrows. The company's total assets for Q3 2025 were $287.40 million, demonstrating the scale of the underlying portfolio they aim to grow. This growth hinges on navigating credit cycles and interest rate volatility in the leveraged loan market.

Core Values: Disciplined Investment and CLO Expertise

While OFS Credit Company doesn't publish a list of corporate values, its operational core is clear: disciplined investment management and deep expertise in structured credit. Their strategy requires the capability to underwrite, analyze, and value the underlying loan portfolios of CLOs, which they believe is a significant competitive advantage.

The company maintains a healthy balance sheet, which is a core tenet of their financial discipline. For instance, their current ratio as of October 31, 2025, was a strong 2.24. This means their liquid assets are more than double their short-term obligations, giving them flexibility to manage market shifts. They also reported $115.9 million of term preferred stock outstanding as of October 31, 2025. This capital structure, and the way they manage their leverage, is a direct reflection of their risk management philosophy. To understand the full picture of their balance sheet strength, you should read Breaking Down OFS Credit Company, Inc. (OCCI) Financial Health: Key Insights for Investors.

OFS Credit Company, Inc. (OCCI) Core Values

When you look at a specialized investment vehicle like OFS Credit Company, Inc. (OCCI), you won't find the typical corporate poster of values. Instead, their core principles are embedded directly in their investment mandate and how they manage capital. The real-world values here are about disciplined execution, not just aspirational words.

For investors and analysts, the company's true North is defined by three pillars: a relentless focus on current income, a pragmatic approach to capital structure, and deep expertise in the complex Collateralized Loan Obligation (CLO) market. This is how they create value in a niche sector.

Income-Focused Strategy & Execution

OFS Credit Company's primary objective is simple but powerful: generate current income for its shareholders. This value drives every portfolio decision, prioritizing predictable cash flow over speculative capital gains. Honestly, in the volatile structured credit space, that kind of focus is a defintely a core value.

The company's actions in the 2025 fiscal year clearly demonstrate this commitment. For the quarter ending July 31, 2025, the Board declared a consistent monthly common stock cash distribution of $0.115 per share. This steady distribution policy translates into a remarkable trailing dividend yield of approximately 29.65%, making it a compelling vehicle for income-seeking investors. Furthermore, the preliminary estimate for the fourth fiscal quarter ending October 31, 2025, projects Net Investment Income (NII) per share to be stable, ranging between $0.20 and $0.24, indicating robust cash flow generation even amid market uncertainty.

Prudent Capital Management

A second, crucial value is Prudent Capital Management-managing the balance sheet to withstand market shifts while still funding growth. You need a strong defense when you are playing in the leveraged loan market. The company's financial health metrics for the close of fiscal 2025 show this discipline.

Here's the quick math: As of October 31, 2025, the company had $115.9 million of term preferred stock outstanding. This is a significant component of their capital structure, but they maintain a healthy current ratio of 2.24. This ratio signals that their liquid assets more than double their short-term obligations, giving them a substantial buffer. Plus, the recent execution of a Master Repurchase Agreement with Nomura Securities International for up to $25 million in repurchase transactions for CLO securities allows for strategic, flexible financing of their portfolio. This action shows a proactive approach to liquidity and cost of capital, which is the definition of prudent management in this business. For a deeper dive into the numbers, you can check out Breaking Down OFS Credit Company, Inc. (OCCI) Financial Health: Key Insights for Investors.

Specialized Market Expertise

The third value is their commitment to Specialized Market Expertise, specifically in Collateralized Loan Obligations (CLOs). OCCI is a non-diversified, closed-end investment company, which means they double-down on this niche. Their conviction is that deep knowledge of the underlying leveraged loan portfolios provides a significant competitive advantage.

This expertise is grounded in their management team, which averages over 25 years of experience structuring and investing in CLOs, debt securities, and loans. Their focus allows them to navigate complex market dynamics, like the interest rate and geopolitical risks flagged in their preliminary Q4 2025 estimates. This specialized focus is why they were able to report a resilient estimated Net Asset Value (NAV) per share between $5.41 and $5.51 as of October 31, 2025, demonstrating stability despite external volatility.

• Average manager experience: Over 25 years.
• Investment focus: CLO equity and debt securities.
• Result: Stable Q4 2025 NAV estimate of $5.41-$5.51.