Coinciding with today’s listing of the direct investment industry’s first non-traded business development company, FS Investment Corporation (FSIC) has announced the commencement of a modified “Dutch Auction” tender offer in which they may purchase up to $250 million of its common stock.
The offer will expire May 28, 2014 at 5pm EST.
Stockholders may tender all or a portion of their shares for between $10.35 and $11.00 per share. FSIC will purchase shares properly tendered for the lowest price that will allow the maximum number of shares to be purchased.
In the event the tender offer is oversubscribed, FSIC will accept shares on a prorated basis.
Michael C. Forman, Chairman and CEO of Franklin Square Capital Partners (Franklin Square), sponsor of FS Investment Corporation was on the New York Stock Exchange floor this morning to celebrate FSIC’s (NYSE: “FSIC”) listing by ringing the opening bell.
He was joined by representatives of GSO / Blackstone, FSIC’s sub-adviser, and co-founder of GSO Capital Partners, Bennett Goodman.
FSIC launched in 2009 and raised about $2.8 billion before closing in May 2012. As of February 28, 2014, its portfolio consisted of 159 companies for a combined value of over $4.5 billion in total assets.
As of April 1, 2014, FSIC increased its monthly cash distribution amount from $0.072 per share to $0.07425 per share, raising its annualized distribution rate from 8.41% to 8.68%.
On top of that, FSIC’s board of directors intends to declare two special cash distributions of $0.10 per share to stockholders of record as of July 31, 2014 and again to stockholders of record as of October 31, 2014.
The first distribution will be paid on August 15, 2014 and the second on November 14, 2014.