$OCCISep 17, 2026, 4:30 PM ETAI processed
OFS Credit Q3: NAV drops to $3.32 after $11.3M investment loss; Core NII up to $0.21
AI Summary
OFS Credit (OCCI) reported Q3 FY2026 results (period ended July 31): net investment income was $4.2M ($0.14/sh) and Core NII rose to $6.3M ($0.21/sh), but NAV fell to $3.32 from $3.72 after a $11.3M net loss on investments driven largely by unrealized depreciation from spread compression and volatility around software exposure in CLOs. Portfolio fair value declined to $181.5M, interest income yield was 11.43% (CLO equity cash flow yield 14.46%), the company redeemed $5M of Series E preferred in August, raised ~$0.1M via an ATM, and the board declared $0.05/month common distributions for September and October.
Positives
- Core NII increased to $0.21 per common share (up ~14.9% q/q)
- Core NII coverage is sufficient to cover the quarterly $0.15 per-share common distribution
- CLO equity cash flow yield was strong at 14.46% for the quarter
Negatives
- Net loss on investments of $11.3M drove NAV down $0.40 to $3.32
- Portfolio fair value decreased to $181.5M and interest income fell vs prior quarter
- Unrealized depreciation attributed to spread compression and CLO software-exposure price volatility