Filed pursuant to Rule 497
File No. 333-149374
FS INVESTMENT CORPORATION
Supplement dated February 1, 2011
to
Prospectus dated May 17, 2010
This supplement contains information which amends, supplements or modifies certain information contained in the Prospectus of FS Investment Corporation dated May 17, 2010, as previously supplemented and amended (as so supplemented and amended, the “Prospectus”).
You should carefully consider the “Risk Factors” beginning on page 29 of the Prospectus before you decide to invest in shares of our common stock.
Increase in Public Offering Price
On January 31, 2011, we determined to increase our public offering price from $10.65 to $10.70 per share. This increase in our public offering price to $10.70 per share was effective as of our February 1, 2011 semi-monthly closing and first applied to subscriptions received from January 18, 2011 through January 31, 2011. The purpose of this action was to ensure that our net asset value per share did not exceed our net offering price, as required by the Investment Company Act of 1940, as amended.
Status of Our Initial Public Offering
In our semi-monthly closing on November 16, 2010, we accepted subscriptions for 2,065,813 shares of our common stock at an average price per share of $10.44 for corresponding gross proceeds of $21,563,417. In our semi-monthly closing on December 1, 2010, we accepted subscriptions for 2,263,802 shares of our common stock at an average price per share of $10.46 for corresponding gross proceeds of $23,687,208. In our semi-monthly closing on December 16, 2010, we accepted subscriptions for 3,126,486 shares of our common stock at an average price per share of $10.40 for corresponding gross proceeds of $32,515,037. In our semi-monthly closing on January 3, 2011, we accepted subscriptions for 2,811,283 shares of our common stock at an average price per share of $10.59 for corresponding gross proceeds of $29,761,591. In our semi-monthly closing on January 18, 2011, we accepted subscriptions for 2,112,379 shares of our common stock at an average price per share of $10.56 for corresponding gross proceeds of $22,301,891. On December 1, 2010, we also issued 193,841 shares of our common stock through our distribution reinvestment plan at a price per share of $9.98 for corresponding gross proceeds of $1,933,560. On January 3, 2010, we also issued 108,552 shares of our common stock through our distribution reinvestment plan at a price per share of $10.12 for corresponding gross proceeds of $1,098,274. Additionally, pursuant to our share repurchase program, we purchased a total of 99,633 shares of our common stock on January 3, 2011 at a price of $9.59 per share for aggregate consideration of $954,979.
Since commencing our public offering on December 15, 2008, we have received and accepted, as of January 31, 2011, subscriptions for aggregate consideration of $472,046,111, including $1,000,008 contributed by principals of our investment adviser in February 2008.
1
Portfolio Update
As of December 31, 2010, our investment portfolio consisted of interests in 144 portfolio companies with an average annual EBITDA of approximately $294.5 million. As of December 31, 2010, the investments in our portfolio were purchased at an average price of 94.9% of par value, the weighted average credit rating of our portfolio was B2 based upon the Moody’s scale and our estimated gross annual portfolio yield was 8.5% based upon the purchase price of our investments. We intend to continue to add securities to our portfolio as our offering progresses. The following is our investment portfolio as of December 31, 2010:
| Portfolio Company(a) |
Industry |
Date of Most Most Recent Purchase |
Principal Amount (in thousands)(b) |
Amortized Cost (in thousands) |
||||||||
| Senior Secured Loans—First Lien—66.2% |
||||||||||||
| 1-800 Contacts, Inc., L+395, 3.8% LIBOR Floor, 3/4/15 |
Healthcare | May-10 | $ | 5,508 | $ | 5,233 | ||||||
| Advance Pierre Foods, Inc., L+525, 1.8% LIBOR Floor, 9/29/16(c) |
Consumer Staples | Sep-10 | 4,924 | 4,829 | ||||||||
| Airvana Network Solutions Inc., L+900, 2.0% LIBOR Floor, 8/27/14 |
Telecommunication Services | Aug-10 | 2,367 | 2,356 | ||||||||
|
Alaska Communications Systems Holdings, Inc., L+400, 1.5% LIBOR Floor, 10/21/16 |
Telecommunication Services | Oct-10 | 3,683 | 3,647 | ||||||||
| Alliant Holdings LLC, L+500, 1.8% LIBOR Floor, 8/16/14(c) |
Financials | Dec-10 | 2,000 | 2,020 | ||||||||
| Altegrity, Inc., L+600, 1.8% LIBOR Floor, 2/21/15(c) |
Industrials | Aug-10 | 7,363 | 7,260 | ||||||||
| Amscan Holdings, Inc., L+525, 1.5% LIBOR Floor, 12/2/17(c) |
Consumer Discretionary | Nov-10 | 6,923 | 6,869 | ||||||||
| AmWINS Group, Inc., L+250, 6/8/13(c) |
Financials | Oct-09 | 949 | 797 | ||||||||
| Anchor Glass Container Corp., L+400, 2.0% LIBOR Floor, 3/1/16(c) |
Industrials | Feb-10 | 3,416 | 3,386 | ||||||||
| Ardent Health Services LLC, L+500, 1.5% LIBOR Floor, 9/15/15(c) |
Healthcare | Oct-10 | 7,302 | 7,229 | ||||||||
| Armstrong World Industries, Inc., L+350, 1.5% LIBOR Floor, 5/23/17(c) |
Industrials | Nov-10 | 1,687 | 1,678 | ||||||||
| Aspect Software, Inc., L+450, 1.8% LIBOR Floor, 5/7/16(c) |
Information Technology | May-10 | 1,985 | 1,967 | ||||||||
| Atlantic Broadband Finance, LLC, L+350, 1.5% LIBOR Floor, 11/29/15(c) |
Telecommunication Services | Nov-10 | 1,338 | 1,331 | ||||||||
| Avaya Inc., L+350, 0.8% LIBOR Floor, 10/24/14(c) |
Information Technology | Nov-10 | 9,925 | 9,170 | ||||||||
| BBHI Acquisition LLC, L+300, 1.5% LIBOR Floor, 12/14/17(c) |
Telecommunication Services | Dec-10 | 2,064 | 2,043 | ||||||||
| Bentley Systems Inc., L+425, 1.5% LIBOR Floor, 11/24/16 |
Information Technology | Dec-10 | 1,789 | 1,771 | ||||||||
| Burger King Corp., L+450, 1.8% LIBOR Floor, 10/19/16(c) |
Consumer Staples | Nov-10 | 6,529 | 6,547 | ||||||||
| Calumet Lubricants Co., LP, L+400, 1/3/15(c) |
Energy | Aug-10 | 2,819 | 2,630 | ||||||||
| Canwest LP, L+700, 2.0% LIBOR Floor, 7/23/16(c) |
Consumer Discretionary | Nov-10 | 7,828 | 7,754 | ||||||||
| CCC Information Services Inc., L+400, 1.5% LIBOR Floor, 11/11/15(c) |
Information Technology | Dec-10 | 1,578 | 1,562 | ||||||||
| CDW Corp., L+500, 7/10/17(c) |
Information Technology | Aug-10 | 5,584 | 4,978 | ||||||||
| Cedar Fair, LP, L+400, 1.5% LIBOR Floor, 12/15/16(c) |
Consumer Discretionary | Jul-10 | 2,954 | 2,926 | ||||||||
| Cenveo Corp., L+475, 1.5% LIBOR Floor, 12/21/16(c) |
Consumer Discretionary | Dec-10 | 6,667 | 6,600 | ||||||||
| Ceridian Corp., L+300, 11/9/14(c) |
Industrials | Oct-10 | 7,456 | 6,780 | ||||||||
| Citgo Petroleum Corp., L+700, 2.0% LIBOR Floor, 6/24/17(c) |
Energy | Aug-10 | 6,965 | 6,878 | ||||||||
| Clopay Ames True Temper Holding Corp., L+600, 1.8% LIBOR Floor, 9/30/16(c) |
Consumer Discretionary | Dec-10 | 7,941 | 7,903 | ||||||||
| CMP Susquehanna Corp., L+200, 5/5/13(c) |
Telecommunication Services | Dec-10 | 6,980 | 6,267 | ||||||||
| Contec LLC, L+475, 3.0% LIBOR Floor, 7/28/14(c) |
Telecommunication Services | May-09 | 1,942 | 1,656 | ||||||||
| ConvaTec Inc., L+425, 1.5% LIBOR Floor, 12/22/16(c) |
Healthcare | Dec-10 | 2,314 | 2,303 | ||||||||
| Corel Corp., L+400, 5/2/12 |
Information Technology | Aug-09 | 1,434 | 1,313 | ||||||||
| Cumulus Media Inc., L+375, 6/11/14(c) |
Telecommunication Services | Oct-10 | 4,060 | 3,748 | ||||||||
| Custom Building Products, Inc., L+400, 1.8% LIBOR Floor, 3/1/15(c) |
Materials | Mar-10 | 2,830 | 2,806 | ||||||||
| Data Device Corp., L+550, 1.8% LIBOR Floor, 12/23/16 |
Industrials | Dec-10 | 9,231 | 9,092 | ||||||||
| DEI Sales, Inc., L+550, 2.0% LIBOR Floor, 9/22/13 |
Consumer Discretionary | Nov-10 | 2,348 | 2,201 | ||||||||
| DineEquity, Inc., L+450, 1.5% LIBOR Floor, 10/19/17(c) |
Consumer Staples | Oct-10 | 2,436 | 2,412 | ||||||||
| Dunkin’ Brands, Inc., L+425, 1.5% LIBOR Floor, 11/23/17(c) |
Consumer Staples | Nov-10 | 2,500 | 2,488 | ||||||||
| Fairmount Minerals, Ltd., L+450, 1.8% LIBOR Floor, 8/5/16(c) |
Materials | Oct-10 | 6,759 | 6,701 | ||||||||
| Fifth Third Processing Solutions LLC, L+400, 1.5% LIBOR Floor, 11/3/16(c) |
Financials | Oct-10 | 3,731 | 3,695 | ||||||||
| First Data Corp., L+275, 9/24/14(c) |
Information Technology | May-10 | 7,621 | 6,622 | ||||||||
| First Reserve Crestwood Holdings LLC, L+850, 2.0% LIBOR Floor, 10/3/16 |
Energy | Sep-10 | 4,500 | 4,413 | ||||||||
| Freescale Semiconductor, Inc., L+425, 12/1/16(c) |
Industrials | Oct-10 | 7,437 | 7,076 | ||||||||
| General Chemical Corp., L+500, 1.8% LIBOR Floor, 10/6/15(c) |
Materials | Nov-10 | 7,527 | 7,557 | ||||||||
| Getty Images, Inc., L+375, 1.5% LIBOR Floor, 11/7/16(c) |
Consumer Discretionary | Nov-10 | 2,441 | 2,418 | ||||||||
| Global Tel Link Corp., L+550, 1.8% LIBOR Floor, 11/10/16(c) |
Telecommunication Services | Dec-10 | 8,304 | 8,151 | ||||||||
| Goodman Global, Inc., L+400, 1.8% LIBOR Floor, 10/28/16(c) |
Consumer Discretionary | Oct-10 | 1,814 | 1,796 | ||||||||
| Green Mountain Coffee Roasters, Inc., L+400, 1.5% LIBOR Floor, 12/16/16(c) |
Consumer Staples | Nov-10 | 1,754 | 1,737 | ||||||||
| Green Tree Credit Solutions LLC, L+575, 2.3% LIBOR Floor, 12/18/15(c) |
Financials | Jul-10 | 4,466 | 4,303 | ||||||||
| Grifols, SA , L+425, 1.8% LIBOR Floor, 6/4/16(c) |
Healthcare | Oct-10 | 4,336 | 4,294 | ||||||||
| Hanger Orthopedic Group, Inc., L+375, 1.5% LIBOR Floor, 12/1/16(c) |
Healthcare | Nov-10 | 1,944 | 1,935 | ||||||||
2
| Portfolio Company(a) |
Industry |
Date of Most Most Recent Purchase |
Principal Amount (in thousands)(b) |
Amortized Cost (in thousands) |
||||||||
| Harbor Freight Tools USA, Inc., L+500, 1.5% LIBOR Floor, 12/22/17(c) |
Consumer Discretionary | Dec-10 | $ | 9,929 | $ | 9,830 | ||||||
| HarbourVest Partners LP, L+475, 1.5% LIBOR Floor, 12/17/16(c) |
Financials | Dec-10 | 11,642 | 11,526 | ||||||||
| Harland Clarke Holdings Corp., L+250, 6/30/14(c) |
Industrials | Jul-10 | 2,448 | 2,121 | ||||||||
| iHealth Technologies, Inc., L+600, 1.8% LIBOR Floor, 12/28/16 |
Healthcare | Dec-10 | 3,636 | 3,564 | ||||||||
| Infogroup, Inc., L+450, 1.8% LIBOR Floor, 7/1/16(c) |
Consumer Discretionary | May-10 | 4,647 | 4,563 | ||||||||
| Intelsat Jackson Holdings SA, L+375, 1.5% LIBOR Floor, 4/2/18(c) |
Telecommunication Services | Dec-10 | 5,638 | 5,609 | ||||||||
| Interactive Data Corp., L+500, 1.8% LIBOR Floor, 1/29/17(c) |
Financials | Aug-10 | 6,716 | 6,651 | ||||||||
| Intralinks, Inc., L+425, 1.5% LIBOR Floor, 6/15/14 |
Information Technology | May-09 | 1,451 | 1,169 | ||||||||
| KIK Custom Products Inc., L+225, 5/31/14(c) |
Consumer Staples | Mar-10 | 4,949 | 4,394 | ||||||||
| Knology, Inc., L+400, 1.5% LIBOR Floor, 10/15/16(c) |
Consumer Discretionary | Sep-10 | 1,950 | 1,931 | ||||||||
| Lantiq Deutschland GmbH, L+700, 2.0% LIBOR Floor, 11/16/15(c) |
Information Technology | Nov-10 | 5,993 | 5,879 | ||||||||
| MDA Info Products Ltd., L+550, 1.5% LIBOR Floor, 1/4/17 |
Information Technology | Dec-10 | 5,000 | 4,925 | ||||||||
| MedAssets, Inc., L+375, 1.5% LIBOR Floor, 11/22/16(c) |
Healthcare | Nov-10 | 1,667 | 1,650 | ||||||||
| Michael Foods Group, Inc., L+450, 1.8% LIBOR Floor, 6/29/16(c) |
Consumer Staples | Jun-10 | 2,536 | 2,490 | ||||||||
| Mosaic US Holdings Inc., L+275, 4/3/13 |
Consumer Discretionary | Oct-09 | 882 | 666 | ||||||||
| NBTY, Inc., L+450, 1.8% LIBOR Floor, 10/1/17(c) |
Consumer Staples | Sep-10 | 2,212 | 2,191 | ||||||||
| NCO Group, Inc., L+500, 2.5% LIBOR Floor, 5/15/13(c) |
Information Technology | Apr-10 | 3,303 | 3,283 | ||||||||
| New Development Holdings, LLC (Calpine), L+550, 1.5% LIBOR Floor, 7/3/17(c) |
Utilities | Aug-10 | 5,558 | 5,486 | ||||||||
| OSI Restaurant Partners, LLC, L+225, 6/14/14(c) |
Consumer Discretionary | Jul-10 | 5,638 | 4,968 | ||||||||
| Ozburn Hessey Holding Co., LLC, L+550, 2.0% LIBOR Floor, 4/8/16(c) |
Industrials | Aug-10 | 6,230 | 6,198 | ||||||||
| Petco Animal Supplies, Inc., L+450, 1.5% LIBOR Floor, 11/24/17(c) |
Consumer Discretionary | Nov-10 | 2,930 | 2,901 | ||||||||
| Protection One, Inc., L+425, 1.8% LIBOR Floor, 6/4/16(c) |
Consumer Discretionary | Aug-10 | 4,402 | 4,375 | ||||||||
| RBS Worldpay, Inc., L+450, 1.8% LIBOR Floor, 10/15/17 |
Financials | Oct-10 | 1,538 | 1,523 | ||||||||
| Remy International, Inc., L+450, 1.8% LIBOR Floor, 12/17/13(c) |
Consumer Discretionary | Dec-10 | 2,083 | 2,063 | ||||||||
| RepconStrickland, Inc., L+525, 3.3% LIBOR Floor, 2/19/13 |
Energy | Apr-10 | 3,925 | 3,595 | ||||||||
| Res-Care, Inc., L+550, 1.8% LIBOR Floor, 12/22/16 |
Consumer Discretionary | Dec-10 | 5,000 | 4,900 | ||||||||
| Revlon Consumer Products Corp., L+400, 2.0% LIBOR Floor, 3/11/15(c) |
Consumer Discretionary | Jul-10 | 6,357 | 6,263 | ||||||||
| Reynolds & Reynolds Co., L+350, 1.8% LIBOR Floor, 4/21/17(c) |
Information Technology | May-10 | 4,969 | 4,936 | ||||||||
| Reynolds Group Holdings Inc., L+446, 1.8% LIBOR Floor, 5/5/16(c) |
Industrials | Nov-10 | 7,950 | 7,934 | ||||||||
| Rural/Metro Corp., L+425, 1.8% LIBOR Floor, 11/24/16(c) |
Industrials | Nov-10 | 1,474 | 1,466 | ||||||||
| Sagittarius Restaurants LLC, L+550, 2.0% LIBOR Floor, 5/18/15 |
Consumer Discretionary | Aug-10 | 3,084 | 3,052 | ||||||||
| Savvis, Inc., L+500, 1.8% LIBOR Floor, 8/4/16(c) |
Information Technology | Aug-10 | 7,382 | 7,230 | ||||||||
| SemGroup Corp., L+700, 1.5% LIBOR Floor, 11/30/12(c) |
Energy | May-10 | 3,492 | 3,458 | ||||||||
| Sheridan Production Co., LLC, L+550, 2.0% LIBOR Floor, 4/20/17(c) |
Energy | Aug-10 | 7,948 | 7,824 | ||||||||
| Sitel, LLC, L+550, 1/30/14(c) |
Telecommunication Services | Dec-10 | 5,966 | 5,614 | ||||||||
| Six Flags Theme Parks, Inc., L+400, 1.5% LIBOR Floor, 6/30/16(c) |
Consumer Discretionary | Dec-10 | 2,737 | 2,724 | ||||||||
| Smile Brands Group Inc., L+525, 1.8% LIBOR Floor, 12/21/17(c) |
Healthcare | Dec-10 | 5,966 | 5,877 | ||||||||
| Smurfit-Stone Container Enterprises, Inc., L+475, 2.0% LIBOR Floor, 2/10/16 |
Industrials | Feb-10 | 6,965 | 6,905 | ||||||||
| Spansion, LLC, L+550, 2.0% LIBOR Floor, 2/9/15(c) |
Information Technology | Dec-10 | 5,903 | 5,941 | ||||||||
| Sports Authority, Inc., L+600, 1.5% LIBOR Floor, 11/16/17(c) |
Consumer Discretionary | Dec-10 | 8,000 | 7,783 | ||||||||
| Styron Sarl, L+575, 1.8% LIBOR Floor, 6/14/16(c) |
Materials | Dec-10 | 7,897 | 7,812 | ||||||||
| Summit Materials Companies I, LLC, L+500, 1.5% LIBOR Floor, 12/31/15(c) |
Materials | Dec-10 | 4,000 | 4,000 | ||||||||
| Swift Transportation Co., Inc., L+450, 1.5% LIBOR Floor, 12/21/16(c) |
Industrials | Dec-10 | 4,545 | 4,500 | ||||||||
| Syniverse Holdings, Inc., L+375, 1.5% LIBOR Floor, 9/8/14(c) |
Telecommunication Services | Dec-10 | 2,029 | 2,009 | ||||||||
| Targus Information Corp., L+525, 1.8% LIBOR Floor, 12/28/16 |
Information Technology | Dec-10 | 5,000 | 4,900 | ||||||||
| Telcordia Technologies Inc., L+500, 1.8% LIBOR Floor, 4/30/16(c) |
Telecommunication Services | Nov-10 | 8,004 | 8,024 | ||||||||
| Texas Competitive Electric Holdings Co. LLC, L+350, 10/10/14(c) |
Utilities | May-10 | 9,384 | 7,737 | ||||||||
| The Gymboree Corp., L+400, 1.5% LIBOR Floor, 11/23/17(c) |
Consumer Discretionary | Nov-10 | 2,139 | 2,128 | ||||||||
| TNS, Inc., L+400, 2.0% LIBOR Floor, 11/18/15(c) |
Telecommunication Services | Sep-10 | 1,317 | 1,317 | ||||||||
| Toys“R”Us, Inc., L+450, 1.5% LIBOR Floor, 8/17/16(c) |
Consumer Discretionary | Oct-10 | 6,733 | 6,696 | ||||||||
| Trident Exploration Corp., L+950, 3.0% LIBOR Floor, 6/10/14(c) |
Energy | Nov-10 | 8,960 | 8,904 | ||||||||
| Univar Inc., L+450, 1.8% LIBOR Floor, 6/30/17(c) |
Materials | Oct-10 | 6,642 | 6,589 | ||||||||
| Universal Health Services, Inc., L+400, 1.5% LIBOR Floor, 11/15/16 |
Healthcare | Jul-10 | 5,000 | 4,930 | ||||||||
| Vertafore, Inc., L+500, 1.8% LIBOR Floor, 7/29/16(c) |
Information Technology | Aug-10 | 6,910 | 6,827 | ||||||||
| WCP Exposition Services Operating Co. LLC, L+600, 3.0% LIBOR Floor, 8/29/11 |
Consumer Discretionary | Jun-09 | 539 | 244 | ||||||||
| Yell Group Plc, L+300, 7/31/14 |
Consumer Discretionary | Oct-09 | 804 | 675 | ||||||||
| Total Senior Secured Loans—First Lien |
488,255 | 473,881 | ||||||||||
3
| Portfolio Company(a) |
Industry |
Date of Most Most Recent Purchase |
Principal Amount (in thousands)(b) |
Amortized Cost (in thousands) |
||||||||
| Senior Secured Loans—Second Lien—18.5% |
||||||||||||
| Advance Pierre Foods, Inc., L+950, 1.8% LIBOR Floor, 9/29/17 |
Consumer Staples | Sep-10 | $ | 5,000 | $ | 4,864 | ||||||
| Advantage Sales & Marketing Inc., L+775, 1.5% LIBOR Floor, 6/17/18(c) |
Industrials | Dec-10 | 10,000 | 9,850 | ||||||||
| AMN Healthcare Services, Inc., L+1000, 1.8% LIBOR Floor, 9/1/16 |
Healthcare | Aug-10 | 10,000 | 9,716 | ||||||||
| AmWINS Group, Inc., L+550, 6/8/14 |
Financials | May-10 | 1,992 | 1,672 | ||||||||
| Attachmate Corp., L+675, 10/13/13(c) |
Information Technology | Jan-10 | 5,000 | 4,358 | ||||||||
| Awesome Acquisition Co., L+500, 6/4/14 |
Consumer Discretionary | Oct-09 | 2,940 | 2,343 | ||||||||
| BNY ConvergEx Group, LLC, L+700, 1.8% LIBOR Floor, 12/17/17(c) |
Information Technology | Dec-10 | 6,000 | 5,925 | ||||||||
| Carestream Health, Inc., L+525, 10/30/13(c) |
Healthcare | Nov-10 | 8,000 | 7,723 | ||||||||
| Central Parking Systems, Inc., L+450, 11/22/14 |
Industrials | May-10 | 250 | 199 | ||||||||
| Datatel, Inc., L+825, 2.0% LIBOR Floor, 12/10/16 |
Information Technology | Dec-09 | 5,000 | 4,915 | ||||||||
| Dresser, Inc., L+575, 5/4/15(c) |
Energy | Oct-10 | 7,405 | 6,980 | ||||||||
| Edwards Ltd., L+575, 11/30/14(c) |
Industrials | May-10 | 2,305 | 2,062 | ||||||||
| FR Brand Acquisition Corp., L+625, 2/7/15(c) |
Industrials | Nov-10 | 8,000 | 6,948 | ||||||||
| Goodman Global, Inc., L+700, 2.0% LIBOR Floor, 10/27/17(c) |
Consumer Discretionary | Oct-10 | 7,000 | 6,863 | ||||||||
| Kronos Inc., L+575, 6/11/15(c) |
Industrials | Nov-10 | 3,000 | 2,919 | ||||||||
| Roundy’s Supermarkets, Inc., L+800, 2.0% LIBOR Floor, 4/16/16(c) |
Consumer Staples | Dec-10 | 10,000 | 10,106 | ||||||||
| Sedgwick CMS Holdings, L+750, 1.5% LIBOR Floor, 5/30/17 |
Industrials | Aug-10 | 500 | 500 | ||||||||
| Southern Pacific Resource Co., L+850, 2.0% LIBOR Floor, 12/22/15 |
Energy | Dec-10 | 10,000 | 9,700 | ||||||||
| TPF Generation Holdings (Tenaska Power Fund), LLC, L+425, 12/15/14(c) |
Energy | Dec-10 | 9,170 | 8,329 | ||||||||
| Vertafore, Inc., L+825, 1.5% LIBOR Floor, 10/19/17(c) |
Information Technology | Oct-10 | 10,000 | 9,902 | ||||||||
| Wm. Bolthouse Farms, Inc., L+750, 2.0% LIBOR Floor, 8/11/16(c) |
Consumer Staples | Nov-10 | 8,384 | 8,384 | ||||||||
| Xerium Technologies, Inc., L+625, 2.0% LIBOR Floor, 5/25/15(c) |
Materials | Dec-10 | 7,960 | 7,701 | ||||||||
| Total Senior Secured Loans—Second Lien |
137,906 | 131,960 | ||||||||||
| Senior Secured Bonds—4.2% |
||||||||||||
| Allen Systems Group, Inc., 10.5%, 11/15/16 |
Information Technology | Dec-10 | 7,348 | 7,383 | ||||||||
| First Data Corp., 8.9%, 8/15/20(c) |
Information Technology | Aug-10 | 4,300 | 4,232 | ||||||||
| Logan’s Roadhouse, Inc., 10.8%, 10/15/17 |
Consumer Discretionary | Sep-10 | 4,000 | 4,000 | ||||||||
| Nexstar Broadcasting Group, Inc., 8.9%, 4/15/17(c) |
Telecommunication Services | Apr-10 | 5,000 | 4,971 | ||||||||
| Paetec Holding Corp., 8.9%, 6/30/17(c) |
Telecommunication Services | Apr-10 | 4,680 | 4,809 | ||||||||
| Roofing Supply Group LLC, 8.6%, 12/1/17(c) |
Industrials | Nov-10 | 800 | 800 | ||||||||
| Stallion Oilfield Services Ltd., 10.5%, 2/15/15 |
Energy | Aug-10 | 4,000 | 4,070 | ||||||||
| Total Senior Secured Bonds |
30,128 | 30,265 | ||||||||||
| Mezzanine Debt/Other—11.1% |
||||||||||||
| Apidos CDO IV Class E, L+360, 10/27/18 |
Financials | May-10 | 2,000 | 1,051 | ||||||||
| Ares 2007 CLO 11A Class E, L+600, 10/11/21 |
Financials | Sep-10 | 4,775 | 3,028 | ||||||||
| Ares 2007 CLO 12X Class E, L+575, 11/25/20 |
Financials | Nov-10 | 2,252 | 1,743 | ||||||||
| Aspect Software, Inc., 10.6%, 5/15/17(c) |
Information Technology | Apr-10 | 4,000 | 4,000 | ||||||||
| ATI Enterprises Inc., L+1100, 2.3% LIBOR Floor, 12/30/16 |
Consumer Discretionary | Jan-10 | 8,000 | 7,908 | ||||||||
| Aurora Diagnostics, LLC, 10.8%, 1/15/18 |
Healthcare | Dec-10 | 8,000 | 8,000 | ||||||||
| Base CLO I Class E, EURIBOR+500, 10/17/18 |
Financials | Mar-10 | € | 1,500 | 960 | |||||||
| Blue Mountain CLO III Class E, L+355, 3/17/21 |
Financials | May-10 | $ | 2,000 | 869 | |||||||
| Bresnan Broadband Holdings LLC, 8.0%, 12/15/18(c) |
Telecommunication Services | Dec-10 | 5,000 | 5,000 | ||||||||
| Cincinnati Bell Inc., 8.4%, 10/15/20(c) |
Telecommunication Services | Oct-10 | 8,000 | 8,000 | ||||||||
| Franklin CLO 6A Class E, L+425, 8/9/19 |
Financials | Oct-10 | 1,919 | 1,133 | ||||||||
| Hughes Network Systems, LLC, 9.5%, 4/15/14 |
Telecommunication Services | Jul-10 | 2,000 | 2,072 | ||||||||
| Lightpoint CLO 2006 V Class D, L+365, 8/5/19 |
Financials | Sep-10 | 6,500 | 3,012 | ||||||||
| Lightpoint CLO 2007 VII Class D, L+400, 5/15/21 |
Financials | Sep-10 | 4,000 | 2,182 | ||||||||
| Mediacom Broadband LLC, 8.5%, 10/15/15 |
Consumer Discretionary | Aug-10 | 2,000 | 2,028 | ||||||||
| Mountain View CLO II Class Preferred 17.4%, 1/12/21 |
Financials | Dec-10 | 8,975 | 7,272 | ||||||||
| N.E.W. Customer Service Cos., Inc., L+750, 2.0% LIBOR Floor, 3/22/17(c) |
Industrials | Mar-10 | 7,000 | 6,867 | ||||||||
| NBTY, Inc., 9.0%, 10/1/18 |
Consumer Staples | Sep-10 | 4,700 | 4,700 | ||||||||
| Octagon CDO 2007 1A Class Income, 38.1%, 8/25/21 |
Financials | Oct-10 | 4,000 | 2,774 | ||||||||
| Paetec Holding Corp., 9.9%, 12/1/18 |
Telecommunication Services | Nov-10 | 4,000 | 3,868 | ||||||||
| Univar Inc., 12.0%, 6/30/18 |
Materials | Dec-10 | 3,000 | 2,940 | ||||||||
| Total Mezzanine Debt/Other |
93,621 | 79,408 | ||||||||||
| TOTAL INVESTMENTS—100.0% |
$ | 715,514 | ||||||||||
| (a) | Security may be an obligation of one or more entities affiliated with the named company. |
| (b) | Denominated in U.S. Dollars unless otherwise noted. |
| (c) | Security is held within Broad Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the amended and restated revolving credit facility with Deutsche Bank AG, New York Branch. |
4
The tables below show portfolio investments that were sold or experienced a repayment in excess of 1% of a position’s value between November 12, 2010 and December 31, 2010.
| Security |
Original Cost | Disposition Price | Transaction Type | |||||||||
| Cedar Fair, LP, 9.1%, 8/1/18 |
$ | 1,972,260 | $ | 2,137,500 | Sale | |||||||
| Dresser, Inc., L+575, 5/4/15 |
$ | 1,380,000 | $ | 1,997,500 | Sale | |||||||
| Edwards Ltd., L+200, 5/31/14 |
$ | 1,238,400 | $ | 1,881,788 | Sale | |||||||
| Harland Clarke Holdings Corp., L+250, 6/30/14 |
$ | 3,044,936 | $ | 3,605,000 | Sale | |||||||
| NCO Group, Inc., L+500, 2.5% LIBOR Floor, 5/15/13 |
$ | 2,626,728 | $ | 2,926,875 | Sale | |||||||
| Novelis Inc., L+375, 1.5% LIBOR Floor, 12/17/16 |
$ | 3,255,049 | $ | 3,312,588 | Sale | |||||||
| Paetec Corp., 8.9%, 6/30/17 |
$ | 2,021,656 | $ | 2,100,000 | Sale | |||||||
| SI Organization, Inc., 4.0%, 1.8% LIBOR Floor, 11/19/16 |
$ | 2,475,000 | $ | 2,501,500 | Sale | |||||||
| Transdigm, Inc., L+350, 1.5% LIBOR Floor, 12/1/16 |
$ | 1,812,622 | $ | 1,844,502 | Sale | |||||||
| Windstream Corp., 8.1%, 9/1/18 |
$ | 1,687,216 | $ | 1,814,750 | Sale | |||||||
| Security |
Weighted Average Purchase Price(1) |
Weighted Average Disposition Price(1) |
Paydown Amount |
Transaction Type |
||||||||||||
| 1-800 Contacts, Inc., L+395, 3.8% LIBOR Floor, 3/4/15 |
93.3 | % | 100.0 | % | $ | 187,732 | Paydown | |||||||||
| Advantage Sales & Marketing, Inc., L+700, 1.5% LIBOR Floor, 5/5/17 |
99.3 | % | 100.0 | % | $ | 7,000,000 | Paydown | |||||||||
| Airvana Network Solutions Inc., L+900, 2.0% LIBOR Floor, 8/27/14 |
99.5 | % | 100.0 | % | $ | 241,667 | Paydown | |||||||||
| Allen Systems Group, Inc., L+550, 3.0% LIBOR Floor, 10/19/13 |
101.3 | % | 100.0 | % | $ | 1,443,750 | Paydown | |||||||||
| Allen Systems Group, Inc., L+800, 3.0% LIBOR Floor, 2.0% PIK, 4/19/14 |
94.9 | % | 109.0 | % | $ | 4,076,375 | Paydown | |||||||||
| Atlantic Broadband Finance, LLC, L+350, 1.5% LIBOR Floor, 11/29/15 |
99.5 | % | 100.0 | % | $ | 48,214 | Paydown | |||||||||
| Canwest LP, L+700, 2.0% LIBOR Floor, 7/23/16 |
99.0 | % | 100.0 | % | $ | 277,921 | Paydown | |||||||||
| Caritor, Inc. (Keane Inc.), L+225, 6/4/13 |
76.4 | % | 100.0 | % | $ | 1,962,225 | Paydown | |||||||||
| CDW Corp., L+500, 7/10/17 |
87.8 | % | 100.0 | % | $ | 2,383,310 | Paydown | |||||||||
| Cedar Fair, LP, L+400, 1.5% LIBOR Floor, 12/15/16 |
99.0 | % | 100.0 | % | $ | 38,298 | Paydown | |||||||||
| Cincinnati Bell Inc., L+500, 1.5% LIBOR Floor, 6/10/17 |
97.8 | % | 100.0 | % | $ | 1,426,557 | Paydown | |||||||||
| Clopay Ames True Temper Holding Corp., L+600, 1.8% LIBOR Floor, 9/30/16 |
99.5 | % | 100.0 | % | $ | 100,521 | Paydown | |||||||||
| Columbian Chemicals Co., L+600, 3/16/13 |
62.0 | % | 100.0 | % | $ | 1,197,656 | Paydown | |||||||||
| Custom Building Products, Inc., L+400, 1.8% LIBOR Floor, 3/1/15 |
99.0 | % | 100.0 | % | $ | 56,818 | Paydown | |||||||||
| DEI Sales, Inc., L+550, 2.0% LIBOR Floor, 9/22/13 |
93.5 | % | 100.0 | % | $ | 151,977 | Paydown | |||||||||
| DineEquity, Inc., L+450, 1.5% LIBOR Floor, 10/19/17 |
99.0 | % | 100.0 | % | $ | 161,616 | Paydown | |||||||||
| Franklin CLO 6A Class E, L+425, 8/9/19 |
58.5 | % | 100.0 | % | $ | 45,887 | Paydown | |||||||||
| ILC Holdings, Inc., 11.5%, 6/30/14 |
100.0 | % | 100.0 | % | $ | 4,000,000 | Paydown | |||||||||
| Lantiq Deutschland GmbH, L+700, 2.0% LIBOR Floor, 11/16/15 |
98.1 | % | 100.0 | % | $ | 90,049 | Paydown | |||||||||
| Lincoln Industrial Corp., L+575, 1/9/15 |
91.0 | % | 100.0 | % | $ | 2,000,000 | Paydown | |||||||||
| LyondellBasell Industries NV, L+400, 1.5% LIBOR Floor, 4/30/16 |
99.0 | % | 100.0 | % | $ | 1,356,600 | Paydown | |||||||||
| McKechnie Aerospace Holdings, Inc., L+500, 5/11/15 |
92.3 | % | 100.0 | % | $ | 3,499,332 | Paydown | |||||||||
| Michael Foods Group, Inc., L+450, 1.8% LIBOR Floor, 6/29/16 |
98.0 | % | 100.0 | % | $ | 26,013 | Paydown | |||||||||
| New Development Holdings, LLC (Calpine), L+550, 1.5% LIBOR Floor, 7/3/17 |
98.6 | % | 100.0 | % | $ | 57,486 | Paydown | |||||||||
| OSI Restaurant Partners, LLC, L+225, 6/14/14 |
86.4 | % | 100.0 | % | $ | 337,281 | Paydown | |||||||||
| Protection One, Inc., L+425, 1.8% LIBOR Floor, 6/4/16 |
99.4 | % | 100.0 | % | $ | 105,629 | Paydown | |||||||||
| RepconStrickland, Inc., L+525, 3.3% LIBOR Floor, 2/19/13 |
89.0 | % | 100.0 | % | $ | 760,968 | Paydown | |||||||||
| Sagittarius Restaurants LLC, L+550, 2.0% LIBOR Floor, 5/18/15 |
98.9 | % | 100.0 | % | $ | 382,813 | Paydown | |||||||||
| SemGroup Corp., L+700, 1.5% LIBOR Floor, 11/30/12 |
98.4 | % | 100.0 | % | $ | 3,260,080 | Paydown | |||||||||
| Sirius Computer Solutions, Inc., L+600, 5/30/13 |
80.6 | % | 100.0 | % | $ | 5,000,000 | Paydown | |||||||||
| Styron Sarl, L+575, 1.8% LIBOR Floor, 6/14/16 |
98.8 | % | 100.0 | % | $ | 101,245 | Paydown | |||||||||
| Swift Transportation Co., Inc., L+600, 2.3% LIBOR Floor, 5/10/14 |
99.9 | % | 100.0 | % | $ | 5,000,000 | Paydown | |||||||||
| TNS, Inc., L+400, 2.0% LIBOR Floor, 11/18/15 |
100.0 | % | 100.0 | % | $ | 16,667 | Paydown | |||||||||
| Yell Group Plc, L+300, 7/31/14 |
76.3 | % | 100.0 | % | $ | 41,091 | Paydown | |||||||||
| (1) | As a percentage of par value. |
5
Prospectus Summary and Management’s Discussion and Analysis of Financial Condition and Results of Operations
This supplement supplements and amends the sections of the Prospectus entitled, “Prospectus Summary—FS Investment Corporation,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Credit Facility,” “—Financial Condition, Liquidity and Capital Resources—Credit Facility” and “—Quantitative and Qualitative Disclosures about Market Risk” to include the following immediately after the disclosure in each such section regarding the second amendment to the credit facility:
On January 28, 2011, Broad Street and Deutsche Bank entered into an amended and restated credit facility, or the credit facility restatement, to convert the facility from a single-lender facility to a multi-lender, syndicated facility and name Deutsche Bank as administrative agent thereunder; to convert all of the outstanding Tranche B Commitment into a Tranche C Commitment in exchange for a conversion fee paid to Deutsche Bank; to join a new lender to the facility to be the sole lender under the Tranche C Commitment; and to set forth the relative rights and obligations of the administrative agent and the lenders thereunder. No other material terms of the facility changed in connection with the credit facility restatement.
On January 28, 2011, Broad Street and Deutsche Bank also entered into an amended and restated security agreement, or the security agreement restatement, to provide that Deutsche Bank will serve as administrative agent thereunder and to set forth the relative rights and obligations of the administrative agent and the lenders thereunder. No other material terms of the security agreement changed in connection with the security agreement restatement.
Management
This supplement further supplements and amends the section of the Prospectus entitled “Management—Committees of the Board of Directors” by adding the following thereto:
Nominating and Corporate Governance Committee
On January 13, 2011, our board of directors formed the nominating and corporate governance committee, which is currently composed of Messrs. Gravina, Harrow and Heller, a majority of whom are independent. Mr. Gravina serves as chairman of the nominating and corporate governance committee. The committee selects and nominates directors for election by our stockholders, selects nominees to fill vacancies on our board or a committee thereof, develops and recommends to our board a set of corporate governance principles and oversees the evaluation of our board and our management.
6