PHILADELPHIA, April 15, 2014 /PRNewswire/ -- Franklin Square
Chairman and CEO Michael C. Forman
and members of its management team will ring the opening bell
tomorrow morning at the New York Stock Exchange for the listing of
its flagship fund, FS Investment Corporation (FSIC). They will be
joined by representatives of FSIC's sub-adviser, GSO / Blackstone,
including Bennett Goodman,
co-founder of GSO Capital Partners.
Following the bell, the company's common stock will begin
trading under the ticker symbol "FSIC."
"FSIC's listing marks the next stage of the company's
evolution," said Forman. "FSIC's scale, focus on senior secured
investments and partnership with GSO / Blackstone have positioned
the company to succeed. I am confident that FSIC's listing will
enable us to build upon our prior accomplishments and will create
new opportunities to enhance shareholder value."
As of February 28, 2014, FSIC had
over $4.5 billion in total assets and
159 portfolio companies, with approximately 83% of its portfolio
invested in senior secured debt. Since FSIC's inception, the
company has originated over $3.1
billion in direct lending opportunities to over 50 portfolio
companies.
As previously disclosed, FSIC increased its monthly cash
distribution amount from $0.0720 per
share to $0.07425 per share,
effective April 1, 2014. This served to raise its annualized
distribution rate from 8.41% to 8.68% based on its last publicly
reported net asset value per share. The company's board of
directors also intends to declare two special cash distributions of
$0.10 per share, one to be paid on
August 15, 2014 to stockholders of record as of July 31,
2014, and a second on November 14, 2014 to stockholders of
record as of October 31, 2014.
"The direct loan origination platform we have developed
distinguishes FSIC and positions it for future success," said GSO's
Goodman. "We believe FSIC's strategy will continue to produce
strong returns for an expanded audience of investors."
About FS Investment Corporation
FSIC is a business development company sponsored by Franklin
Square Capital Partners ("Franklin
Square"). FSIC primarily originates and invests in senior
secured loans and other securities of private U.S. companies, with
the investment objective of generating current income and, to a
lesser extent, long-term capital appreciation. FSIC is managed by
FB Income Advisor, LLC, an affiliate of Franklin Square, and is
sub-advised by GSO / Blackstone Debt Funds Management LLC, an
affiliate of GSO Capital Partners LP ("GSO"). GSO, with
approximately $65 billion in assets
under management as of December 31,
2013, is the credit platform of Blackstone, one of the
world's leading managers of alternative investments. For more
information, please visit www.fsinvestmentcorp.com.
About Franklin Square Capital Partners
Franklin Square is a leading
manager of alternative investment funds designed to enhance
investors' portfolios by providing access to asset classes,
strategies and asset managers that typically have been available to
only the largest institutional investors. The firm's funds offer
"endowment-style" investment strategies that help construct
diversified portfolios and manage risk. Franklin Square strives not only to maximize
investment returns but also to set the industry standard for best
practices by focusing on transparency, investor protection and
education for investment professionals and their clients.
Founded in Philadelphia in
2007, Franklin Square quickly established itself as a leader in the
world of alternative investments by introducing innovative
credit-based income funds, including the industry's first
non-traded BDC. The firm currently manages five funds with over
$10.3 billion in assets as of
December 31, 2013.
For more information, please visit
www.franklinsquare.com.
About Blackstone and GSO Capital Partners
Blackstone is one of the world's leading investment and advisory
firms. Blackstone seeks to create positive economic impact and
long-term value for its investors, the companies it invests in, the
companies it advises and the broader global economy. The firm does
this through the commitment of its extraordinary people and
flexible capital. GSO is the global credit platform of Blackstone.
GSO, together with its affiliates, has approximately $65 billion of assets currently under management
and is one of the largest credit-focused alternative managers in
the world and a major participant in the leveraged finance
marketplace. GSO seeks to generate superior risk-adjusted returns
in its credit business by investing in a broad array of strategies
including mezzanine, distressed investing leveraged loans and other
special situation strategies. Blackstone's alternative asset
management businesses include investment vehicles focused on
private equity, hedge fund solutions, secondary funds, and multi
asset class exposures falling outside of other funds' mandates.
Blackstone also provides various financial advisory services,
including mergers and acquisitions advisory, restructuring and
reorganization advisory and fund placement services. Further
information is available at www.blackstone.com.
Certain Information about Distributions
The determination of the tax attributes of FSIC's distributions
is made annually as of the end of its fiscal year based upon its
taxable income and distributions paid, in each case, for the full
year. Therefore, a determination as to the tax attributes of the
distributions made on a quarterly basis may not be representative
of the actual tax attributes for a full year. FSIC intends to
update stockholders quarterly with an estimated percentage of its
distributions that resulted from taxable ordinary income. The
actual tax characteristics of distributions to stockholders will be
reported to stockholders annually on Form 1099-DIV.
The payment of future distributions on FSIC's shares of common
stock is subject to the discretion of its board of directors and
applicable legal restrictions, and therefore, there can be no
assurance as to the amount or timing of any such future
distributions.
FSIC may fund its cash distributions to stockholders from any
sources of funds available to it, including expense reimbursements
from Franklin Square, as well as
offering proceeds, borrowings, net investment income from
operations, capital gains proceeds from the sale of assets,
non-capital gains proceeds from the sale of assets and dividends or
other distributions paid to it on account of preferred and common
equity investments in portfolio companies. FSIC has not established
limits on the amount of funds it may use from available sources to
make distributions. There can be no assurance that FSIC will be
able to pay distributions at a specific rate or at all.
The payment of any special cash distribution is subject to
applicable legal restrictions and the sole discretion of FSIC's
board of directors, and therefore, there can be no assurance as to
the amount or timing of any such future distribution. The special
cash distributions described herein are contingent upon the
completion of FSIC's listing.
The annualized distribution rates referenced above are based on
FSIC's net asset value per share of $10.27 as of February 28,
2014.
Forward-Looking Statements
This press release may contain certain forward-looking
statements, including statements with regard to future events or
the future performance or operation of FSIC. 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. Factors that could
cause actual results to differ materially include changes in the
economy, risks associated with possible disruption in FSIC's
operations or the economy generally due to terrorism or natural
disasters, future changes in laws or regulations and conditions in
FSIC's operating area, the ability of FSIC to complete the listing
of its shares of common stock on the New York Stock Exchange LLC
("NYSE"), the ability to complete the tender offer, the price at
which shares of common stock may trade on the NYSE, which may be
higher or lower than the purchase price in the tender offer, and
some of these factors are enumerated in the filings FSIC makes with
the Securities and Exchange Commission("SEC"). FSIC undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
CONTACT:
Franklin Square Media Team
215-495-1174
media@franklinsquare.com
SOURCE FS Investment Corporation