PHILADELPHIA, March 7, 2022 – FS Global Credit Opportunities Fund (“FSGCO” or the “Fund”), a closed-end fund investing in non-traditional credit opportunities including event-driven credit, special situations and private capital structure solutions, announced its intention to list its common stock on the New York Stock Exchange (“NYSE”) prior to the end of the third quarter, subject to market conditions and final board approval.
“We are excited to announce this important milestone and to begin preparations to list FSGCOand deliver liquidity to shareholders later this year,” said Michael Forman, Chairman and CEO of FS Investments. “With approximately $2.4 billion in assets as of December 31, 2021, we believe the Fund will be highly differentiated in the public markets by its scale, attractive dividend yield, strong recent track record, outperformance relative to broader credit indexes, and the investment team’s access to the full resources and infrastructure of FS Investments.”
Prior to the listing, the Fund will be renamed FS Credit Opportunities Corp. and is expected to trade on the NYSE with ticker symbol “FSCO.” Subject to shareholder approval, upon listing, the Fund’s management fee will drop from 1.5% to 1.35%, and the hurdle rate for calculation of the incentive fee will be based on percentage of net assets rather than adjusted capital, consistent with other publicly traded closed-end funds. The reduction in management fee is expected to enhance the Fund’s net investment income and allow the Fund to sustain an annualized distribution yield of 7.25%, based on the Fund’s net asset value as of December 31, 2021.
FSGCO’s board of trustees (the “Board”) also approved the Fund’s conversion from a Delaware statutory trust into a Maryland Corporation and elected to suspend the Fund’s quarterly share repurchase program effective March 31, 2022. The Fund plans to commence a quarterly tender offer pursuant to the share repurchase program prior to this suspension date, but does not intend to commence another tender offer after March 31. Upon completion of the listing, and subject to Board approval, the Fund intends to implement an open-market share repurchase program under Rule 10b5-1 under the Securities Exchange Act of 1934.
About FS Investments
FS Investments is a leading asset manager dedicated to helping individuals, financial professionals and institutions design better portfolios. The firm provides access to alternative sources of income and growth, and focuses on setting industry standards for investor protection, education and transparency. FS Investments is headquartered in Philadelphia, PA with offices in New York, NY, Orlando, FL and Leawood, KS.
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