Private Credit Issuer Rallies 19% on Major Asset Monetization
Selling a majority stake in its largest portfolio holding at close to book value sent a small private credit lender sharply higher Tuesday, showing how a cash transaction can validate a net asset value the market had discounted. OFS Capital Corporation (NASDAQ: OFS), a business development company that invests in middle-market companies, rallied after a third-party investor bought about 57% of its wholly owned subsidiary, OFS SBIC I, LP, for US$52.3M in cash. The partnership holds OFS's equity investment in Pfanstiehl Holdings, Inc., a global manufacturer of high-purity pharmaceutical ...