OFS Capital Corp 8-K

What Happened
OFS Capital Corporation announced on March 27, 2026 that it executed an amendment to its Business Loan Agreement with Banc of California (formerly Pacific Western Bank) revising terms of its senior secured revolving credit facility. The amendment adjusts several covenants and reduces the lender commitment amount; the company also paid customary fees related to the amendment.

Key Details

• Amendment date: March 27, 2026; lender: Banc of California.
• Tangible net asset value covenant lowered from $100.0 million to $75.0 million.
• Minimum quarterly net investment income after management/incentive fees reduced from $2.0 million to $1.0 million for the quarters ending March 31, 2026, June 30, 2026 and September 30, 2026; the $2.0 million quarterly requirement resumes thereafter.
• Maximum lender commitment reduced from $25.0 million to $15.0 million.
• The full amendment is filed as Exhibit 10.1 to the 8-K.

Why It Matters
The amendment provides short-term covenant relief that lowers the thresholds OFS must meet, which reduces the immediate risk of a loan covenant breach. At the same time, the reduction in the maximum commitment cuts the company’s available borrowing capacity under the revolver, which could affect liquidity or funding flexibility for investments. Investors should note the specific covenant and commitment changes and consider them when assessing near-term liquidity and financing risk.