Oversubscribed! Preliminary Results of FS Investment Corporation’s Tender Offer

FS Investment Corporation (FSIC) announced today the preliminary results of its tender offer. The previously non-traded BDC listed on the NYSE on April 16, 2014 and concurrently commenced its modified “Dutch auction” tender offer. The company’s offer, which expired at 5pm New York City time on May 28, 2014, was to purchase up to $250 million in shares of its common stock.

According to the depository and paying agent for the tender offer, Computershare Trust Company, N.A., 24,090,370 shares of FSIC’s common stock were tendered at or below the purchase price of $10.75 per share. This includes 977,852 shares of common stock that were tendered through notice of guaranteed delivery.

FSIC expects to purchase approximately 96.5% of the shares tendered at $10.75 or below, because of the oversubscription of the tender offer. Under the terms of the tender offer, an approximate aggregate of $250 million in shares will be purchased at $10.75 per share.

Due to the listing and the tender offer, FSIC expects cost savings because of reduced general and administrative expenses and an increase on earnings per share since the number of outstanding shares has been reduced through the tender offer. 

FSIC intends to report the final results of the tender offer next week around June 3, 2014.