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FSIC Issues First Quarterly Report Since Trading on NYSE

Business Development Company (BDC), FS Investment Corporation (FSIC), revealed financial results for the second quarter of 2014, which found the company with increased net earnings and new investments totaling $737.7 million for the three months ended June 30, 2014.

FSIC listed on the NYSE in April, 2014 and is focused on providing customized credit solutions to private middle market U.S. companies. The company seeks to invest mainly in the senior secured debt, as well as the subordinated debt, of private middle market companies to realize the best risk-adjusted returns for investors.

The company reported net earnings of $0.27 per share for the quarter ended June 30, 2014, up from $0.18 per share for the quarter ended June 30, 2013. FSIC also reported net investment income of $0.23 per share for Q2, compared to $0.29 per share for the same period in 2013.

Adjusted net investment income, excluding the accrual for capital gains incentive fees and one-time costs associated with the public listing, was $0.26 per share, compared to $0.27 per share for the second quarter in 2013. The second quarter also saw FSIC pay regular cash distributions to stockholders totaling $0.2228 per share.

“FSIC’s direct lending platform delivered strong investment opportunities during the second quarter. New direct originations totaled approximately $530 million last quarter, with first-lien senior secured loans accounting for over 76% of those investments,” commented Michael C. Forman, Chairman and Chief Executive Officer of FSIC. “We look forward to continuing to rotate the portfolio into these higher yielding opportunities in order to further optimize the portfolio to create value for our stockholders.”

The BDC paid a special cash distribution of $0.10 per share on August 15, 2014 and intends to pay a second $0.10 distribution per share on November 14, 2014 to stockholders of record as of October 31, 2014.

Since the close of Q2 through August 11, 2014, FSIC has closed on over $50 million of direct originations and expects total third quarter direct originations to be more than $200 million.