FS Investment (FSIC) has been operating as BDC since January 2009 and I will be adding to my coverage this week after its IPO tomorrow listed on the NYSE. FSIC is managed by affiliates of Franklin Square Capital and sub-advised by affiliates of GSO Capital Partners, the credit platform of The Blackstone Group. Last week I spoke with management regarding its strategic direction and approach to investing. This will be one of the larger BDCs that I follow with a $4.1 billion portfolio that is 82% senior secured loans (see table below), growing net asset value (“NAV”), recently increased its monthly dividend and announced special dividends for Q3 and Q4 of this year. The good news for investors is that FSIC does not have exposure directly related to the Russell indices because it is not public yet. I will have a special report coming out before the IPO with pricing, projections and dividend coverage as well as its relative risk profile and rankings.
Highlights for FSIC with associated rankings:
- Dividend growth of 10% over last 12 months (ranked #3)
- Dividend coverage of 113% using core NII (ranked #3)
- 9% NAV growth over the last 24 months (ranked #4)
- Special dividends announced of $0.20 for 2014 (yield of 2% using NAV)
- Current monthly dividend of almost 9% annual yield using NAV
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