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Fresh Off Its NYSE Listing, FSIC Announces Operating Results

FS Investment Corporation (FSIC), a BDC that recently listed on the NYSE, announced its operating results for the first quarter of 2014, ended March 31. The company, which focuses on investing primarily in senior secured loans and other securities of private U.S. companies, had an eventful first quarter and listed on the NYSE on April 16, 2014.

“FSIC’s origination platform delivered strong investment opportunities during the first quarter, leading to 13 new directly originated investments,” commented Michael C. Forman, Chairman and Chief Executive Officer of FSIC. “Second quarter originations are already off to a strong start, and we look forward to continuing to optimize the portfolio to create further value for our stockholders.”

The company’s new investments for the first quarter totaled $471.5 million, with direct origination activity totaling $369 million. Gross portfolio yield increased from last quarter’s 9.4% to 9.6%.

By the end of the first quarter, the fair value of investments was $4.1 billion. Core investment strategies, which include direct originations and opportunistic investments, made up 83% of the portfolio. Direct originations represented 57%, opportunistic investments represented 26%, and broadly syndicated/other investments represented 17% of the portfolio.

As of May 15, 2014, FSIC had a net increase in core investments of approximately $123 million and expects to close up to an additional $150 million’s worth by the end of the second quarter. The BDC has access to a pipeline of potential direct originations that total approximately $3 billion.

FSIC is now one of the largest BDCs in the market with $4.5 billion in assets under management and a market capitalization of approximately $2.7 billion.

The company held its annual stockholder conference call today at 11 a.m. Eastern Time, of which an audio archive will be available for replay.