FS Investment Corp, the publicly-traded business development company, sub-advised by GSO Capital Partners, did a total of $1.6 billion in new direct originations last year, with $259 million committed in the fourth quarter, according to FSIC’s earnings report issued yesterday (2 March). The portfolio was focused primarily on senior secured debt including first and second lien senior secured loans and senior secured bonds. The portfolio returned 7.17 percent for the year and is valued at a total of $4.2 billion.
As of 31 December 2014, FSIC’s portfolio was 53 percent invested in first lien loans, 17 percent in second lien loans, 8 percent in senior secured bonds, 11 percent in subordinated debt, 3 percent in collateralized securities and 8 percent in equity/other. FSIC originated 84 percent of its debt last year in the senior secured space, with 65 percent representing senior secured debt in the last quarter.
The vehicle’s quarterly financials included net investment income of $0.28 per share, compared to $0.20 per share for the quarter ended 31 December 2013. On net earnings, the BDC reported a slight decrease to $0.26 per share, compared to $0.30 per share for the same quarter in 2013.
For the whole year, the vehicle’s net investment income was more or less flat: gaining just a cent per share compared to the year ended 31 December 2013, when it was at $0.96 cents per share. Net earnings dropped year-over-year to 0.78 per share from 1.04 per share at the end of 2013.
Blackstone-owned GSO sub-advises the BDC in partnership with Philadelphia-based Franklin Square Capital Partners. The group handles two other BDC, which are non-traded. The three combined have a total of $14 billion in assets under management and returned about 9 percent in 2014.