Publicly traded BDC, FS Investment Corporation (FSIC) recently announced that it has priced an underwritten public offering of $400 million in aggregate principal amount of its 4.000% unsecured notes due 2019. Maturing July 15, 2019, the notes can be redeemed in whole or in part, at FSIC’s option, at any time at par plus a “make-whole” premium, if applicable. The offering is expected to close next week on July 14, 2014. The BDC intends to use the net proceeds of this offering to repay outstanding indebtedness.
Citigroup Global Markets Inc., Wells Fargo Securities, LLC and J.P. Morgan Securities LLC are acting as joint book-running managers for the offering while Evercore Group L.L.C. and Keefe, Bruyette & Woods, Inc. are acting as co-managers.
In addition, FSIC also announced that Standard & Poor’s Rating Services (S&P) has upgraded FSIC’s credit rating to BBB with a stable outlook. Prior to the company’s listing on the NYSE in April, S&P assigned FSIC a rating of BBB- with a positive outlook. FSIC also received a rating from Fitch Ratings in May of BBB- with a stable outlook.
In regards to the recent upgrade for the July rating, S&P cited improved funding and financial risk profiles resulting from FSIC’s proposed issuance of unsecured debt and its listing on the NYSE as the reasons. S&P also named FSIC’s focus on senior secured first-lien assets as another reason for the improved rating.