PHILADELPHIA, Aug. 23, 2016 /PRNewswire/ -- FS Investments, a
leading alternative investment manager, announced that its business
development company (BDC) direct lending platform committed over
$830 million to middle market
companies in the second quarter of 2016, bringing its year-to-date
total commitments to more than $1.2
billion. New directly originated investments during the
quarter were made in support of 12 portfolio companies
headquartered in seven different U.S. states.
"Our market-leading scale serves as a great deal sourcing
advantage," said Michael C. Forman,
Chairman and Chief Executive Officer of FS Investments. "Our
ability to underwrite larger investments provides access to a broad
set of investment opportunities for our investors and a flexible
source of financing for our portfolio companies and their private
equity sponsors."
Newly committed capital was provided by five BDCs managed by
affiliates of FS Investments and sub-advised by GSO Capital
Partners LP (GSO) or its affiliate: FS Investment Corporation
(NYSE: FSIC), FS Investment Corporation II (FSIC II), FS Investment
Corporation III (FSIC III), FS Investment Corporation IV (FSIC IV)
and FS Energy and Power Fund (FSEP). FS Investments is the largest
manager of BDCs.
FS Investments' directly originated transactions, which are
unique to its BDCs and not typically accessible elsewhere, included
investments in the following companies in the second quarter:
FourPoint Energy
FSIC, FSIC II and FSEP provided an upsized equity commitment to
FourPoint Energy, a Denver,
CO-headquartered private oil and gas exploration and
production company. The new equity investment served to
recapitalize and solidify FourPoint's balance sheet and provided
financing for its acquisition of new acreage. With over 875,000 net
acres and over 3,000 potential drilling locations, FourPoint is the
largest operator in the Western Anadarko Basin. FourPoint is a
portfolio company of EIG Partners, a Washington D.C.-headquartered global energy
investment firm.
Polymer Additives Holdings (dba: Valtris Specialty
Chemicals)
FSIC, FSIC II and FSIC III provided a new senior secured
unitranche commitment to Valtris Specialty Chemicals, an
Independence, OH-headquartered
manufacturer of specialty chemicals, including lubricants,
stabilizers and polymer modifiers. The new term loan refinanced FS
Investments' previous investment in the company and provided
incremental capital to help fund the acquisition of Akcros Holdings
Limited, a manufacturer of additives for the processing and
manufacturing of polymers. The acquisition of Akcros further
diversifies Valtris's product line and creates new avenues of
growth for the combined entity. Valtris is a portfolio company of
H.I.G. Capital, a Miami,
FL-headquartered private equity investment firm.
A.P. Plasman
FSIC provided a new senior secured commitment to A.P. Plasman, a designer and manufacturer of
exterior trim products to a variety of industries. FSIC's new
commitment refinanced its previous investment in A.P. Plasman and provided additional capital to
support its acquisition of Plastal Industri, a supplier of exterior
painted trim products for the European automotive industry. The
acquisition expands the company's product line, customer base and
geographic reach. A.P. Plasman is a
portfolio company of Insight Equity, a New York-based middle market private equity
investment firm.
FSIC, FSIC II and FSIC III Successfully Exit Pittsburgh Glass
Works Investment
In addition to new investments made during the quarter, FSIC,
FSIC II and FSIC III's senior secured first lien loan to Pittsburgh
Glass Works was repaid in connection with the sale of the company.
Pittsburgh Glass Works, a Pittsburgh,
PA-headquartered leader in the automotive glass industry,
was acquired by LKQ Corp., a Chicago,
IL-headquartered provider of automotive parts and
components. Prior to the acquisition, Pittsburgh Glass Works was a
portfolio company of Kohlberg & Company, a Mount Kisco, NY-headquartered private equity
investment firm who acquired Pittsburgh Glass Works in a carve-out
transaction with PPG Industries. In connection with the repayment
of its loan principal, FSIC, FSIC II and FSIC III generated a
prepayment fee.
ABOUT FS INVESTMENTS
FS Investments is a leading asset manager that designs
alternative investments to help institutional, advisory and
individual investors build better portfolios. Its solutions provide
access to alternative asset classes and top managers through a
spectrum of structures, including business development companies,
closed-end credit funds and operating companies. The firm is
dedicated to setting industry standards for investor-centric
service, education and transparency.
FS Investments was founded in 2007 as Franklin Square Capital
Partners. It is headquartered in Philadelphia with offices in Orlando and Washington D.C. The firm currently manages six
funds with over $18 billion in assets
under management as of June 30, 2016, and co-manages an
operating company. Its affiliated broker-dealer, FS Investment
Solutions, LLC (member FINRA/SIPC), distributes its offerings.
Visit fsinvestments.com to learn more.
Contact Information
FS Investments Media Team
media@fsinvestments.com
215-495-1174
ABOUT BLACKSTONE AND
GSO
Blackstone is one of the
world's leading investment firms. We seek to create positive
economic impact and long-term value for our investors, the
companies we invest in, and the communities in which we work. We do
this by using extraordinary people and flexible capital to help
companies solve problems. Our asset management businesses, with
approximately $356 billion in assets
under management, include investment vehicles focused on private
equity, real estate, public debt and equity, non-investment grade
credit, real assets and secondary funds, all on a global basis.
Further information is available at www.blackstone.com. Follow
Blackstone on Twitter
@Blackstone.
GSO is the global credit investment platform of Blackstone. With approximately $85 billion of assets under management, GSO is
one of the largest alternative managers in the world focused on the
leveraged-finance, or non-investment grade related, marketplace.
GSO seeks to generate attractive risk-adjusted returns in its
business by investing in a broad array of strategies including
mezzanine debt, distressed investing, leveraged loans and other
special-situation strategies. Its funds are major providers of
credit for small and middle-market companies and they also advance
rescue financing to help distressed companies.
FORWARD-LOOKING STATEMENTS AND IMPORTANT DISCLOSURES
This press release may contain certain forward-looking
statements, including statements with regard to the future
performance or operations of FSIC, FSIC II, FSIC III, FSIC IV or
FSEP. Words such as "believes," "expects," "projects" and "future"
or similar expressions are intended to identify forward-looking
statements. These forward-looking statements are subject to the
inherent uncertainties in predicting future results and conditions.
Certain factors could cause actual results to differ materially
from those projected in these forward-looking statements, and some
of these factors are enumerated in the filings FSIC, FSIC II, FSIC
III, FSIC IV and FSEP make with the U.S. Securities and Exchange
Commission. FSIC, FSIC II, FSIC III, FSIC IV and FSEP undertake no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
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SOURCE FS Investments