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FS Investments BDCs Close on Nearly $1 Billion of Middle Market Commitments in the Third Quarter

FSK

Includes four commitments of more than $100 million

PR Newswire

PHILADELPHIA, Dec. 1, 2016 /PRNewswire/ -- FS Investments, a leading alternative investment manager, announced that its business development company (BDC) direct lending platform committed approximately $988 million in senior secured loans and other debt and equity financing to middle market companies in the third quarter of 2016, bringing its year-to-date total originations to more than $2.2 billion. New directly originated investments during the quarter were made in support of nine portfolio companies headquartered in seven U.S. states.

FS Investments logo

"Our ability to customize financing solutions to a company's specific needs delivers a unique value to those businesses and, ultimately, our investors," said Michael C. Forman, Chairman and Chief Executive Officer of FS Investments. "In several cases, we upsized our financing for existing portfolio companies, where the added capital helps those companies expand their operations."

Newly committed capital was provided by five BDCs managed by affiliates of FS Investments and sub-advised by GSO Capital Partners LP (GSO) or its affiliate: FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III), FS Investment Corporation IV (FSIC IV) and FS Energy and Power Fund (FSEP). FS Investments is the largest manager of BDCs.

FS Investments' directly originated transactions, which are unique to its BDCs and not typically accessible elsewhere, included investments in the following companies in the third quarter:

North Haven Cadence Buyer, Inc. (dba: Cadence Education)

FSIC, FSIC II, FSIC III and FSIC IV provided a new senior secured unitranche and equity commitment to Cadence Education, a Scottsdale, AZ-based provider of private pre-kindergarten and elementary childcare and education services. The company is among the largest providers of private childcare and education services in the country. The new financing supported Morgan Stanley Capital Partners' acquisition of the company from Audax Partners.

Transplace Holdings, Inc.

FSIC, FSIC II and FSIC III upsized their senior secured unitranche commitment to Transplace Holdings, a Frisco, TX-based logistics and transportation management company. The incremental commitment financed a strategic acquisition. Transplace is a portfolio company of Greenbriar Equity Group.

ABOUT FS INVESTMENTS
FS Investments is a leading asset manager that designs alternative investments to help institutional, advisory and individual investors build better portfolios. Its solutions provide access to alternative asset classes and top managers through a spectrum of structures, including business development companies, a closed-end credit fund and an operating company. The firm is dedicated to setting industry standards for investor-centric service, education and transparency.

FS Investments was founded in 2007 as Franklin Square Capital Partners. It is headquartered in Philadelphia with offices in Orlando and Washington, DC. The firm currently manages six funds with over $18 billion in assets under management as of September 30, 2016 and co-manages an operating company. Its affiliated broker-dealer, FS Investment Solutions, LLC (member FINRA/SIPC), distributes its offerings.

Visit fsinvestments.com to learn more.

Contact Information:

FS Investments Media Team
media@fsinvestments.com
215-495-1174

Dominic Mammarella
Investor Relations
dominic.mammarella@fsinvestments.com
215-220-4280

ABOUT BLACKSTONE AND GSO
Blackstone is one of the world's leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with approximately $361 billion in assets under management as of September 30, 2016, includes investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

GSO is the global credit investment platform of Blackstone. With approximately $89.3 billion of assets under management as of September 30, 2016, GSO is one of the largest alternative managers in the world focused on the leveraged-finance, or non-investment grade related, marketplace. GSO seeks to generate attractive risk-adjusted returns in its business by investing in a broad array of strategies including mezzanine debt, distressed investing, leveraged loans and other special-situation strategies. Its funds are major providers of credit for small and middle-market companies and they also advance rescue financing to help distressed companies.

Forward-Looking Statements and Important Disclosures

This press release may contain certain forward-looking statements, including statements with regard to the future performance or operations of FSIC, FSIC II, FSIC III, FSIC IV and FSEP. Words such as "believes," "expects," "projects" and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the filings FSIC, FSIC II, FSIC III, FSIC IV or FSEP make with the U.S. Securities and Exchange Commission. FSIC, FSIC II, FSIC III, FSIC IV or FSEP undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Logo - http://photos.prnewswire.com/prnh/20161004/415189LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fs-investments-bdcs-close-on-nearly-1-billion-of-middle-market-commitments-in-the-third-quarter-300371748.html

SOURCE FS Investments



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