UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 21, 2009
FS Investment
Corporation
(Exact name of registrant as
specified in its charter)
| Maryland | 0-53424 | 26-1630040 | ||
| (State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| Cira Centre 2929 Arch Street, Suite 675 Philadelphia, Pennsylvania |
19104-2867 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code: (215) 495-1150
| None |
| (Former name or former address if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On August 21, 2009, FS Investment Corporation issued a press release providing an update on its investment portfolio for the quarter ended June 30, 2009. The Company also provided details on its initial shareholder update conference call. The text of this press release is included as an exhibit to this Form 8-K
Item 9.01. Financial Statements and Exhibits
|
(a)
|
Not Applicable. |
|
(b)
|
Not Applicable. |
|
(c)
|
Not Applicable. |
|
(d)
|
Exhibits. |
|
EXHIBIT
|
||
|
NUMBER
|
DESCRIPTION | |
|
|
||
|
99.1
|
Press release dated August 21, 2009. |
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, as amended, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
|
|
||||||
|
|
||||||
| FS Investment Corporation | ||||||
|
|
||||||
|
Date:
|
August 21, 2009 | By: | /s/ Michael C. Forman | |||
|
|
||||||
|
|
Michael C. Forman | |||||
|
|
President and Chief Executive Officer | |||||
EXHIBIT INDEX
| EXHIBIT | ||
| NUMBER | DESCRIPTION | |
|
99.1
|
Press release dated August 21, 2009. |
Exhibit 99.1
FOR IMMEDIATE RELEASE
FS Investment Corporation Provides Operational Update and Announces Initial Shareholder Conference Call
PHILADELPHIA, August 21, 2009 – FS Investment Corporation, a business development company focused on investing in the debt securities of private U.S. companies, provides an update regarding its second quarter of operations and capital raising to date. FS Investment Corporation will hold its initial shareholder update conference call at 1:30 PM EDT on August 27, 2009, to discuss its results.
Year-to-Date Highlights
|
•
|
Raised $44.9 million through August 1, 2009 |
|
•
|
As of August 14, 2009, constructed portfolio of thirty-five performing positions in senior secured loans and second lien secured loans |
|
•
|
Weighted average purchase price: 73.9% of par |
|
•
|
Estimated gross annual portfolio yield: 15.4% |
|
•
|
Weighted average credit rating: B3 |
| • | Generated realized gains through principal repayments and open-market sales of $359,000 through June 30, 2009 against realized losses of $0 | |
| • | Generated net unrealized appreciation of $2,172,000 through June 30, 2009 |
|
•
|
Paid out second cash distribution on June 30, 2009 (7.5% annualized yield based on $10.00 offering price) |
|
•
|
Paid out stock distributions to existing investors totaling 15.6% through July 2009 |
Michael C. Forman, FS Investment Corporation’s Chairman and Chief Executive Officer, commented, “We are pleased to provide an update to our shareholders on our progress to date. Since March 2009, the secondary market pricing of our senior secured and second lien secured loans has improved significantly amid strong technical underpinnings (including declines in loans outstanding due to repayments and refinancing activity) in the market and the emergence of signs of stability within the global financial system. As a result, our portfolio has generated over $2.5 million in unrealized appreciation and realized gains through June 30, 2009. As a result of the unrealized appreciation in our portfolio, we paid out five consecutive stock distributions, totaling 15.6%, between March and July.”
“Drawing upon the expertise of our sub-adviser, GSO/Blackstone Debt Funds Management, we grew our portfolio to 35 positions, in senior secured and second lien secured loans, all of which continue to perform despite the current weak economic environment. Our portfolio consists of loans to well-recognized companies such as TXU Corp, First Data, DTN, Inc. and 1-800 Contacts. We will continue to draw upon GSO/Blackstone’s deep loan market experience in order to maintain a portfolio designed to deliver strong performance in a range of economic environments. As our views on economic conditions improve, this may include taking opportunistic positions in mezzanine debt and other junior capital positions, which tend to outperform other types of debt in a more stable, growing economy.”
“Overall, the outlook for our investment portfolio remains positive. While prices have increased over the quarter, we believe loans as an investment class remain attractively priced by historical standards. Further, with a portfolio of 100% variable interest rate investments, we feel that our shareholders are well positioned for a rising interest rate environment – which may negatively impact fixed rate investment values. We look forward to continuing to employ our defensive investment approach, focused on long-term credit performance and principal protection, to continue to deliver strong results for our investors.”
Investor Update Call
Forward-Looking Statements
About FS Investment Corporation
About Franklin Square Capital Partners
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|