QUANTUMONLINE.COM SECURITY DESCRIPTION: OFS Credit Company, Inc., 5.25% Series E Term Preferred Stock liquidation preference $25 per share, redeemable at the issuer's option on or after 12/31/2023 at $25 per share plus accrued and unpaid dividends and with a stated maturity of 12//31/2026. Cumulative distributions of 5.25% per annum ($1.3125 per annum or $0.109375 per month) will be paid monthly on last business day of the month to holders of record on the record date fixed by the board, not more than 20 days or less than 7 days prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date).
Dividends paid by preferreds issued by closed-end funds can be 0% to 100% eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and can also be 0% to 100% eligible for the dividends received deduction for corporate holders (see page 99 of the prospectus for further information).
If the Company fails to maintain asset coverage of at least 200% as of the close of business on the last business day of any calendar quarter and such failure is not cured by the close of business on the date that is 30 days following the filing date of the Asset Coverage Cure Date, then the Company will be required to redeem, within 90 days of the Asset Coverage Cure Date, shares of preferred stock, including Series E Term Preferred Stock, at least equal to the lesser of (1) the minimum number of shares of preferred stock that will result in us having asset coverage of at least 200% and (2) the maximum number of shares of preferred stock that can be redeemed out of funds legally available for such redemption. (see prospectus for further information).
This security was not rated by Moody’s or S&P at the time of its IPO.
In regard to the payment of dividends and upon liquidation, the preferred shares rank junior to the company's senior debt, equally with other preferreds of the company, and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.
