UNLOCK THE POWER OF THE VAULT

FS Investment Corporation III Lowers DRP Price per Share

July 9, 2018

FS Investment Corporation III Lowers DRP Price per Share

July 5, 2018 | James Sprow | Blue Vault

Effective June 29, 2018, FS Investment Corporation III (the “Company”) decreased the price at which it issues shares under its distribution reinvestment plan (the “DRP”) from $8.25 per share to $8.20 per share. As previously disclosed by the Company, the price at which shares are issued under the DRP is determined by the Company’s board of directors (the “Board”) or a committee thereof, in its sole discretion, and is (i) not less than the net asset value per share determined in good faith by the Board or a committee thereof, in its sole discretion, immediately prior to the payment of the distribution (the “NAV Per Share”) and (ii) not more than 2.5% greater than the NAV Per Share as of such date. The purpose of this decrease was to ensure that the Company did not issue shares under the DRP at a price per share that was more than 2.5% greater than the NAV Per Share.

In the Q1 2018 BDC Industry Review, Blue Vault reported that FS Investment Corporation III had $3.77 billion in total assets, invested in 101 companies’ private debt. The BDC was paying a quarterly distribution in Q1 2018 of $0.175 per share. The BDC’s net investment income for Q1 2018 was $0.17 compared to $0.16 for Q1 2017.

A third party, (McKenzie Capital Management) filed a tender offer dated July 2, 2018, to purchase up to 2,500,000 shares at a purchase price of $5.00 per share. The offer was extended to August 10, 2018. 

Sources:  SEC, Blue Vault

 

Learn more about FS Investments on the Blue Vault Sponsor Focus page

 

FS Credit REIT to Change Offering from a Daily to Monthly NAV REIT

FS Investments Closes Transaction with EIG

FS Investments and KKR Creating Largest BDC Platform

Print Friendly, PDF & Email
Go Back
Ramón A. Rivera-Ramos
Blue Vault Nontraded REIT and Nontraded BDC Reviews
September 1, 2016

Blue Vault helps me to stay well informed on the financial status of both open and closed nontraded REITs and BDCs, so that I can help my clients better understand the product, before they make the decision to invest and after.