FS Investments originates $1.1bn in second quarter

The firm expects investor demand for BDCs to continue to grow.

Business development companies advised by FS Investments originated a combined total of more than $1.1 billion in mid-market financings over the second quarter, the company said on Friday.

The Philadelphia-based asset manager’s five BDCs provided senior secured loans and equity financings to “several” existing and five new portfolio companies during the three-month period, according to a statement.

Transactions over the quarter included a unitranche loans to Actian Corporation and Imperial Bag & Paper. Actian, a data management firm based in Palo Alto, California, refinanced its existing debt.  Imperial’s financing supported its acquisition of Dade Paper, creating the combined entity Imperial Dade, a food service and janitorial supply distributor headquartered in New Jersey.

FS Investments provided last quarter’s financings through all of its five BDCs, including its public entity, FS Investment Corporation, and four private businesses FSIC II, FSIC III, FSIC IV and FS Energy and Power Fund.

The firm was not immediately available to comment.

All of the firm’s BDCs are sub-advised by Blackstone’s credit arm, GSO Capital Partners. In 2016 alone, these five platforms committed $4 billion in financings.

Sean Coleman, chief credit officer at FS Investments, told Private Debt Investor earlier this month that investor demand for BDC financings continues to grow, likely encouraging more consolidations of BDCs looking to scale-up in order to better compete.

FS Investments is the largest sponsor of BDC assets, with more than $20 billion in assets under management as of 30 June, the statement showed.