Non-Traded BDC to list April 16th on the NYSE
FS Investment Corporation (FSIC) is one step closer to a liquidity event as revealed today with the company’s announcement of its intent to list its common stock on the New York Stock Exchange (NYSE). The non-traded business development company (BDC) intends to list on April 16, 2014 under the ticker symbol FSIC.
Sponsored and managed by Franklin Square Capital Partners, FSIC invests mainly in the floating rate, senior secured debt of private U.S. companies and is worth approximately $4.5 billion. The fund is sub-advised by an affiliate of GSO Capital Partners, the credit platform of Blackstone.
In addition, the company has made announcements regarding cash distributions.
Starting April 1, 2014, FSIC will increase 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.
FSIC Chairman and CEO, Michael C. Forman commented, “We are proud FSIC has generated a 16% annualized return since inception.” He continued, “These distributions should build on this record and enhance shareholder value.”
In conjunction with the listing on April 16, the company will also commence a modified “Dutch auction” tender offer to purchase up to $250 million worth of shares.
The fund also reported that multiple parties are considering purchasing shares following the listing and completion of the tender offer.
GSO Capital Partners is considering the purchase of up to $50 million in shares and FSIC previously announced that Franklin Square is interested in the purchase of up to $100 million in shares and members of FSIC and Franklin Square management are considering the purchase of up $25 million.
