PHILADELPHIA CREAM, March 7, 2022 /PRNewswire/ — FS Global Credit Opportunities Fund (“FSGCO” or the “Fund”), a closed-end fund investing in non-traditional credit opportunities, including event credit, special situations and credit structure solutions. private capital, announced its intention to list its common stock on the New York Stock Exchange (“NYSE”) before the end of the third quarter, subject to market conditions and final board approval.
“We are delighted to announce this important milestone and begin preparations to list FSGCO and provide liquidity to shareholders later this year,” said Michael Forman, Chairman and CEO of FS Investments. “With about $2.4 billion active at December 31, 2021we believe the Fund will differentiate strongly in public markets through its size, attractive dividend yield, strong recent track record, outperformance relative to broader credit indices and the investment team’s access to all resources and infrastructure of FS Investments. »
Prior to listing, the Fund will be renamed FS Credit Opportunities Corp. and is expected to trade on the NYSE with the symbol “FSCO”.
Subject to shareholder approval, upon listing, the Fund’s management fee will increase from 1.5% to 1.35%, and the minimum rate for the calculation of the incentive fee will be based on the percentage of net assets rather than adjusted capital, consistent with other publicly traded private equity. -end funds. The management fee reduction is expected to improve the Fund’s net investment income and allow the Fund to maintain an annualized distribution yield of 7.25%, based on the Fund’s net asset value at December 31, 2021.
FSGCO’s Board of Directors (the “Board”) has also approved the conversion of the Fund from Delaware statutory trust into a Maryland corporation and elected to suspend the Fund’s quarterly share buyback program effective March 31, 2022. The Fund expects to launch a quarterly tender offer under the share buyback program before this suspension date, but does not intend to launch another tender offer after March, 31st. Upon completion of listing, and subject to Board approval, the Fund intends to implement a Rule 10b5-1 open market share repurchase program under Securities Exchange Act of 1934.
About FS Investments
FS Investments is a leading asset manager dedicated to helping individuals, financial professionals and institutions build better portfolios. The company provides access to alternative sources of revenue and growth, and is focused on setting industry standards for investor protection, education and transparency. FS Investments is headquartered in Philadelphia, Pennsylvania with offices at New York, NY, Orlando, Florida and Leawood, KS.
Statements included herein may constitute “forward-looking” statements as that term is defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including statements with respect to future events or the future performance or operations of the Company. Words such as “intends”, “will”, “expects” and “may” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the uncertainties inherent in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements. Factors that could cause actual results to differ materially include changes in the economy, geopolitical risks, risks associated with possible disruption to the Company’s business or the economy generally due to hostilities, terrorism, natural disasters or pandemics such as COVID-19, future changes in laws or regulations and conditions in the Company’s area of operation, unforeseen costs, the Company’s ability to complete listing, price at which the Company’s common stock may trade on the New York Stock Exchange and any other factors disclosed in the Company’s filings with the Securities and Exchange Commission. The inclusion of forward-looking statements should not be construed as a statement that plans, estimates or expectations will be achieved. All forward-looking statements speak only as of the date of this communication. Except as required by federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
The Company, its trustees/directors and certain of its officers may be considered participants in the solicitation of proxies from shareholders regarding matters to be considered at the Company’s 2022 annual meeting (the “2022 Annual Meeting”) . The Company intends to file a proxy statement with the SEC in connection with such solicitation of proxies from shareholders. Shareholders are strongly encouraged to read such proxy statement when it becomes available because it will contain important information. Information regarding the identity of potential participants and their direct or indirect interests in the Company, by holding securities or otherwise, will be set forth in the proxy statement and any other documents to be filed with the SEC in connection with the 2022 Annual Meeting. Shareholders will be able to obtain any proxy statement, amendment or supplement to the proxy statement and other materials filed by the Company with the SEC free of charge at the SEC’s website at www.sec .gov. Copies will also be available free of charge on the Company’s website at https://fsinvestments.com/investments/all-investments/fsgco/.
The information contained in this press release is provided for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell securities of the Company. The potential tender offer described herein has not yet commenced, and there can be no assurance that the Company will initiate the tender offer on the terms and conditions described herein or at all. If the Company initiates the tender offer, the tender offer will be made only by an offer to purchase, the letter of transmittal and the related documents, as they may be modified or supplemented. Shareholders should read the Company’s tender offer statement on Schedule TO, which is expected to be filed with the SEC in connection with the tender offer, which will include as exhibits the offer to of Tender, the Letter of Transmittal and related documents, and any amendments or supplements to Schedule TO when they become available, as they will contain important information relating to the potential tender offer. If the Company initiates the tender offer, each of these documents will be filed with the SEC and, when available, shareholders will be able to obtain them free of charge from the SEC at its website. (http://www.sec.gov).
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SOURCE FS Investments