MacKenzie Launches Tender Offer for FS Investment Corporation II Trust Shares

Affiliates of MacKenzie Realty Capital Inc. have launched a tender offer for shares of FS Investment Corporation II, a non-traded business development company.

Affiliates of MacKenzie Realty Capital Inc. have launched a tender offer to purchase up to 2.5 million shares of FS Investment Corporation II, a non-traded business development company, for $5.15 each. The offer expires on August 10, 2018.

The MacKenzie offer price is approximately 41 percent lower than FS Investment Corporation II’s most recent estimated NAV per share of $8.73 Shares of the BDC originally sold for $10.00 each.

MacKenzie does not currently own any FS Investment Corporation II shares, and if all shares in the current offer are tendered, they will pay approximately $12.9 million and will own approximately 0.8 percent of the outstanding shares.

FS Investment Corporation II, a non-traded BDC sponsored by FS Investments, focuses primarily on investing in the debt securities of private companies throughout the United States. The company’s offering launched in February 2012 and closed in March 2014 after raising $3.3 billion in investor equity.

According to Summit Investment Research, as of the first quarter of 2018, the company’s $4.4 billion portfolio was comprised of investments in 122 portfolio companies with an average investment of $36 million.

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