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Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 10-Q

 

 

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2012.

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-00757

 

 

FS Investment Corporation

(Exact name of registrant as specified in its charter)

 

 

 

Maryland   26-1630040

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

Cira Centre

2929 Arch Street, Suite 675

Philadelphia, Pennsylvania 19104

(Address of principal executive office)

(215) 495-1150

(Registrant’s telephone number, including area code)

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for shorter period that the registrant was required to submit and post such files).    Yes  ¨    No  ¨.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer   ¨    Accelerated filer   ¨
Non-accelerated filer   x  (Do not check if a smaller reporting company)    Smaller reporting company   ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x.

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

The issuer has 250,115,606 shares of common stock outstanding as of October 31, 2012.

 

 

 


Table of Contents

TABLE OF CONTENTS

 

          Page  

PART I—FINANCIAL INFORMATION

  

ITEM 1. FINANCIAL STATEMENTS

     1   
  

Consolidated Balance Sheets as of September 30, 2012 (Unaudited) and December 31, 2011

     1   
  

Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2012 and 2011

     2   
  

Unaudited Consolidated Statements of Changes in Net Assets for the nine months ended September 30, 2012 and 2011

     3   
  

Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2012 and 2011

     4   
  

Consolidated Schedules of Investments as of September 30, 2012 (Unaudited) and December 31, 2011

     5   
   Notes to Unaudited Consolidated Financial Statements      20   

ITEM 2.

  

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     46   

ITEM 3.

   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK      75   

ITEM 4.

   CONTROLS AND PROCEDURES      76   

PART II—OTHER INFORMATION

  

ITEM 1.

   LEGAL PROCEEDINGS      77   

ITEM 1A.

   RISK FACTORS      77   

ITEM 2.

   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS      82   

ITEM 3.

   DEFAULTS UPON SENIOR SECURITIES      82   

ITEM 4.

   MINE SAFETY DISCLOSURES      82   

ITEM 5.

   OTHER INFORMATION      82   

ITEM 6.

   EXHIBITS      83   
   SIGNATURES      87   


Table of Contents

PART I—FINANCIAL INFORMATION

 

Item 1. Financial Statements.

FS Investment Corporation

Consolidated Balance Sheets

(in thousands, except share and per share amounts)

 

 

 

     September 30,  2012
(Unaudited)
    December 31, 2011  

Assets

    

Investments, at fair value (amortized cost—$3,792,444 and $1,862,279, respectively)

   $ 3,900,618      $ 1,844,358   

Cash

     191,177        210,714   

Due from counterparty

     —          69,684   

Receivable for investments sold and repaid

     98,638        1,404   

Interest receivable

     47,837        16,535   

Deferred financing costs

     8,447        551   

Receivable due on total return swap(1)

     —          548   

Prepaid expenses and other assets

     181        431   
  

 

 

   

 

 

 

Total assets

   $ 4,246,898      $ 2,144,225   
  

 

 

   

 

 

 

Liabilities

    

Unrealized depreciation on total return swap(1)

   $ —        $ 1,996   

Payable for investments purchased

     198,640        64,367   

Credit facilities payable

     985,130        340,000   

Repurchase agreement payable(2)

     521,667        214,286   

Stockholder distributions payable

     16,868        10,543   

Management fees payable

     19,114        9,572   

Accrued capital gains incentive fee(3)

     33,920        —     

Administrative services expense payable

     1,609        154   

Interest payable

     5,711        2,525   

Other accrued expenses and liabilities

     2,318        1,890   
  

 

 

   

 

 

 

Total liabilities

     1,784,977        645,333   
  

 

 

   

 

 

 

Stockholders’ equity

    

Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding

     —          —     

Common stock, $0.001 par value, 450,000,000 shares authorized, 249,901,594 and 160,390,540 shares issued and outstanding, respectively

     250        160   

Capital in excess of par value

     2,378,136        1,517,365   

Accumulated undistributed net realized gains on investments and total return swap and gain/loss on foreign currency

     16,687        —     

Accumulated undistributed (distributions in excess of) net investment income(4)

     (41,326     1,284   

Net unrealized appreciation (depreciation) on investments and total return swap and gain/loss on foreign currency

     108,174        (19,917
  

 

 

   

 

 

 

Total stockholders’ equity

     2,461,921        1,498,892   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 4,246,898      $ 2,144,225   
  

 

 

   

 

 

 

Net asset value per share of common stock at period end

   $ 9.85      $ 9.35   

 

(1) See Note 8 for a discussion of the Company’s total return swap agreement, which was terminated on August 29, 2012.

 

(2) See Note 12 for a discussion of the Company’s repurchase transaction.

 

(3) See Note 2 for a discussion of the methodology employed by the Company in calculating the capital gains incentive fee.

 

(4) See Note 5 for a discussion of the sources of distributions paid by the Company.

See notes to unaudited consolidated financial statements.

 

1


Table of Contents

FS Investment Corporation

Unaudited Consolidated Statements of Operations

(in thousands, except share and per share amounts)

 

 

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2012     2011     2012      2011  

Investment Income

         

Interest income

   $ 84,015      $ 33,295      $ 197,548       $ 76,209   

Dividend income

     —          —          56         —     
  

 

 

   

 

 

   

 

 

    

 

 

 

Total investment income

     84,015        33,295        197,604         76,209   
  

 

 

   

 

 

   

 

 

    

 

 

 

Operating expenses

         

Management fees

     19,021        7,432        46,570         18,216   

Capitals gains incentive fees(1)

     17,421        (7,974     33,920         (4,063

Administrative services expenses

     1,782        915        4,116         1,903   

Stock transfer agent fees

     910        448        2,731         1,138   

Accounting and administrative fees

     280        298        1,126         692   

Interest expense

     7,744        2,922        18,271         7,382   

Other general and administrative expenses

     2,101        945        4,699         2,309   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total operating expenses

     49,259        4,986        111,433         27,577   
  

 

 

   

 

 

   

 

 

    

 

 

 

Net investment income

     34,756        28,309        86,171         48,632   
  

 

 

   

 

 

   

 

 

    

 

 

 

Realized and unrealized gain/loss

         

Net realized gain (loss) on investments

     10,259        2,433        14,853         22,456   

Net realized gain (loss) on total return swap(2)

     9,729        1,895        19,596         1,895   

Net realized gain (loss) on foreign currency

     521        —          534         —     

Net change in unrealized appreciation (depreciation) on investments

     69,216        (63,164     126,095         (64,728

Net change in unrealized appreciation (depreciation) on total return swap(2)

     (2,453     (8,887     1,996         (7,600

Net change in unrealized gain (loss) on foreign currency

     (261     (72     —           1   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total net realized and unrealized gain/loss on investments

     87,011        (67,795     163,074         (47,976
  

 

 

   

 

 

   

 

 

    

 

 

 

Net increase (decrease) in net assets resulting from operations

   $ 121,767      $ (39,486   $ 249,245       $ 656   
  

 

 

   

 

 

   

 

 

    

 

 

 

Per share information — basic and diluted

         

Net increase (decrease) in net assets resulting from operations

   $ 0.49      $ (0.37   $ 1.13       $ 0.01   
  

 

 

   

 

 

   

 

 

    

 

 

 

Weighted average shares outstanding

     248,310,640        106,877,357        219,768,484         77,057,690   
  

 

 

   

 

 

   

 

 

    

 

 

 

 

(1) See Note 2 for a discussion of the methodology employed by the Company in calculating the capital gains incentive fee.

 

(2) See Note 8 for a discussion of the Company’s total return swap agreement, which was terminated on August 29, 2012.

See notes to unaudited consolidated financial statements.

 

2


Table of Contents

FS Investment Corporation

Unaudited Consolidated Statements of Changes in Net Assets

(in thousands)

 

 

 

    Nine Months Ended
September 30,
 
    2012     2011  

Operations

   

Net investment income

  $ 86,171      $ 48,632   

Net realized gain (loss) on investments, total return swap and foreign currency(1)

    34,983        24,351   

Net change in unrealized appreciation (depreciation) on investments

    126,095        (64,728

Net change in unrealized appreciation (depreciation) on total return swap(1)

    1,996        (7,600

Net change in unrealized gain (loss) on foreign currency

    —          1   
 

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    249,245        656   
 

 

 

   

 

 

 

Stockholder distributions(2)

   

Distributions from net investment income

    (128,781     (48,572

Distributions from net realized gain on investments

    (18,296     (4,021
 

 

 

   

 

 

 

Net decrease in net assets resulting from stockholder distributions

    (147,077     (52,593
 

 

 

   

 

 

 

Capital share transactions

   

Issuance of common stock

    803,348        787,570   

Reinvestment of stockholder distributions

    72,417        21,661   

Repurchases of common stock

    (11,670     (3,253

Offering costs

    (3,234     (3,997
 

 

 

   

 

 

 

Net increase in net assets resulting from capital share transactions

    860,861        801,981   
 

 

 

   

 

 

 

Total increase in net assets

    963,029        750,044   

Net assets at beginning of period

    1,498,892        389,232   
 

 

 

   

 

 

 

Net assets at end of period

  $ 2,461,921      $ 1,139,276   
 

 

 

   

 

 

 

 

(1) See Note 8 for a discussion of the Company’s total return swap agreement, which was terminated on August 29, 2012.

 

(2) See Note 5 for a discussion of the sources of distributions paid by the Company.

See notes to unaudited consolidated financial statements.

 

3


Table of Contents

FS Investment Corporation

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

 

     Nine Months Ended
September 30,
 
     2012     2011  

Cash flows from operating activities

    

Net increase (decrease) in net assets resulting from operations

   $ 249,245      $ 656   

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:

    

Purchases of investments

     (2,837,344     (1,416,863

Paid-in-kind interest

     (2,432     (1,316

Proceeds from sales and repayments of investments

     937,138        783,196   

Net realized (gain) loss on investments

     (14,853     (22,456

Net change in unrealized (appreciation) depreciation on investments

     (126,095     64,728   

Net change in unrealized (appreciation) depreciation on total return swap(1)

     (1,996     7,600   

Net change in unrealized (gain) loss on foreign currency

     —          (1

Accretion of discount

     (12,674     (7,645

Amortization of deferred financing costs

     1,192        653   

(Increase) decrease in due from counterparty

     69,684        (69,673

(Increase) decrease in receivable for investments sold and repaid

     (97,234     1,867   

(Increase) decrease in interest receivable

     (31,302     (10,418

(Increase) decrease in receivable due on total return swap(1)

     548        (374

(Increase) decrease in prepaid expenses and other assets

     250        (16

Increase (decrease) in payable for investments purchased

     134,273        (5,448

Increase (decrease) in management fees payable

     9,542        4,123   

Increase (decrease) in accrued capital gains incentive fee

     33,920        (5,459

Increase (decrease) in administrative services expense payable

     1,455        484   

Increase (decrease) in interest payable

     3,186        841   

Increase (decrease) in other accrued expenses and liabilities

     428        1,065   
  

 

 

   

 

 

 

Net cash used in operating activities

     (1,683,069     (674,456
  

 

 

   

 

 

 

Cash flows from financing activities

    

Issuance of common stock

     803,348        787,570   

Reinvestment of stockholder distributions

     72,417        21,661   

Repurchases of common stock

     (11,670     (3,253

Offering costs

     (3,234     (3,997

Payments to investment adviser for offering and organization costs(2)

     —          (641

Stockholder distributions

     (140,752     (46,970

Borrowings under credit facilities(3)

     645,130        42,799   

Borrowings under repurchase agreement(4)

     307,381        109,286   

Deferred financing costs paid

     (9,088     (618
  

 

 

   

 

 

 

Net cash provided by financing activities

     1,663,532        905,837   
  

 

 

   

 

 

 

Total increase in cash

     (19,537     231,381   

Cash at beginning of period

     210,714        38,790   
  

 

 

   

 

 

 

Cash at end of period

   $ 191,177      $ 270,171   
  

 

 

   

 

 

 

Supplemental disclosure

    

Local and excise taxes paid

   $ 761      $ —     
  

 

 

   

 

 

 

 

 

(1) See Note 8 for a discussion of the Company’s total return swap agreement, which was terminated on August 29, 2012.

 

(2) See Note 4 for a discussion of reimbursements paid by the Company to its investment adviser and affiliates.

 

(3) See Notes 8, 10 and 13 for a discussion of the Company’s credit facilities. During the nine months ended September 30, 2012, the Company paid $6,104 in interest expense on the credit facilities.

 

(4) See Note 12 for a discussion of the Company’s repurchase transaction. During the nine months ended September 30, 2012, the Company paid $7,789 in interest expense pursuant to the repurchase agreement.

See notes to unaudited consolidated financial statements.

 

4


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments

As of September 30, 2012

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

  Industry   Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

Senior Secured Loans—First Lien—86.4%

       

A.P. Plasman Inc., L+850, 1.5% LIBOR Floor, 12/29/16(f)(h)(j)

  Industrials   $   54,175      $   53,222      $   54,717   

Academy, Ltd., L+450, 1.5% LIBOR Floor, 8/3/18(d)(e)

  Consumer Discretionary     9,870        9,839        9,923   

AccentCare, Inc., L+500, 1.5% LIBOR Floor, 12/22/16(d)

  Healthcare     2,053        1,851        1,693   

ADS Waste Holdings, Inc., L+400, 1.3% LIBOR Floor, 9/11/19(i)

  Industrials     5,293        5,240        5,331   

Advance Pierre Foods, Inc., L+525, 1.8% LIBOR Floor, 9/30/16(e)

  Consumer Staples     4,826        4,759        4,849   

Advantage Sales & Marketing Inc., L+375, 1.5% LIBOR Floor, 12/18/17(d)

  Industrials     4,562        4,555        4,592   

Airvana Network Solutions Inc., L+800, 2.0% LIBOR Floor, 3/25/15(f)(i)

  Telecommunication Services     10,754        10,551        10,799   

Airxcel Holdings Corp., L+575, 2.0% LIBOR Floor, 2/23/16(f)

  Consumer Discretionary     1,872        1,855        1,825   

AlixPartners, LLP, L+525, 1.3% LIBOR Floor, 6/28/19(d)(e)(f)

  Financials     14,963        14,815        15,199   

Alkermes, Inc., L+350, 1.0% LIBOR Floor, 9/18/19(d)(i)(j)

  Healthcare     4,211        4,168        4,237   

Allen Systems Group, Inc., L+575, 1.8% LIBOR Floor, 11/20/15(d)(g)

  Information Technology     6,932        6,741        6,706   

Alliant Holdings I, Inc., L+500, 1.8% LIBOR Floor, 8/21/14(d)

  Financials     3,339        3,339        3,349   

Allied Security Holdings, LLC, L+400, 1.3% LIBOR Floor, 2/3/17(d)

  Industrials     3,861        3,842        3,864   

Altegrity, Inc., L+600, 1.8% LIBOR Floor, 2/20/15(d)(e)

  Industrials     10,121        10,069        10,116   

American & Efird Global, LLC, L+900, 1.5% LIBOR Floor, 12/21/16(f)(h)

  Consumer Discretionary     43,960        42,989        44,400   

American Racing and Entertainment, LLC Term Loan A, L+700, 6/30/14(f)

  Consumer Discretionary     14,750        14,750        14,676   

American Racing and Entertainment, LLC Term Loan B, 9.0%, 6/30/14(f)

  Consumer Discretionary     7,750        7,750        7,750   

American Racing and Entertainment, LLC Term Loan C, 9.0%, 6/30/14(f)

  Consumer Discretionary     1,100        1,100        1,100   

Applied Systems, Inc., L+400, 1.5% LIBOR Floor, 12/8/16(d)

  Information Technology     3,515        3,498        3,527   

Aptalis Pharma Inc., L+400, 1.5% LIBOR Floor, 2/10/17(d)

  Healthcare     6,848        6,809        6,865   

Ardent Medical Services, Inc., L+500, 1.5% LIBOR Floor, 9/15/15(d)(e)

  Healthcare     13,248        13,157        13,347   

Aspect Software, Inc., L+450, 1.8% LIBOR Floor, 5/6/16(d)(e)

  Information Technology     9,435        9,206        9,323   

Asurion, LLC, L+400, 1.5% LIBOR Floor, 5/24/18(d)

  Financials     4,716        4,727        4,753   

Attachmate Corp., L+575, 1.5% LIBOR Floor, 11/22/17(d)(e)

  Information Technology     18,644        18,288        18,836   

Audio Visual Services Group, Inc., L+225, 2/28/14(g)(h)

  Information Technology     6,798        6,095        6,138   

Avaya Inc., L+275, 10/24/14(d)(e)

  Information Technology     4,554        4,438        4,433   

Avaya Inc., L+450, 10/26/17(d)(e)

  Information Technology     16,036        14,486        14,682   

Aveta Inc., L+650, 2.0% LIBOR Floor, 4/4/17(e)(h)

  Healthcare     19,163        18,885        19,330   

Avis Budget Car Rental, LLC, L+500, 1.3% LIBOR Floor, 9/22/18(d)(e)(j)

  Consumer Discretionary     4,950        4,917        4,995   

AZ Chem U.S. Inc., L+575, 1.5% LIBOR Floor, 12/22/17(h)

  Materials     3,936        3,830        4,024   

Barbri, Inc., L+450, 1.5% LIBOR Floor, 6/16/17(d)

  Consumer Discretionary     3,227        3,219        3,235   

Barrington Broadcasting Group LLC, L+600, 1.5% LIBOR Floor, 6/14/17(f)

  Consumer Discretionary     2,889        2,812        2,921   

Bausch & Lomb Inc., L+425, 1.0% LIBOR Floor, 5/17/19(d)

  Healthcare     1,988        1,994        2,013   

BBB Industries, LLC, L+450, 2.0% LIBOR Floor, 6/27/14(f)

  Consumer Discretionary     8,047        7,999        7,805   

BJ’s Wholesale Club, Inc., L+450, 1.3% LIBOR Floor, 9/20/19(d)(e)(i)

  Consumer Discretionary     20,000        19,799        20,127   

Blackboard Inc., L+600, 1.5% LIBOR Floor, 10/4/18(d)(e)(f)(h)

  Information Technology     44,535        41,587        45,008   

BostonMed Acquisition GmbH, L+475, 1.3% LIBOR Floor, 7/27/19(d)(j)

  Healthcare     5,366        5,339        5,414   

Boyd Gaming Corp., L+475, 1.3% LIBOR Floor, 12/17/15(d)(e)(j)

  Consumer Discretionary     5,984        5,886        6,069   

Brasa (Holdings) Inc., L+625, 1.3% LIBOR Floor, 7/19/19(d)

  Consumer Discretionary     5,833        5,761        5,863   

Brock Holdings III, Inc., L+450, 1.5% LIBOR Floor, 3/16/17(e)

  Energy     4,778        4,753        4,803   

Burlington Coat Factory Warehouse Corp., L+425, 1.3% LIBOR Floor, 2/23/17(d)

  Consumer Discretionary     4,022        4,029        4,073   

Bushnell Inc., L+425, 1.5% LIBOR Floor, 8/24/15(d)

  Consumer Discretionary     7,581        7,323        7,581   

Caesars Entertainment Operating Co., L+425, 1/26/18(d)(e)(f)(j)

  Consumer Discretionary     19,166        16,621        16,821   

Calpine Corp., L+325, 1.3% LIBOR Floor, 9/28/19(d)(i)(j)

  Energy     3,000        2,985        3,023   

Cannery Casino Resorts, LLC, L+475, 1.3% LIBOR Floor, 10/2/18(d)(i)

  Consumer Discretionary     4,000        3,960        4,005   

CCC Information Services Inc., L+425, 1.5% LIBOR Floor, 11/11/15(d)

  Information Technology     2,561        2,552        2,569   

CCM Merger, Inc., L+475, 1.3% LIBOR Floor, 3/1/17(d)

  Consumer Discretionary     4,759        4,704        4,818   

Cenveo Corp., L+513, 1.5% LIBOR Floor, 12/21/16(e)

  Consumer Discretionary     5,430        5,391        5,439   

Chrysler Group LLC, L+475, 1.3% LIBOR Floor, 5/24/17(d)(e)(f)(h)

  Industrials       28,001          26,942          28,629   

 

5

See notes to unaudited consolidated financial statements.


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2012

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

  Industry   Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

Citgo Petroleum Corp., L+600, 2.0% LIBOR Floor, 6/24/15(e)(j)

  Energy   $ 3,161      $ 3,195      $ 3,193   

Citgo Petroleum Corp., L+700, 2.0% LIBOR Floor, 6/23/17(e)(f)(j)

  Energy     8,773        8,741        8,944   

Clear Channel Communications, Inc., L+365, 1/28/16(e)(f)(i)

  Consumer Discretionary     31,811        25,300        26,107   

Collective Brands, Inc., L+600, 1.3% LIBOR Floor, 9/30/19(f)(i)(j)

  Consumer Discretionary     10,820        10,657        10,860   

CompuCom Systems, Inc., L+350, 8/23/14(d)

  Information Technology     1,739        1,697        1,748   

Consolidated Container Co. LLC, L+500, 1.3% LIBOR Floor, 7/3/19(d)

  Industrials     4,074        4,079        4,134   

The Container Store, Inc., L+500, 1.3% LIBOR Floor, 4/5/19(d)(e)

  Consumer Discretionary     13,097        13,032        13,114   

Corel Corp., L+700, 5/2/14(d)(j)

  Information Technology     9,700        9,642        9,749   

Crestwood Holdings LLC, L+825, 1.5% LIBOR Floor, 3/26/18(f)

  Energy     16,963        16,870        17,251   

Del Monte Foods Co., L+300, 1.5% LIBOR Floor, 3/8/18(d)

  Consumer Staples     2,876        2,830        2,881   

Deluxe Entertainment Services Group Inc., L+650, 1.5% LIBOR Floor, 7/3/17(h)

  Consumer Discretionary     11,292        10,886        11,200   

DigitalGlobe, Inc., L+450, 1.3% LIBOR Floor, 10/7/18(d)(j)

  Telecommunication Services     1,241        1,242        1,246   

Drumm Investors LLC, L+375, 1.3% LIBOR Floor, 5/4/18(d)(f)(i)

  Healthcare     17,296        16,299        16,720   

Dynegy Holdings Inc. (GasCo), L+775, 1.5% LIBOR Floor, 8/5/16(f)

  Energy     7,932        8,105        8,352   

Eastman Kodak Co., L+750, 1.0% LIBOR Floor, 7/19/13(g)(i)

  Information Technology     7,267        7,199        7,173   

Education Management LLC, L+400, 6/1/16(f)(j)

  Consumer Discretionary     3,989        3,194        3,371   

Education Management LLC, L+700, 1.3% LIBOR Floor, 3/29/18(e)(j)

  Consumer Discretionary     15,913        15,836        14,233   

Electrical Components International, Inc., L+525, 1.5% LIBOR Floor, 2/4/16(f)

  Industrials     235        217        234   

Electrical Components International, Inc., L+525, 1.5% LIBOR Floor, 2/4/17(g)

  Industrials     3,582        3,290        3,555   

Entercom Radio, LLC, L+500, 1.3% LIBOR Floor, 11/23/18(d)(e)(f)(j)

  Consumer Discretionary     5,308        5,279        5,377   

EquiPower Resources Holdings, LLC, L+500, 1.5% LIBOR Floor, 12/21/18(d)

  Utilities     4,988        5,009        5,062   

Fairmount Minerals, Ltd., L+400, 1.3% LIBOR Floor, 3/15/17(d)

  Materials     1,458        1,445        1,460   

Fairway Group Acquisition Co., L+675, 1.5% LIBOR Floor, 8/17/18(d)(f)(h)

  Consumer Discretionary     23,888        23,571        24,127   

FGI Operating Co., LLC, L+425, 1.3% LIBOR Floor, 4/19/19(d)

  Consumer Discretionary     2,661        2,670        2,687   

Fibertech Networks, LLC, L+450, 1.3% LIBOR Floor, 11/30/16(f)

  Telecommunication Services     2,819        2,826        2,848   

First Data Corp., L+400, 3/23/18(e)

  Information Technology     5,465        4,939        5,214   

First Data Corp., L+500, 3/24/17(e)

  Information Technology     490        422        490   

Flanders Corp., L+950, 1.5% LIBOR Floor, 5/16/18(f)(h)

  Industrials     39,293        38,363        39,489   

Fleetgistics Holdings, Inc., L+588, 2.0% LIBOR Floor, 3/23/15(f)

  Industrials     2,276        2,257        2,241   

Flexera Software, Inc., L+625, 1.3% LIBOR Floor, 9/29/17(d)

  Information Technology     2,940        2,938        2,955   

Florida Gaming Centers, Inc., 15.8%, 4/25/16(f)

  Consumer Discretionary     12,517        12,332        12,267   

Frac Tech International, LLC, L+475, 1.5% LIBOR Floor, 5/6/16(d)(e)(g)

  Energy     13,413        12,459        12,963   

Fram Group Holdings Inc., L+500, 1.5% LIBOR Floor, 7/29/17(d)(i)

  Industrials     1,995        1,955        1,987   

Freescale Semiconductor, Inc., L+425, 12/1/16(e)(j)

  Industrials     1,896        1,799        1,857   

FREIF North American Power I LLC (TLB), L+450, 1.5% LIBOR Floor, 3/29/19(d)

  Energy     5,581        5,595        5,651   

FREIF North American Power I LLC (TLC), L+450, 1.5% LIBOR Floor, 3/29/19(d)

  Energy     880        882        891   

Generac Power Systems, Inc., L+500, 1.3% LIBOR Floor, 2/9/19(d)(j)

  Consumer Discretionary     3,571        3,642        3,603   

Genesys Telecom Holdings, U.S., Inc., L+525, 1.5% LIBOR Floor, 1/31/19(d)(e)

  Telecommunication Services     4,117        4,085        4,181   

Getty Images, Inc., L+375, 1.5% LIBOR Floor, 11/7/16(d)

  Consumer Discretionary     1,406        1,406        1,409   

Goodman Global, Inc., L+400, 1.8% LIBOR Floor, 10/28/16(d)

  Consumer Discretionary     3,082        3,089        3,095   

Gymboree Corp., L+350, 1.5% LIBOR Floor, 2/23/18(d)

  Consumer Discretionary     9,501        8,625        9,287   

Halifax Media Holdings LLC, L+1050, 0.8% LIBOR Floor, 6/30/16(f)(h)

  Consumer Discretionary       17,041          16,683          16,700   

Hamilton Lane Advisors, LLC, L+500, 1.5% LIBOR Floor, 2/23/18(d)

  Financials     5,265        5,239        5,265   

Harbor Freight Tools USA, Inc., L+425, 1.3% LIBOR Floor, 12/22/17(d)

  Consumer Discretionary     7,692        7,691        7,744   

HarbourVest Partners L.P., L+475, 1.5% LIBOR Floor, 12/16/16(d)

  Financials     8,520        8,510        8,541   

Harland Clarke Holdings Corp., L+250, 6/30/14(e)(f)

  Industrials     10,717        9,734        10,167   

Hawaiian Telcom Communications, Inc., L+575, 1.3% LIBOR Floor, 2/28/17(d)(f)(h)

  Telecommunication Services     17,021        16,900        17,287   

HCR Healthcare LLC, L+350, 1.5% LIBOR Floor, 4/6/18(f)

  Healthcare     3,124        3,093        3,095   

The Hillman Group, Inc., L+350, 1.5% LIBOR Floor, 5/27/16(d)

  Consumer Discretionary     1,369        1,367        1,380   

Hubbard Radio, LLC, L+375, 1.5% LIBOR Floor, 4/28/17(d)

  Telecommunication Services     1,218        1,219        1,232   

 

See notes to unaudited consolidated financial statements.

 

6


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2012

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

  Industry   Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

Hunter Fan Co., L+250, 4/16/14(d)

  Consumer Discretionary   $ 3,967      $ 3,787      $ 3,841   

Hupah Finance Inc., L+500, 1.3% LIBOR Floor, 1/21/19(d)(e)

  Industrials     15,361        15,228        15,611   

Hyland Software, Inc., L+475, 1.3% LIBOR Floor, 12/19/16(d)

  Information Technology     8,409        8,388        8,440   

IASIS Healthcare LLC, L+375, 1.3% LIBOR Floor, 5/3/18(d)

  Healthcare     7,456        7,322        7,486   

Ikaria Acquisition Inc., L+650, 1.3% LIBOR Floor, 9/18/17(d)(i)

  Healthcare     3,977        3,957        3,987   

ILC Industries, LLC, L+600, 1.5% LIBOR Floor, 7/11/18(d)(h)

  Industrials     10,156        9,959        10,122   

Immucor, Inc., L+450, 1.25% LIBOR Floor, 8/17/18(d)(e)

  Healthcare     7,632        7,489        7,740   

INC Research, LLC, L+575, 1.3% LIBOR Floor, 7/12/18(d)(f)

  Healthcare     16,788        16,511        16,966   

Ineos Finance Plc, L+525, 1.3% LIBOR Floor, 5/4/18(d)(e)(f)(j)

  Materials     22,962        22,694        23,234   

Infogroup Inc., L+425, 1.5% LIBOR Floor, 5/25/18(d)

  Consumer Discretionary     4,228        3,706        3,805   

Intelsat Jackson Holdings SA, L+375, 1.5% LIBOR Floor, 4/2/18(d)(j)

  Telecommunication Services     2,963        2,964        2,973   

Intralinks, Inc., L+425, 1.5% LIBOR Floor, 6/15/14(f)(j)

  Information Technology     1,036        927        1,037   

Inventiv Health, Inc., L+500, 1.5% LIBOR Floor, 8/4/16(d)

  Healthcare     1,975        1,839        1,916   

inVentiv Health, Inc., L+525, 1.5% LIBOR Floor, 5/15/18(d)(e)

  Healthcare     10,533        10,125        10,244   

Ipreo Holdings LLC, L+650, 1.5% LIBOR Floor, 8/7/17(d)(f)

  Information Technology     18,655        18,366        18,889   

Jason Inc., L+625, 2.0% LIBOR Floor, 9/22/14(g)

  Industrials     3,389        3,376        3,389   

JHCI Acquisition, Inc., L+250, 6/19/14(d)

  Industrials     2,311        2,180        2,228   

KIK Custom Products Inc., L+225, 6/2/14(e)(j)

  Consumer Staples     10,301        9,627        9,754   

Kinetic Concepts, Inc., L+575, 1.3% LIBOR Floor, 5/4/18(h)

  Healthcare     3,606        3,458        3,663   

Kronos Inc., L+500, 1.3% LIBOR Floor, 12/28/17(d)

  Industrials     7,464        7,473        7,520   

La Paloma Generating Co., LLC, L+550, 1.5% LIBOR Floor, 8/25/17(e)(f)

  Energy     8,719        8,454        8,691   

Lantiq Deutschland GmbH, L+900, 2.0% LIBOR Floor, 11/16/15(f)(j)

  Information Technology     24,048        22,728        22,004   

Lawson Software, Inc., L+500, 1.3% LIBOR Floor, 4/5/18(d)(i)

  Information Technology     9,930        10,040        10,007   

Leading Edge Aviation Services, Inc., L+850, 1.5% LIBOR Floor, 4/5/18(d)(h)

  Industrials     36,434        35,759        36,069   

Lord & Taylor Holdings LLC, L+450, 1.3% LIBOR Floor, 1/11/19(d)

  Consumer Discretionary     848        852        856   

Maritime Telecommunications Network, Inc., L+600, 1.5% LIBOR Floor, 3/3/16(f)

  Telecommunication Services     6,651        6,580        6,285   

MedAssets, Inc., L+375, 1.5% LIBOR Floor, 11/16/16(d)(j)

  Healthcare     1,270        1,273        1,280   

Microsemi Corp., L+300, 1.0% LIBOR Floor, 2/2/18(d)(j)

  Industrials     3,463        3,467        3,492   

MModal Inc., L+550, 1.3% LIBOR Floor, 8/15/19(e)

  Healthcare     4,545        4,478        4,517   

Monitronics International, Inc., L+425, 1.3% LIBOR Floor, 3/16/18(d)(j)

  Consumer Discretionary     4,815        4,840        4,874   

Mood Media Corp., Prime+450, 5/7/18(d)(j)

  Consumer Discretionary     5,083        5,032        5,080   

National Vision, Inc., L+575, 1.3% LIBOR Floor, 8/2/18(d)

  Consumer Discretionary     4,788        4,798        4,854   

Natural Products Group, LLC, Prime+400, 6.0% Prime Floor, 3/5/15(g)

  Consumer Discretionary     1,482        1,410        1,423   

Navistar, Inc., L+550, 1.5% LIBOR Floor, 8/17/17(d)(e)(f)(h)(i)(j)

  Industrials     22,167        22,096        22,460   

NCI Building Systems, Inc., L+675, 1.3% LIBOR Floor, 5/2/18(d)(e)(g)(h)

  Industrials       28,077          27,201          28,000   

NCO Group, Inc., L+675, 1.3% LIBOR Floor, 4/3/18(e)(h)

  Information Technology     19,900        19,527        20,043   

NPC International, Inc., L+400, 1.25% LIBOR Floor, 12/28/18(d)(e)

  Consumer Discretionary     4,282        4,202        4,336   

NSH Merger Sub, Inc., L+650, 1.8% LIBOR Floor, 2/2/17(d)(f)(i)

  Healthcare     19,042        18,861        18,755   

NuSil Technology LLC, L+400, 1.3% LIBOR Floor, 4/7/17(d)

  Materials     3,432        3,415        3,439   

Nuveen Investments, Inc., L+550, 5/13/17(d)

  Financials     9,000        9,004        8,957   

NXP BV, L+400, 1.3% LIBOR Floor, 3/19/19(d)(j)

  Industrials     5,970        5,981        6,063   

NXP BV, L+425, 1.3% LIBOR Floor, 3/3/17(d)(j)

  Industrials     2,357        2,382        2,412   

On Assignment, Inc., L+375, 1.3% LIBOR Floor, 5/15/19(d)(j)

  Industrials     5,492        5,461        5,519   

Onex Carestream Finance L.P., L+350, 1.5% LIBOR Floor, 2/25/17(d)(f)

  Healthcare     14,768        14,601        14,676   

OpenLink International, Inc., L+625, 1.5% LIBOR Floor, 10/30/17(f)(h)

  Information Technology     7,262        7,132        7,326   

Orbitz Worldwide, Inc., L+300, 7/25/14(d)(j)

  Consumer Discretionary     4,216        4,037        4,119   

Ozburn-Hessey Holding Co., LLC, L+625, 2.0% LIBOR Floor, 4/8/16(d)(f)

  Industrials     6,312        6,116        6,060   

Panda Sherman Power, LLC, L+750, 1.5% LIBOR Floor, 9/13/18(d)(i)

  Energy     9,273        9,189        9,319   

Panda Temple Power, LLC (TLA), Prime+600, 7/17/18(f)

  Energy     3,000        3,000        3,030   

Party City Holdings Inc., L+450, 1.3% LIBOR Floor, 7/26/19(d)(e)(f)

  Consumer Discretionary     16,635        16,552        16,874   

 

See notes to unaudited consolidated financial statements.

 

7


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2012

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

  Industry   Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

Pelican Products, Inc., L+550, 1.5% LIBOR Floor, 7/11/18(d)

  Industrials   $ 2,980      $ 2,950      $ 2,970   

Peninsula Gaming LLC, L+450, 1.3% LIBOR Floor, 8/3/17(f)(i)(j)

  Consumer Discretionary     4,605        4,559        4,683   

Pharmaceutical Product Development, Inc., L+500, 1.3% LIBOR Floor, 12/5/18(d)(e)

  Healthcare     14,384        14,230        14,542   

PL Propylene LLC, L+575, 1.3% LIBOR Floor, 3/23/17(d)(j)

  Materials     9,950        9,769        10,112   

Presidio, Inc., L+450, 1.3% LIBOR Floor, 3/31/17(d)(f)(g)(h)

  Industrials     20,340        20,241        20,238   

Princeton Review, Inc., L+550, 1.5% LIBOR Floor, 12/7/14(g)

  Consumer Discretionary     1,169        1,063        1,041   

Property Data (U.S.) I, Inc., L+550, 1.5% LIBOR Floor, 1/4/17(f)

  Information Technology     4,295        4,248        4,252   

Protection One, Inc., L+450, 1.3% LIBOR Floor, 3/21/19(d)

  Consumer Discretionary     5,050        5,065        5,120   

PRV Aerospace, LLC, L+525, 1.3% LIBOR Floor, 5/9/18(d)

  Industrials     5,000        4,988        5,013   

RadNet Management, Inc., L+375, 2.0% LIBOR Floor, 4/6/16(d)

  Healthcare     8,190        8,120        8,175   

RBS Holding Co. LLC, Prime+600, 3/23/17(d)

  Consumer Discretionary     9,875        5,969        6,172   

RBS Worldpay, Inc., L+400, 1.25% LIBOR Floor, 11/30/17(d)

  Financials     1,522        1,524        1,534   

RedPrairie Corp., L+500, 1.0% LIBOR Floor, 8/6/18(d)

  Information Technology     2,446        2,442        2,462   

Remy International, Inc., L+450, 1.8% LIBOR Floor, 12/16/16(d)(e)(j)

  Consumer Discretionary     3,926        3,848        3,946   

Reynolds Group Holdings, Inc., L+375, 1.5% LIBOR Floor, 9/20/18(d)(e)(j)

  Consumer Discretionary     10,495        10,495        10,549   

Rocket Software, Inc., L+550, 1.5% LIBOR Floor, 2/8/18(d)

  Information Technology     4,963        4,981        4,997   

Roofing Supply Group LLC, L+525, 1.3% LIBOR Floor, 5/24/19(d)

  Industrials     5,880        5,902        5,955   

Roundy’s Supermarkets, Inc., L+450, 1.3% LIBOR Floor, 2/13/19(d)(j)

  Consumer Staples     2,783        2,651        2,734   

Sabre Inc., L+575, 12/29/17(d)(i)

  Consumer Discretionary     1,493        1,477        1,486   

Sabre Inc., L+600, 1.3% LIBOR Floor, 12/29/17(e)

  Consumer Discretionary     8,491        8,407        8,570   

Safariland, LLC, L+925, 1.5% LIBOR Floor, 7/27/18(d)(f)(h)

  Industrials     45,581        44,693        45,581   

Sagittarius Restaurants LLC, L+550, 2.0% LIBOR Floor, 5/18/15(d)(f)

  Consumer Discretionary     6,825        6,788        6,834   

Scitor Corp., L+350, 1.5% LIBOR Floor, 2/15/17(d)

  Industrials     2,947        2,883        2,922   

Scotsman Industries, Inc., L+425, 1.5% LIBOR Floor, 4/29/16(d)

  Industrials     1,193        1,194        1,199   

Shell Topco L.P., L+750, 1.5% LIBOR Floor, 9/28/18(d)(h)

  Energy       33,000          32,505          32,505   

Sheridan Holdings, Inc., L+475, 1.3% LIBOR Floor, 6/29/18(g)

  Healthcare     2,971        2,942        3,002   

Sheridan Production Co., LLC, L+450, 2.0% LIBOR Floor, 4/20/17(e)

  Energy     12,237        12,175        12,283   

Shield Finance Co. Sarl, L+525, 1.3% LIBOR Floor, 5/10/19(f)(j)

  Information Technology     11,002        10,844        11,071   

Sitel, LLC, L+675, 1/30/17(e)

  Telecommunication Services     5,966        5,733        5,623   

Six3 Systems, Inc., L+575, 1.3% LIBOR Floor, 10/4/19(d)(i)

  Information Technology     7,674        7,598        7,598   

Smile Brands Group Inc., L+525, 1.8% LIBOR Floor, 12/21/17(d)(e)

  Healthcare     7,096        7,021        7,140   

Sophia, L.P., L+500, 1.3% LIBOR Floor, 7/19/18(d)(e)(f)

  Information Technology     18,836        18,681        19,090   

Sorenson Communication, Inc., L+400, 2.0% LIBOR Floor, 8/16/13(d)(e)(f)(h)(i)

  Telecommunication Services     41,546        40,632        41,299   

Spansion LLC, L+350, 1.3% LIBOR Floor, 2/9/15(e)(j)

  Information Technology     11,385        11,309        11,489   

Sports Authority, Inc., L+600, 1.5% LIBOR Floor, 11/16/17(d)(e)(f)(i)

  Consumer Discretionary     26,476        26,236        26,559   

Sprouts Farmers Markets Holdings, LLC, L+475, 4/18/16

  Consumer Discretionary     4,876        4,876        4,608   

Sprouts Farmers Markets Holdings, LLC, L+475, 1.3% LIBOR Floor, 4/18/18(d)

  Consumer Discretionary     4,816        4,756        4,804   

SRA International, Inc., L+525, 1.3% LIBOR Floor, 7/20/18(d)(e)(f)

  Industrials     26,410        25,477        26,190   

Star West Generation LLC, L+450, 1.5% LIBOR Floor, 5/17/18(d)(e)

  Energy     10,154        10,071        10,179   

Summit Entertainment, LLC, L+550, 1.25% LIBOR Floor, 9/7/16(e)

  Consumer Discretionary     7,975        7,869        7,990   

Surgery Center Holdings, Inc., L+500, 1.5% LIBOR Floor, 2/6/17(d)(f)(h)

  Healthcare     14,731        14,499        14,731   

Surgical Care Affiliates, LLC, L+400, 12/29/17(h)

  Healthcare     2,710        2,409        2,710   

SymphonyIRI Group, Inc., L+375, 1.3% LIBOR Floor, 12/1/17(d)

  Information Technology     2,079        2,065        2,083   

Taminco Global Chemical Corp., L+400, 1.3% LIBOR Floor, 2/15/19(d)(j)

  Industrials     478        479        484   

TASC, Inc., L+325, 1.3% LIBOR Floor, 12/18/15(d)

  Industrials     976        965        977   

Technicolor SA, EURIBOR+500, 2.0% LIBOR Floor, 5/26/16(j)

  Information Technology     2,345        2,752        2,952   

Technicolor SA, EURIBOR+600, 2.0% LIBOR Floor, 5/26/17(j)

  Information Technology     6,279        7,364        7,904   

Technicolor SA, L+500, 2.0% LIBOR Floor, 5/26/16(j)

  Information Technology     1,659        1,498        1,628   

Technicolor SA, L+600, 2.0% LIBOR Floor, 5/26/17(j)

  Information Technology     4,376        3,950        4,296   

 

See notes to unaudited consolidated financial statements.

 

8


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2012

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

  Industry   Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

Texas Competitive Electric Holdings Co. LLC, L+350, 10/10/14(e)(g)(i)

  Utilities   $ 54,391      $ 38,112      $ 40,590   

Texas Competitive Electric Holdings Co. LLC, L+450, 10/10/17(g)

  Utilities     38,867        26,474        26,838   

TI Group Automotive Systems, LLC, L+550, 1.3% LIBOR Floor, 3/14/18(d)(e)(j)

  Industrials     12,978        12,611        13,076   

Titlemax, Inc., L+850, 1.5% LIBOR Floor, 6/15/15(f)(h)

  Industrials     25,000        24,770        25,250   

Total Safety U.S., Inc., L+625, 1.3% LIBOR Floor, 10/31/17(d)(f)

  Energy     9,925        9,679        10,024   

Totes Isotoner Corp., L+575, 1.5% LIBOR Floor, 7/7/17(d)

  Consumer Discretionary     7,253        7,146        7,217   

Toys “R” Us-Delaware, Inc., L+450, 1.5% LIBOR Floor, 9/1/16(d)(e)(i)

  Consumer Discretionary     8,865        8,833        8,860   

TravelCLICK, Inc., L+500, 1.5% LIBOR Floor, 3/16/16(d)

  Industrials     7,856        7,760        7,787   

Travelport LLC, L+450, 8/21/15(e)(f)(g)

  Consumer Discretionary     15,682        14,214        14,996   

Trinseo Materials Operating S.C.A., L+650, 1.5% LIBOR Floor, 8/2/17(e)

  Materials     3,656        3,656        3,514   

Truven Health Analytics Inc., L+550, 1.3% LIBOR Floor, 6/6/19(d)(e)

  Healthcare     10,938        10,800        11,051   

Twin-Star International, Inc., L+400, 4/24/13(f)

  Consumer Discretionary     7,621        7,526        7,583   

U.S. Security Associates Holdings, Inc., L+475, 1.25% LIBOR Floor, 7/28/17(d)

  Consumer Discretionary     4,681        4,681        4,702   

Unifrax I LLC, L+500, 1.5% LIBOR Floor, 11/28/18(e)(f)

  Industrials       13,994        13,731        14,163   

United Surgical Partners International Inc., L+475, 1.3% LIBOR Floor, 4/3/19(d)

  Healthcare     4,385        4,383        4,444   

Univar Inc., L+350, 1.5% LIBOR Floor, 6/30/17(e)

  Materials     6,525        6,525        6,506   

Univision Communications Inc., L+425, 3/31/17(e)(f)

  Consumer Discretionary     9,593        8,537        9,498   

Virtual Radiologic Corp., Prime+450, 12/22/16(g)

  Healthcare     3,546        3,483        3,150   

Vision Solutions, Inc., L+450, 1.5% LIBOR Floor, 7/22/16(d)

  Information Technology     7,400        7,346        7,377   

VPG Group Holdings LLC, L+900, 1.0% LIBOR Floor, 10/4/16(f)(h)

  Materials     55,775        54,835        55,496   

Wall Street Systems Holdings, Inc., L+400, 1.5% LIBOR Floor, 6/20/17(d)

  Information Technology     2,392        2,375        2,389   

WASH Multifamily Laundry Systems, LLC, Prime+375, 8/28/14(g)

  Industrials     3,850        3,819        3,845   

Web.com Group, Inc., L+550, 1.5% LIBOR Floor, 10/27/17(e)(f)(h)(j)

  Information Technology     31,285        28,104        31,598   

West Corp., L+450, 1.3% LIBOR Floor, 6/29/18(d)

  Information Technology     7,315        7,260        7,420   

Wide Open West Finance LLC, L+500, 1.3% LIBOR Floor, 7/17/18(d)(e)

  Consumer Discretionary     10,391        10,220        10,499   

Willbros Group, Inc., L+750, 2.0% LIBOR Floor, 6/30/14(h)(j)

  Energy     4,205        4,208        4,231   

WireCo WorldGroup Inc., L+475, 1.3% LIBOR Floor, 2/15/17(d)

  Industrials     6,067        6,040        6,173   

Woodstream Corp., L+350, 8/29/14(f)(g)

  Consumer Discretionary     2,235        2,164        2,195   

Zayo Group, LLC, L+588, 1.3% LIBOR Floor, 7/2/19(d)

  Telecommunication Services     7,125        6,985        7,208   
     

 

 

   

 

 

 

Total Senior Secured Loans—First Lien

          2,099,076          2,141,839   

Unfunded Loan Commitments

        (13,726     (13,726
     

 

 

   

 

 

 

Net Senior Secured Loans—First Lien

        2,085,350        2,128,113   
     

 

 

   

 

 

 

Senior Secured Loans—Second Lien—23.2%

       

Advance Pierre Foods, Inc., L+950, 1.8% LIBOR Floor, 9/29/17(e)(f)

  Consumer Staples     19,000        19,070        19,171   

Advantage Sales & Marketing Inc., L+775, 1.5% LIBOR Floor, 6/18/18(e)(f)(i)

  Industrials     20,314        20,366        20,339   

AlixPartners, LLP, L+925, 1.5% LIBOR Floor, 12/27/19(e)

  Financials     15,000        14,560        15,244   

American Racing and Entertainment, LLC, 12.0%, 7/2/18

  Consumer Discretionary     16,800        16,205        15,792   

Asurion, LLC, L+750, 1.5% LIBOR Floor, 5/24/19(d)(e)

  Financials     12,229        12,178        12,686   

Atlantic Broadband Finance, LLC, L+850, 1.3% LIBOR Floor, 10/4/19(e)(f)

  Consumer Discretionary     22,000        21,865        23,072   

Attachmate Corp., L+950, 1.5% LIBOR Floor, 11/22/18(e)(f)

  Information Technology     29,000        28,119        28,500   

BJ’s Wholesale Club, Inc., L+850, 1.3% LIBOR Floor, 9/18/20(e)(f)(i)

  Consumer Discretionary     8,298        8,215        8,422   

Blackboard Inc., L+1000, 1.5% LIBOR Floor, 4/4/19(f)(g)

  Information Technology     22,000        20,059        20,900   

BNY ConvergEx Group, LLC, L+700, 1.8% LIBOR Floor, 12/18/17(f)(g)

  Information Technology     9,000        9,022        8,387   

Brasa (Holdings) Inc., L+950, 1.5% LIBOR Floor, 1/20/20(f)

  Consumer Discretionary     17,391        16,709        17,565   

Brock Holdings III, Inc., L+825, 1.8% LIBOR Floor, 3/16/18(e)

  Energy     6,923        6,814        6,992   

Camp International Holding Co., L+875, 1.3% LIBOR Floor, 11/29/19(d)

  Information Technology     6,207        6,087        6,333   

Cannery Casino Resorts, LLC, L+875, 1.3% LIBOR Floor, 10/2/19(i)

  Consumer Discretionary     12,000        11,760        12,000   

DEI Sales, Inc., L+850, 1.5% LIBOR Floor, 1/15/18(f)(g)

  Consumer Discretionary     46,800        46,008        47,268   

EquiPower Resources Holdings, LLC, L+850, 1.5% LIBOR Floor, 6/21/19(d)

  Utilities     7,000        6,864        7,134   

 

See notes to unaudited consolidated financial statements.

 

9


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2012

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

  Industry   Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

FR Brand Acquisition Corp., L+600, 2/6/15(e)

  Industrials   $ 10,000      $ 9,304      $ 9,562   

FR Brand Acquisition Corp., L+700, 2/7/15(e)

  Industrials     3,000        2,878        2,865   

Fram Group Holdings Inc., L+900, 1.5% LIBOR Floor, 1/29/18(e)

  Industrials     7,000        6,970        6,370   

Goodman Global, Inc., L+700, 2.0% LIBOR Floor, 10/30/17(e)

  Consumer Discretionary     4,455        4,389        4,532   

Hubbard Radio, LLC, L+725, 1.5% LIBOR Floor, 4/30/18(f)

  Telecommunication Services     1,429        1,417        1,457   

ILC Industries, LLC, L+1000, 1.5% LIBOR Floor, 6/14/19(f)(g)

  Industrials     37,000        35,649        36,445   

JHCI Acquisition, Inc., L+550, 12/19/14(g)

  Industrials     11,250        10,470        10,055   

JW Aluminum Co., L+675, 12/9/13(f)

  Materials     20,714        16,732        16,520   

Kinetek Acquisition Corp., L+550, 5/10/14(d)

  Industrials     500        462        475   

Kronos Inc., L+900, 6/11/18(e)

  Industrials     3,000        2,979        2,985   

Mood Media Corp., Prime+775, 11/6/18(e)(f)(j)

  Consumer Discretionary     23,325        23,154        22,844   

NES Rentals Holdings, Inc., L+1150, 1.8% LIBOR Floor, 10/14/14(g)

  Industrials     8,500        8,456        8,500   

Paw Luxco II Sarl, EURIBOR+950, 1/29/19(j)

  Consumer Discretionary     20,000        23,660        22,548   

Pelican Products, Inc., L+1000, 1.5% LIBOR Floor, 6/14/19(d)

  Industrials   $ 6,667        6,538        6,700   

Pregis Corp., L+1000, 1.5% LIBOR Floor, 3/23/18(f)(g)

  Industrials     45,000        44,177        44,550   

Samson Investment Co., L+475, 1.3% LIBOR Floor, 9/25/18(d)(i)

  Energy     5,515        5,473        5,557   

Sedgwick CMS Holdings Inc., L+750, 1.5% LIBOR Floor, 5/30/17

  Industrials     500        500        502   

Sensus U.S.A. Inc., L+725, 1.3% LIBOR Floor, 5/9/18(d)(e)

  Industrials     8,571        8,577        8,571   

Sheridan Holdings, Inc., L+775, 1.3% LIBOR Floor, 7/1/19(f)

  Healthcare     2,727        2,701        2,768   

SMG Holdings, Inc., L+950, 1.3% LIBOR Floor, 12/3/18(f)

  Consumer Discretionary     23,529        23,078        23,765   

Southern Pacific Resource Corp., Prime+750, 1/7/16(e)(f)(j)

  Energy     13,728        13,596        13,911   

SRAM, LLC, L+750, 1.5% LIBOR Floor, 12/7/18(d)

  Consumer Discretionary     5,000        4,958        5,088   

TPF Generation Holdings, LLC, L+425, 12/15/14(e)

  Energy     4,713        4,485        4,713   

TriZetto Group, Inc., L+725, 1.3% LIBOR Floor, 3/27/18(i)

  Information Technology     9,302        9,163        9,250   

Vertafore, Inc., L+825, 1.5% LIBOR Floor, 10/27/17(e)

  Information Technology     14,750        14,701        14,824   

Web.com Group, Inc., L+950, 1.5% LIBOR Floor, 10/26/18(d)(f)(j)

  Information Technology     15,700        15,376        16,171   
     

 

 

   

 

 

 

Total Senior Secured Loans—Second Lien

          563,744          571,333   
     

 

 

   

 

 

 

Senior Secured Bonds—16.1%

       

Advanced Lighting Technologies, Inc., 10.5%, 6/1/19(f)(g)

  Industrials     75,000        73,161        74,250   

Allen Systems Group, Inc., 10.5%, 11/15/16(f)

  Information Technology     15,323        14,156        10,113   

Aspect Software, Inc., 10.6%, 5/15/17(e)

  Information Technology     4,000        4,000        3,990   

Avaya Inc., 7.0%, 4/1/19(e)(f)

  Information Technology     10,500        9,752        9,752   

Cenveo Corp., 8.9%, 2/1/18(e)(f)

  Consumer Discretionary     23,788        21,639        22,494   

Chester Downs & Marina, LLC, 9.3%, 2/1/20(e)(j)

  Consumer Discretionary     3,750        3,785        3,808   

Chrysler Group LLC, 8.3%, 6/15/21(f)

  Industrials     10,000        10,230        10,683   

Eastman Kodak Co., 10.6%, 3/15/19(f)(l)

  Information Technology     14,500        12,092        9,335   

Eastman Kodak Co., 9.8%, 3/1/18(l)

  Information Technology     18,992        13,846        12,243   

Energy Future Intermediate Holding Co. LLC, 11.8%, 3/1/22(f)

  Energy     14,250        14,699        15,176   

Energy Future Intermediate Holding Co. LLC, 6.9%, 8/15/17(g)

  Energy     1,100        1,100        1,144   

First Data Corp., 6.8%, 11/1/20

  Information Technology     2,000        1,984        1,992   

HOA Restaurant Group, LLC, 11.3%, 4/1/17(f)

  Consumer Discretionary     14,100        14,128        13,131   

Ineos Finance Plc, 7.5%, 5/1/20(e)(j)

  Materials     850        850        870   

Ineos Finance Plc, 8.4%, 2/15/19(e)(j)

  Materials     3,000        3,000        3,164   

Kinetic Concepts, Inc., 10.5%, 11/1/18(e)(f)

  Healthcare     18,660        18,079        19,780   

Neff Rental LLC., 9.6%, 5/15/16

  Industrials     1,352        1,364        1,366   

NES Rental Holdings, Inc., 12.3%, 4/15/15(f)(g)

  Industrials       19,450        19,374        19,597   

Paetec Holdings Corp., 8.9%, 6/30/17(e)(j)

  Telecommunication Services     4,680        4,774        5,090   

Palace Entertainment Holdings, LLC, 8.9%, 4/15/17(e)

  Consumer Discretionary     2,400        2,400        2,557   

PH Holding LLC, 9.8%, 12/31/17(f)

  Industrials     10,000        9,800        9,800   

Reynolds Group Holdings, Inc., 5.8%, 10/15/20(e)(j)

  Consumer Discretionary     6,750        6,750        6,750   

 

See notes to unaudited consolidated financial statements.

 

10


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2012

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

  Industry   Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

Reynolds Group Holdings, Inc., 7.1%, 4/15/19(e)(j)

  Consumer Discretionary   $ 3,000      $ 3,125      $ 3,178   

Ryerson Inc., 9.0%, 10/15/17(e)(i)

  Industrials     3,100        3,100        3,119   

Sorenson Communication, Inc., 10.5%, 2/1/15(g)

  Telecommunication Services     34,000        28,751        29,899   

Speedy Cash Intermediate Holdings Corp., 10.8%, 5/15/18(f)

  Financials     16,000        16,172        16,865   

Symbion, Inc., 8.0%, 6/15/16(e)(f)

  Healthcare     12,460        12,318        12,772   

Taminco Global Chemical Corp., 9.8%, 3/31/20(f)(j)

  Industrials     2,750        2,750        2,970   

Technicolor SA, 9.4%, 4/23/16(g)(j)

  Information Technology     2,484        2,299        2,490   

Technicolor SA, 9.4%, 5/26/17(g)(i)(j)

  Information Technology     14,057        12,958        14,092   

Texas Competitive Electric Holdings Co. LLC, 11.5%, 10/1/20(f)

  Utilities     10,000        9,914        7,900   

Titlemax, Inc., 13.3%, 7/15/15(f)

  Industrials     14,500        15,155        16,167   

Travelport LLC, L+600 PIK, 12/1/16(g)

  Consumer Discretionary     22,567        17,576        17,141   

United Refining, Co., 10.5%, 2/28/18(f)

  Energy     1,185        1,149        1,287   

Univision Communications Inc., 6.9%, 5/15/19(f)

  Consumer Discretionary     6,800        6,753        6,998   

Viasystems Group Inc., 7.9%, 5/1/19(e)(j)

  Industrials     5,000        5,000        4,988   
     

 

 

   

 

 

 

Total Senior Secured Bonds

          397,983          396,951   
     

 

 

   

 

 

 

Subordinated Debt—23.7%

       

Advantage Sales & Marketing Inc., 13.0%, 12/23/18(g)

  Industrials     10,000        9,813        9,850   

Alpha Natural Resources, Inc., 6.3%, 6/1/21(f)(j)

  Materials     4,000        4,000        3,385   

Alta Mesa Holdings, LP, 9.6%, 10/15/18(e)

  Energy     1,200        1,212        1,206   

Asurion, LLC, L+950, 1.5% LIBOR Floor, 8/16/19(f)

  Financials     15,000        14,576        16,000   

Aurora Diagnostics, LLC, 10.8%, 1/15/18(f)

  Healthcare     20,065        20,121        20,316   

Aurora USA Oil & Gas, Inc., 9.9%, 2/15/17(g)(j)

  Energy     3,000        3,043        3,215   

BakerCorp. International Inc., 8.3%, 6/1/19(f)

  Industrials     5,000        5,000        5,075   

Bresnan Broadband Holdings LLC, 8.0%, 12/15/18(e)(j)

  Telecommunication Services     5,000        5,000        5,300   

Burlington Coat Factory Warehouse Corp., 10.0%, 2/15/19(g)

  Consumer Discretionary     4,334        4,017        4,819   

Calumet Lubricants Co., L.P., 9.4%, 5/1/19(f)(j)

  Energy     5,800        5,800        6,257   

Calumet Lubricants Co., L.P., 9.6%, 8/1/20(f)(j)

  Energy     1,500        1,474        1,623   

Cenveo Corp., 7.9%, 12/1/13(g)

  Consumer Discretionary     4,000        3,736        4,003   

Chesapeake Energy Corp., L+700, 1.5% LIBOR Floor, 12/2/17(e)(f)(g)(j)

  Energy     130,000        128,850        130,562   

Cincinnati Bell Inc., 8.4%, 10/15/20(e)(j)

  Telecommunication Services     11,000        10,852        11,880   

Comstock Resources, Inc., 9.5%, 6/15/20(e)(f)(j)

  Energy     21,000        20,036        22,508   

Cumulus Media Inc., 7.8%, 5/1/19(f)(j)

  Consumer Discretionary     5,000        4,438        4,888   

Del Monte Foods Co., 7.6%, 2/15/19(e)

  Consumer Staples     3,500        3,498        3,618   

Entercom Radio, LLC, 10.5%, 12/1/19(e)(j)

  Consumer Discretionary     13,500        13,355        14,775   

Everest Acquisition LLC, 9.4%, 5/1/20(e)

  Energy     7,750        7,750        8,467   

Flanders Corp., 10.0%, 3.8% PIK, 5/14/18(g)

  Industrials     8,154        7,962        8,194   

Gymboree Corp., 9.1%, 12/1/18(g)

  Consumer Discretionary     5,000        4,481        4,797   

Harland Clarke Holdings Corp., 9.5%, 5/15/15(g)

  Industrials     2,689        2,409        2,258   

Infiltrator Systems, Inc., 12.0%, 2.0% PIK, 3/11/18

  Industrials       63,239        62,144        63,239   

Ipreo Holdings LLC, 11.8%, 8/15/18(f)

  Information Technology     10,000        9,958        10,300   

J.Crew Group, Inc., 8.1%, 3/1/19(g)

  Consumer Discretionary     1,200        1,200        1,260   

JBS U.S.A. LLC, 8.3%, 2/1/20(e)(j)

  Consumer Staples     3,000        2,959        2,982   

Kinetic Concepts, Inc., 12.5%, 11/1/19

  Healthcare     11,700        11,333        11,247   

Lone Pine Resources Canada Ltd., 10.4%, 2/15/17(g)(j)

  Energy     5,000        4,935        4,437   

Monitronics International, Inc., 9.1%, 4/1/20(e)(j)

  Consumer Discretionary     2,250        2,250        2,362   

Nuance Communications Inc., 5.4%, 8/15/20(g)(j)

  Information Technology     750        750        776   

The Pantry Inc., 8.4%, 8/1/20(g)(j)

  Consumer Discretionary     5,500        5,500        5,692   

Party City Holdings, Inc., 8.9%, 8/1/20(g)

  Consumer Discretionary     600        600        640   

Pharmaceutical Product Development, Inc., 9.5%, 12/1/19(g)

  Healthcare     2,900        2,900        3,262   

Prestige Brands Holdings, Inc., 8.1%, 2/1/20(e)(j)

  Consumer Discretionary     4,500        4,500        4,805   

 

See notes to unaudited consolidated financial statements.

 

11


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2012

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

  Industry   Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

QR Energy, L.P., 9.3%, 8/1/20(e)(j)

  Energy   $ 3,250      $ 3,205      $ 3,336   

Quicksilver Resources Inc., 7.1%, 4/1/16(e)(j)

  Energy     1,000        885        868   

Resolute Energy Corp., 8.5%, 5/1/20(e)(j)

  Energy     10,500        10,634        10,789   

Samson Investment Co., 9.8%, 2/15/20(e)(f)

  Energy     19,420        19,636        20,068   

SandRidge Energy, Inc., 8.1%, 10/15/22(e)(j)

  Energy     7,500        7,500        7,956   

Sequel Industrial Products Holdings, LLC, 12.0%, 2.5% PIK, 5/10/18(g)

  Energy     15,500        15,206        15,500   

Symmetry Medical Inc., 12.0%, 2.0% PIK, 12/29/17(g)(j)

  Healthcare     32,833        31,939        33,161   

ThermaSys Corp., 10.0%, 2.5% PIK, 12/31/16

  Industrials     85,662        84,076        85,662   

Univar Inc., 12.0%, 6/30/18(f)

  Materials     3,000        2,952        3,105   
     

 

 

   

 

 

 

Total Subordinated Debt

          566,485          584,443   
     

 

 

   

 

 

 

Collateralized Securities—4.0%

       

Apidos CDO IV Class E, L+360, 10/27/18(g)(j)

  Financials     2,000        1,185        1,549   

Ares 2007 CLO 11A Class E, L+600, 10/11/21(g)(j)

  Financials     4,775        3,179        4,025   

Ares 2007 CLO 12X Class E, L+575, 11/25/20(g)(j)

  Financials     2,252        1,808        1,959   

Blue Mountain CLO III Class E, L+355, 3/17/21(g)(j)

  Financials     2,000        965        1,458   

Carlyle Azure CLO Class Income, 22.5%, 5/27/20(j)

  Financials     28,000        13,919        18,480   

Dryden CDO 23A Class E, L+700, 7/20/23(j)

  Financials     4,500        3,628        4,070   

Dryden CDO 23A Class Subord., 15.2%, 7/17/23(j)

  Financials     10,000        7,907        9,200   

Franklin CLO 6A Class E, L+425, 8/9/19(g)(j)

  Financials     1,919        1,233        1,622   

Galaxy VII CLO Class Subord., 25.9%, 10/13/18(j)

  Financials     2,000        981        1,916   

Lightpoint CLO 2006 V Class D, L+365, 8/5/19(g)(j)

  Financials     6,500        3,411        4,775   

Lightpoint CLO 2007 VII Class D, L+400, 5/15/21(g)(j)

  Financials     4,000        2,355        3,081   

Mountain View CLO II Class Pref., 29.8%, 1/12/21(j)

  Financials     9,225        5,101        8,654   

Octagon CDO 2007 1A Class Income, 69.2%, 8/25/21(j)

  Financials     4,000        1,987        4,790   

Octagon CLO 2006 10A Class Income, 42.6%, 10/18/20(j)

  Financials     4,375        2,545        4,724   

Rampart CLO 2007 1A Class Subord., 44.0%, 10/25/21(j)

  Financials     10,000        5,716        11,321   

Stone Tower CLO VI Class Subord., 40.7%, 4/17/21(g)(j)

  Financials     5,000        3,103        6,358   

Trimaran CLO IV Ltd. Class Pref., 38.8%, 12/1/17(j)

  Financials     12,500        6,490        9,751   
     

 

 

   

 

 

 

Total Collateralized Securities

        65,513        97,733   
     

 

 

   

 

 

 

See notes to unaudited consolidated financial statements.

 

12


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2012

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

  Industry   Number
of Shares
    Amortized
Cost
    Fair
Value(c)
 

Equity/Other—5.0%(k)

       

Aquilex Corp., Common Equity, Class A Shares(f)(l)

  Energy     15,128      $ 2,266      $ 5,507   

Aquilex Corp., Common Equity, Class B Shares(f)(g)(l)

  Energy     32,637        4,889        11,880   

Flanders Corp., Common Equity(g)(l)

  Industrials     5,000,000        5,000        6,000   

Florida Gaming Centers, Inc., Strike: $0.01, Warrants(g)(l)

  Consumer Discretionary     71        —          42   

Florida Gaming Corp., Strike: $25.00, Warrants(g)(l)

  Consumer Discretionary     226,635        —          —     

Ipreo Holdings LLC, Common Equity(g)(l)

  Information Technology     1,000,000        1,000        1,300   

JW Aluminum Co., Common Equity(g)(l)

  Materials     37,500        3,225        —     

Leading Edge Aviation Services, Inc., Common Equity(g)(l)

  Industrials     2,623        262        —     

Leading Edge Aviation Services, Inc., Preferred Equity(g)(l)

  Industrials     738        738        637   

Milagro Holdings, LLC, Common Equity(g)(l)

  Energy     12,057        50        —     

Milagro Holdings, LLC, Preferred Equity(l)

  Energy     283,947        11,181        9,001   

Plains Offshore Operations Inc., Preferred Equity(f)(g)

  Energy     520,342        51,135        52,366   

Plains Offshore Operations Inc., Strike: $20.00, Warrants(f)(g)(l)

  Energy     1,013,444        1,722        2,179   

Safariland, LLC, Common Equity(g)(l)

  Industrials     25,000        2,500        2,647   

Safariland, LLC, Preferred Equity(g)

  Industrials     1,021        9,874        10,056   

Safariland, LLC, Warrants(g)(l)

  Industrials     2,263        246        240   

Sequel Industrial Products Holdings, LLC, Common Equity(g)(l)

  Energy     3,330,600        3,400        3,997   

Sequel Industrial Products Holdings, LLC, Preferred Equity(g)(l)

  Energy     85,963        7,644        8,178   

Sequel Industrial Products Holdings, LLC, Strike: $100.00, Warrants(g)(l)

  Energy     20,681        555        14   

ThermaSys Corp., Common Equity(g)(l)

  Industrials     51,813        1        570   

ThermaSys Corp., Preferred Equity(g)(l)

  Industrials     51,813        5,181        5,181   

VPG Group Holdings LLC, Class A-2 Units(g)(l)

  Materials     2,500,000        2,500        2,250   
     

 

 

   

 

 

 

Total Equity/Other

        113,369        122,045   
     

 

 

   

 

 

 

TOTAL INVESTMENTS—158.4%

      $   3,792,444        3,900,618   
     

 

 

   

LIABILITIES IN EXCESS OF OTHER ASSETS—(58.4%)

            (1,438,697
       

 

 

 

NET ASSETS—100.0%

        $ 2,461,921   
       

 

 

 

 

(a) Security may be an obligation of one or more entities affiliated with the named company.

 

(b) Denominated in U.S. dollars unless otherwise noted.

 

(c) Fair value determined by the Company’s board of directors (see Note 7).

 

(d) Security or portion thereof held within Arch Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Citibank, N.A. (see Note 8).

 

(e) Security or portion thereof held within Broad Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Deutsche Bank AG, New York Branch (see Notes 10 and 11).

 

(f) Security or portion thereof held within Locust Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the Class A Notes issued to Race Street Funding LLC pursuant to an indenture with Citibank, N.A., as trustee (see Note 12).

 

(g) Security or portion thereof held within Race Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the repurchase agreement with JPMorgan Chase Bank, N.A., London Branch (see Note 12).

 

(h) Security or portion thereof held within Walnut Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Wells Fargo Bank, National Association (see Note 13).

 

(i) Position or portion thereof unsettled as of September 30, 2012.

 

(j) The investment is not a qualifying asset under the Investment Company Act of 1940, as amended. A business development company may not acquire any asset other than qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets. As of September 30, 2012, 78.9% of the Company’s total assets represented qualifying assets.

 

(k) Listed investments may be treated as debt for GAAP or tax purposes.

 

(l) Security is non-income producing.

See notes to unaudited consolidated financial statements.

 

13


Table of Contents

FS Investment Corporation

Consolidated Schedule of Investments

As of December 31, 2011

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

   Industry    Principal
Amount(b)
     Amortized
Cost
     Fair
Value(c)
 

Senior Secured Loans—First Lien—68.3%

           

1-800 Contacts, Inc., L+395, 3.8% LIBOR Floor, 3/4/15(e)

   Healthcare    $ 5,446       $ 5,236       $ 5,406   

A.P. Plasman Inc., L+850, 1.5% LIBOR Floor, 12/29/16(e)(g)

   Industrials      55,000         53,902         53,900   

Academy, Ltd., L+450, 1.5% LIBOR Floor, 8/3/18(d)

   Consumer Discretionary      5,000         4,953         4,961   

Advance Pierre Foods, Inc., L+525, 1.8% LIBOR Floor, 9/30/16(d)

   Consumer Staples      4,875         4,797         4,870   

Airvana Network Solutions Inc., L+800, 2.0% LIBOR Floor, 3/18/15(e)(f)

   Telecommunication Services      5,077         5,000         5,093   

Altegrity, Inc., L+600, 1.8% LIBOR Floor, 2/21/15(d)

   Industrials      5,860         5,795         5,831   

American & Efird Global, LLC, L+900, 1.5% LIBOR Floor, 12/21/16(e)

   Consumer Discretionary        40,000           39,005           39,000   

American Racing & Entertainment, LLC, Term Loan A, L+700, 6/30/14(e)

   Consumer Discretionary      15,500         15,500         15,345   

American Racing & Entertainment, LLC, Term Loan B, 9.0%, 6/30/14(e)

   Consumer Discretionary      7,750         7,750         7,634   

American Racing & Entertainment, LLC, Term Loan C, 9.0%, 6/30/14(e)

   Consumer Discretionary      2,550         2,550         2,512   

Amscan Holdings, Inc., L+525, 1.5% LIBOR Floor, 12/2/17(d)

   Consumer Discretionary      8,834         8,822         8,803   

AmWINS Group, Inc., L+250, 6/8/13(d)

   Financials      941         847         917   

Ardent Health Services LLC, L+500, 1.5% LIBOR Floor, 9/15/15(d)

   Healthcare      10,364         10,264         10,293   

Aspect Software, Inc., L+450, 1.8% LIBOR Floor, 5/7/16(d)

   Information Technology      1,965         1,951         1,964   

Attachmate Corp., L+500, 1.5% LIBOR Floor, 4/27/17(d)

   Information Technology      9,875         9,789         9,689   

Avaya Inc., L+275, 10/24/14(d)

   Information Technology      2,608         2,498         2,500   

Avaya Inc., L+450, 10/26/17(d)

   Information Technology      8,224         7,275         7,515   

Avis Budget Car Rental, LLC, L+500, 1.3% LIBOR Floor, 9/22/18(d)(g)

   Consumer Discretionary      7,222         7,081         7,279   

AZ Chem U.S. Inc., L+575, 1.5% LIBOR Floor, 12/22/17(f)

   Materials      5,000         4,850         4,992   

Barrington Broadcasting Group LLC, L+600, 1.5% LIBOR Floor, 6/14/17

   Consumer Discretionary      3,125         3,032         3,117   

BJ’s Wholesale Club, Inc., L+575, 1.3% LIBOR Floor, 9/29/18(d)

   Consumer Discretionary      18,000         17,117         18,079   

Blackboard Inc., L+600, 1.5% LIBOR Floor, 10/4/18(d)(e)

   Information Technology      40,385         37,252         38,391   

Boyd Gaming Corp., L+475, 1.3% LIBOR Floor, 12/17/15(d)(g)

   Consumer Discretionary      6,218         6,096         6,162   

Brock Holdings III, Inc., L+450, 1.5% LIBOR Floor, 3/14/17(d)

   Energy      4,963         4,932         4,829   

Canwest LP, L+500, 1.3% LIBOR Floor, 7/23/16(d)(g)

   Consumer Discretionary      6,182         6,226         6,096   

Carestream Health, Inc., L+350, 1.5% LIBOR Floor, 2/25/17

   Healthcare      9,924         9,880         8,946   

CCC Information Services Inc., L+400, 1.5% LIBOR Floor, 11/11/15(d)

   Information Technology      1,562         1,550         1,563   

Cenveo Corp., L+475, 1.5% LIBOR Floor, 12/21/16(d)(g)

   Consumer Discretionary      6,249         6,197         6,185   

Ceridian Corp., L+300, 11/9/14(d)

   Industrials      9,346         8,593         8,449   

Chrysler Group LLC, L+475, 1.3% LIBOR Floor, 5/24/17(d)(e)

   Industrials      25,634         23,769         24,327   

Citgo Petroleum Corp., L+700, 2.0% LIBOR Floor, 6/24/17(d)(e)(g)

   Energy      8,840         8,804         9,036   

Clear Channel Capital I, LLC, L+365, 1/29/16(f)

   Consumer Discretionary      10,000         7,544         7,428   

ConvaTec Inc., L+425, 1.5% LIBOR Floor, 12/22/16(d)

   Healthcare      2,291         2,282         2,276   

Corel Corp., L+400, 5/2/12(e)(g)

   Information Technology      1,234         1,204         1,203   

Custom Building Products, Inc., L+400, 1.8% LIBOR Floor, 3/1/15(d)

   Materials      2,318         2,303         2,275   

Data Device Corp., L+550, 1.8% LIBOR Floor, 12/23/16(e)

   Industrials      12,293         12,062         11,955   

Datatel, Inc., L+500, 1.3% LIBOR Floor, 7/19/18(d)(f)

   Information Technology      14,400         14,184         14,423   

Decision Resources LLC, L+550, 1.5% LIBOR Floor, 12/6/16(d)

   Healthcare      1,985         1,992         1,906   

Del Monte Foods Co., L+300, 1.5% LIBOR Floor, 3/8/18

   Consumer Staples      898         830         855   

Deluxe Entertainment Services Group Inc., L+650, 1.5% LIBOR Floor, 7/3/17(f)

   Consumer Discretionary      15,000         14,400         14,447   

Drumm Investors LLC, L+375, 1.3% LIBOR Floor, 5/4/18

   Healthcare      7,462         6,838         6,544   

Dynegy Power, LLC, L+775, 1.5% LIBOR Floor, 8/5/16(f)(g)

   Energy      2,993         3,060         3,040   

East Cameron Partners, L.P., 18.0%, 10/11/12

   Energy      249         249         254   

Entercom Radio, LLC, L+500, 1.3% LIBOR Floor, 11/23/18

   Consumer Discretionary      2,410         2,362         2,410   

Equipower Resources Holdings, LLC, L+425, 1.5% LIBOR Floor, 1/26/18

   Utilities      1,572         1,558         1,493   

Fairway Group Acquisition Co., L+600, 1.5% LIBOR Floor, 3/3/17(d)(e)

   Consumer Discretionary      21,592         21,537         20,985   

First Data Corp., L+275, 9/24/14(d)

   Information Technology      3,442         3,111         3,143   

First Data Corp., L+400, 3/24/18(d)

   Information Technology      9,465         8,117         7,953   

First Reserve Crestwood Holdings LLC, L+850, 2.0% LIBOR Floor, 10/3/16(e)

   Energy      6,052         6,043         6,158   

Florida Gaming Centers, Inc., 15.8%, 4/25/16(e)

   Consumer Discretionary        13,000           12,773           12,480   

 

See notes to unaudited consolidated financial statements.

 

14


Table of Contents

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2011

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

   Industry    Principal
Amount(b)
     Amortized
Cost
     Fair
Value(c)
 

Frac Tech International, LLC, L+475, 1.5% LIBOR Floor, 5/6/16(d)

   Energy    $ 4,838       $ 4,719       $ 4,781   

Freescale Semiconductor, Inc., L+425, 12/1/16(d)(g)

   Industrials      1,896         1,785         1,819   

Goodman Global, Inc., L+400, 1.8% LIBOR Floor, 10/28/16(d)

   Consumer Discretionary      1,692         1,679         1,696   

Gymboree Corp., L+350, 1.5% LIBOR Floor, 2/23/18

   Consumer Discretionary      7,997         7,098         7,140   

Harbor Freight Tools USA, Inc., L+500, 1.5% LIBOR Floor, 12/22/17(d)

   Consumer Discretionary      9,778         9,694         9,750   

Harland Clarke Holdings Corp., L+250, 6/30/14(d)(f)(g)

   Industrials      6,824         5,876         5,795   

HCR Manor Care, Inc., L+350, 1.5% LIBOR Floor, 4/6/18(e)

   Healthcare      3,148         3,112         2,895   

Hupah Finance Inc., L+500, 1.3% LIBOR Floor, 1/21/19(d)

   Industrials      9,649         9,456         9,625   

Immucor, Inc. , L+575, 1.5% LIBOR Floor, 8/19/18(d)

   Healthcare      7,824         7,525         7,886   

INC Research, LLC, L+575, 1.3% LIBOR Floor, 7/12/18(e)

   Healthcare      11,970         11,629         11,731   

Intelligrated, Inc., L+575, 1.8% LIBOR Floor, 2/18/17(e)

   Information Technology      4,750         4,709         4,726   

Intralinks, Inc., L+425, 1.5% LIBOR Floor, 6/15/14(e)(g)

   Information Technology      1,045         894         1,013   

inVentiv Health, Inc., L+525, 1.5% LIBOR Floor, 5/15/18(d)

   Healthcare      5,073         5,025         4,870   

Ipreo Holdings LLC, L+650, 1.5% LIBOR Floor, 8/7/17(e)

   Information Technology        14,642           14,306           14,312   

J.Crew Group, Inc., L+350, 1.3% LIBOR Floor, 3/7/18

   Consumer Discretionary      3,990         3,499         3,758   

KIK Custom Products Inc., L+225, 5/31/14(d)(g)

   Consumer Staples      10,382         9,446         8,898   

Kinetic Concepts, Inc., L+575, 1.3% LIBOR Floor, 5/4/18(d)

   Healthcare      14,388         13,750         14,538   

Klune Industries, Inc., L+700, 2.0% LIBOR Floor, 8/31/17(e)

   Industrials      71,858         70,492         72,426   

La Paloma Generating Co., LLC, L+550, 1.5% LIBOR Floor, 8/25/17

   Energy      5,785         5,511         5,657   

Lantiq Deutschland GmbH, L+700, 2.0% LIBOR Floor, 11/16/15(d)(e)(g)

   Information Technology      10,707         10,682         9,369   

Maritime Telecommunications Network, Inc., L+600, 1.5% LIBOR Floor, 3/4/16(e)

   Telecommunication Services      7,359         7,265         7,327   

MDA Info Products Ltd., L+550, 1.5% LIBOR Floor, 1/4/17

   Information Technology      4,950         4,888         4,216   

Mood Media Corp., L+550, 1.5% LIBOR Floor, 5/4/18(d)(g)

   Consumer Discretionary      3,658         3,625         3,405   

Mosaic U.S. Holdings Inc., L+275, 4/3/13(e)

   Consumer Discretionary      873         744         829   

NCO Group, Inc., L+500, 2.5% LIBOR Floor, 5/15/13(d)

   Information Technology      7,480         7,454         7,420   

Norit Holding BV, L+525, 1.5% LIBOR Floor, 7/8/17(d)(g)

   Industrials      3,069         3,027         3,100   

NPC International, Inc., L+525, 1.5% LIBOR Floor, 12/28/18(d)

   Consumer Discretionary      4,304         4,218         4,320   

NSH Merger Sub, Inc., L+650, 1.8% LIBOR Floor, 2/3/17(e)

   Healthcare      15,401         15,298         14,978   

OpenLink International, Inc., L+625, 1.5% LIBOR Floor, 10/25/17

   Information Technology      7,317         7,173         7,345   

Ozburn-Hessey Holding Co., LLC, L+550, 2.0% LIBOR Floor, 4/8/16(d)

   Industrials      3,504         3,498         3,097   

Pharmaceutical Product Development, Inc., L+500, 1.3% LIBOR Floor, 12/5/18(d)

   Healthcare      12,681         12,492         12,623   

Playboy Enterprises, Inc., L+650, 1.8% LIBOR Floor, 3/4/17

   Consumer Discretionary      5,557         5,567         5,334   

Presidio Inc., L+550, 1.8% LIBOR Floor, 3/31/17(e)(f)

   Industrials      13,250         13,046         13,124   

Protection One, Inc., L+425, 1.8% LIBOR Floor, 6/4/16(d)

   Consumer Discretionary      2,239         2,214         2,228   

Remy International, Inc., L+450, 1.8% LIBOR Floor, 12/17/13(d)(g)

   Consumer Discretionary      4,052         3,959         4,005   

Res-Care, Inc., L+550, 1.8% LIBOR Floor, 12/22/16(e)

   Consumer Discretionary      4,950         4,867         4,727   

Reynolds Group Holdings, Inc., L+525, 1.3% LIBOR Floor, 2/9/18(d)(g)

   Consumer Discretionary      1,969         1,905         1,961   

Reynolds Group Holdings, Inc., L+525, 1.3% LIBOR Floor, 7/31/18(d)(g)

   Consumer Discretionary      9,746         9,654         9,707   

Sagittarius Restaurants LLC, L+550, 2.0% LIBOR Floor, 5/18/15(e)

   Consumer Discretionary      2,592         2,571         2,576   

Sealed Air Corp., L+375, 1.0% LIBOR Floor, 10/3/18(d)(g)

   Industrials      6,425         6,301         6,498   

Sheridan Production Co., LLC, L+550, 2.0% LIBOR Floor, 4/20/17(d)

   Energy      10,342         10,262         10,362   

Shield Finance Co. Sarl, L+563, 2.0% LIBOR Floor, 6/15/16(e)(g)

   Information Technology      4,664         4,642         4,664   

Sitel, LLC, L+675, 1/30/17(d)

   Telecommunication Services      5,966         5,705         5,691   

Smile Brands Group Inc., L+525, 1.8% LIBOR Floor, 12/21/17(d)

   Healthcare      5,906         5,830         5,896   

Sorenson Communication, Inc., L+400, 2.0% LIBOR Floor, 8/16/13(d)

   Telecommunication Services      14,289         13,889         13,832   

Spansion, LLC, L+550, 2.0% LIBOR Floor, 2/9/15(d)(g)

   Information Technology      10,818         10,705         10,696   

Sports Authority, Inc., L+600, 1.5% LIBOR Floor, 11/16/17(d)

   Consumer Discretionary      9,910         9,668         9,588   

Sprouts Farmers Markets, LLC, L+475, 1.3% LIBOR Floor, 4/15/17

   Consumer Discretionary      5,250         5,250         4,804   

SRA International, Inc., L+525, 1.3% LIBOR Floor, 7/20/18(d)(e)

   Industrials      17,522         16,694         16,588   

Star West Generation LLC, L+450, 1.5% LIBOR Floor, 5/17/18(d)

   Utilities      4,231         4,211         4,167   

Styron Sarl, L+450, 1.5% LIBOR Floor, 6/14/16(d)

   Materials      4,089         4,089         3,553   

 

See notes to unaudited consolidated financial statements.

 

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Table of Contents

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2011

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

   Industry    Principal
Amount(b)
     Amortized
Cost
    Fair
Value(c)
 

Summit Entertainment, LLC, L+600, 1.5% LIBOR Floor, 8/28/16(d)

   Consumer Discretionary    $ 13,523       $ 13,359      $ 13,388   

Summit Materials Companies I, LLC, L+500, 1.5% LIBOR Floor, 12/31/15(d)

   Materials      3,960         3,891        3,935   

Surgery Center Holdings, Inc., L+500, 1.5% LIBOR Floor, 2/6/17(d)

   Healthcare      993