OFS Capital Corporation Announces Closing of Public Offering of $47,500,000 of Seven Year 6.375% Notes Due 2025

CHICAGO–(BUSINESS WIRE)–OFS Capital Corporation (the “Company”) (Nasdaq: OFS) announced today
that it has closed a registered public offering of $47.5 million
aggregate principal amount of its 6.375% notes due 2025, which includes
partial exercise of the underwriters’ over-allotment option (the
“Notes”), which resulted in net proceeds to the Company of approximately
$45.7 million based on a public offering price of 100% of the aggregate
principal amount of the Notes, after deducting payment of underwriting
discounts and commissions and estimated offering expenses payable by the
Company. The Company may issue up to an additional $2,812,500 in
aggregate principal amount of the Notes pursuant to the underwriters’
overallotment option, on or before April 30, 2018.

The Notes will mature on April 30, 2025 and may be redeemed in whole or
in part at any time, or from time to time, at the Company’s option on or
after April 30, 2020. The Notes will bear interest at a rate of 6.375%
per year, payable quarterly on January 31, April 30, July 31 and October
31 of each year, beginning on July 31, 2018. The Notes are expected to
be rated “A” by Egan-Jones Ratings Company.

The Company has submitted an application for the Notes to be listed and
trade on The Nasdaq Global Select Market under the trading symbol
“OFSL”. If approved for listing, the Company expects the Notes to begin
trading within 30 days from the original issue date.

The Company intends to use the net proceeds of the offering to fund
investments in debt and equity securities in accordance with its
investment objective and for other general corporate purposes. The
Company also intends to use a portion of the net proceeds from the
offering to repay outstanding indebtedness under its revolving credit
facility. As of April 9, 2018, the Company had $38.2 million of
indebtedness outstanding under the credit facility.

Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann
Financial Services Inc. (NYSEMKT: LTS), and Janney Montgomery Scott LLC
acted as book-running managers for the offering. B. Riley FBR, Inc.,
BB&T Capital Markets, a division of BB&T Securities, LLC and National
Securities Corporation, a wholly owned subsidiary of National Holdings
Corporation (NasdaqCM:NHLD), acted as lead managers for the offering.

Investors are advised to carefully consider the investment objective,
risks and charges and expenses of the Company before investing. The
prospectus supplement, dated April 11, 2018, and accompanying
prospectus, dated June 16, 2017, each of which has been filed with the
Securities and Exchange Commission, contain a description of these
matters and other important information about the Company and should be
read carefully before investing.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy the securities in this offering or any
other securities nor will there be any sale of these securities or any
other securities referred to in this press release in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to the registration or qualification under the securities laws of
such state or jurisdiction.

A shelf registration statement relating to these securities is on
file with and has been declared effective by the Securities and Exchange
Commission. The offering may be made only by means of a prospectus and a
related prospectus supplement, copies of which may be obtained, when
available, from: Ladenburg Thalmann & Co. Inc., 277 Park Avenue, 26th
Floor, New York, New York 10172, or: 1-800-573-2541, or:
prospectus@ladenburg.com.

About OFS Capital Corporation

The Company is an externally managed, closed-end, non-diversified
management investment company that has elected to be regulated as a
business development company. The Company’s investment objective is to
provide stockholders with both current income and capital appreciation
primarily through debt investments and, to a lesser extent, equity
investments. The Company invests primarily in privately held
middle-market companies in the United States, including
lower-middle-market companies, targeting investments of $3 to $20
million in companies with annual EBITDA between $3 million and $50
million. The Company offers flexible solutions through a variety of
asset classes including senior secured loans, which includes first-lien,
second-lien and unitranche loans, as well as subordinated loans and, to
a lesser extent, warrants and other equity securities. The Company’s
investment activities are managed by OFS Capital Management, LLC, an
investment adviser registered under the Investment Advisers Act of 1940
and headquartered in Chicago, Illinois, with additional offices in New
York and Los Angeles.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements”,
which relate to future events or our future operations, performance or
financial condition. Forward-looking statements include statements
regarding our intentions related to the offering discussed in this press
release, including the use of proceeds from the offering. These
statements are not guarantees of future performance, condition or
results and involve a number of risks and uncertainties. Actual results
and outcomes may differ materially from those anticipated in the
forward-looking statements as a result of a variety of factors,
including those described from time to time in our filings with the
Securities and Exchange Commission or factors that are beyond our
control. The Company undertakes no obligation to publicly update or
revise any forward-looking statements made herein. All forward-looking
statements speak only as of the time of this press release.

Contacts

INVESTOR RELATIONS:
OFS Capital Corporation
Steve Altebrando,
646-652-8473
saltebrando@ofsmanagement.com