OCCI (OFS Credit Company, Inc.) Estimates September NAV at $2.88 to $2.98
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OFS Credit’s capital cushion has become thinner again. On October 15, 2026, the company estimated net asset value at $2.88 to $2.98 per common share as of September 30, down from its August estimate of $3.17 to $3.27.
Using the midpoint of each range, that is a decline from $3.22 to $2.93, or about 9%. Net asset value measures what remains for common shareholders after liabilities and preferred shareholders’ claims, so this is a meaningful reduction in the capital behind their investment.
OFS Credit invests mainly in collateralized loan obligations, or CLOs, which pool business loans and divide the resulting payments among different layers of investors. Its equity investments receive what remains after the more senior layers are paid. That can produce substantial income, but it also makes the value of the remaining claim sensitive to the underlying loans and financing structure.
The September announcement supplies a preliminary asset-value estimate, without a new earnings figure or an explanation of the month’s decline. We therefore cannot tell from this release how much reflects changes in investment values, distributions or other effects, and a lower NAV alone does not establish that the dividend is unsupported.
Even with that distinction, we regard another fall in capital value as a reason for greater caution. The income case needs evidence that the remaining investments can sustain cash earnings after expenses and preferred payments, while the capital cushion stops shrinking. The October fiscal year-end results should help test that judgment; the monthly estimate has not undergone the usual quarter-end closing procedures.
Sources
- October 15 company announcement via Business Wire
- September 15 prospectus supplement with August NAV estimate
- Company investment strategy
This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.